Chapter 2 Suggested Answers To Questions in The Textbook

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THE MARKETING ENVIRONMENT

Reality Check
As you read Chapter 2, refer back to this opening vignette to answer the following questions:

Which major environmental changes have impacted Canada Post?


Answer: Canada Post has been impacted by all of categories of environmental change, but
particularly technological evolution and socio-cultural changes with online purchasing.

What new services do you think that Canada Post should offer to continue to meet customer
needs?
Answer: The responses to this question will vary.

Ask Yourself

1. What do we mean by ”cutting the cord”?


Answer: ”Cutting the cord” is when people cancel TV cable or satellite and focus on online
viewing.

2. What are the marketing implications of ethnic diversity in Canada?


Answer: Products may have to be redesigned to reflect this societal change since each
diverse group has unique purchasing patterns.

3. How are important values such as health and fitness, and environmental awareness
reflected in the marketplace today?
Answer: Concern for health and fitness is reflected in the market through an increased
number of healthy food products, the growth of the gym/fitness industry, and the
heightened media interest in this topic. Concern for the environment is reflected in the
purchase of products that are environment friendly and the evolution of a sharing
economy.

Ask Yourself

1. What is the difference between a consumer’s disposable and discretionary income?


Answer: Disposable income is the money left after paying taxes to use for food, clothing,
and shelter. Discretionary income remains after paying for taxes and necessities.

2. What type of competition is found in the gasoline industry?


Answer: Oligopoly.

Instructor's Manual to accompany Marketing: The Core, 6h Canadian Edition


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3. What are the indirect competitors to Monster energy drinks?
Answer: Other drinks such as coffee or water are indirect competitors.

Ask Yourself

1. What role does the Canadian Radio-television and Telecommunications Commission


(CRTC) play in Canadian marketing regulations?
Answer: The CRTC helps set standards of acceptable broadcast standards and regulates the
telecommunications industry.

2. What government body oversees privacy issues in Canada?


Answer: The Office of the Privacy Commissioner of Canada oversees privacy in Canada.

3. Does self-regulation work? Why or why not?


Answer: Self-regulation works when the industry is committed to supporting and enforcing
these regulations. The threat of government intervention and negative publicity helps
support self-regulation.

QUESTIONS AND ANSWERS TO END-OF CHAPTER MATERIAL

Hands-on…Apply Your Knowledge


Focus on Demographic Forces

Focus on demographic forces. The Marketing Newsflash in this chapter focused on the
Chinese consumers and their shopping preferences. There are many articles that have been
written on the topic of ethnic marketing. Do some research on the topic and choose a company
that has adopted ethnic marketing strategies. Outline its strategies and tactics. Has it been
successful? What should the company do next?

Answer: This assignment gives students the opportunity to apply chapter material to a real-life
example, using the Marketing Newsflash as a foundation. There are no specific answers.

Chapter Vignette…activity

This chapter’s opening vignette examines the massive changes made at Canada Post based
upon the changes taking place in the external environment. Assume that you are a marketing
manager for UPS or FedEx. How would you respond to these changes and better compete?

Answer: Answers will vary. This will give students a good opportunity to practice the
applying the environmental scan elements to this industry. Student responses should include
all categories of environmental change, but particularly technological evolution and socio-

Instructor's Manual to accompany Marketing: The Core, 6h Canadian Edition


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cultural changes with online purchasing.

Infographic ... Data Analysis

Research new products that have been introduced in the automotive industry. Use recent data
from Canadian newspapers (National Post, Globe and Mail), as well as other reputable
business sources such as Canadian Business, Maclean’s, and the DesRosiers Automotive
Consultants website (www.desrosiers.ca).

Review the “How Well Do You Know Gen Y vs. Gen Z?” Infographic. If you were an
automobile manufacturer, what impact would this information have on the following?
- The products that you develop to target each generational group
- The way that you communicate with each group

Answer: The students’ recommendations should refer to the differences between the Gen Y
and Gen Z with respect to ads, spending, and brands. Answers may vary.
In

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