Marketing Strategy: Analyzing the Marketing Environment

This presentation provides a comprehensive overview of marketing strategy, focusing on the analysis of the marketing environment. It begins by defining the marketing environment and its two key components: the micro and macro environments. The micro-environment includes factors within the firm's immediate reach, such as suppliers, resellers, customers, competitors, and the general public. The macro-environment encompasses broader societal forces like demographic, economic, natural, technological, political/legal, and socio-cultural factors. The presentation introduces tools for environmental analysis, including Porter's Five Forces, the BCG Matrix, and the Ansoff Matrix, and also the internal environment. It also covers the importance of situational analysis and strategic marketing fit and includes video case studies and interactive activities to illustrate the concepts. The presentation aims to equip students with the knowledge to create competitive advantages by understanding the factors impacting the marketing environment. This resource is available on Desklib, a platform offering AI-based study tools and past papers for students.

MARKETING STRATEGY
Marketing Environment
PLANNING IN THE MARKETING ENVIRONMENT
A ER K T I N G
LECTURER |SHAREEF JAFFAR

Aims &
Objectives
Students will have
knowledge of the
factors impacting
upon the
marketing
environment in
order to create
competitive
advantage
By the end of
this lecture
1
Chapter 2 A
Please Refer to Chapter 2 - Marketing Concepts and Strategies 6th Edition

Learning
Objectives
Analyse the
different layers of
the marketing
environment
which are
marketing
environmental
factors & external
marketing factors
Environmental
Assessment
Identify tools used
by organisations
to analyse their
internal
and external
marketing
environment
Analytical
Tools
To understand
the importance
of situational
analysis
Situation
Analysis
1
Chapter 2 A
2
Chapter 2 B
3
Chapter 2 C
Please Refer to Chapter 2 - Marketing Concepts and Strategies 6th Edition

Recommended Texts
Chapter 2, Marketing
Concepts and Strategies. 6th
ed. / Sally Dibb ... [et al.].
Dibb, Sally; Andover : Cengage
Learning, c2012
LECTURER | SHAREEF JAFFARMARKETING STRATEGY

The Marketing Environment
The marketing environment includes the factors and
forces outside marketing that affect marketing
management’s ability to build and maintain successful
relationships with target customers.
-Kotler et al, 2013-

The Marketing
Environment
There are two elements within the external
marketing environment; micro and macro.
These environmental factors are beyond the control
of marketers but they still influence the decisions
made when creating a strategic marketing plan.

Micro vs Macro
Marketing
VIDEO CASE STUDY

The Macro Environment
The macro environment refers to influences in wider
society. (Elaborated in the next slide)
These factors can impact the micro environment and an
organisation is unable to control them.
Businesses must choose areas to focus on that are most
relevant to their organisation and the way they operate
Publics– interest groups, environmental groups, the
media

The Macro Environment
Demographic forces: Different market segments are typically impacted by
common demographic forces, including country/region; age; ethnicity;
education level; household lifestyle; cultural characteristics and
movements.
Economic factors: The economic environment can impact both the
organisation’s production and the consumer’s decision-making process.
Natural/physical forces: The Earth’s renewal of its natural resources such
as forests, agricultural products, marine products, etc must be taken into
account. There are also natural non-renewable resources such as oil,
coal, minerals, etc that may also impact theorganisation’sproduction.
Technological factors: The skills and knowledge applied to the
production, and the technology and materials needed for the production
of products and services can also impact the smooth running of the
business and must be considered.
Political and legal forces: Sound marketing decisions should always take
into account political and/or legal developments relating to the
organisation and its markets.
Social and cultural forces: The impact the products and services your
organisations brings to market have on society must be considered. Any
elements of the production process or any products/services that are
harmful to society should be eliminated to show your organisation is
taking social responsibility.

