Flashcards
Week 2: Marketing environment
Cards in this deck (24)
- 1Marketing environment- Internal and external forces that affect a marketer’s ability to create, communicate, deliver and exchange offerings of value
- Can be classified into:
1. Internal environment => within organisation's direct control
2. External environment => not within direct control but organisation can influence; includes micro and macro - 2Environmental analysisDividing the marketing environment into smaller parts to better understand it
- 3Internal environment: parts, people and processes1. Senior management - makes decisions about overall objectives and strategy of organisation
2. Middle management - makes decisions about overall objectives and strategy of a department or geographic region
3. Functional departments e.g. marketing, sales, customer service, finance, HR
4. Employees - carry out the work required to meet departmental objectives
5. External vendors (outsourcing) - shifts from internal to micro environment - 4Organisation chart- Illustrates relationships between different parts of the organisation and the management hierarchy
- Tool for analysing the internal environment - 5Internal marketing- Treats employees as an internal market who must be informed, educated, developed and motivated to serve clients more effectively
- Strategic alignment between front-line employees and marketing via:
1. Internal communications, to ensure employees’ actions align with goals
2. Internal market research, to understand employees’ needs and demands
3. Employee training, to attain goals - 6Micro environmentForces and factors inside the industry in which the marketer operates:
1. Customers/clients - need to anticipate, understand, influence and respond to customer preferences
2. Partners e.g. logistics firms, financiers, advertising agencies, retailers, wholesalers, suppliers
3. Competitors - 7Types of competition1. Pure competition - many competitors, undifferentiated products, no market power e.g. agricultural market
2. Monopolistic competition - many competitors, differentiated products e.g. laptop market
3. Oligopoly - a few competitors, similar but slightly differentiated products, barriers to entry e.g. US mass media/news industry
4. Monopoly - one supplier, substantial barriers to entry e.g. government services
5. Monopsony - only one buyer e.g. De Beers - 8Levels of competition1. Total budget competition - alternative ways a consumer can spend their money e.g. petrol vs rent vs food
2. Generic competition - different products that satisfy the same need (substitutable) e.g. modes of transport
3. Product competition - broadly similar products that satisfy the same need e.g. water vs alcohol vs coffee
4. Brand/direct competition - similar products, offered by different brands e.g. banks, airlines - 9Macro environmentLarger-scale societal forces that influence all industries (PESTEL):
1. Political e.g. political stability, government policy, trade agreements, tax/rebate
2. Economic - affect how much money people can spend and how they spend it e.g. interest rates, GDP, income, inflation, employment, exchange rates
3. Sociocultural e.g. religion, culture, values/attitudes, demographics
4. Technological - can lower production costs; improve quality, distribution and communication
5. Environmental e.g. weather, climate
6. Legal e.g. CCA (2010), Privacy Act, Advertising Standards Bureau - 10Market planning
- 11Situation analysisAssessing the current situation includes:
1. Company analysis
2. Market analysis
3. Environmental analysis (PESTEL)
4. Competitive analysis - 12Elements of a marketing plan1. Executive summary - brief overview
2. Introduction (to internal environment)
3. Situation analysis - analysis of micro and macro environment, SWOT analysis
4. Objectives and mission statement
5. Target market
6. Marketing mix strategy - 4/7 P’s
7. Budget and resources
8. Implementation - how the plan will be put into practice, milestones, control mechanisms
9. Evaluation - outline metrics that will be used to evaluate success
10. Conclusion and recommendations - 13Marketing metricsMeasures used to assess marketing performance e.g.
1. Return on investment
2. Customer satisfaction
3. Market share
4. Brand equity - 14SWOT analysis- Evaluating strengths, weaknesses, opportunities and threats
- Strengths (weaknesses) are directly controllable by the organisation, and help (hinder) its objectives
- Opportunities (threats) are outside the organisation’s direct control, and help (hinder) its objectives
- 15GlobalisationProcess through which individuals, organisations and governments become increasingly interconnected
- 16Standardisation vs customisation- Standardisation - uniform marketing mix across international markets, with minor modifications to meet local conditions (e.g. packaging, instructions in local language)
- Customisation - marketing mix tailored to the specific characteristics and wants of each market e.g. Foster’s lager is an everyday beer in Australia but a premium beer in Europe
- 17International environmental forces (PESTEL)Consider:
- Political - capitalist vs socialist, democratic vs dictatorship, political instability, bilateral/multilateral agreements, free trade areas e.g. APEC, ASEAN, EU
- Sociocultural - meaning of symbols in different countries (e.g. colour), customs surrounding negotiation, corruption
- Legal - tariffs, quotas, limits/bans on foreign ownership, embargoes and sanctions (i.e. limits/bans on import of a particular product, or products from a particular country) - 18Reasons for international marketing- More potential customers than the home market
- Made easier by free trade, and communication and transport technologies
- Greater economies of scale
- Potential to gain new knowledge
- Diversifies risks
- Exporting can create jobs and wealth - 19Stages of international market research1. Screening - assess population, income, demographics, competitors, government stability etc.
2. In-depth research - consider required product positioning and marketing mix - 20Methods of international market entry: exportingSale of products into foreign markets while remaining based in the home market
- Direct exporting - organisation deals directly with the international market
- Indirect exporting - organisation accesses the international market via intermediaries who have the expertise and contacts required to navigate the unfamiliar market e.g. export agents, trading companies - 21Methods of international market entry: contractual agreements- Licensing - a foreign business (licensee) manufactures and sells products of the domestic company (licensor) and pays commission on its sales e.g. Coca-Cola
- Franchising - a business (franchisee) pays the franchisor for the right to market its product using the franchisor’s overall marketing and business plan e.g. Boost Juice, Red Rooster
- Contract manufacturing - a domestic business pays a foreign business to manufacture market its product in that foreign country under the domestic company’s name - 22Methods of international market entry: strategic alliances and joint ventures- International strategic alliance e.g. OneWorld Alliance allows bigger airlines to penetrate smaller markets by code-sharing
- International joint venture - two business form a new business together in the target market and forge a new identity, distinct from the parent businesses - 23Methods of international market entry: foreign direct investment- Outright ownership of a foreign operation
- Usually considered after experiencing success with the other approaches
- Arises by either establishing a new business from the ground up, buying out a strategic ally or competitor, or buying a business in the supply chain e.g. manufacturing plant, retailer
- Multinational corporations directly own assets in many foreign countries - 24Born global business- Starts off as a global business
- Works well for technology companies e.g. eBay
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- Business/Economics (MKC1200: Principles of Marketing) Flashcards on Week 2: Marketing environment , created by Melina Mackey on 24/09/2018.
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- Melina Mackey
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- Created by Melina Mackey · Jul 29, 2018
- Copied by Melina Mackey · Sep 24, 2018
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