Transcript Assessing the Marketing Environment
Assessing the Marketing Environment
The MACRO Environment
• • • • Identifies and measures the non-controllable elements of the environment that organisation must assess.
Organisations are assessing the trends in change as they might impact on them MACRO environment is dynamic, it is always changing PESTLE factors are the ones we are analysing
The Social Environment
• • Demography – – How fast/slow is the population growing?
Is it an aging population? What is the ethnic make up? Level of immigration?
– How is it changing?
Social Change – – Divorce rates? Single parent and single families?
Working women? Rise in wealth of women? ‘New’ family units.
– Impact of ‘new’ ethnic groups
The Social Environment
• • Culture – What are the core values in Society? What is their source?
– – Religion and thinkers are key to culture Education, language, Aesthetics.
– Family background, sub-cultures, reference groups Social responsibility – As a society we are becoming more concerned with business behaving in an ethical manner and looking after the environment
The Economic Environment
• Economic indicators – Interest rates – Inflation – Growth (GDP) – Unemployment – International trade (surplus) – Personal debt – Exchange rates – The Business (Economic) cycle
The Political Environment
• Governments – Pass laws – Set levels of tax – Shape behavioural standards, for example laws about smoking – Control the public sector – Take responsibility for International Trade
The Legal Environment
• Government legislate – Consumer protection laws – Health and safety – Laws to protect intangible property • Patents • Trademarks
The Natural Environment
• Environmental factors the public are concerned about – Reducing fossil fuel consumption – Re-cycling – Sustainable sources – Help workers down the supply chain – Ethical business behaviour
The Technological Environment
• • • • The speed as which new technology diffuses The impact of technology on social change The Internet (how do companies use it?) Technology impacts on our effectiveness and efficiency at work
Corporate and Social Responsibility
• Organisations accountability to society – Social values, consumers want to know more about the sources of their products – Fair trade – Cause related marketing
The MICRO Environment
• Individuals and organisations that directly or indirectly impact on an organisation. They include: – Customers – Suppliers – Distributors – Shareholders – Competitors – Interest groups
• • • • • How have/do their requirements change over time?
How do the MACRO environmental changes impact on customers?
How do suppliers products impact on customer?
Is the product/service always on time?
Happy employees makes for happy customers
• • • • • In the UK there are many laws to stop unfair competition. In particular mergers of large companies are strictly controlled Anti-competitive agreements are prohibited Trade bodies exist to enforce standards Various regional trading bodies World trade organisation
• We need to know: – What the competitor says about itself – What people say about them – Their Strengths and Weakness – Their tactics – Their product/service offering – How our company compares
The Internal Environment
• It is about understanding what the company is capable of and what it does best (core competencies). They come in various forms in the UK: – Sole trader – Partnerships – Limited company – Francises
• • • • • • Motivating staff Rewarding staff The degree of formality at work How should staff behave Degree and expectations of team working Structure and control inn the organisation
Corporate and Social Responsibility at the Business Level • Should business be responsible? Two views – No, business is only about making a profit so other people can spend money on social issues – Yes, business is responsible for all its stakeholders whether they directly generate income or not
Organisational Strengths and Weaknesses • • Organisations are constrained by all the actors in their environment. However with globalisation new markets opens up.
Challenge for business in this new world order is to either: – Standardise or adapt their products and services for different markets – Are you a niche or mass marketer?
• • Qualitative – Soft data and opinion – Can help understand the reasons why Quantitative – Hard data and measurement – Mathematical models – Can help understand the what
• Objectives are hierarchical and should be SMART – Organisation mission and purpose – Organisation aims – Organisation objectives – Marketing objectives
• • • Internal (5M’s) – Money, Manpower, Marketing, Materials, Machinery MICRO – Porters 5 Forces for structure of competition MACRO – PEST, PESTLE
• Pulls together the strands of the analysis – Strengths-what the organisation is good at – Weaknesses-Internal areas to improve – Opportunities-external factors that can help the organisation improve – Threats-external factors beyond the organisations control that could put it at risk