Topic 3: Understanding the

Marketing Environment
(PESTLE)
Marketing Planning Process
 Situation Analysis
 An in-depth analysis of the organization’s
internal and external environments

 Marketing Plan
 A written document that provides the blueprint
or outline of the organization’s marketing
activities, including the implementation,
evaluation, and control of those activities

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 Marketing Planning Process
Business Mission

Marketing Audit
Where are we now? Situation analysis
SWOT Analysis

Where do we want to be? Marketing Objectives Objectives

Core Strategy
How will we get there? Strategy
Competitive Advantage

Marketing Mix Decisions Tactics

Organisation and
Implementation
How can we make sure we
Implementation
arrive?
Control
Organizational Mission vs. Vision
 Mission Statement
 Answers… “What business are we in?”
 Explains the organization’s reason for
existence
 Vision Statement
 Answers… “What do we want to
become?”
 Represents where the organization is
headed

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Major Forces in the Environment

Demographic Economic

Political-legal Socio-cultural

Technological Natural
Population and Demographics
 Population growth

 Population age mix

 Ethnic markets

 Educational groups

 Household patterns
Economic Environment

Consumer Psychology

Income Distribution

Income, Savings, Debt, Credit

Economic Environment and
Consumer Psychology
Income Distribution
 Subsistence economies

 Raw-material-exporting economies

 Industrializing economies

 Industrial economies
Social-Cultural Environment
 Views of themselves

 Views of others

 Views of organizations

 Views of society

 Views of nature

 Views of the universe

E.g. Most Popular Leisure Activities
 Reading  Computer activities
 TV Watching  Gardening
 Spending time with  Renting movies
family  Walking
 Going to movies  Exercise
 Fishing
Socio-Cultural Influences
Natural Environment
 Shortage of raw materials

 Increased energy costs

 Anti-pollution pressures

 Green customers

 Governmental protections
Technological Environment
 Pace of change

 Opportunities for innovation

 Varying R&D budgets

 Increased regulation of change

The Political-Legal Environment

Business Legislation

Growth of Special Interest Groups

Questions for Review
 What are some influential macroenvironment
developments?