Introduction (1)

The Marketing Environment

Strategy

STEP/PEST
Introduction (2)
 Value Chain > leading principle

 Management/ law / organisational structures

 Internationalisation

 Marketing and sales (structure/functions)

 Marketing strategies

 Segmentation of markets

 4 Ps

 E-commerce
 Experiences in a company
Every company has its own value chain and
its own special way to reach its goals !

> “Maybe it’s time to update our mission statement.

Strategy, the big picture

Company
Mission/
Mission statement !
E.g. Philips: ‘Lets make things better’

Goals of the company Strategic vision

Who are we and what

do we stand for?! What’s the M-potential?
In what market do we
Strategylevel
operate? (M-definition)
Profit/non profit?
Service/product?
What & How ?
Strategy level

 Corporate strategy
– Take-overs, merges, acquisitions
 SBU: Business strategy
– Productportfolio, new markets, products
 PMC: Functional strategy
– Price, Place, Product, Promotion
Corporate strategy & Mission

 Corporate strategy: helps to control and

coordinate the different areas of the
organisation, finance, marketing,
production, R&D, etc. to ensure that they
are all working towards the same objectives.

 Mission
 Which product: what need is supplied for??
 Which market??
 Who are the buyers/ the consumers?
 Mission Statement

Examples :
 Philips: “Our mission is to improve the quality
of existance by introducing usefull innovations
at the right moment.”
‘Lets make things better’

 "Organize the world's information and make it

universally accessible and useful."—Google
Strategy, the big picture
Mission/
Mission statement
Planning proces

Levels: Strategic, Tactical, operational

Corporate strategy

•Allocation of resources
Informs,
operationalises •Portfolio of activities for org.
Marketing strategy
•Organisation’s mission
•Competing in a product market
•Organisational objectives
•Selecting markets and
segments Guides, directs, controls,
coordinates
•Determining marketing mix
 Overall picture
Planning process: Strategy
Monitoring and analysing

Events, drivers, Dynamic

new goals, process
changing business/ profits

Internal factors External factors

Environmental analysis
SWOT

Strategic options, Strategy

goals
Operationalise
Implementation
The marketing environment
Macroenvironment

Microenvironment /
Industry

Company
Elements of the external
environment (STEP or PEST)

Sociocultural Technological

FIRM

Economic Political / legal

Environmental
The sociocultural environment

 Changing demographics
“grey market”
size of household
 Change in lifestyle
 Change in societal attitudes
 Attitudes
Change in lifestyle
Change in societal attitudes
Business ethics

Environmental issues
Animal welfare

Marketing Strategy

Personal ethics Health and safety

 Change in societal attitudes
Suppliers/ Markets
Business ethics Labour prices
Community service

Environmental issues
Animal welfare

Product origins
Product content Marketing Strategy Farming methods

Personal ethics Health and safety

Bribery Ingredients
Unethical practices Production methods
Technological environment

 Materials, products
Fast pace of technological change
and components :
- Packaging
High R & D costs and equally high
-
budgets to ensure advancement.
Production processes:
-
Increased regulation
-
 Distribution
Internet: The emergence of the
Internet made it possible for
 Marketing and
consumers to compare prices of
customers:
products more easily than was
-
previously possible.
-
Technological environment

Br. Retailer: database

for demografic (!) facts

TNO: Whiter than white!

Product + tester
The economic and
competitive environment

 Macroeconomic:
 Taxation, Intrest rates, Exchange rates,
International trading blocks

 Microeconomic
 Income distribution
 monopoly
Environmental analysis

 Increased pollution
 Shortages of raw materials such as oil
and coal
 Increased cost of energy
 Government intervention in natural
resource management
 Political /legal
environment
 National and Local governments
 European Union
 The G-7? (economical-political)
 Legal: official bodies
 ASA: Advertising Standards Authority
 OFT: Office of Fair Trading (UK)

Influenced by sociocultural factors:

Pressure of public opinion, media, pressure groups
SWOT
Environmental Scan

Internal Analysis External Analysis

Strengths Opportunities
Weaknesses Threats

SWOT Matrix
 SWOT

 S & W:
– present & past
– internally controlled factors (4Ps)

 O & T:
– present & future
– outward-looking, strategic view
SWOT Matrix

Internal External

+ Strengths Opportunities

- Weaknesses Threats
Finally

Looking at the external environment:

Situation of the moment:
 many factors
 great diversity of influences
 rapid changes

1. What influences a specific company?

2. Look at opportunities!
Literature
Week 1

Lecture 2 Macro-Meso factors

Reading Material:
Kotler Principles of Marketing,
 Chapter 3 The Marketing Environment, page 87-117
 Chapter 6 The Global Marketplace, Looking at the global
marketing environment, page 213-222

Lecture 3 Global Marketing

Reading Material:
Kotler Principles of Marketing,
 Chapter 6 The Global Market Place, Deciding on the global
marketing programma, page 229-238