MBA

Marketing Planning - MOD004454

Topic 3 – Macro Marketing Environment Analysis

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MOD002439 Dissertation
Topic 3 – Macro Marketing Environment Analysis

Contents

Topic 3 – Macro Marketing Environment Analysis................................................................. 1

3.1 Introduction ...................................................................................................................... 3

3.2. The Marketing Environment............................................................................................ 4

3.3. Scanning the Macro Marketing Environment ................................................................. 5

3.4 Formative Exercise 1 ....................................................................................................... 10

Role Play ........................................................................................................................... 10

Political ........................................................................................................................... 10

Economic ........................................................................................................................ 10

Social and Cultural ......................................................................................................... 10

Technological ................................................................................................................. 10

Environmental ................................................................................................................ 10

Legal ............................................................................................................................... 10

3.5 Formative Exercise 2 ....................................................................................................... 11

Blue Sky Thinking… ........................................................................................................... 11

3.6 Additional Reading.......................................................................................................... 12

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Topic 3 – Macro Marketing Environment Analysis

3.1 Introduction

This week, we take a fresh approach to analysing the macro marketing environment; using
creative thinking and stretching our imagination. We’ll begin by touching on some core
theory around the components of the marketing environment and the process of scanning
it for potential trends, before honing in on the macro environment and the potential
opportunities and threats it can throw up for organisations. You will be expected to read
around the core theory in more depth, but with a critical eye and an open mind as you
apply it to your own organisation.

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Topic 3 – Macro Marketing Environment Analysis

3.2. The Marketing Environment

No business operates in isolation. It is steeped in, affected by, and driven by dynamic
forces that are not always controllable. But they can present opportunities and strengths,
as well as threats as weaknesses.

Such forces exist within the business, alongside the business, and in the wider business
world, collectively known as the marketing environment. It has a macro element, a micro
element and in internal element.

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Topic 3 – Macro Marketing Environment Analysis

3.3. Scanning the Macro Marketing Environment

The macro environment exists outside the organisation, on a global scale, and is largely
uncontrollable. This is not, however, an excuse to ignore what factors are at play, burying
one’s head in the sand and hoping the issues will go away. Rather, it is prudent to scan the
scale of the opportunities and threats that might face the organisation in the near future
and rally its strengths, address its weaknesses, to formulate a strategic marketing solution.
This process is known as environmental scanning.

Figure 2: Environmental Scanning Process

The most commonly used tool for scanning the macro marketing environment is the
PESTEL analysis, variations of this include STEEPLE, STEP, and PEST.

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Topic 3 – Macro Marketing Environment Analysis

Figure 3: PESTLE in the Macro Environment.

The purpose of PESTEL analysis is to identify potential opportunities and threats that are
on the business horizon – it is important to remember that these exist only in the macro
environment as we have no control over them. See example PESTEL analysis on the next
page conducted for a consultancy firm in the global asset and wealth management
industry.

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Topic 3 – Macro Marketing Environment Analysis

Category Risk Potential impact Mitigation/action

Political • US government step in Threatens plans to enter Keep abreast of

to manage tax evasion Swiss market, working government
in Switzerland (Flood, with guilty clients will decision.
2013) damage
• UK government taking X reputation.
a firm stance on fund
manager and investor Opportunity to influence Consider options for
relationships (UK more ethical behaviour affecting change in
Parliament, 2014) among fund managers. client behaviour.
• There is a ‘substantial’
threat of terrorism in A terrorism attack in
London (gov.uk, 2014) London would put the Devise crisis
safety of X employees at management plan.
risk.

Economic • UK economy Rise in investments in Understand key

forecasted to grow by UK, more business for clients’
2.4% this year and by asset managers and corporate strategies
2.2% in 2015 (BBC greater demand for X to tailor consultancy
News Business, 2014) services. services.

• Favourable economic Opportunity for Develop new market

conditions in Hong expansion, strengthen development
Kong and Singapore reputation. strategy and analyse
(HKTDC, 2014) competitive
landscape.

