Professional Documents
Culture Documents
Think Marketing Canadian 2nd Edition Tuckwell Solutions Manual
Think Marketing Canadian 2nd Edition Tuckwell Solutions Manual
Think Marketing Canadian 2nd Edition Tuckwell Solutions Manual
Think Marketing, 2e
Chapter 2: The External Marketing Environment
CHAPTER 2
THE EXTERNAL MARKETING ENVIRONMENT
Learning Objectives
LO1: Identify the external forces that influence marketing.
LO2: Explain the impact of the economy and various market structures on marketing
practices.
LO3: Describe the way various competitive forces influence marketing strategy development.
LO4: Discuss how social, environmental, and demographic forces shape marketing strategies
now and in the future.
LO5: Identify and explain the effect technological trends and developments have on current
and future marketing practices.
LO6: Distinguish the role that laws, regulations, and self-regulation play in the practice of
marketing in Canada.
CHAPTER HIGHLIGHTS
LO2: Explain the impact of the economy and various market structures on marketing practices.
A. Economic Forces
The economic situation in Canada or in world markets generally impacts the nature of a
firm's marketing activity. Canada's economic health is measured using variables such as
gross domestic product (GDP), imports and exports, retail sales, unemployment,
interest rates, and the value of the Canadian dollar. Favourable situations for these
variables encourage more aggressive marketing. The reverse is also true.
recovery in 2010, helped by increased demand for Canadian goods and services and a
highly valued Canadian dollar. After minimal gains in 2012 and 2013, Canada’s GDP
growth is expected to gain between 2% and 3% annually in the next few years. The U.S.
economy has fared far more poorly.
Imports and exports determine Canada's trade balance, which influences its economic
health. The goal is to achieve a positive trade balance. Canada experienced a negative
balance, or a trade deficit, in 2009, 2010, and 2012. The economic condition of the
United States, Canada's largest trading partner, has a significant influence on Canada's
trade balance. Looking ahead, a healthier U.S. economy and the recent free trade
agreement between Canada and Europe (CETA) should boost Canadian exports.
The value of the Canadian dollar has a direct impact on Canadian organizations. The
Canadian manufacturing industry, for example, faced a high Canadian dollar compared to
the U.S. dollar in 2010 and 2012. This made our goods look less attractive to American
customers. Since 2013 the Canadian dollar has depreciated and settled around $0.90 U.S.
by the end of that year. In 2014 and 2015 the dollar depreciated even further. This
provides a boost to manufacturing and tourism.
The employment (or unemployment) levels of Canada tend to be linked to the demand
for Canadian goods and services and job creation. By the end of 2013, Canada’s
unemployment rate levelled off at 7.2%, down from a high of 8.1% in 2010. A high
unemployment rate reflects a weaker economy. The unemployment rate among young
people aged 15 to 24 years remains high at 14% as of December 2013.
Consumer spending directly influences demand for goods and services and will
subsequently affect production and manufacturing decisions. The most recent statistic
from 2011 indicates 4.2% annual growth in retail sales. Canadians have reduced their
spending and are searching for better valued goods and services.
Interest rates are used by the Bank of Canada to help adjust the state of the economy.
Inflation is the general rising price level for goods and services. If the economy needs a
lift, the Bank of Canada will lower rates to encourage consumers and businesses to
borrow money and then spend.
It is critical for businesses to monitor changes in economic variables and adjust their
business strategies accordingly. Some retail segments benefit in a weakened economy,
such as stores like Dollarama, which saw profits jump 20% in the third quarter of 2013.
Websites offering consumers a platform to buy and sell used goods also benefit.
LO3: Describe the way various competitive forces influence marketing strategy development.
B. Competitive Forces
The strategies of competitors are constantly analyzed to find new and better ways for
products to appeal to similar target markets. In Canada, organizations operate in any one
of four different market structures, which affect competition in different ways:
1. Market Structures
• Oligopoly: A few large firms dominate the market, all with reasonably
high market shares (e.g., Microsoft, Sony, and Nintendo dominate the
video game console market). Any move by the market leader is usually
followed by the remaining competitors.
