IE3060 – Business Management for IT

Lecture 04 – Marketing Environment

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Learning Outcome

• Analyze the business environment and develop a

SWOT analysis for an individual, an organization
and for a given situation

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
Are your actions influenced by PEOPLE around you?

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
Environment- Definition

Environment means All those surrounding ACTORS (People, Groups) and

FORCES who has the ability to influence our activities, life and our
decisions.

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IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
The Importance of Analyzing The Market Environment

• To identify organizations current market position (current situation relative

to other competitors)
e.g. Our market share is 25% when comparing to the major competitor 50%

• To identify nature of the environment opportunities and threats

e.g. Jaffna province is free from War

• To identify organizations ability to cope with the demands of this

environment (resources, competitive advantages, S,W)
e.g. Do we have enough resources to move to Jaffna?

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IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
The Marketing Environment
Micro environment Macro environment
Microenviroment:
• Forces close to the company
• That affect its ability to serve customers

Macroenvironment:
• Larger, societal forces that affect the
organization’s microenvironment

Internal environment

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
The Company’s Macro Environment

PESTEL Analysis

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
 Social
Economic
Political
Legal
Technology
Environment

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IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
PESTEL Factors

Political Government regulations and legal issues.

Both national and international governments are increasing their
political weight and enforcing greater regulations on a range of industry
sectors.
These can create opportunities as well as threats.
• E.g. increase in taxation, war, foreign trade agreements, etc.

Economical The factors that affect customers’ purchasing power.

• E.g. inflation, exchange rates, GDP, employment levels, etc.

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
PESTEL Factors

Social These have a strong impact on the marketing activities of an organization.

The following factors are considered under social factors:

• Demography – includes the characteristics of the customer’s age, sex, class,
family lifecycle, etc.
• Society – this incorporates the attitudes of society on issues such as religion,
green and ethical issues, families, etc.
• Culture – this is the most complex area for an organization to study as it
changes from country to country, E.g. language, religion, values, law,
healthcare and education.

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
PESTEL Factors

Technology Technological developments have been the reason for improved

manufacturing techniques, new and dynamic developments in IT,
telecommunications and a general increase in efficiency and effectiveness.
Technological factors can lower barriers to entry, assist in increasing
production levels and influence outsourcing decisions.

Environmental These are factors connected to the natural environment.

E.g. The cost and the availability of natural resources. Public concern exists
about pollution of the environment and how the environment should be
conserved. As a result, certifications on environmental quality control,
such as HACCP, are fundamental to manufacturing companies.
IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
PESTEL Factors

Legal The laws, rules and regulations governing the environment in which
companies operate.
E.g. regulations on food labeling and advertising, the Consumer
Protection Act, etc.

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
Activity 1

Conduct a macro environment analysis for SLIIT

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
The Company’s Micro Environment

Marketing
Company Competitors
Intermediaries

Suppliers Customers Public

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
 A Strategic
Planning Method
used to Evaluate
S-W-O-T

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
 SW
• Strengths and weaknesses are internal factors.

• One of the strengths might be the specialized marketing expertise.

• On the other hand, one of the weaknesses might be the lack of a new product.

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
 OT
• Opportunities and threats are external factors.

• An opportunity could be an emerging communication channel, such as the

social networking media, or changing consumer lifestyles that potentially
increase demand for your company's products.

• A threat might be a new competitor in one of your important existing markets

or a technological change that makes existing products potentially obsolete.

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
SWOT as an undergraduate?

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
Activity 2

Conduct a SWOT analysis for SLIIT

IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara
Thank You!

isuri.u@sliit.lk
IE3060- Business Management for IT- Marketing Environment- Ms. Isuri Udara