Explore phased
Asset managers may approach with client

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Topic 3 – Macro Marketing Environment Analysis

• US GDP not growing as delay implementation projects to spread

quickly as expected projects, negative costs.
(Reuters, 2014) impact on reputation if
projects lost. Keep on top of client
needs.
• Rise in number of Increasing market
HNWIs globally demand for asset
(Gemes, 2014) management
consultancy.

Social • Behaviour of HNWIs Opportunity to provide Strengthen digital

becoming more self- consultancy to asset strategy.
directed (Gemes 2014) managers to re-engage
with clients.

Technological • Rapid rate of Not keeping up with Review ways to

technological change technology may reduce improve business
(Accenture, 2014) credibility when pitching processes through
for new projects. technology.

Environmental • EU aims to reduce Low threat as office Investigate ways to

carbon emissions by rented but potential become greener.
40% and increase associated reputation
share of renewables by damage.
27% by 2030 (Vaughan,
2014)

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Topic 3 – Macro Marketing Environment Analysis

Legal • Foreign Account Tax Opportunity to work Identify clients that

Compliance Act with clients to ensure will be affected,
(FATCA) introduced compliance, enhance particularly in
(US Treasury, 2014) ethical image. Luxembourg.

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Topic 3 – Macro Marketing Environment Analysis

3.4 Formative Exercise 1

Role Play

Imagine you are the Marketing Director for Tourism Australia. Consider a potential
opportunity and/or threat that could be posed by the each of the following macro
environmental factors. While not all factors may not be critical, try to use your
imagination to envisage some interesting trends that might not be particularly obvious at
first…

Political

Colombians celebrate as peace deal is reached with Farc rebels.

Economic

Climbing the Australian housing ladder can be tough.

Social and Cultural

Train driver Preeti Kumari: 'Nothing is impossible in life'.

Technological

How Tech is Helping a Casino Catch the Cheats.

Environmental

Wavy Greenland Rock Features ‘Are Oldest Fossils’.

Legal

Apple Chief Tim Cook Says Tax Ruling ‘Maddening’.

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Topic 3 – Macro Marketing Environment Analysis

3.5 Formative Exercise 2

Blue Sky Thinking…

Draft a PESTEL analysis for your organisation.

[Tip: Remember to include references as your analysis will need to be credible if you are
going to pitch for a marketing budget later to develop a strategy].

Think creatively and without limitations (budget, resources, and internal politics aside)
about the opportunities you have identified in your PESTEL analysis. Discuss online the
most unlikely one being presented to your organisation, the one that you know would
never be embraced however viable. Try to imagine the counter arguments and reasons
against pursuing such an opportunity that you might face at work were you to suggest it.

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3.6 Additional Reading

• Chapter 12 of Drummond, G., Ensor, J. and Ashford, R. (2007) Strategic marketing:

planning and control, 3rd edition. Oxford, Routledge
• Chapter 4 of Doyle, P. and Stern, P. (2006) Marketing management and strategy,
4th edition. Harlow, Prentice Hall
• Dess, G. et al. (2014) Strategic management: text and cases. Michigan, McGraw-
Hill
• Chapter 1 of Mullins, J.W. and Walker, O.C. (2013) Marketing management: a
strategic decision-making approach. New York, McGraw-Hill
• Marshall, G. and Johnston, M. (2014) Marketing Management. McGraw-Hill
• McDonald, M. (2008) Malcolm McDonald on marketing planning understanding
marketing plans and strategy. London, Kogan Page
• Chapters 1 – 2 of McDonald, M. (2011) Marketing plans: how to prepare them,
how to use them. Chichester, John Wiley & Sons
• Chapter 4 of Brennan, R et al. (2010) Business-to-business marketing. Sage
Publications, London
• Minculete, G. et al. (2014) Marketing Management Relational Approaches Focused
on Consumer’s and Customer’s Needs and Desires. Seria Management. Vol17, Iss
2, pp.325-346
• Gibb, A. and Scott, M. (1985) Strategic awareness, personal commitment and the
process of planning in the small business. Journal of Management. Vol22, Iss6,
pp597-631

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Copyright Notice in the image / diagram reference for details.

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