Chapter 2 Flashcards
External marketing management
key external force - evolution of the target market
they must shape and reshape constantly to always meet the needs of the changing target market
External factors that could be influencers
CREST
Competitive factors Regulatory factors economic factors social factors technological factors
Competitive Factors
Direct, substitute, new entrants, suppliers, buyers
Regulatory Factors
Understanding laws and regulations as well as tracking them and predicting them
sense upcoming trends can limit government regulation
Different regulatory factors
Privacy act
PIPEDIA
Canadian Anti-spam legislation
Economic factors
Purchasing power
Inflation
Recession
Consumer Income,
Consumer Income
Education is primary for earning potential
income is key element to make target market decisions
Geography and digital footprint can make it confusing to try to reach consumers
Purchasing Power
Purchasing Power = income - cost of living
Discretionary income = income is bigger than cost of living
Higher discretionary, the higher the purchasing power
Inflation
Pressures consumers to make economical purchases to keep standard of living
If salaries increases don’t keep up with inflation
Marketers must analyze the inflation but still entice people to buy
Recession
economic activity characterized by negative growth
What social factors influence customers
Demographics - age, gender, ethnicity, location
Values -
Lifestyles
needs being demand
Market oriented values
enduring belief
Component lifestyles
our way of living can influence our buying habits
Family influence factor
makeup of Canadian family has changed
Social acceleration
increased regulations to protect people and the planet
Corporate social responsibility order
social Needs competition to serve needs tech innovation economic peaks and valleys requiring regulation
Ethics
behaviour by which conduct is judged
Morals
rules put in place by cultural norms and values
Ethnical development
Pre conventional morality
conventional morality
postconventional morality
Code of ethics
guideline to help marketing managers and others make better decisions
How is code of ethics beneficial
effective internal control on behaviour
helps employees decide whether what they are doing in ethical
Pyramid of corporate social responsibility
economic responsibility
legal responsibility
ethical responsibility
philantrophic
