pom 3b
TRANSCRIPT
-
8/13/2019 POM 3b
1/38
ANALYZING
THE
MARKETING
ENVIRONMENT
Lecture 3POMBBA2K10 (A)
-
8/13/2019 POM 3b
2/38
Class Agenda
1. The Company’s Micro environment
2. The Company’s Macro environemnt
3. Responding to the Marketing Environment
-
8/13/2019 POM 3b
3/38
Marketing Environment
Consists of actors and forces outside of theorganization that affect management’sability to build and maintain relationships
with target customers. Studying the environment allows marketers to
take advantage of opportunities as well as to
combat threats.
Marketing intelligence and research are used to
collect information about the environment.
-
8/13/2019 POM 3b
4/38
Marketing Environment
Includes:
Microenvironment: Actors close to the company that affect its abilityto serve its customers.
Macroenvironment: Larger societal forces that affect themicroenvironment.
-
8/13/2019 POM 3b
5/38
The Microenvironment
Company itself
Suppliers
Marketing intermediaries
Customers
Competitors
Publics
-
8/13/2019 POM 3b
6/38
The Microenvironment
The company itself:
Areas/departments inside of a company.
Affects the marketing department’s planningstrategies.
All departments must “think consumer” and worktogether to provide superior customer value and
satisfaction.
-
8/13/2019 POM 3b
7/38
The Microenvironment
Suppliers:
Provide resources needed to produce goods andservices.
Important link in the “value delivery system.”
Most marketers treat suppliers like partners.
-
8/13/2019 POM 3b
8/38
The Microenvironment
Marketing intermediaries:
Help the company to promote, sell, and distributeits goods to final buyers.
Resellers
Physical distribution firms
Marketing services agencies
Financial intermediaries
-
8/13/2019 POM 3b
9/38
The Microenvironment
Customers:
Five types of markets that may purchase acompany’s goods and services.
Consumer
Business
Reseller
Government International
-
8/13/2019 POM 3b
10/38
The Microenvironment
Competitors:
Those who serve a target market with productsand services that are viewed by consumers asbeing reasonable substitutes for the firm’sproducts or services.
Company must seek to gain strategic advantageagainst these organizations.
-
8/13/2019 POM 3b
11/38
The Microenvironment
Publics: Any group that has an interest in or impact on
an organization’s ability to achieve its
objectives. Financial public
Media public
Government public
Citizen-action public
Local public
General public
Internal public
-
8/13/2019 POM 3b
12/38
The Macroenvironment
The company and all of the other
actors operate in a larger
macroenvironment of forces that shapeopportunities and pose threats to the
company.
-
8/13/2019 POM 3b
13/38
The Macroenvironment
Forces in the macroenvironment can
be categorized as:
► Demographic► Economic
► Natural
►Technological
► Political
►Cultural
-
8/13/2019 POM 3b
14/38
Demographic Environment
Demographics:
The study of human populations in terms of size,density, location, age, gender, race, occupation,
and other statistics.
Marketers track changing age and familystructures, geographic population shifts,educational characteristics, and populationdiversity at home and abroad.
-
8/13/2019 POM 3b
15/38
Demographic Environment
The changing age structure of the U.S.population is the single most importantdemographic trend.
Baby boomers, Generation X, and the Millennialsare key generational groups.
-
8/13/2019 POM 3b
16/38
Demographic Environment
Baby boomers: 78 million born between 1946 and 1964.
Nearly 30% of population. Spend $2.3 trillion annually and hold ¾ of the
nation’s financial assets.
Spend $30 billion annually on anti-aging productsand services; strong market for financial services,new housing, travel, etc.
Are likely to postpone retirement.
-
8/13/2019 POM 3b
17/38
Demographic Environment
Generation X: 49 million born between 1965 and 1976.
Defined by shared experiences: Increased parental divorce rates and more employed
mothers made Generation X the first of the latchkeykids.
Gen X developed a more cautious economic outlook
due to recessions and downsizing that werecommon when they grew up.
-
8/13/2019 POM 3b
18/38
Demographic Environment
Generation X: Cares about the environment.
Prizes experience, not acquisition.
Family comes first, career second.
Skeptical of marketing messages; researchespurchases carefully, uses communities to shareinformation.
Represents close to $1.4 trillion in annualpurchasing power.
-
8/13/2019 POM 3b
19/38
Demographic Environment
Millennials:
83 million born between 1977 and 2000—larger
than baby boomer segment. Includes tweens, teens, and young adults.
Ethnically diverse.
Fluent with computer and digital technology.
Personalization and product customization are
key to marketing success.
-
8/13/2019 POM 3b
20/38
Demographic Environment
The American family and householdmakeup is changing: Traditional households are in decline:
Married couples with children = 23% Non-traditional households are growing:
Married without children = 29% Single parents = 16%
Non-family households = 32% Special needs of non-traditional households
are increasingly being considered bymarketers.
-
8/13/2019 POM 3b
21/38
Demographic Environment
Increasing diversity: Ethnic segments will continue to grow.
specially designed ads, products, and promotions atethnic groups.
Marketing efforts are increasing toward:
People with disabilities.
-
8/13/2019 POM 3b
22/38
Economic Environment
Changes in income 1990s—consumption
frenzy, record debt
2000s—“squeezed
consumer” Marketers focus on
offering greater value
Income distribution Upper class: getting
wealthier
Middle class: shrinking
in size Working class
Underclass: remain poor
Consists of factors that affect consumerpurchasing power and spending patterns.