2. Competitive Strategies
Indirect competition refers to competition from substitute products that offer the
consumers the same benefit (e.g., Coke also competes with Gatorade and Nestea). In
retailing there is much competitive overlap between chains such as Shoppers Drug Mart
and Jean Coutu (drug stores) and Sears and Hudson’s Bay (department stores). They all
This was turning the tables upon the vehement churchman; and with
this we, for the present, leave the question, whether, in 1760, the
Methodists were Dissenters or were members of the Church of England.
Wesley was at this period too much occupied with other matters, to
have time to devote to literary pursuits; and yet the year 1760 was not,
even in this respect, altogether barren.
For instance, he published a 12mo pamphlet of 72 pages, entitled,
“The Desideratum: or Electricity made plain and useful. By a Lover of
Mankind, and of Common Sense.” In his preface, he states, that he has
endeavoured to “comprise in his tract the sum of all that had hitherto
been published on this curious and important subject.” Electricity he
considered “the noblest medicine yet known.”
The only other publication which he issued, in 1760, was a 12mo
volume of more than three hundred pages, with the title, “Sermons on
Several Occasions. By John Wesley, M. A.” The title was imperfect, for
in the same volume, and continuously paged, there are the following
additional pieces: namely, “Advice to the Methodists, with regard to
Dress,” 20 pages; “The Duties of Husbands and Wives,” 70 pages;
“Thoughts on Christian Perfection,” 30 pages; and “Christian
Instructions, Extracted from a late French Author,” 54 pages.
The sermons are seven in number. The first, on Original Sin; the
second, on the New Birth; the third, on the Wilderness State; the fourth,
on Heaviness through Temptations; the fifth, on Self Denial; the sixth, on
the Cure of Evil Speaking; and the seventh, on the Use of Money.
The last mentioned sermon is pregnant with not a few of Wesley’s
most strongly expressed sentiments. Concerning himself, he tells us that,
from “a peculiar constitution of soul,” he is “convinced, by many
experiments, that he could not study, to any degree of perfection, either
mathematics, arithmetic, or algebra, without being a deist, if not an
atheist; though others may study them all their lives without sustaining
any inconvenience.”
On the payment of taxes, he remarks: “It is, at least, as sinful to
defraud the king of his right, as to rob our fellow subjects; the king has
full as much right to his customs as we have to our houses and apparel.”
“Drams, or spirituous liquors, are liquid fire,” and all who
manufacture or sell them, except as medicine, “are poisoners general.
They murder his majesty’s subjects by wholesale. They drive them to
hell like sheep. The curse of God is in their gardens, their walks, their
groves. Blood, blood is there: the foundation, the floor, the walls, the
roof of their dwellings, are stained with blood.”
In the same sermon, he powerfully elaborates his three well known
rules,—Gain all you can; Save all you can; Give all you can.
In his “Advice to the Methodists with regard to Dress,” he says: “I
would not advise you to imitate the quakers, in those little particularities
of dress, which can answer no possible end, but to distinguish them from
all other people. To be singular, merely for singularity’s sake, is not the
part of a Christian. But I advise you to imitate them, first, in the neatness,
and secondly in the plainness, of their apparel.” He continues: “Wear no
gold, no pearls or precious stones; use no curling of hair; buy no velvets,
no silks, no fine linen; no superfluities, no mere ornaments, though ever
so much in fashion. Wear nothing which is of a glaring colour, or which
is, in any kind, gay, glistering, showy; nothing made in the very height of
fashion; nothing apt to attract the eyes of bystanders. I do not advise
women to wear rings, earrings, necklaces, lace, or ruffles. Neither do I
advise men to wear coloured waistcoats, shining stockings, glittering or
costly buckles or buttons, either on their coats or in their sleeves, any
more than gay, fashionable, or expensive perukes. It is true these are
little, very little things; therefore, they are not worth defending;
therefore, give them up, let them drop, throw them away, without another
word.” What will the fashionable followers of Wesley say to this? And
yet Wesley enforces his advices, and answers objections, in a manner
which, we suspect, the devotees of fashion will find it difficult to set
aside.
