Chapter 9 Flashcards
What is marketing environment?
The actors and forces outside marketing that affect marketing management’s ability to build and
maintain successful relationships with target customers.
Why is monitoring the marketing environment crucial for companies?
It helps companies adapt to changes or lead them, ensuring they remain competitive and responsive to customer needs.
More than any other group in the company, marketers must be______
Environmental trend trackers and opportunity seekers
They also spend more time in customer and competitor environments.
What special aptitudes do marketers have for understanding the environment?
Although every manager in an organization should watch the outside environment, marketers have two special aptitudes. They
have:
- disciplined methods (marketing research, marketing intelligence)
-marketing analytics (for collecting information and developing insights about the marketing environment)
How can marketers respond to changes in the marketing environment?
By studying the environment carefully and adapting strategies to meet new challenges and opportunities.
What is demography?
The study of human populations
in terms of size, density, location,
age, gender, race, occupation, and
other statistics
Why is the demographic environment important to marketers?
It focuses on people, who make up markets, and demographic changes can create both opportunities and challenges for businesses.
What is the current world population, and how is it expected to grow?
Growing at explosive rate: exceeds 7.6 billion and is projected to surpass 8.5 billion by 2030.
The world’s large and highly diverse population poses both opportunities and challenges.
Why do marketers keep a close eye on demographic trends and developments in their markets?
Changes in the world demographic environment have major implications for business.
What aspects of demography are marketers particularly interested in?
- Changing age and family structures
- Geographic population shifts
- Educational characteristics
- Population diversity
What is the current population of Canada, and how is it expected to grow?
As of 2019, Canada’s population exceeded 37.3 million and is projected to reach 42 million by 2035.
What is the most significant demographic trend in Canada?
The changing age structure, with the population rapidly aging due to falling birthrates and longer life expectancies.
How has the median age in Canada changed over time?
The median age was 26 in 1970 and increased to 41 by 2019.
What are the implications of an aging population?
This aging of the population will have a significant impact on markets and those who service them.
The Canadian population contains several generational groups. What are the 4 largest that the textbook covers?
- Baby boomers
- Generation X
- Millennials
- Generation Z
What are baby boomers?
The 9.4 million people born during
the years following World War II
and lasting until 1965.
How many baby boomers are there in Canada, and when were they born?
There are 9.4 million Canadian baby boomers, born during the post–World War II baby boom from 1946 to 1965.
How does the Canadian baby boom differ from the U.S. baby boom?
The Canadian baby boom lasted an additional year, ending in 1965, compared to 1964 in the U.S.
What is the age range of Canadian baby boomers today?
The youngest are in their 50s, and the oldest are in their early 70s (well into retirement)
Why are baby boomers significant in the marketing environment?
They are the wealthiest generation in Canadian history and account for over 25% of the population, controlling the highest spending power of any age cohort.
What markets are baby boomers particularly lucrative for?
Financial services, new housing and home remodeling, new cars, travel, entertainment, dining out, health and fitness products, among others.
Why might some marketers overlook baby boomers?
Some marketers target highly coveted millennials, stereotyping older boomers as stuck in the past, out of touch, or uninterested in new products.
How do baby boomers perceive themselves as they age?
Many baby boomers see themselves as entering new life phases rather than phasing out or slowing down.
How do Canadian baby boomers defy stereotypes about aging?
More active boomers have no intention of abandoning their youthful lifestyles as they age.
- Adults 50+ account for 80% of luxury travel spending in NA
- 82% open to new brands
What stereotypes do boomers defy about technology?
Boomers are also digitally active and increasingly social media savvy.
Some 70 percent of baby boomers now use mobile internet. And they are the fastest-growing shopper demographic online, outspending younger generations two to one
How do baby boomers prefer marketers to address them?
Although boomers may buy lots of products that help them deal with issues of aging (vitamins, blood-pressure monitors, Good Grips kitchen tools), they value approaches that align with their youthful thinking rather than emphasizing their age.
How did Sun Life challenge stereotypes about older consumers?
