Chap. 3 Marpest Amaketing Environment PEST

The Marketing Environment
Jobber chap. 3
1.
The Marketing Environment: Key Terms
The Marketing Environment The actors and forces that affect a companys capability to operate effectively in providing products and services to its customers.
2. Macroenvironment The 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. Microenvironment The actors in the companys immediate environment that affects its capability to operate effectively in its chosen markets.
The Marketing Environment

Macroenvironment Economic Microenvironment Suppliers Political/ Customers legal
Company Distributors Competitors
Social/ cultural
Ecological/ Physical
Technological
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 communicate s its low sugar, low fat, high fibre attributes.
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Management styles in the European Union and the USA

Individual Spain France Belgium USA Germany
Leadership
Portugal
Luxembourg
Ireland Greece Italy UK Denmark Netherlands
Group Organic Systematic
Organisation
Source: Mole, J. (1990) Mind Your Manners
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

Performance Trends Threats Opportunities Environmental Trends Minor Issues Strengths Weaknesses Internal Trends
Impact
Major
Impact
Week Strong
Impact
Urgent
Impact
Delayable Postponable
Include in next years planning cycle Start a gradual commitment project Start a priority project
Delayable
Postponable
Drop from Continue the issue to list monitor
Environmental Scanning: Key Benefits

1. Better awareness of, and responsiveness to environmental changes. 2. Better strategic planning and decisionmaking. 3. Improved resource allocation and diversification decisions. 4. Better strategic fit between strategy, organization and the environment.
Strategic marketing fit

Environment
Fit
Fit
Strategy
Fit
Organization
Responses to environmental change Environmental change

Ignorance
Delay Barriers to change
Retrenchment
Gradual strategic repositioning
Radical strategic repositioning
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 wont produce decisions

Chap. 3 Marpest Amaketing Environment PEST

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Chap. 3 Marpest Amaketing Environment PEST

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The Marketing Environment

The Marketing Environment: Key Terms

The Marketing Environment

Company Distributors Competitors

European Unemployment Rates - 2012

INSERT TOYOTA PRIUS ADVERT

World Population Growth

Changes in European Union Population

Population pyramid Denmark 2010

Population pyramid Denmark 2050

Population pyramid China 2010

INSERT WEETABIX ADVERT

Management styles in the European Union and the USA

Group Organic Systematic

Environmental Scanning: Key Tasks

A Framework for Analysing and Responding to Environmental (Strategic) Issues

Drop from Continue the issue to list monitor

Environmental Scanning: Key Benefits

Strategic marketing fit

Responses to environmental change Environmental change

Gradual strategic repositioning

Radical strategic repositioning

Marketing Environment Deadly Combinations

Technology and Society

Demographic and Economic

What is the Purpose of Environmental Scanning?

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