The environment is constantly changing therefore new marketing strategies must evolve. A business must anticipate change and react accordingly with its marketing strategies.
A variety of economic factors influence the state of the Canadian economy. In good times Marketing is aggressive & in bad times it’s conservative!!
GDPEmployment
InflationCanadian $
Interest Rates
The relationship between these influences is dynamic. A marketer must adjust marketing strategies accordingly. The U.S.A. is Canada's largest trading partner and when the $ is high(like now) our goods are less attractive to Americans so sales drop which affects many things!
Competition from alternate or substitute products: Coke, Pepsi, 7Up, Dr. Pepper or Sony, Kodak, Cannon, Olympus & Fuji all compete in the camera market
Competition from products offering similar benefits. Coke also competes with Gatorade, Dasani, Fruitopia and Red Bull and in retailing the likes of Shoppers, Jean Coutu, Zellers, Wall Mart and Sears competing for the pharmacy market share
Demographics is the study of the characteristics of the population. Market planners analyze trends like the following categories: the challenge is to keep present older customers while trying to attract younger ones & ethnic
Many experts believe technology is the single biggest force that will shape and reshape the marketplace. New products, new packaging and the emergence of electronic commerce and communications has changed the landscape. Internet shopping dominates the market
Database Management and CRM programs
Interactive Communications online and on cell phones like blackberry’s are very common as is social media networks like face book & my space
Growth of E-Marketing and E-Commerce: car manufacturers now allocate 20% of their marketing budget to online communications
When devising a marketing strategy a manager must consider external and internal influences.
External Environment
• Economy• Competition• Social /Demographics• Lifestyle• Environment• Laws / Regulations
InternalEnvironment
• Corporate Culture• Corporate Marketing Culture
• Marketing Mix• Resources Available
MarketingPlan
TargetMarket
Chapter 2: The External Marketing Environment
Some Stats and info• Over the last 3 years in Ontario over 40 communities have
experienced layoffs: Oshawa, Windsor & Smith Falls to name a few with losses of 130,00 jobs
• Ontario’s GDP has gone from 2nd highest to 7th!
• Price of oil has shot gas prices through the roof from .70cents a litre to $1.10 in some places: impact: gas guzzling trucks and SUVs are not hot any more: impact truck sales are down company’s cut back production and layoff’s are not far behind
• Wal-Mart & Costco are booming! Why?? Consumers are looking to see where they can get value for their dollar” sales are up 4% and 9% respectively( a true marketing success)
• www.marketingmag.com www.finacialpost.com
• Generation Y is forcing a change www.businessweek .com
