Marketing II The Chang School-Ryerson University Continuing Education

1. Marketing II The Chang School-Ryerson UniversityContinuing Education CMKT 200 Fall 2005 Instructor: Armand Gervais Email:agervais@ryerson.ca preferred Web: www.ryerson.ca/~agervais Office: Bus 308 Phone: 416-979-5000 Ext 4215

2. Lecture 1 Agenda • 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

3. Introduction Armand Gervais Education: • 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: • 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 • Hospitality- restaurants and resorts • Retail-Confectionaries, clothing, travel, books and electronics. • Telecommunications Industry

4. 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?

5. Course Outline

6. Group Project and Peer Evaluation

7. 3 SCANNING THE MARKETING ENVIRONMENT CHAPTER

8. 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”

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

10. FIGURE 3-2An environmental scan of Canada

11. SOCIAL FORCES • Demographics • Population Size and Growth • Age Waves • Mature household • Baby boomers • Generation X • Baby boomlet

13. FIGURE 3-3 The age distribution forecast for the Canadian population in 2011

14. SOCIAL FORCES • The Canadian Family • Blended family • Population Shifts • Census metropolitan areas (CMAs) • Regional Marketing • Ethnic Diversity

15. Social Forces • Culture • Changing Attitudes and Values • Value consciousness

16. Economic Forces • Macroeconomic Conditions • Consumer Income • Gross Income

18. FIGURE 3-4 Income distribution of Canadian households

19. Economic Forces • Macroeconomic Conditions • Consumer Income (cont) • Disposable Income • Discretionary Income

20. Technological Forces • Technology of Tomorrow • Technology’s Impact on Customer Value • Electronic Business Technologies • Marketspace • Electronic commerce • Internet and Worldwide Web • Commercial online services • Intranet • Extranets

21. Competitive Forces • Alternate Forms of Competition • Pure competition • Monopolistic competition • Oligopoly • Monopoly

22. Competitive Forces • Components of Competition • Entry • Barriers to Entry • Power of Buyers and Suppliers • Existing Competitors and Substitutes • Start-Ups, Entrepreneurs, and Small Business

23. Competitive Forces • The New Look in American Corporations • Restructuring

24. REGULATORY FORCES • Regulation • Protecting Competition and Consumers • The Competition Act

25. FIGURE 3-5 Major federal legislation designed to protect competition and consumers

26. Regulatory Forces • Self-Regulation • Consumerism

27. Porter 5 Forces Framework Entry BarriersEconomies of ScaleProprietary Product DifferencesBrand IdentitySwitching CostsCapital RequirementsAccess to DistributionAbsolute Cost Advantages- Proprietary learning curve- Access to necessary inputs- Proprietary low-cost product designGovernment PolicyExpected Retaliation Rivalry DeterminantsIndustry GrowthFixed (or Storage) Costs/Value AddedIntermittent Over-CapacityProduct DifferencesBrand IdentitySwitching CostsConcentration and BalanceInformational ComplexityDiversity of CompetitorsCorporate StakesExit Barriers New Entrants Threat of New Entrants IndustryCompetitorsIntensity ofRivalry Buying Powerof Buyers Bargaining PowerofSuppliers Buyers Suppliers Determinants of Supplier PowerDifferentiation of InputsSwitching Costs of Suppliers and Firms in the IndustryPresence of Substitute InputsSupplier ConcentrationImportance of Volume to SupplierCost Relative to Total Purchases in the IndustryImpact of Inputs on Cost or DifferentiationThreat of Forward Integration Relative to the CompetitionThreat of Backward Integration by Firms in the Industry Determinants of Buyer Power Bargaining LeverageBuyer Concentration vs. Firm ConcentrationBuyer VolumeBuyer Switching Costs Relative to Firm Switching CostsBuyer InformationAbility to Backward IntegrateSubstitute ProductsPull-Through Price SensitivityPrice/Total PurchasesProduct DifferencesBrand IdentityImpact on Quality/ PerformanceBuyer ProfitsDecision Makers’ Incentives Threat of Substitutes Substitutes Determinants of SubstitutesRelative Price Performance of SubstitutesSwitching CostsBuyer Propensity to Substitute

28. To Do’s for Next Class • 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