Chpt 1,2,3 & 8

the "Marketing Concept"

The 4P's - Product, Price, Promotion, Place / Distribution

"uncontrollable variables" - the 6 environments
    o Competitive Environment
    o Economic Environment
    o Political / Regulatory  Environment

4 types of opportunities
    o Market Penetration 
    o Market Development 
    o Product Development 
    o Diversification

elastic demand and inelastic demand

4 types of competition
    o Monopoly
    o Oligopoly
    o Monopolistic competition
    o Pure competition

New Product Development Process

Market Segmentation
    o Criteria for Segmentation
    o Homogenous, Heterogeneous, Substantial, Operational
    o Positioning

pricing objectives & pricing policies

Advertising objectives, inform - persuad - remind

PLC  Product Life Cycle
 

MIS - Marketing Information System

text "an organized way of continually gathering, accessing and analyzing information that marketing managers need to know, to make decisions"

p. 98 Intranets - see www.witiger.com/ecommerce/intranets~extranets.htm

text p. 132
"Staying alert to demographic trends and economic conditions will help you discover new marketing opportunities..."
demands awareness of
   o Social Cultural Environment
   o Economic Environment

How do you get aware?
   o Primary Sources (tough to find unless you do your own surveys)
   o Secondary Sources
                 text suggests government agencies like Stats Canada www.statcan.ca

o Social Cultural Environment
Population
Where people live relates to the P for Place (in the 4P's of marketing)
Where people live is a big factor in the plans of marketing people

In Canada in 2004 we have 2 big trends
Rural to Urban - more people moving away from small villages into bigger cities as agricultural declines a a way of making a living
- so the cities get bigger
Immigrants come to Canada and move to the 5 major cities, Toronto, Montreal, Vancouver, Calgary and Winnipeg
- so the cities get even bigger and bigger
- in the 1800's immigrants from Ireland, Scotland, Ukraine etc. came to Canada and moved to the country and built farms

o Social Cultural Environment
Population
Where people live 

Megalopolis, Quebec City to Windsor
- map 
 www.mto.gov.on.ca/english/traveller/map/ www.mto.gov.on.ca/english/traveller/map/southindexpdf.htm

o Social Cultural Environment
Population
"Ethnic Markets in Canada"
- is everybody ethnic when there is no longer an obvious majority?

- search Toronto Star w "ethnic communities"
- TDSB - the Toronto school board is a great secondary source of information about cultural and language in Toront since this information is needed by them to make goood decisions about hiring teachers and developing curriculum
 www.tdsb.on.ca/newsroom/latebreaknews/rozanskisubmission/appendix1.pdf
- City of Toronto is also a good source since they need to communicate with the citizens of the city and effectively provide services in various languages
 www.city.toronto.on.ca/toronto_facts/diversity.htm
 the most prevalent backgrounds in the City of Toronto other than the British Isles are:
o Chinese at 242,920 - a 16 per cent increase over 1996
o Black at 204,075 
o Italian at 138,715 - a decline of 13 per cent
o East Indian at 133,670 - a 25 per cent increase
o Filipino at 76,405 - a 31 per cent increase
o Portuguese at 75,800 - a 5 per cent decline
 

o Social Cultural Environment
Population
"Ethnic Markets in Canada"

Mother Tongue Marketing (text page 139)
- trying to sell to customers using the language from where they come
- examples, TD Bank, Royal Bank, CIBC all feature Chinese actors and Chinese language in their marketing campaigns

o Social Cultural Environment
How Does Consumption Differ
"Differences in Product Use and Preference" text page 142

examples
- French Canadians not likely to drink much hot tea
- Caribbean Canadians, and Atlantic drink a lot of tea, with lots of sugar and canned milk
- 64% of French Canadians go to specialized clothing boutiques, which is a higer percentage than ROC (Rest of Canada)
- plus generalizations contributed by the MRK200 class

o Social Cultural Environment
Sources of Information on Consumption
     o Govt
     o Companies
     o Associations

Founded in 1985, DesRosiers Automotive Consultants Inc. (DAC) is the only consulting and market research company in Canada that specializes in the automotive sector.
 http://www.desrosiers.ca/
Monthly light vehicle sales summary
example www.desrosiers.ca/pdfs/sales.pdf

Associations
The Certified General Accountants Association of Canada 
 www.cga-canada.org/eng/magazine/jan98/eco_e.htm
- economic outlook information
Canadian Egg Marketing Agency
 www.canadaegg.ca/english/index.html
National Institute of Nutrition
 www.nin.ca/public_html/Media/Latest/newsoct20_00.html
Trends in Canadians' Grain Product Choices
g/cap/d = grams per capita per day

o Social Cultural Environment
Population
"Families" text page 143

There are about 8 million families in Canada
- 20% of marraiges are re-marraiges
- more blended families (divorced parents re-marrying)
- more single parent families
- more interracial families

o Social Cultural Environment   Future Tends   text page 144

? - will the Chinese population in Toronto continue to grow at a fast rate
? - the declining birth rate -  native born Canadians decline in comparison to landed immigrants

o Social Cultural Environment  Future Tends   Baby Boomers
 

o Social Cultural Environment  Future Tends   ? - aging Baby Boomers

- considerations for health care
 www.alzheimer.ca/english/disease/articles-boomers.htm
"Today, 300,000 Canadians, or one in 13 people over 65, have Alzheimer Disease and related dementias. More than double that number, or three-quarters of a million Canadians, will be affected by 2031."

search yahoo.ca with "aging baby boomers" canada

aging Baby Boomers
 
 
 
 

Chpt 5
 
 
 

aging Baby Boomers

o Social Cultural Environment  Future Tends   ? - aging Baby Boomers
 

REPORT on BUSINESS 2004 June Vol. 20 No. 12

the article was at www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20040528/RO6ADS/TPBusiness/ROBM

In the ROB website and the printed edition, there was a great story about how marketing people have ignored the older demographic in Canada and seem to be spending too much attention on people in their teens and twenties.

