marketers get their ideas for new P&S from …
monitoring and studying the marketing environment
what analysis is used to analyze the marketing environment ?
SWOT analysis
- strengths
- weaknesses
- opportunities
- threats
why analyze the marketing environment ? (4 reasons)
- detect changes that impact company performance
- businesses rethink what/how they offer products
- maximize market segmentation possibilities
- keep an eye on competitors
what is market segmentation ?
- splitting market into small groups of consumers who hav similar preferences
- knowing ur consumers more precisely
- ex. by age, major, lifestyle, etc.
at the “heart” of the analysis is what ?
consumers
what does value-based marketing aim to provide ?
greater value to consumers than competitors offer
how are consumers influenced by the firm’s micro-environment ?
- actions of company
- company’s competition
- corporate partners that work w firms
why does a firm monitor their macro-environment ?
to determine how much factors influence consumers & how to respond to them
what are the macro-envionrmental factors ?
aka CDSTEP
- culture: values & norms
- demographics: age, education, income, race etc.
- social/natural:
- technology: AI, robotics, IOT
- economic: interest rates, inflation, currency fluctuations
- political/legal: rules, laws, regulations
what are 2 dimensions of culture markets must take into account ?
- country culture: artifacts, behaviour, dress symbols, physical setting, ceremonies, language differences, colours & tastes, food preferences
- regional subcultures: when people in different parts of a particular country have different customs, behaviors, or ways of talking about things because of where they live (ex. football vs soccer)
what is challenging for marketers in terms of culture ?
having products or services identifiable & relevant to a particular group of people
what do demographics indicate ?
describe who people are, so companies know who to sell to
what are generational cohorts ?
- group of people of the same generation
- hav similar purchase behaviours (shared experiences)
what are the 4 major groups of generational cohorts ?
- gen Z: digital natives, tiktok, born into a techy world, boron after ‘93
- gen Y: millennials, skeptical abt what they hear in media, between ‘81 - ‘92
- gen X: economic recessions, travel around the world, demand convenience, between ‘65 & ‘80
- baby boomers: after WW2, leisure time high priority, maintaining their youth, between ‘46 & ‘64
income is tied to …
purchasing power
Canadians are classified in what 3 groups based on income ?
- upper class: tend to buy luxury items, likely to be highly educated & work in executive roles, economic conditions don’t affect their spending
- middle class: afford good life (most of the time), careful about spending, value conscious
- working/lower class: barely enough income to cover basic needs
how is education related to income ?
higher level of education, high the income (better jobs)
what is the impact of technological advances on markets ?
- improved value of P&S
- impacted new products, new forms of communication & new retail channels
- access to internet everywhere
how do mobile devices enhance the customer’s experience ?
easier to interact with manufacturer, retailer or other customers
how do marketers use AI ?
- advanced customer segmentation
- media selection & buying
- customer engagement
what do AI solutions rely on ?
computer systems to perform tasks that require human intelligence like speed recognition, decision making or translations
describe IOT
internet of things: smart devices connect to the internet to collect & share data to save time & resources
how can IOT be useful to retailers & manufacturers ?
- optimize inventories
- predict need for maintenance services
what is economic situation ?
economic changes that affect the way consumers buy merchandises & spend money
