Chapter 2

Question 1

What is an environmental scan?

Answer 1

• often the first step in a SWOT analysis

- noting an responding to changes in the six key areas can result in more effective marketing programs

Question 2

steps in environmental scan

Answer 2

1. collect the facts and identify trends
2. determine impact that this fact/trend will have on the business
3. brainstorm, evaluate and implement ideas to meet business objectives

Question 3

6 key areas of the marketing environment

Answer 3

demographic, sociocultural, economic, technological, competitive, regulatory

Question 4

what are demographic forces?

Answer 4

study of human populations, factors such as age, gender, ethnicity, income, education, occupation, geographic region, strategic decisions often based upon shifts in demographics

Question 5

for demographic forces as an aging population, who are the top two countries in aging population and who has the youngest?

Answer 5

top 2: japan and germany

bottom 2: canada, united states

Question 6

estimated by 2035… how many canadians over the age the age of 65?

Answer 6

10 million

Question 7

baby boomers

Answer 7

1947 - 1965
9.6 million
wealthy, educated, downsizing, health issues

high internet 75% and smartphone 61%

Question 8

generation x

Answer 8

1966 - 1980
7.2 million

highly education, family driven

experientially drive, less materialistic and extravagant

Question 9

millennials (gen y)

Answer 9

1981 - 2000

9.6 million

tech savvy

personally centered

music, technology and sports purchases

Question 10

generation z

Answer 10

2001 or later

5.1 million

online and social media connectivity

Question 11

fastest growing country

Answer 11

canada

Question 12

province in canada that didn’t grow

Answer 12

new brunswick

Question 13

province that grew the most

Answer 13

nunavut

Question 14

dominant house hold composition and why?

Answer 14

one person house hold

age, population, economic independence, and increase in separation / divorce

Question 15

trends in families that should be accounted for when looking into family composition

Answer 15

DINK
common law relationships

same sex couples

multi generational families

crowded nest syndrome

Question 16

most active social media platforms

Answer 16

1. youtube
2. fb
3. fb messenger

Question 17

trends in food consumption

Answer 17

• people need clarity of what to eat
• switching from processed to fresh, local
• ethnic food becomes mainstream
• ready to eat fresh meals and delivery

Question 18

trends in healthy living

Answer 18

gym memberships going up, tracking applications, and wearable technology

Question 19

canadians are most likely to recycle, buy used or pre owned goods.
what percentage of canadians consider themselves ethical shoppers?

Answer 19

60%

Question 20

what percentage of canadian shoppers would pay more for ethically sourced goods?

Answer 20

75%

Question 21

macro economic forces that affect marketing

Answer 21

state of country’s economy as a whole

growth rate
inflation rate
unemployment rate
consumer confidence indexes

Question 22

microeconomic forces that affect marketing

Answer 22

directly refers to the supply and demand of goods and services and how this is impacted by individual household, and company decisions to purchase.

Question 23

what is discretionary income?

Answer 23

income after clothing, food, shelter, and taxes

Question 24

what are technological forces that affects marketers?

Answer 24

the influx of new devices and apps; this affects things like e commerce, access to the internet, privacy, online videos, music, cloud based services

Question 25

what is the difference between direct and indirect. competition?

Answer 25

exactly the same vs. meeting the same goal but being different

Question 26

what are regulatory forces?

Answer 26

protect consumers from unethical business practices, set acceptable standards of practice, encourage fair competition, ethical business practices should be followed to avoid consumer backlash and negative publicity

Question 27

who in canada sets and regulates professional advertising standards?

Answer 27

advertising standards canada (asc)

Question 28

what organization enforces fair competition laws and regulations?

Answer 28

competition bureau

Question 29

Regulatory groups in Canada

Answer 29

Canadian Radio-television and

Telecommunications Commission (CRTC)

Do Not Call List (DNCL)

Canadian Marketing Association (CMA)
Canadian Wireless

Telecommunications Association (CWTA)

Mobile Marketing Association (MMA)

Question 30

in what step of the environmental scan do you conduct competitive reviews and cluster information into facts and trends?

Answer 30

step 1 - collect the facts and identify trends

Question 31

in what step of the environmental scan do you set business objectives?

Answer 31

step 2 - determine the impact that this fact/trend