Marketing Management

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Marketing Management

• The Marketing Environment
• Removed photos to reduce size of file

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Overview of Class

• Understand what marketing environments are.
• Describe micro environmental forces that will
  affect a companys ability to achieve its goals
  and how they are applied in real life. For
  example
• Company
• Suppliers
• Marketing Intermediaries
• etc
• Describe macro environmental forces that will
  affect a companys ability to achieve its goals
  and how they are applied in real life. For
  example
• Demographics
• Economics
• Natural
• etc
• How to address micro macro issues at a company
  level

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Marketing Environments
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MicroenvironmentThe Company

• A marketer or marketing department must
  collaborate with others to achieve results.
• Think of a marketer as a general manager of a
  business unit. Therefore she/he must work with

• Other departments in the firm (Internal
  Environment)
• Suppliers
• Marketing intermediaries
• Customers
• Competitors
• Relevant publics

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Microenvironment The Companys Internal
Environment
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How Can You Maximize Internal Opportunities

• Examples of not working together
• Sales departments executing a different strategy
  than approved based on misaligned
  objectives/goals
• Internal Legal Challenges to Ad copy Bringing
  in legal at the end to approve copy.
• Examples of working together
• RD Teams that include more than just RD
• Effem foods vs PG - models of management

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MicroenvironmentSuppliers

• Suppliers can provide more than just resources
• Need to work with Suppliers to drive costs out of
  the system but also improve quality
• Part of value delivery system
• Supplier and market pricing trends impact the
  company
• Margin Improvement teams (include suppliers)
• If you can save a penny on every item you make,
  the benefit can be enormous (depending on what
  you make)
• Be careful of the sausage rule

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Making Suppliers a Partner

• Shoppers Drug Mart the supplier reps
• The SDM mgr should work with the rep to
  understand how their product can deliver on the
  store needs/objectives. Do not look at reps as
  adversaries look at them as information sources
  and solution experts.
• Wal-Mart Hershey Canada
• Hershey Canada won the top supplier award for
  Wal-Mart. They did because the Key Account rep
  focused on what the Wal-Mart buyer needed to
  achieve her objectives and worked with internal
  teams to generate it.
• Local Area Chamber of Commerce
• The local area of Chamber of Commerce should be
  working to help small and medium sized
  businesses. This can include shared services,
  information, seminars etc. By working with them
  it strengthens the entire business community.

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Microenvironment Marketing Intermediaries

• Help promote, sell, and distribute to final
  buyers
• Includes
• Resellers
• Physical distribution
• Financial services
• Marketing services

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MicroenvironmentCustomers
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MicroenvironmentCompetitors
Identify the companys competitors
Assess competitor objectives,
strategies, strengths, weaknesses, and
reaction patterns
Select which competitors to attack or avoid
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Competitors Why Do I Care?

• Why is identifying and understanding your
  competition important?
• How should you access and collect data on your
  competition?
• What is marketing myopia competitor myopia
  and how are they different?
• How should you react to a new competitive threat?

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MicroenvironmentPublics
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Macroenvironment
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MacroenvironmentDemographics

• Size
• Density
• Location
• Age
• Sex
• Race
• Occupation
• Other statistics

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Demographic EnvironmentChanging Canadian Trends

• Age shift
• Income shift
• Increased life expectancy
• Increasing non-family households
• Marrying later (25w, 28m)
• Having fewer children (avg. family size 3.1)
• Shift in couples roles

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Demographic EnvironmentPopulation Growth and
Shifts

• Home shifts over time
• Movement from rural to urban areas
• Movement from cities to suburbs (ie Mississauga)
• A new movement from suburbs back to internal
  urban communities (ie the beaches)
• What is the impact here for business?
• What services are individuals looking for in each
  of these situations

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Demographic EnvironmentCanada - Better
Educated, White-collar

• 63 have diploma or higher
• 66 of workforce is white collar
• 28 professional or managerial
• More demand for quality products
• Less TV watching
• Did you know that only 1 of the world population
  has a college/university degree!
• What issues/opportunities is this causing?

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Demographic EnvironmentIncreasing Diversity

• Ethnicity
• Ethnic purchasing power 300 billion
• Growing market size
• Sexual orientations
• Disabilities
• Do we want to target these evolving markets?
• If yes, how?

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MacroenvironmentEconomics

• The factors affecting consumer buying power and
  spending patterns
• Is the economy looking for goods to consume or
  not?
• Recession vs non recession times
• Dual income and the general rise in income in
  Canada as baby boomers hit prime income years
• High income vs low income and how they purchase.

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MacroeconomicsNatural Environment

• Growing shortage of raw materials
• Water, fuel
• Triclosan
• Increased pollution and the cost to clean it up
• Increased government intervention due to lack of
  self regulation
• Environmental Protection Act (1989)
• Environmentally sustainable strategies can they
  be profitable?

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MacroenvironmentTechnology

• Driving the pace of change
• From last class Mechanical research tools
• The high cost of research and development the
  high cost of not doing it
• What is the role of government in RD efforts?
• What is the role of marketing in RD efforts?

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MacroenvironmentPolitical

• Consists of laws, government agencies, and lobby
  groups
• Public policy
• Increasing legislation
• Protect companies from each other
• Protect consumers from unfair businesses
• Protect the interests of society
• International trade agreements
• NAFTA
• Softwood lumber issues
• Ethics and Social Responsibility

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MacroenvironmentCultural

• Persistence of cultural values
• Core vs. Secondary
• Shifting view of what is acceptable
• Impact of pop culture
• Renewal of religion
• Getting back to nature

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Responding to the Marketing Environment

• Passive approach
• Work to understand observational triggers and
  prepare for opportunities and threats
• Active approach
• Environmental Management Perspective
• Hire lobbyists/run advertorials
• Find positive ways to overcome constraints via
  working with associations, legal avenues and gate
  keepers to issues