Giang Nguyen Thanh Nguyen

Assignment of Chapter 3
The marketing environment of Philips refers to the external factors and forces that impact
the company's abilities to promote and sell their products. These factors can be
categorized in general as micro and macro environment factors.
Micro Environment Factors:
- Company analysis: analyzing the company's internal factors such as its strengths,
weaknesses, resources and capabilities.
- Consumer analysis: understanding basic needs and preferences of the target
customers.
- Competitor analysis: analyzing the strengths and weaknesses of the company's
competitors like Osram, Halonix, Crompton.
- Market analysis: Identifying the size, growth rate and current trend of attractive
markets.
Macro Environment Factors:
The PESTEL model is a useful framework for analyzing the macro environment factors that
impacts Philips business.
- Political factors: refer to the government policies and situations that can affect a
company's operations. It is difficult for Philips to expand business in the Middle
East region, so they need to be aware of the political risks and find solutions to
mitigate them.
- Economic factors: the impact of macroeconomic factors such as changes in
customers spending patterns, corresponding sales figures and economic growth
rates in different regions. Philips developed a more integrated and less fragmented
marketing strategy for the region.
- Social factors: Philips has been responsive to changing social trends, such as the
growing demand for sustainable products. The company has invested in marketing
and advertising to reach new customers.
- Technological factors: Philips has been on the leading edge of technological
innovation in the lighting industry. The Middle East region rapidly adopts new
technologies that creates new opportunities for Philips to develop in the
healthcare and lighting section.
- Environmental factors: With the initiative of converting all lighting in government
buildings to LEDs, which is more energy efficient and can be controlled digitally.
Philips has managed to assess these factors and shape the marketing environment
to suit changes.
 - Legal factors: There are regulations related to lighting products and energy
awareness, as well as standard production for efficient bulbs that Philips needs to
follow.
The way Philips has applied the marketing environment and the PESTEL model is a
proactive approach. The company has been actively monitoring the macro environment
factors that could affect their business. Philips has been investing in research and
development to stay ahead of the technological innovation. The company has also been
expanding their operations into new markets such as the Middle East. Philips has been
able to mitigate risks and optimize opportunities. This helpes the company to remain
competitive and successful in new markets. It is understandable that Philips has used
PESTEL model in various studies and analysis. Therefore, The model is useful in identifying
external factors that can impact the company's business and help to develope suitable
strategies.