Lecture 1 - Ryerson University

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Transcript Lecture 1 - Ryerson University

Marketing II

The Chang School-Ryerson University Continuing Education CMKT 200 Fall 2005 Instructor: Armand Gervais Email: [email protected]

preferred Web: www.ryerson.ca/~agervais Office: Bus 308 Phone: 416-979-5000 Ext 4215

Lecture 1 Agenda

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Introductions Overview of Course Project Overview Peer Evaluation Break Marketing Review To Do’s for next weeks class Questions and Answers Time to begin forming Groups

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Introduction

Armand Gervais Education:

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Bachelor of Commerce-Major Economics University of Toronto MBA York University Teaching Experience:

3 years teaching MKT 731 (Industry Analysis), BUS 800 (Strategic Management) CMKT 200 Business Experience:

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ID-ONE Inc. Residential Interior Design

Partner and Operations Manager 4 years with Air Miles

Business/Database Analyst

Project Manager Database Development 6 years retail management. Wendy's, Major Video Industry Experience:

Loyalty programs

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Hospitality- restaurants and resorts Retail-Confectionaries, clothing, travel, books and electronics.

Telecommunications Industry

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Class – Your turn

 Your Name  School Major or specialization  Work or life experience  Expectations for the class  

What are your objectives?

What has to happen for this to be a success for you?

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Course Outline

Group Project and Peer Evaluation

C HAPTER

SCANNING THE MARKETING ENVIRONMENT

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Challenge Launching New Products

 New-product experts estimate that 80-94% of the over 25,000 new consumable products (food, beverage, health, beauty, and other household and pet products) introduced in North America annually “Don’t succeed in the long run”  7

FIGURE 3-1 Environmental forces affecting the organization, as well as its suppliers and customers

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FIGURE 3-2

An environmental scan of Canada

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SOCIAL FORCES

Demographics

Population Size and Growth

Age Waves

 Mature household  Baby boomers  Generation X  Baby boomlet 10

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FIGURE 3-3

The age distribution forecast for the Canadian population in 2011

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SOCIAL FORCES

The Canadian Family

Blended family

Population Shifts

Census metropolitan areas (CMAs)

Regional Marketing

Ethnic Diversity

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Social Forces

Culture

Changing Attitudes and Values

 Value consciousness 14

Economic Forces

Macroeconomic Conditions

Consumer Income

Gross Income

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FIGURE 3-4

Income distribution of Canadian households

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Economic Forces

Macroeconomic Conditions

Consumer Income (cont)

Disposable Income

Discretionary Income

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Technological Forces

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Technology of Tomorrow Technology’s Impact on Customer Value Electronic Business Technologies

      Marketspace Electronic commerce Internet and Worldwide Web Commercial online services Intranet Extranets 19

Competitive Forces

Alternate Forms of Competition

 Pure competition  Monopolistic competition  Oligopoly  Monopoly 20

Competitive Forces

Components of Competition

Entry

 Barriers to Entry 

Power of Buyers and Suppliers

Existing Competitors and Substitutes

Start-Ups, Entrepreneurs, and Small Business

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Competitive Forces

The New Look in American Corporations

 Restructuring 22

REGULATORY FORCES

 Regulation 

Protecting Competition and Consumers

 The Competition Act 23

FIGURE 3-5

Major federal legislation designed to protect competition and consumers

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Regulatory Forces

Self-Regulation

Consumerism

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Porter 5 Forces Framework

Entry Barriers

Economies of Scale Proprietary Product Differences Brand Identity Switching Costs Capital Requirements Access to Distribution Absolute Cost Advantages - Proprietary learning curve - Access to necessary inputs - Proprietary low-cost product design Government Policy Expected Retaliation New Entrants Threat of New Entrants Industry Competitors

Rivalry Determinants

Industry Growth Fixed (or Storage) Costs/Value Added Intermittent Over-Capacity Product Differences Brand Identity Switching Costs Concentration and Balance Informational Complexity Diversity of Competitors Corporate Stakes Exit Barriers Suppliers Bargaining Power of Suppliers Buying Power of Buyers Buyers Intensity of Rivalry

Determinants of Supplier Power

Differentiation of Inputs Switching Costs of Suppliers and Firms in the Industry Presence of Substitute Inputs Supplier Concentration Importance of Volume to Supplier Cost Relative to Total Purchases in the Industry Impact of Inputs on Cost or Differentiation Threat of Forward Integration Relative to the Competition Threat of Backward Integration by Firms in the Industry Threat of Substitutes Substitutes

Determinants of Substitutes

Relative Price Performance of Substitutes Switching Costs Buyer Propensity to Substitute

Determinants of Buyer

Buyer Concentration vs. Firm Concentration Buyer Volume Buyer Switching Costs Relative to Firm Switching Costs Buyer Information Ability to Backward Integrate Substitute Products Pull-Through Price Sensitivity Price/Total Purchases Product Differences Brand Identity Impact on Quality/ Performance Buyer Profits Decision Makers’ Incentives

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To Do’s for Next Class

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Before you leave today sign attendance sheet Email me your contact information Student ID, Email, and contact number Include course and section number in subject line

Please include a little about yourself:

Program, Major, work experience etc. Get textbook Complete the assigned readings download through library Form groups

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