Organization- Biz Env….

• To understand:-
– The nature of the business/marketing
environment
– The distinction between Macro and Micro
– The impact of PEST factors on marketing decisions
– How to conduct environmental scanning
– The role of marketing planning within businesses
– The nature of the marketing audit – SWOT
analysis
 Environment
MACROENVIRONMENT

Political/ Economic
legal MICROENVIRONMENT

Suppliers Customers

Company

Distributors Competitors
Geo-
Socio- physical
cultural

Technological
 Understanding customers
Initiator
Who is Influencer
important? Decider
Buyer
User
How do they
buy?

What are
Customers their choice
criteria?

Where do
they buy?

When do
they buy?
 Competitor analysis
• Who are the company’s competitors?
• What are their strengths and weaknesses?
• What are their objectives and strategies?
• What are their likely response patterns?
• Which competitors should we avoid and which
attack?
 Internal Audit
• 4 M’s analysis
– Men (HR Management)
• People and knowledge?
– Money (Financial Management)
• Performance, cash flow and funds availability
– Machines (Operations management)
• Transformation Process, control and variety
– Marketing (Marketing Management)
External Environment
 Political and Legal Forces

•Legislation regulating businesses

•Growth of public interest groups
•Codes of Practice
•Monopolies & Mergers Commission
•Restrictive Practices
 Economic Forces
• Economic growth
• Unemployment and recession
• Exchange rate
• Interest rates
• Income distribution
• Purchasing power of consumers
• The Euro
 Socio-cultural Forces
• Social trends
– population growth
– age distribution
– household composition
• Consumer groups
• Multi-cultural society
• Cultural sub-groups
• Cultural values
 Technological Forces
• Pace of technological change:
– electronics, computers
– medical, biotechnology
– The Internet and E-Commerce
• Investment in Research & Development
• Product and process technology
 Geo-physical Forces
• Infrastructure
– Transport and communications
– Land and buildings
• Physical environment
– Pollution
– Global warming
– Energy conservation
– Packaging
– Genetic modification + organic food
 Environmental Scanning
• Continuously monitoring and analysing
the marketing environment
• Benefits:
Better awareness and responsiveness
Better planning and decision making
Better resource allocation
Better able to take advantage of opportunities
 Putting it all together

Macroenvironment

Economic Legal

Microenvironment
Suppliers Customers S W
Company
O T
Distributors
Competitors
Social Political

Technological
 Strategic Fit
Environment

Fit Fit

Fit
Strategy Organization

10