David Hayes, who wrote the article, sums it up by saying
"Boomers, forever young and free-spending, dominate at the cash registers. Yet marketers are only concerned with reaching a few broke kids. What gives, man?"
 

Where do these misperceptions come from?
Hayes interviewed Jane Bradley, the director of sales and marketing for 50Plus Magazine
Hayes explains "when I was talking to her the other day, but we were too busy discussing the difficulty her magazine has attracting advertising. "People in the ad industry are very young," she says. "They find it difficult to think about the mature market. For them, the world stops at 49. There's a perception that the members of the 50-plus target group are set in their ways, rigidly brand loyal, that they don't have money and that they're old-looking."

Bradley explained "...only 5% to 10% of media spending is directed at the 50-plus demographic, even though its members are free-spending consumers who represent nearly half of the Canadian population (a proportion that is steadily growing)"

Hayes writes "In 1996, the first boomers started to turn 50. Every 81/2 seconds or so, another 50th birthday is celebrated in North America. By 2008, this entire generation will be over 50, making it the largest and most powerful demographic category in our society. (By 2010, spending by people 45 and up will be a trillion dollars higher than spending by people between 18 and 44.) Yet the marketing business still acts as if the Adam Sandler Fan Club occupies the commanding heights of commerce."

Haye continues to describe "...One reason for the marketing world's indifference toward older target groups is the decades-old conviction that brand preferences are established when we're young, and that the older we get, the less willing we are to abandon familiar products or try new ones. If that was ever true--in a bygone era, when older people may have been more hidebound and less sophisticated as consumers, and there were far fewer product choices and marketing avenues, and the life of so many consumer goods was longer--it certainly isn't true today."

Hayes says "I don't still wear a Timex, drink Black Tower or eat Post Alpha-Bits, although they were my brands of choice when I was 21."

Chpt 6

page 163

Read this web page to understand all the steps

• Physiological needs. Biological necessities such as food, water, and oxygen. These needs are the strongest because a person would die if they were not met.
• Safety needs. People feel unsafe during emergencies or times of disorder like rioting. Children more commonly have this need met when they feel afraid.
• Love and belonging needs. The need to escape loneliness  and alienation, to give and receive love, and a sense of belonging.
• Esteem needs. The need to feel valuable; to have self-respect and the respect of others. If a person does not fulfil these needs, they feel inferior, weak, helpless, and worthless.
• Self-actualization needs. Maslow taught that a very small group of people reach a level called self-actualization, where all of their needs are met. Maslow described self-actualization as a person's  finding their "calling." He said, "a musician must make music, an artist must paint, and a poet must write." 

If so, how do you do it?

Prof. Richardson has some previous experience with "motivating" people and an explanation of this can be found at
 www.witiger.com/quotes.htm

To successfully motivate someone, you first have  to clearly identify specifically what they want. If they don't know what they want, you can help them by providing information on the choices / opportunities available, which they might not know

Although most people are motivated to some degree, the question is not simple. The challenge lies in assisting them to take the motivation through a series of steps that lead to action, which leads to the accomplishment of what they wanted. 

Essentially the equation begins with Interest leading to the identification of a specific want. Once you specifically know what you Want, then comes the step of figuring out How you will take action to get that thing you want. Once you have some  idea of the Action you will take, then the Motivation seems realistic since it is no longer just an idea, but in fact an achievable objective  which has a consequence.
WTGR 1997

Reference Groups - people to whom an individual looks when forming attitudes

Opinion Leaders

Surroundings affect buying - decor of a store can positively or negatively influence a decision to purchase

The 6 steps as noted in the text are discussed in many textbooks and many professors talk about this in their marketing courses. The screen capture to the left is from a marketing course at Lewis-Clark State College in Idaho

Consumer buying decision process

"The consumer buying decision process is a five-stage purchase decision process that includes problem recognition, information search, evaluation of alternative, purchase, and postpurchase evaluation."(some texts break it up into 6 steps)

1. Problem Recognition - knowing about the problem
2. Information Search - trying to find out how to solve the problem
3. Evaluation of Alternatives - thinking about your options - choices, what to do
   (some texts use Step # 4 is to make a decision to Buy it, and # 5 is Buy it
4. Purchase - just buy it
5. Postpurchase Evaluation - think about what you bought - did you like it, was it OK
 
  An additional example of the steps of Consumer behaviour
- this example from Prof. Richard J. English,  San Diego State University 

Thinking about your purchase and wondering if everything was OK
Dissonance is tension caused by worrying if you made the right decision.