Through its “Welcome to life over 50” campaign, using ads that featured older individuals embracing adventurous and glamorous lifestyles.
Why did Sun Life launch its campaign targeting baby boomers?
Research revealed that older consumers felt brands misunderstood them, finding marketing efforts “perplexing, annoying, and amusing.”
What is Generation X?
The 7.2 million people born
between 1966 and 1980 in the
“birth dearth” following the baby
boom
Author Douglas Coupland calls them Generation X because they lie in the
shadow of the boomers.
How many Gen X are there in Canada?
7.2 million
Why are Gen X sometimes overlooked?
They are an “in-between” consumer group
Considerably smaller than the boomer generation that precedes them and the millennials who
follow
How is Generation X different from other generations in terms of materialism?
Although they seek success, they are less materialistic than the other groups; they prize experience, not acquisition.
What are the main priorities for many Generation Xers, especially those who are parents and homeowners?
Family comes first for Generation X, including both their children and aging parents, with career being secondary.
How do Generation Xers approach shopping and marketing?
Gen Xers are a more skeptical bunch. They are sensible shoppers who research products heavily before
they consider a purchase, prefer quality to quantity, and tend to be less receptive to overt marketing pitches
What is the level of brand loyalty among Generation Xers?
Once Generation X finds a brand they trust, they tend to be more loyal than other generational groups.
How do Generation Xers respond to advertising?
More receptive to irreverent ad pitches that make fun of convention and tradition.
What is the technological adaptation of Generation X?
Generation X grew up before the internet but adapted to digital technology during their young adulthood and are now fully connected, embracing the benefits of new technology.
What is the current life stage of Generation X?
Generation X is now in their 40s and early 50s, firmly into their careers, with many being proud homeowners and having growing families.
How educated is Generation X?
Generation X is the most educated generation to date.
What is Generation X’s purchasing power?
They possess hefty annual purchasing power.
Make up less than 20 percent of the Canadian population, but are more likely to have household incomes higher than $100 000 than either
the baby boomer or millennial generation.
Why do many brands focus on Gen Xers as a target segment?
Gen Xers represent a prime target segment due to their purchasing power, with 82% of them owning their own homes. This makes them particularly important for home-related products.
How does Lowe’s market to Generation X?
Lowe’s markets heavily to Gen X homeowners, urging them to “Never Stop Improving.”
Through ads, online videos, and a substantial social media presence, Lowe’s provides ideas and advice on a wide range of indoor and outdoor home-improvement projects and problems, providing solutions that make life simpler for busy Gen X homeowners and their families.
What are millenials?
The 8.6 million children of the
baby boomers born between 1981
and 1997.
When were millennials born and how large is their population in Canada?
Millennials, also called Generation Y or echo boomers, were born between 1981 and 1997. There are over 8.6 million millennials in Canada.
Why are millennials an attractive market for brands?
Millennials wield substantial buying power and make up a huge market, both now and in the future, due to their large numbers.
What are millennials relationships with technology?
One thing that all millennials have in common is their comfort with digital technology. They don’t just embrace technology; it’s a way of life. The millennials were the first generation to grow up in a world filled with computers, mobile phones, satellite
TV, iPods and iPads, and online social media.
How do millennials engage with brands, and why is this significant?
Millennials are comfortable with digital technology and engage with brands through mobile devices and social media. This is significant because it marks a shift in how consumers interact with brands compared to previous generations.
What percentage of millennials prefer online shopping and mobile banking?
75% of millennials prefer shopping online, either via mobile or laptop. 92% of them prefer doing their banking through a web or mobile device.
What do millennials seek from brands, and how does this influence marketing?
Millennials seek authenticity, value, and opportunities to shape their own brand experiences. This influences marketers to offer content that is efficient, digestible, and engaging. Compared with other generational groups, they tend to be frugal, practical, connected,mobile, and impatient.
How do millennials typically interact with brands in comparison to other generations?
Millennials are open to connecting with brands, drawn to bite-size content (paid or not), and intrigued by new information, product-wise,”
notes one analyst
What are examples of brands who are now fielding specific products and marketing campaigns aimed
at millennial needs and lifestyles?
