1. Copyright © 2007 Pearson Education Canada 2-1 External Influences on Marketing Economy Competition Social / Demographic Technology Laws / Regulations Economy Competition Social / Demographic Technology Laws / Regulations Marketing Plan Customers A business must anticipate change and how it will affect its operations.

2. Copyright © 2007 Pearson Education Canada 2-2 Economic Influences A variety of factors contribute to the state of the economy Disposable Income Employment Canadian $ Interest Rates Inflation Disposable Income Employment Canadian $ Interest Rates Inflation  Recession  Depression  Recovery  Prosperity $ $

3. Copyright © 2007 Pearson Education Canada 2-3 Competitive Influences Monopoly Oligopoly Monopolistic Competition Monopolistic Competition Pure Competition One firm serves market A few firms serve market Many firms with unique marketing mixes serve market Many firms with similar products and no differential advantage

4. Copyright © 2007 Pearson Education Canada 2-4 Competitor Classifications Direct Competition Direct Competition Indirect Competition Indirect Competition Competition from alternate or substitute products: Coke, Pepsi, 7Up, Dr. Pepper Competition from products offering similar benefits: Coke, Dasani, Gatorade, Fruitopia

5. Copyright © 2007 Pearson Education Canada 2-5 Market Share The strength of a brand (company) relative to its competition is determined by market share. Market share is: “the sales volume of a brand or company expressed as a percentage of total market sales volume.”

6. Copyright © 2007 Pearson Education Canada 2-6 Competitive Position Competitive position often determines the nature of the marketing strategy.  Leader  Challenger  Follower  Nicher Coca-Cola, Colgate Pepsi-Cola, Crest 7Up, Aim IBC Soda, Rembrandt

7. Copyright © 2007 Pearson Education Canada 2-7 Social and Demographic Trends Demographics is the study of the characteristics of a population. Size and Age Location Spending Power and Wealth Education Family Formation Multiculturalism Lifestyle Environmental Concerns

8. Copyright © 2007 Pearson Education Canada 2-8 Canada’s Ethnic Population Market19912001 Toronto38.043.7 Montreal16.418.4 Vancouver30.137.5 Ottawa-Hull14.717.6 Edmonton18.317.8 Calgary20.320.9 Winnipeg17.416.5 Hamilton23.523.6 Ethnic populations are expanding in Canada’s four largest cities.

9. Copyright © 2007 Pearson Education Canada 2-9 Technological Influence Perhaps the greatest single force to shape and reshape the marketplace:  Database management and marketing techniques  Direct distribution channels  Online and other interactive communications  E-Marketing and E-Commerce Traditional marketing methods must be blended with new, technology-based methods.

10. Copyright © 2007 Pearson Education Canada 2-10 Laws and Regulations Industry Canada and the Competition Act govern business practices in Canada. The objectives of the Competition Act are: To maintain and encourage competition To ensure participation by small business To provide consumers with choice and fair prices Many industries establish their own regulations that members follow.

11. Copyright © 2007 Pearson Education Canada 2-11 Inputs for Satisfying Customers External Environments Economy Competition Social/Demographic Lifestyle Environmental Concerns Technology Legal External Environments Economy Competition Social/Demographic Lifestyle Environmental Concerns Technology Legal Marketing Plan Customer Internal Environment Corporate Culture Marketing Culture Marketing Mix Company Resources Internal Environment Corporate Culture Marketing Culture Marketing Mix Company Resources