1 Chapter 3 & 4 - The Marketing Environments. 2 The Marketing Environment Consist of the internal (microenvironment) and the external environment (macroenvironment).

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Chapter 3 & 4 - The Marketing Environments

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The Marketing Environment

Consist of the internal (microenvironment) and the external environment (macroenvironment).

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The Micro-environment

Company

FOUR BASIC CATEGORIES

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The microenvironment: Company

Total organization – many different functional areas

Interactive Flexible and creative

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The microenvironment: Customers

Business-to-consumer Business-to-business Business –to-Institutional

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The microenvironment: Competition

Four general types of competition:– Price– Quality– Time (particular important in services)– Location

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The microenvironment: Competition (forces that impact an industry’s competitive environment)

Porter’s Competitive Forces:

1. Supplier power

2. Threat of substitutes

3. Degree of rivalry

4. Buying power of the customer

5. Barriers to entry

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The microenvironment: Collaborators

Alliances Networks Informal partnerships Suppliers Virtual corporations

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Company

The Value Chain - Exhibit 3-2

UPSTREAM

DOWNSTREAM

PRIMARYACTIVITIES

Raw MaterialsSupplier

ComponentsSupplier

ServiceSupplier

Transportationcompany

Wholesaler

Retailer

Customers

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Macroenvironment

1. Physical Environment

2. Sociocultural Forces

3. Demographic Forces

4. Science and Technology

5. Economic Forces

6. Political and Legal Forces

Consists of SIX broad categories

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Exhibit 4-1: Macroenvironment influences on the marketing mix

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MACROENVIRONMENT:Demography

The Canadian Population– www.populationconnection.org– Canadian population growth attributed to immigration

Migration and Urbanization1. “Golden Horseshoe” – Ontario

2. Montreal and the adjacent regions

3. B.C.’s lower mainland and southern Vancouver Island

4. Calgary-Edmonton Corridor

•51% of Canadianslive in one of thesefour areas;

•80% of Canadians are urban dwellers

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MACROENVIRONMENT:Demography

Profile of the “Average Canadian Consumer”

The Changing Canadian Household

Single-Person and Single-Parent Households

Working Women Family and Household

Income A Multi-cultural Population