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10 Cards in this Set
- Front
- Back
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What area the six macroenvironmental factors?
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Competitors
Demographics Social/Cultural trends Technology Economic Political/Regulatory |
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Elaborate on competitors.
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- Use competitive intelligence (CI) - collection and synthesizing of information about their position wrt to their rivals that enables orgs to anticipate market dev rather than simply reacting
- Strategies to collect CI: review public materials, interview, analyze rival |
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Elaborate on demographics
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- Demographics indicate the countable characteristics of human populations and segments, especially those used to identify consumer markets such as age gender income and education
- give a 'snapshot' of the typical consumer in a specific target market |
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What are the generational cohorts?
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- Seniors: fastest-growing group; aged 63+; increasingly purchasing more than ever before
- Baby boomers: born between 1946-64; individualistic, leisure time is a priority, believe they will always be able to take care of themselves; quest for youth - Gen X: 1965-76; considerable spending power; cynical; risk-averse; less interested in status - Gen Y: 1977-1995: more skeptical; tech saavy - Tweens: immense buying power |
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How can use various demographics?
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- Age: see generational cohorts
- Income: upper middle class - high discretionary incomes and purchase luxury items; middle class - afford a good life most of the time, careful about spending; working class - barely sufficient income to cover basic needs; under class - Education: higher education = better jobs = more spending power - Gender: women make the majority of purchasing decisions |
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Elaborate on social trends.
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- Greener consumers: involve a strategic effort to supply customers with environmentally friendly merchandise
- Privacy concerns: protect consumers from identity theft, etc. - Time-Poor society: less time for leisure and family; there are more choices for consumers to spend their time; must move advertising to where consumers are spending their free time |
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Elaborate on cultural trends.
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- Ethnicity: 20% of Canadians were not born here and account for 70% of population growth; identify with the specific cultures
- Culture: the shared meanings, beliefs, morals, values, and customs of a group of people; determine a relevant identifier for a particular group of people - Country Culture: artifacts, behaviour, dress, symbols, physical settings. ceremonies, language differences colours and tastes, food preferences of a country - Regional subcultures: regions vary in tastes and preferences |
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Elaborate on technological advances.
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- Technology has accelerated rapidly
- Media enters our homes in several ways now |
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Elaborate on economic situation.
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- economic situation: economic changes that affect the way consumers buy merchandise and spend money, both in a marketer's home country and abroad
- inflation: persistent increase in prices - foreign currency fluctuations: changes in the value of a country's currency relative to the currency of another country - interest rates: cost of borrowing money |
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Elaborate on political/regulatory environment.
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- comprises of political parties, government orgs, and legislation and laws that promote or inhibit trade and marketing activities
- legislation has been created to protect consumers in a variety of ways - laws exist on specific industries |