“The Duties of Husbands and Wives” was a republication, in an
abridged form, of Whateley’s “Directions for Married Persons,”
published, in 1753, in Vol. XXII. of the “Christian Library.”
The “Thoughts on Christian Perfection” have been already noticed;
and “Christian Instructions” contains nothing which deserves further
mention.
A quarter of a century had elapsed since Wesley set sail for America.
With what results? To say nothing of the success of the labours of
Whitefield and his coadjutors, Methodism had been introduced into
almost every county of England and Ireland; ninety itinerant preachers
were acting under Wesley’s direction; also a much larger number of local
preachers, leaders, and stewards; chapels had been built in London,
Bristol, Kingswood, Newcastle on Tyne, Redruth, St. Just, St. Ives,
Whitehaven, Gateshead, Sunderland, Teesdale, Colchester, Portsmouth,
Whitchurch, Bacup, Bolton, Flixton, Liverpool, Epworth, Louth,
Norwich, Kinley, Misterton, Coleford, Tipton, Wednesbury, Lakenheath,
Salisbury, Bradford, Halifax, Hutton Rudby, Haworth, Leeds,
Osmotherley, Stainland, Sheffield, York, Cardiff, Bandon, Cork, Dublin,
Edinderry, Tullamore, Court Mattrass, Pallas, Castlebar, Waterford, and
other places;[418] and to these sacred edifices must be added scores,
probably hundreds, of private houses, schools, barns, and rooms, which
were regularly used as preaching places. In addition to all this, the
Wesley brothers, John and Charles, had published about a dozen volumes
and about thirty tracts and pamphlets of hymns and poetry; while Wesley
himself had issued nine numbers of his Journal, about one hundred and
thirty separate sermons, tracts, and pamphlets, and nearly seventy
volumes of books, including his “Notes on the New Testament,” his
Sermons, and his “Christian Library.”
Can this be equalled, all things considered, in the same space of time,
in the life of any one, in this or in any other age and nation of the world?
We doubt it. Wesley began his career as a penniless priest; he was
without patrons and without friends; magistrates threatened him; the
clergy expelled him from their churches, and wrote numberless and
furious pasquinades against him; newspapers and magazines reviled him;
ballad singers, in foulest language, derided him; mobs assaulted, and,
more than once, well-nigh murdered him; and not a few of his
companions in toil forsook him and became his antagonists; and yet,
despite all this, such were some of the results of the first five-and-twenty
years of his unequalled public ministry.
PART III.
1761.
1761
Age 58 U PON the whole, the reign of the second George had been a
prosperous one. Money was plentiful; waste lands were
cultivated; mines were opened; and the exports of the country
doubled. But still, the population of England and Wales was only about
six millions, one half of whom were living on barley and oaten cakes.
Lord Holland was now at the zenith of his fame, a man of
distinguished talent, but a gambler, and of no fixed principles, either of
religion or of morals. William Pitt, Earl of Chatham, was premier, his
eye armed with lightning, and his lips clothed with thunder. Lord Bute
was plotting to become his successor. Secker, the son of a Dissenter, had
recently been made primate. Newton, soon afterwards bishop of Bristol,
was publishing his Dissertations on the Prophecies. Lowth had given to
the public his Lectures on Hebrew Poetry, and was rising into literary
reputation. Beilby Porteus was a young man, just becoming popular.
Kennicott was collecting sacred manuscripts. William Dodd was already
the idol of the London populace. The learned and pious Horne was
working his way to the see of Norwich; and Horsley, afterwards bishop
of St. Asaph, had just been appointed to the rectory of Newington.
Robert Robinson had recently commenced his ministry at Cambridge.
Dr. Gill was publishing his ponderous folios of Calvinistic divinity.
