Chap. 3 marketing environment pest
Transcript of Chap. 3 marketing environment pest
The Marketing Environment
Jobber chap. 3
The Marketing Environment: Key Terms
1. The Marketing EnvironmentThe actors and forces that affect a company’s capability to
operate effectively in providing products and services to its customers.
2. MacroenvironmentThe broad forces that affect not only the company but also
the other actors in the microenvironment. The analysis of the five forces – political/legal, economic, ecological/physical, social/cultural and technological – is known as PEEST analysis.
3. MicroenvironmentThe actors in the company’s immediate environment that
affects its capability to operate effectively in its chosen markets.
The Marketing Environment
Company
Microenvironment
Macroenvironment
Political/legal
Ecological/Physical
Technological
Social/cultural
Economic
SuppliersCustomers
Distributors
Competitors
Political Factors.
• The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as:
• 1.How stable is the political environment? • 2.Will government policy influence laws that regulate or tax your
business?• 3.What is the government's position on marketing ethics? • 4. What is the government's policy on the economy? • 5. Does the government have a view on culture and religion? • 6. Is the government involved in trading agreements such as EU, NAFTA,
ASEAN, or others?
Economic Factors
• Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at:
• 1. Interest rates.• 2. The level of inflation Employment level per capita. • 3. Long-term prospects for the economy Gross
Domestic Product (GDP) per capita, and so on. • Economic Growth and Unemployment.
European Unemployment Rates - 2012
Toyota
Toyota demonstrates its concern for pollution control with the Toyota Prius automobile.
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Sociocultural Factors.
• The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:
• 1.What is the dominant religion? • 2.What are attitudes to foreign products and services? • 3.Does language impact upon the diffusion of products onto
markets? • 4.How much time do consumers have for leisure? • 5.What are the roles of men and women within society? • 6.How long are the population living? Are the older
generations wealthy? • 7.Do the population have a strong/weak opinion on green
issues?
World Population Growth
Changes in European Union Population
Population pyramid – Denmark 2010
Population pyramid – Denmark 2050
Population pyramid – China 2010
Weetabix
Weetabix communicates its low sugar, low fat, high fibre attributes.
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Management styles in the European Union and the USA
Group
Individual
Leadership
Organic Systematic
Organisation
Source: Mole, J. (1990) Mind Your Manners
Italy
Portugal
Greece
Netherlands
Spain France
Germany
USA
Ireland
Belgium
Luxembourg
DenmarkUK
Technological Factors.
• Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:
• 1. Does technology allow for products and services to be made more cheaply and to a better standard of quality?
• 2.Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?
• 3.How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?
• 4.Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc?
The Macroenvironment
3. Ecological/Physical Environmental Forces Global Warming. Pollution. Energy and Scarce Resource Conservation. Environmentally Friendly Ingredients and
Components. Recycling and Non-Wasteful Packaging. CSR
The Microenvironment
Customers
Competition
Distributors
Suppliers
Environmental Scanning: Key Tasks
1. Monitoring trends, issues and events, and study their implications.
2. Develop forecasts, scenarios and issues analysis.3. Disseminate information on the business environment
through newsletters, reports and lectures.4. Establish a database for environmental information.5. Provide a focal point for the interpretation and analysis of
environmental information identified by other people in the company.
6. Provide a group of internal experts on environmental affairs.7. Evaluate and revise the scanning system itself.
A Framework for Analysing and Responding to Environmental (Strategic) Issues
Impact
Impact
ImpactImpact
ThreatsOpportunities
Environmental Trends
Strengths Weaknesses
Internal Trends
Performance Trends
Issues
Major
Minor
StrongWeek
Drop fromthe issuelist
Start apriorityproject
Continuetomonitor
Include innext yearsplanning cycle
Start a gradualcommitmentproject
Postponable
UrgentDelayable
PostponableDelayable
Environmental Scanning: Key Benefits
1. Better awareness of, and responsiveness to environmental changes.
2. Better strategic planning and decision-making.3. Improved resource allocation and
diversification decisions.4. Better strategic fit between strategy,
organization and the environment.
Strategic marketing fit
Environment
Strategy Organization
Fit Fit
Fit
Responses to environmental change
Retrenchment
Gradual strategic repositioning
Radical strategic repositioning
Environmental change
Ignorance
Delay
Barriers to
change
Marketing Environment – Deadly Combinations
• The Biggest Problems Tend to Occur when Factors Combine
• New Governments and New Laws– Tax rates, banned products, protectionism
• Technology and Society– Internet, mobile phones
• Demographic and Economic–Which groups have all the money?
Environmental Scanning• What is Environmental Scanning?– Identifying which of the environmental forces are
of particular significance to the organisation– Monitoring and forecasting future trends in these
forces– Interpreting the significance of these factors for
future marketing strategies• What is the Purpose of Environmental
Scanning?– Helps in developing and implementing plans to
respond to these factors/trends
Types of Scanning
• Undirected Viewing– Unsystematic, without purpose
• Conditional Viewing– Limited to factors perceived as key
• Informal Search– Informal systems for collecting data
• Formal Search– Formal systems, organised search
Conclusions• The Dynamic Environment– Organisations that do not adapt may decline and die
• Organisations Must:– Understand what is going on in their business
environment– Respond and adapt to this change
• Making Decisions– Information about the environment is crucial, but
won’t produce decisions