chapter 2 marketing environment
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part one: this is marketing. Chapter 2 marketing environment. an opening challenge. - PowerPoint PPT PresentationTRANSCRIPT
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CHAPTER 2 MARKETING ENVIRONMENT
part one: this is marketing
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an opening challenge
You work for an oil company and Greenpeace protesters are currently camped outside the refinery. They are protesting over a proposed new pipeline and no one at the oil company seems surprised that they are there. In fact, the counter-arguments were prepared in advance and the press release has gone to all the newspapers. Greenpeace kept its intentions a secret, so how was this possible?
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agenda
• market dynamics• stakeholders• analysing the marketing environment• situation analysis
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market dynamics
market followers
first mover advantage?
market followers market
followers
marketleader
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common problems for market pioneers
categories of errors– marketing mistakes– product mistakes– stuck with first-generation technology– resource limitationsDoyle (2002)
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stakeholders
the organisation
consumers
customers
employees
distributorsinvestors
media
pressure groups
local communitygovernment
suppliers
opinionleaders
influencers
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stakeholder mapping
level of interest
low highlow
powerhigh
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what’s going on in the marketing environment?
gm foods
rise in obesity
ageing populations
elections
war
terrorism
transport problems
new competitors
packaging laws
new EU regulationsincreases in taxes
economic instability
changing tastes
new suppliersshareholder pressure
advertising campaignsdigital technologies
staff skills
immigration
global warming
fashion trends
online social networking
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analysing environmental factors
PRESTCOM
PoliticalRegulatoryEconomicSocialTechnologicalCompetitiveOrganisationalMarket
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the macro environment
(macro)economic
social(society) technology
political regulatory
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the political environmentthe activities of:• government (central, regional, local and supranational)
– e.g. EU
• special interest, lobbying and pressure groups – e.g. Countryside Alliance, Friends of the Earth, CND, Amnesty,
Stonewall• trade unions
– e.g. Unison, UCU, NUS• political parties
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the regulatory environment• laws– criminal and civil– e.g. Consumer Protection Act (1987)– e.g. negligence (a tort)
• codes of practice– e.g. Advertising Standards code
• customary practice
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the economic environment• key economic indicators such as:– employment levels– interest rates– taxes– budget deficit– balance of payments– inflation– trade cycle movements
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trade cycle (business cycle)AQ – type needs re-setting and ‘cofidence’ amended to
‘confidence’ x2
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the social environment• population increases/decreases• demographic trends– e.g. more older people
• attitude changes– e.g. acceptance of gay couples
• patterns of behaviour– e.g. more working mothers
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advances in the technological environment
• information technology (IT)– e.g. latest processors, storage devices, software
• communications technology– e.g. smartphones, 4G
• transport technologies– e.g. high-speed trains, electric cars
• production technology• medical technology
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the micro environment(competitive and internal)
marketcompetition
organisation
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the competitive environment
• direct competitors– similar products in the same category
• close competitors– alternative products in the same category
• substitutes– a product that fulfils the same need or has the same
core benefit• indirect competitors– any other product that may be bought instead
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competitorsWhat kind of competitors are the following?• Irn Bru and Pepsi Cola• Coca Cola and Cadbury’s chocolate• a shirt and a pair of shoes• a Big Mac and a pizza• Coca Cola and Pepsi Cola
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organisation (internal) environment
strengths and weaknesses in terms of:• staff and skills• finance• product range, brands• locations, stores, distribution network• reputation, brand image• innovation
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market environment (customers)
• customers may be:– individuals (consumers)– organisations
• look for:– changes in taste, fashion– changes in purchasing behaviour– changes in product usage
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the international environment
home countryPRESTCOM
other countries
PRESTCOM + CCC
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the three Cs• country– e.g. history and geography– e.g. relationships between nations
• currency– e.g. stability
• culture– and sub-cultures
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situation analysis
SWOT
strengths
weaknesses
opportunities
threats
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AN OPPORTUNITY IS THE OPPOSITEOF A THREAT.IT IS NOT AN ACTION OR A STRATEGY.
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the analysis
internal
external
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SWOT analysis• organise environmental factors under SWOT
headings• match them– opportunities that play to strengths– threats that play to weaknesses
• rank them– according to importance to the organisation
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summary• the importance of environmental scanning• the identification of key strengths and
weaknesses, opportunities and threats• understanding stakeholders and their
interests• sound analysis is the basis for objective
setting and marketing planning
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reference
Doyle, P. (2002) Marketing Management and Strategy (3rd edn). Harlow: FT Prentice Hall.