Towgood was educating young dissenting ministers; and Job Orton was
writing his Exposition of the Scriptures. Shenstone, Akenside, Gray,
Collins, and Goldsmith were among the chief poets of the period. John
Harrison was completing the chronometer, which obtained him a
parliamentary reward of £20,000. John Dollond was constructing
telescopes; Thomas Simpson was lecturing on mathematics; and James
Ferguson on stars. James Brindley was executing the great Bridgewater
canal; and Hogarth, Reynolds, and Gainsborough were making pictures
almost breathe. Macklin, Foote, and Garrick were the idols of the
pleasure loving world. These are a few of the distinguished men who
lived and flourished at the commencement of the reign of King George
III.
Perhaps we are justified in saying that, from this period, literature in
England became more than ever a distinct profession. Persons of all
ranks, including ladies like Madame D’Arblay, Mrs. Hannah More, Miss
Seward, and Mrs. Barbauld, turned authors. Johnson poured forth his
sonorous eloquence. Burke issued his brilliant pamphlets. Adam Smith
wrote his Inquiry into the Nature and Causes of the Wealth of Nations;
and Reid, his Essays on the Intellectual Powers; Campbell, his
Dissertations on Miracles; Robertson, his Histories; and Gibbon, his
Decline and Fall of the Roman Empire.
Other distinguished names belonging to the last thirty years of
Wesley’s life might be mentioned,—as Blair the rhetorician, Sir William
Jones the linguist, Herschel the astronomer, Hutton the geologist, Hunter
the anatomist, Banks the naturalist, Cook the navigator, Howard the
philanthropist; Crabbe, Rogers, and Burns the poets; Watt the engineer,
Arkwright the cotton spinner, Wedgwood the potter, Wyatt the architect,
and Bruce the traveller. England was awaking into unwonted life.
It is impossible, in a work like this, to give even the barest outline of
the great political events of the first thirty years of the reign of George
III. War committed fearful havoc. Politics were in bitterest confusion.
The Earl of Bute, cold, stiff, and unconciliating, was the subject of
numberless caricatures, lampoons, and squibs. The popularity of Pitt, the
patriot minister, was partially obscured with mists and clouds, while his
friends and partisans extolled him in the highest terms of eulogy. The
Duke of Newcastle, after occupying a seat in the English cabinet for
five-and-thirty years, had to retire, in comparative poverty, to the dreary
mansion of an ex-minister. Terrible were the contentions in parliament,
respecting the American rebellion, the stamp act, and other matters. The
political horizon was alarmingly threatening, and the period was almost a
continuous thunderstorm.
In a moral point of view, the state of the nation was deplorable.
Wesley had, under God, begun a reformation; but that was all. The upper
and the middle classes were revelling in luxury; the poor often were in a
state of starvation. Wilkes, Lord Sandwich, Sir Francis Dashwood, and
other fashionable rakes, were notoriously living in the worst private
excesses, and in Palace Yard were indulging in all the frowsy
indecencies of the Dilettante club, and at Medmenham Abbey were
practising the mysteries, obscenities, and mockeries of the Hell Fire club
of the Duke of Wharton’s days. Warburton, bishop of Gloucester,
declared that “the blackest fiend in hell would not keep company with
Wilkes on his arrival there”; and yet, mournful to relate, Wilkes was the
popular hero of the London populace. The sabbath was the day for routs
among the nobility and gentry; and political ministers, foreign and
domestic, being too busy on other days, gave their grand entertainments
on this. Gambling, though not so rampant as it had been, was still a
prevailing vice. Rakes were plentiful. Seeing life meant keeping all sorts
of company; drinking much, and appearing great; swearing in
fashionable language, and singing licentious songs; the being impious in
morals and wanton in debaucheries; learned in obscenity and skilled in
wickedness; spending the night at Vauxhall or Ranelagh; and then reeling
through the streets, at early dawn, like a beau of the first magnitude,
breaking windows and wrenching knockers; and, at last, finishing a
drunken frolic in being carried, either home or to the lock up, speechless,
senseless, and motionless. Reckless extravagance was general. The
mansions, furniture, tables, equipages, gardens, clothes, plate, and jewels
of the nobility were as gorgeous as wealth could make them. Young
tradesmen had their country houses, drove their carriages, and, to a
ruinous extent, left the management of their business to their servants.