Macro Environmental
Analysis
VIDEO

https://padlet.com/shareefjaffar59/88f1ug8pr1nb8v00

Forces Key Topics / Trends
Political/legal EU and national laws; codes of practice; political instability
Economic Economic growth; unemployment; interest and exchange
rates; global economic trends (e.g. the growth of the BRICS
economies)
Ecological/physical/environ-
mental
Global warming; pollution; energy and other scarce
resources; environmentally friendly ingredients and
components; recycling and non-wasteful packaging
Social/cultural Changes in world population, age distribution and household
structure; attitude and lifestyle changes; subcultures within
and across national boundaries; consumerism
Technological Innovations; communications; technology infrastructures;
bio-technology, smart technologies
The Macro Environment - Audit Questions

Nokia
VIDEO CASE STUDY

The Micro Environment
This is everything within the firm’s immediate reach. They are
forces associated with how the company operates day-to-day
and the business has some control over these areas.
Suppliers: Suppliers can control the success of the business
when they hold power. The supplier holds the power when they
are the only or the largest supplier of their goods; the buyer is
not vital to the supplier’s business; the supplier’s product is a
core part of the buyer’s finished product and/or business.
Resellers: If the product the organisation produces is taken to
market by 3rd party resellers or market intermediaries such as
retailers, wholesalers, etc. then the marketing success is
impacted by those 3rd party resellers.

The Micro Environment
Customers: Who the customers are (B2B or B2C, local or
international, etc.) and their reasons for buying the product will
play a large role in how you approach the marketing of your
products and services to them.
The competition: Those who sell the same or similar products
and services as your organisation is your market competition,
and the way they sell needs to be taken into account. How do
their prices and product differentiation impact you? How can
you leverage this to reap better results and get ahead of them?
The general public: Your organisation has a duty to satisfy the
public. Any actions of your company must be considered from
the angle of the general public and how they are affected. The
public has the power to help you reach your goals; just as they
can also prevent you from achieving them.

The Micro Environment- Audit Questions
Forces Topics/Trends
Market Size; growth rates
Customers Who they are, their choice criteria, how, when and where they buy; how they
rate the competition on product, promotion, price and distribution; how
customers group (market segmentation), and what benefits each group seeks
Competitors Who the major competitors (actual and potential) are; their objectives and
strategies; strengths and weaknesses; size, market share and profitability;
entry barriers to new competitors
Distributors Channel attractiveness; distributor decision-making unit, decision-making
process and choice criteria; strengths and weaknesses; power changes;
physical distribution methods
Suppliers Who they are and location; strengths and weaknesses; power changes

Porter’s Five Forces Model

Porter’s Five Forces
Model
VIDEO

Nokia
VIDEO CASE STUDY

Nokia
VIDEO CASE STUDY
https://padlet.com/shareefjaffar59/7ekrhlt9r5cu2jbm
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The Internal Environment
The internal environment considers everything inside of the
bounds of the company. This includes staff at all levels and from
all departments, financial and management decisions /
influences and more.
Factors in the internal environment can be controlled by the
organisation.
Examples:
Staff members– all departments e.g. management, finance,
research and development, purchasing, business operations and
accounting, Capital assets, Company policy, Logistics, Inventory
A change in the internal environment could include a new hire
or a change in company policy.

The Internal Environment - Audit Questions
Operating
Results
(by product, customer,
geographic region)
Sales
Market share
Profit margins
Costs
Strategic
Issues Analysis
Marketing objectives
Market segmentation
Competitive advantage
Core competencies
Positioning
Portfolio analysis
Marketing
Mix
effectiveness
Product
Price
Promotion
Distribution
Marketing Systems
Marketing information system
Marketing planning system
Marketing control system
Marketing Structures
Marketing organization
Marketing training
Intra- and interdepartmental
communication

Jobber & Chadwick-Ellis, “Principles and Practice of Marketing, Ninth Edition"
Environment
Strategy Organization
Fit
Fit
Fit
Strategic Marketing Fit

Boston Consulting Group Growth-Share Matrix

BCG Matrix
VIDEO

BCG Strategic Objectives

Ansoff Matrix

Ansoff Matrix
VIDEO

ANSOFF MATRIX

ACTIVITY
PADLET
https://padlet.com/shareefjaffar59/qf433vwtn9ndu8ai

Driverless Cars
VIDEO

Driverless Cars
Activity - PADLET
1. What are the critical Environmental Factors
impacting the automobile sector?
2. What are the key challenges and opportunities?
3. What is the impact upon the customer
experience?
4. What is the impact on competition in the
marketplace?
https://padlet.com/shareefjaffar59/ekdsmik5h7n1q15y