Many financial services firms are shedding their stodgy images and tailoring their brands to be more appealing to mobile-first millennial consumers.
Lululemon targeted millennials by building a community around its brand, resonating with their values and lifestyle preferences.
What is Generation Z?
People born after 1997 who include
the kid, tween, and teen markets.
What years were Gen Z born in and how many are there in Canada?
1998-2016
Almost 8.6 million Gen Z (almost 1/4 of Canada’s population)
What stage of their life are Gen Z at now and how much do they spend?
The oldest of this market is now entering adulthood. One U.S. study estimated that Generation Z spends an estimated US$43 billion to US$143 billion annually of their own money and influences up to US$333 billion of family spending.
Why is Gen Z important for marketers?
These young consumers also represent tomorrow’s markets—they are now forming brand relationships that will affect their buying well into the future.
What is the defining characteristic of Generation Z, and how does it impact their daily lives?
The defining characteristic of Generation Z is their fluency with digital technologies. They have grown up with smartphones, tablets, Wi-Fi, and social media, making them highly mobile, connected, and social. They are always online, blending the online and offline worlds seamlessly.
How do Generation Z shoppers approach product research and purchasing decisions?
More than half of Generation Z’s tweens and teens conduct product research before buying or having their parents purchase items. Some 39 percent of Gen Zer girls find shopping inspiration from social media, 35 percent read newsletters from brands, and 33 percent don’t mind when brands work with influencers they like
What are the preferences of Generation Z when it comes to shopping online?
More than half of Generation Z prefers shopping online for various categories, including electronics, books, music, sports equipment, beauty products, clothes, shoes, and fashion accessories.
What challenges do companies face when marketing to Generation Z and their parents?
Marketing to Generation Z presents challenges due to their preference for online and mobile worlds, while still relying on traditional media. Marketers must engage this group where they hang out and shop, primarily on social media platforms and digital spaces, while also addressing their parents’ purchasing influence.
How important is social media for marketing to older Generation Zers?
Social media plays a crucial marketing role for older Gen Zers, who engage with platforms like Snapchat, Instagram, and Periscope. These platforms are central to connecting with this group, despite the younger Gen Zers being restricted from such social media.
How can brands engage Generation Z consumers more deeply?
Today’s youth are notoriously fickle and hard to pin down. The key is to engage these young consumers and let them help to define their brand experiences. For example, to engage young consumers more deeply, The
North Face even invited them to help design its outdoor apparel and gear.
What is an important Gen Z marketing concern?
Involves children’s privacy and their vulnerability to marketing pitches. Companies marketing to this group
must do so responsibly or risk the wrath of parents and public-policy makers.
Do brands need to create separate products and marketing programs for each generation?
While some experts warn that marketers should avoid alienating one generation when targeting another, others suggest that segments within a generation, such as different age groups within Generation Z, require distinct approaches. It’s crucial to target consumers based on lifestyle, life stage, and shared values, rather than simply their birth date.
What is a more effective strategy than defining people solely by their birth date for generational marketing?
A more effective strategy involves segmenting people based on lifestyle, life stage, or the common values they seek in products.
What is the “traditional household”?
Traditional household consists of a hus-band, wife, and children (and sometimes grandparents). Yet the historic Canadian ideal of the two-child, two-car suburban family is far from accurate these days.
How is the traditional Canadian family structure changing?
- The 2016 Census revealed a decline in the ideal “two-child, two-car suburban family.”
- There’s a rise in “crowded nest” syndrome, with 35% of young Canadians aged 20 to 34 living with at least one parent.
What is the trend with Canadian households living alone?
- In 2016, nearly 28% (4 million ppl) of Canadian households were single-person households.
- This is up from 1.7 million in 1981, making it the most common type of household in Canada, surpassing couples with children.
What is happening with couples living without children in Canada?
- From 2011 to 2016, the number of couples without children increased by 7.2%, while couples with children only grew by 2.3%.
- As a result, the share of couples living with at least one child fell to 51.1 percent in 2016—the lowest
level on record.
