STRATEGIC

MARKETING
MANAGEMENT
Session 2: The Marketing Environment
 Agenda

• Marketing in the News

• Lecture on the Marketing Environment
• Market Analysis Tools
• PESTLE
• Porter’s Five Forces
• SWOT & TOWS
• Perceptual Mapping
• Consumer Personas
Marketing 4.0: A lot of the message of Philip Kotler’s new book is that any company that wants to survive has to turn to the
new tools of social media and use digital media to facilitate the management of their business, but it will still be a blend
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old and new …”We’re not dropping traditional marketing. We’re blending traditional and digital.”
The New Marketing Imperative

What They Want:

-- Instant and time efficient
New Breed of Youth, Urban, -- Search on mobile devices
-- Before purchasing, research price and
Customer is Middle-Class with quality online

Emerging Strong Mobility & -- Make purchase decisions anywhere

and anytime

Globally Connectivity -- Involve a wide range of devices

-- High-touch engagement with brands
-- Trust their network of friends and
family

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 Examining the
Marketing Environment
 The Marketing Environment

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 The Marketing Environment

Awareness & perception

Things we take for granted

(ignore constants)

Fail to realise degree to which

external forces affect experience

What if something changed?

Can’t influence = not worth

considering?

CAN YOU THINK OF…

Examples of where a company did not
consider broader trends, and failed as a7
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result?
 The Marketing Environment

On 16 May 2019, after 5 years entering Vietnam, one of

France’s biggest retailers Auchan officially announced to
withdraw from Vietnam.
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 The Marketing Environment

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 The Marketing Environment

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 The Marketing Environment - MACRO

MACRO
ENVIRONMENT
(outer layer)
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PESTLE Analysis
 Macro Environment – PESTLE
Analysis

• PESTLE analysis is a marketing tool designed to ascertain opportunities and threats

within the external environment an organisation operates in.

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 Political & Legal Environment

Political Legislative
• Bureaucracy • Health and safety law
• Corruption level • Competition regulation
• Freedom of the press • Regulation and deregulation
• Tariffs • Tax policy (tax rates and incentives)
• Trade control • Government stability and related changes
• Education Law • Government involvement in trade unions and
• Anti-trust law agreements
• Employment law • Import restrictions on quality and quantity of product
• Discrimination law • Intellectual property law (Copyright, patents)
• Data protection law • Consumer protection and e-commerce
• Environmental Law • Laws that regulate environment pollution

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 Economic Environment
• Currency valuation, fluctuation, inflation, exchange rates
• (Un)employment rates
• Interest rates
• Taxes (personal, business, tariffs, etc)
• Economic (dis)incentives
• Economic freedom
• Income/disposable income, income groups
(equity/disparity)
• Econ. cycle: Expansion/boom/recession
• Demand/supply
• Consumer confidence
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 Socio-Cultural Environment

Cultural Sub-Cultures
• Lifestyles • How people connect/feel connected
• Buying habits • Strength of cultural influences
• Education Level • Attitudes towards
• Religion & beliefs • Fitness & health
• Health consciousness • Saving & investing
• Sex distribution • Green/ecological consumption
• Social classes • Work/career
• Family size & structure • Leisure/retirement
• Cultural/ethnic mix • Customer service
• Population growth rate • Product quality
• Immigration/emigration
rates
• Age distribution, life
expectancy

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 Sociocultural / Environmental Trends

Constantly rated in amongst the least ethical companies

• ‘McDonald’s admits using beef fat for ‘vegetarian’ french
fries’ (2001)
• ‘McDonald’s has worst ethical reputation in the UK’
(2006)
• Pink slime – scraps from carcass, treated w/ ammonia
(until 2012)
• The average chicken McNugget is only half meat (2013)

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RMIT
 Sociocultural / Environmental Trend:
Environmental Concern, Transparency, Authenticity, Natural, Ethical

Improving ethics & sustainability

• Healthy option menu
• Improve menu / change ingredients & recipes
• Rainforest alliance - ethically-sourced coffee
• Animal welfare - independent auditors, animal welfare
groups
• Add transparency to the process & the ingredients
Our Food, Your Questions
• Introduction of OFYQ - Turning Things Around for McDonalds
• Our Food Your Questions – Beef factory

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RMIT Do you recognise the guy from the video?

Porter’s Five Forces
Analysis
 External Analysis– Industry
Analysis(Porter’s Five Forces)

Is it High, Medium,
or Low?

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 Porter’s Five Forces – A practical
application

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SWOT and TOWS
Analysis
 Internal & External Analysis– SWOT

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 SWOT Analysis- A practical application

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 SWOT and TOWS Analysis

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 TOWS Analysis

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Competitor Analysis
 Competitor Analysis –
Perceptual Mapping
(relative competitor positioning)

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 Competitor Analysis –
Perceptual Map example

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Consumer Analysis
 Consumer Analysis

Psychographic (think, personality,

Demographic Geographic HOMs, values)
(Age/Generation/Income/Ethnicity) (Live, Work, Urban/Rural, Access) Behavioural (Product usage)
Benefit soughts

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 Consumer Analysis –
Customer needs analysis

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 Consumer Analysis –
Developing Customer Profiles (Buyer Personas)

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How to https://blog.hubspot.com/marketing/buyer-persona-research
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Any Questions?