Introduction (1)Introduction (1)

The Marketing EnvironmentThe Marketing EnvironmentStrategyStrategySTEP/PESTSTEP/PEST

Introduction (2)Introduction (2)

Value Chain > leading principleValue Chain > leading principle

Management/ law / organisational Management/ law / organisational structuresstructures

InternationalisationInternationalisation

Marketing and sales (structure/functions)Marketing and sales (structure/functions) Marketing strategiesMarketing strategies Segmentation of marketsSegmentation of markets 4 Ps4 Ps E-commerceE-commerce

Experiences in a Experiences in a companycompany

Every company has its own value Every company has its own value chain and its own special way to reach chain and its own special way to reach

its goals !its goals !

> “Maybe it’s time to update our mission statement.

Strategy, the big pictureStrategy, the big picture

Goals of the companyGoals of the company

Mission/Mission

statement !

Company

E.g. Philips: ‘Lets make things better’‘Lets make things better’

Strategic vision

Who are we and what do we stand for?!

In what market do we operate? (M-definition)

What’s the M-potential?

StrategylevelStrategylevelProfit/non profit?Profit/non profit?Service/product?Service/product?What & How ?

Strategy levelStrategy level

Corporate strategyCorporate strategy– Take-overs, merges, acquisitionsTake-overs, merges, acquisitions

SBU: Business strategySBU: Business strategy– Productportfolio, new markets, Productportfolio, new markets,

productsproducts PMC: Functional strategyPMC: Functional strategy

– Price, Place, Product, PromotionPrice, 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 Mission Which product: what need is supplied for??Which product: what need is supplied for?? Which market??Which market?? Who are the buyers/ the consumers?Who are the buyers/ the consumers?

Mission StatementMission Statement

Examples :Examples : Philips: Philips: “Our mission is to improve the “Our mission is to improve the

quality of existance by introducing usefull quality of existance by introducing usefull innovations at the right moment.” innovations at the right moment.”

‘‘Lets make things better’Lets make things better’

"Organize the world's information and "Organize the world's information and make it universally accessible and make it universally accessible and useful."—useful."—GoogleGoogle

Strategy, the big pictureStrategy, the big picture

Marketing strategyMarketing strategy

Mission/Mission

statement

Levels: Strategic, Tactical, operational

Corporate strategy

Planning proces

•Allocation of resources

•Portfolio of activities for org.

•Organisation’s mission

•Organisational objectives

•Competing in a product market

•Selecting markets and segments

•Determining marketing mix

Guides, directs, controls,coordinates

Informs, operationalises

Overall picture

Planning process:Monitoring and analysing

Internal factors

Events, drivers, new goals,

changing business/ profits

Strategy

External factors

SWOT

Strategy

Environmental analysis

Strategic options, goals

OperationaliseImplementation

Dynamic process

The marketing The marketing environmentenvironment

Macroenvironment

Company

Microenvironment / Industry

Elements of the external Elements of the external environment (STEP or environment (STEP or PEST)PEST)

TechnologicalSociocultural

Political / legal

FIRM

Economic

Environmental

The sociocultural The sociocultural environmentenvironment

Changing demographicsChanging demographics““grey market”grey market”size of householdsize of household

Change in lifestyleChange in lifestyle Change in societal attitudesChange in societal attitudes AttitudesAttitudes

Change in lifestyleChange in lifestyle

Change in societal Change in societal attitudesattitudes

Environmental issues

Personal ethics Health and safety

Marketing Strategy

Animal welfare

Business ethics

Change in societal Change in societal attitudesattitudes

Environmental issues

Personal ethics Health and safety

Marketing Strategy

Animal welfare

Business ethics

Product originsProduct content

BriberyUnethical practices

Farming methods

IngredientsProduction methods

Suppliers/ MarketsLabour prices

Community service

Technological Technological environmentenvironment

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 Technological environmentenvironment

Br. Retailer: database for demografic (!) facts

TNO: Whiter than white!Product + tester

The economic and The economic and competitive competitive environmentenvironment

Macroeconomic:Macroeconomic: Taxation, Intrest rates, Exchange rates, Taxation, Intrest rates, Exchange rates,

International trading blocksInternational trading blocks

MicroeconomicMicroeconomic Income distribution Income distribution monopolymonopoly

Environmental analysisEnvironmental analysis

Increased pollution Increased pollution Shortages of raw materials such Shortages of raw materials such

as oil and coalas oil and coal Increased cost of energyIncreased cost of energy Government intervention in Government intervention in

natural resource managementnatural resource management

Political /legal Political /legal environmentenvironment

National and Local governmentsNational and Local governments European UnionEuropean Union The G-7? (economical-political)The G-7? (economical-political) Legal: official bodiesLegal: official bodies

ASA: Advertising Standards AuthorityASA: Advertising Standards Authority OFT: Office of Fair Trading (UK)OFT: Office of Fair Trading (UK)

Influenced by sociocultural factors:Pressure of public opinion, media, pressure groups

S W O TS W O T

S tre n g thsW e a kne sses

In te rna l A na lys is

O p po rtu n it iesT h re a ts

E x te rna l A na lys is

E nv iron m en ta l S can

SWOT Matrix

SWOTSWOT

S & W:S & W:– present & pastpresent & past– internally controlled factors (4Ps)internally controlled factors (4Ps)

O & T:O & T:– present & futurepresent & future– outward-looking, strategic viewoutward-looking, strategic view

SWOT MatrixSWOT Matrix

+ Strengths Opportunities

- Weaknesses Threats

Internal External

FinallyFinally

Looking at the external environment:Looking at the external environment:

Situation of the moment: Situation of the moment: many factorsmany factors great diversity of influencesgreat diversity of influences rapid changesrapid changes

1.1. What influences a specific What influences a specific company?company?

2.2. Look at opportunities!Look at opportunities!

LiteratureLiteratureWeek 1

Lecture 2 Macro-Meso factorsReading 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