Chapter 2 Flashcards
What is the fastest growing population according to the 2021 Census of Canada
Aging Population (over 65)
What external areas or forces does an environmental scan look at?
Demographic Force
Environmental Scan
Evaluation the external government - supplies, customers, organizations that cause a threat to a business
The process of continually acquiring information on events occurring outside an organization to identify treads, opportunities, and threats to a business
Marketers use this knowledge to ensure goods services and ideas are relevant with the external environment in which the organization operates.
SWOT analysis
Strengths, Weaknesses, Opportunities, Threats
Involves assessing how well a company is servicing their business/consumers by assessing an organizations internal strengths and weaknesses , as well as its external opportunities and threats (from the environmental scan)
What group of people were born between 1966-1989
Generation x
Situation Analysis
Taking stock of a firms or products past performance, where it is now, and where it is headed.
What are the four areas in the SWOT Analysis of which the firm builds its marketing program?
1) identify changes and trends in the organizations industry
2) Analyze the organizations current and potential customers
3) assess the organization itself, including available resources
4) research the organizations present and prospective customers
What are the Internal Elements of SWOT?
Strengths and Weaknesses
What are the external elements of SWOT?
Opportunities and Threats
What is the statistic study of populations?
Demographics
What is Generation Y also known as?
Millennials
What group of people were born between 1981-2000
Millennials or Generation Y
Economy
The collective income, expenditures, and resources that affect the cost of running a business or a household
What component of environmental scan pertains to the income, expenditures, and resources affecting the cost of running a business?
Economy
Macroeconomic forces
The state of a country’s economy as a whole as indicated by its growth rates, inflation rates, unemployment rates, and consumer confidence indexes
Gross Domestic Product (GDP)
A total dollar value of all goods and services produced in a country within a specified time period
What is a countries key economic indicators?
Economic growth rate, inflation rate, unemployment rate
Inflation
When costs to produce and buy products and services get higher as prices rise
If prices raise faster than customers incomes, customer purchasing decreases and will buy less of certain product categories
Recession
A time of slow economic activity with two consecutive periods of negative growth
Productions levels decline, unemployment levels raise, there is less money to spend
Interest rates
The amount charged as a fee for borrowing money, Nora,let expressed as a percentage each year
High interest rates = people lean to save money and earn higher interest
Low interest rates = people tend to be inclined to spend and borrow money
Unemployment Rate
Measures the share of labour force that is not working.
When unemployment is high = spending is lower
Gross Income
This is the total amount of money made in one year, household, or family unit, before taxes
Disposable Income
The after tax income that customers have left for spending and saving.
For rent, clothing, and transportation.
If taxes rise faster than income customers have less disposable income to pay their bills
Discretionary Income
The income of what customers have left after paying taxes and after paying for nessestities like food, shelter,and clothing . Spending that is not deemed necessary .
Examples, movies , restaurants, vacations
I order do do a thorough environmental scan, a must marker must consider both current and potential ______ in designing a marketing strategy
Competitors
Regulatory forces
Restrictions places on marketing practices by government and industry associations. They are there to protect consumers from unscrupulous business practices.
Consists of restrictions provincial and federal laws place on businesses with regard to the conduct of its activities.
Part of environmental scan .
What is the group born 1946-1965 called?
Baby boomers
Characteristics on Generation Y (or millennials )
Born 1981-1996 - mostly baby boomers children
Knowledgeable consumers
Less prone to materialism and extravagance that the baby boomers
High,y influences by digital technology
According to the lastest Canadian census, what amount of the nations growth between 2018 and 2019 was due to immigration?
83%
Competitive market
Environmental force that refers to the alternate firms that could provide a product to satisfy a specific markets needs