Dress was ludicrously expensive. The upper classes indulged in their
brocades, laces, velvets, satins, and silver tassels; and even the sons of
mechanics sported their gold buttons, high quartered shoes, scarlet
waistcoats, and doeskin breeches. But, perhaps, the most absurd of all
was the ladies’ powdered head-dress; curled, frizzled, and stuffed with
wool; and pinned, greased, and worked up into an immense
protuberance, which, for months, put it out of the lady’s power to comb
her head, and created an effluvia of not the most pleasant odour, and
gave birth to animalculæ which ladies could have done well enough
without.
The country, if not so flagrantly wicked as the town, was,
notwithstanding, steeped in ignorance and sin. There were thousands of
godly people, but the bulk of the population were little better than
baptized barbarians. The clergy, in many instances, were lazy, or
drunken, or non resident. Numbers of them were most miserably paid,
and had to practise meannesses to eke out insufficient incomes. Others
were more fond of preaching over pewter pots, in dirty alehouses, than of
preaching in their pulpits, or of visiting their flocks. Others revelled amid
all the luxuries of a fat benefice, leaving the duties of their parishes to
young, half starved curates, who had to live on the mere gleanings of
their master’s vintage; and others had a far greater penchant for
persecuting Methodists than for saving souls.
It may be said that these remarks are extravagant; they are simply
defective; that is all. Let the candid reader peruse the histories of the
period, and especially its broadsheets, magazines, newspapers, essays,
and other periodicals, and he will readily acknowledge, that facts are not
misstated, nor pictures overdrawn.
Methodism had begun its mission; but who will say it was no longer
needed? It is time to return to its chief actors.
Charles Wesley and Whitefield were both in ill health during the year
1761, and were, to a great extent, laid aside from public labours; but
Wesley himself was, if possible, more active than ever.
He began the year in London, by writing letters to the newspapers. He
had been to Newgate prison, once one of the darkest “seats of woe on
this side hell”; but now he found it “clean and sweet as any gentleman’s
house.” There was no fighting, no quarrelling, no cheating, no
drunkenness, and no whoredom, as there used to be; and all this he
attributes to the “keeper,” who “deserved to be remembered full as well
as the Man of Ross.”
In the Westminster Journal, Wesley replied to a correspondent, who
had represented Methodism as “an ungoverned spirit of enthusiasm,
propagated by knaves, and embraced by fools.” By it, “the decency of
religion had been perverted, the peace of families had been ruined, and
the minds of the vulgar darkened to a total neglect of their civil and
social duties.” Wesley says: “I am almost ashamed to spend time upon
these threadbare objections, which have been answered over and over.
But if they are advanced again, they must be answered again, lest silence
should pass for guilt.”
His first journey, in 1761, was an excursion to Norwich, extending
from January 9 to February 7. One Sunday he spent at Everton, where he
preached twice for his friend Berridge. Ash Wednesday he divided
between Berridge at Everton and Hicks at Wrestlingworth. “Few,” says
he, “are now affected as at first, the greater part having found peace with
God. But there is a gradual increasing of the work in the souls of many
believers.”
At Norwich, Wesley found about three hundred and thirty persons who
professed to meet in class; but “many of them were as bullocks
unaccustomed to the yoke.” “All jealousies,” however, “and
misunderstandings were vanished; but how long,” he asks, “will they
continue so, considering the unparalleled fickleness of the people in
these parts?”
Returning to London, Wesley spent some days in visiting the classes,
and ascertained that, after leaving out one hundred and sixty “to whom
he could do no good at present,” there were still in the London society
2375 members. His reason for excluding the 160 is exceedingly
indefinite. Were they immoral? If so, why could not Wesley be of use to
them? Were they consistent Christians, but, by some means, beyond
Wesley’s reach? Perhaps they were; but if so, while such a reason might
be sufficient for removing them from membership with a mere society, it
was insufficient for removing them from the church of Christ.
The life of Wesley was full of anxiety. It could hardly be otherwise. A
man cannot be the leader of a great movement without incurring great
responsibilities. Wesley had had to settle many a hard question already.
