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 its time to update our mission statement.

Strategy, the big picture

Company

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

Strategic vision

Goals of the company

Who are we and what do we stand for?! In what market do we operate? (M-definition)

What & How

Whats the Mpotential? Strategylevel Profit/non profit? 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

Planning proces
Levels: Strategic, Tactical, operational

Mission/ Mission statement Corporate strategy

Allocation of resources Portfolio of activities for org. Organisations mission Organisational objectives
Guides, directs, controls, coordinates

Marketing strategy

Informs, operationalises

Competing in a product market Selecting markets and segments

Determining marketing mix

Overall picture
Planning process: Monitoring and analysing Events, drivers, new goals, changing business/ profits Internal factors SWOT Strategic options, goals External factors Environmental analysis Strategy

Dynamic process

Strategy Operationalise Implementation

The marketing environment

Macroenvironment Microenvironment / Industry Company

Elements of the external environment (STEP or PEST)

Sociocultural Technological

FIRM

Economic Environmental

Political / legal

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

Environmental issues

Suppliers/ Markets Business ethics Labour prices Community service

Animal welfare Marketing Strategy

Product origins roduct content

Farming methods

Personal ethics

Health and safety

Bribery Unethical practices

Ingredients Production

Technological environment
Materials, products and components : - Packaging Production processes: Distribution Marketing and customers: Fast pace of technological change High R & D costs and equally high budgets to ensure advancement. Increased regulation Internet: The emergence of the 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 S tre n g th s W eaknesses E x te r n a l A n a ly s is O p p o rtu n itie s 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
Opportunities Threats

+ -

Strengths Weaknesses

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