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: ! better’
‘Lets make things

Goals of the company Strategic vision

Who are we and what

do we stand for?! What’s the M-
In what market do we
potential?
operate? (M-definition)
Strategylevel
Profit/non profit?
What & How ? Service/product?
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
Strategy, the big picture
Mission/
Mission
Planning proces statement
Corporate strategy
Levels: Strategic, Tactical,
operational
•Allocation of resources
Informs,
operationalises •Portfolio of activities for
Marketing strategy
org.
•Competing in a product •Organisation’s mission
market
•Organisational objectives
•Selecting markets and Guides, directs, controls,
segments 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
roduct content Marketing Strategy Farming methods

Personal ethics Health and safety

Bribery Ingredients
Unethical practices Production
Technological
environment
 Materials, products
Fast pace of technological
and components :
change
- Packaging
- High R & D costs and equally
Production processes:
high budgets to ensure
-
advancement.
-
 Distribution
Increased regulation
 Marketing and
Internet: The emergence of the
customers:
Internet made it possible for
-
consumers to compare prices of
-
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
E n v ir o n m e n ta l S c a n

I n t e r n a l A n a ly s is E x te r n a l A n a ly s is

S tre n g th s O p p o rtu n itie s

W eaknesses T h r e a ts

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

3. What influences a specific

company?
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