In 1760 and succeeding years he had another. He had shocked the
prejudices of his clerical brethren by appointing unordained men to
preach; now he had to decide whether women should be allowed to
exercise the same sacred function. Sarah Crosby, a godly female, left
London for Derby, at the commencement of 1761, and began to meet
classes with great success. On February 8, when she expected a class of
about thirty persons, she found, to her surprise, a congregation of about
two hundred. She writes: “I found an awful, loving sense of the Lord’s
presence. I was not sure whether it was right for me to exhort in so
public a manner; and, yet, I saw it impracticable to meet all these people
by way of speaking particularly to each individual. I therefore gave out a
hymn, and prayed, and told them part of what the Lord had done for
myself, persuading them to flee from sin.”[419] On the Friday following,
she did the same to another equally large congregation; and says: “My
soul was much comforted in speaking to the people, as my Lord has
removed all my scruples respecting the propriety of my acting thus
publicly.”
This was a startling step to take. The new preacheress wrote to Wesley
on the subject; and he answered her as follows.
“L , February 14, 1761.
“M S ,—Miss —— gave me yours on
Wednesday night. Hitherto, I think you have not gone too far.
You could not well do less. I apprehend all you can do more
is, when you meet again, to tell them simply, ‘You lay me
under a great difficulty. The Methodists do not allow of
women preachers; neither do I take upon me any such
character. But I will just nakedly tell you what is in my heart.’
This will, in a great measure, obviate the grand objection, and
prepare for J. Hampson’s coming. I do not see, that you have
broken any law. Go on calmly and steadily. If you have time,
you may read to them the Notes on any chapter before you
speak a few words; or one of the most awakening sermons, as
other women have done long ago.
“The work of God goes on mightily here, both in
conviction and conversion. This morning, I have spoken with
four or five who seem to have been set at liberty within this
month. I believe, within five weeks, six in one class have
received remission of sins, and five in one band received a
second blessing. Peace be with you all! I am your affectionate
brother,
“J W .”[420]
Another letter, written four days after the above, deserves attention, as
showing the position occupied by Wesley as a minister of the Church of
England. It also was addressed to a clergyman.
“L , April 6, 1761.
“D S ,—Let who will speak, if what is spoken be true,
I am ready to subscribe it. If it be not, I accept no man’s
person. Magis amica veritas. I had an agreeable conversation
with Mr. Venn, who I suppose is now near you. I think, he is
exactly as regular as he ought to be.[423] I would observe
every punctilio of order, except where the salvation of souls is
at stake. Here I prefer the end before the means.
“I think it great pity, that the few clergymen in England,
who preach the three grand spiritual doctrines,—original sin,
justification by faith, and holiness consequent thereon,—
should have any jealousies or misunderstandings between
them. What advantage must this give to the common enemy!
What a hindrance is it to the great work wherein they are all
engaged! How desirable is it, that there should be the most
open, avowed intercourse among them! Surely if they are
ashamed to own one another, in the face of all mankind, they
are ashamed of Christ! Excuses, indeed, will never be
wanting; but will these avail before God? For many years, I
have been labouring after this: labouring to unite, not scatter,
the messengers of God. Not that I want anything from them.
As God has enabled me to stand, almost alone, for these
twenty years, I doubt not but He will enable me to stand,
either with them or without them. But I want all to be helpful
to each other; and all the world to know we are so. Let them
know ‘who is on the Lord’s side.’ You, I trust, will always be
of that number. Oh let us preach and live the whole gospel!
“I am, dear sir,
“Your ever affectionate brother and
servant,
“J W .”[424]
This is a manly and Christian letter. He longed for union and for help,
not for his own sake so much as for the sake of others. For twenty years,
he had done his work without the cooperation of his brethren, the clergy;
and he could do so still; but, like his great Master, he prayed for unity
among Christians, that there might be faith among sinners.
The Church question was still unsettled. Four days after writing the
above, Wesley addressed, to another correspondent, an unusually long
letter, from which we select the following.
“April 10, 1761.