-
8/13/2019 POM 3b
23/38
Natural Environment
Involves natural resources that are needed asinputs by marketers or that are affected bymarketing activities.
Factors include: Shortages of raw materials
Increased pollution
Increased government intervention
Environmentally sustainable strategies
-
8/13/2019 POM 3b
24/38
Technological Environment
Most dramatic force shaping our destiny.
Changes rapidly, creating new markets andopportunities and/or danger of products
becoming obsolete. Challenge is to make practical, affordable new
products.
Safety regulations result in higher research costs
and longer time between productconceptualization and introduction.
-
8/13/2019 POM 3b
25/38
Political Environment
Includes laws, government agencies, andpressure groups that influence or limitvarious organizations and individuals in agiven society.
Areas of concern:
Increasing legislation.
Changing government agency enforcement.
Increased emphasis on ethics and sociallyresponsible behavior.
-
8/13/2019 POM 3b
26/38
Cultural Environment
The institutions and other forces thataffect a society’s basic values, perceptions,preferences, and behaviors. Core beliefs and values are passed on from
parents to children and are reinforced byschools, churches, business, and government.
Secondary beliefs and values are more open tochange. Marketers may be able to change secondary beliefs,
but NOT core beliefs.
-
8/13/2019 POM 3b
27/38
Cultural Environment
Society’s major cultural views are expressedin people’s views of: Themselves
Others Organizations
Society
Nature
The universe
-
8/13/2019 POM 3b
28/38
Responding to the
Marketing Environment Reactive responses:
Many firms simply react to changes in themarketing environment.
Proactive responses:
Some firms attempt to manage the marketingenvironment via aggressive actions designed to
affect the publics and forces in the marketingenvironment.
-
8/13/2019 POM 3b
29/38
Responding to the
Marketing Environment Examples of proactive responses:
Hiring lobbyists
Running “advertorials”
Pressing law suits
Filing complaints
Forming agreements to control channels
-
8/13/2019 POM 3b
30/38
-
8/13/2019 POM 3b
31/38
PESTLE analysis Is a useful tool for understanding the “big picture”
of the environment in which you are operating
By understanding your environment, you can takeadvantage of the opportunities and minimize thethreats.
This provides the context within which moredetailed planning can take place to take fulladvantage of the opportunities that presentthemselves.
-
8/13/2019 POM 3b
32/38
The factors in PESTLE analysis P – Political
The current and potential influences from political pressures
E - Economic The local, national and world economic impact
S - Sociological The ways in which changes in society affect the organization
T - Technological How new and emerging technology affects your organization
L - Legal How local, national and global legislation affects the project
E - Environmental Local, national and global environmental issues
-
8/13/2019 POM 3b
33/38
In contrast to a SWOT, PESTLE encourages you tothink about the wider environment and what might
be happening now and in the future which will
either benefit or be of disadvantage to theorganization, individual etc
– a kind of radar which picks up trends and developmentsin the external environment which can be used to
inform longer term planning and strategy making
PESTLE vs.SWOT
-
8/13/2019 POM 3b
34/38
Political: Government type and stability
Freedom of the press, rule of law and levels of bureaucracy and corruption
Regulation and de-regulation trends
Social and employment legislation
Tax policy, and trade and tariff controls
Environmental and consumer-protection legislation
Likely changes in the political environment
Economic: Stage of a business cycle
Current and projected economic growth, inflation and interest rates
Unemployment and supply of labor Labor costs
Levels of disposable income and income distribution
Impact of globalization
Likely impact of technological or other changes on the economy
Likely changes in the economic environment
PESTLE
-
8/13/2019 POM 3b
35/38
PESTLE
Sociological: Cultural aspects, health consciousness, population growth rate, age distribution,
Organizational culture, attitudes to work, management style, staff attitudes
Education, occupations, earning capacity, living standards
Ethical issues, diversity, immigration, ethnic/religious factors
Media views, law changes affecting social factors, trends, advertisements, publicity
Demographics: age, gender, race, family size
Technological: Maturity of technology, competing technological developments, research funding,
technology legislation, new discoveries
Information technology, internet, global and local communications
Technology access, licensing, patents, potential innovation, replacementtechnology/solutions, inventions, research, intellectual property issues, advances inmanufacturing
Transportation, energy uses/sources/fuels, associated/dependent technologies, rates ofobsolescence, waste removal/recycling
-
8/13/2019 POM 3b
36/38
PESTLE
Legal: current home market legislation, future legislation
European/international legislation
regulatory bodies and processes
environmental regulations, employment law, consumer protection
industry-specific regulations, competitive regulations
Environmental: Ecological
environmental issues, environmental regulations
customer values, market values, stakeholder/ investor values
management style, staff attitudes, organizational culture, staff engagement
-
8/13/2019 POM 3b
37/38
It is possible to use the PESTLE analysis on projects aswell for organizations
It is not always needed, especially if the projects are
small If PESTLE analysis is used for a project, then the focus
should be on solving the “focal problem” and analyzehow the external environment is affecting the process of
solving the “focal problem”
PESTLE analysis and projects
-
8/13/2019 POM 3b
38/38
The main problem with these external PESTLE factors is thatthey are continuously changing
Therefore PESTLE analysis should include a thoroughanalysis of what is affecting the organization or a projectNow, and what is likely to affect it in the Future
The result of a PESTLE analysis is usually a list of positiveand negative factors that are likely to affect a project However, by themselves, theses factors they mean very little
It is important to bear in mind, that PESTLE analysis requires carefulApplication of results
Issues of concern