Marketing EnvironmentMarketing Environment

•Macro environmentMacro environment

•Micro environmentMicro environment

MACROENVIRONMENTMACROENVIRONMENT

Cultural

Political

Technological

Demographic

Natural Forces

Economic

COMPANY

The Marketing Environment The Marketing Environment and Competitor Analysisand Competitor Analysis

•SWOT analysisSWOT analysis

•PEST analysisPEST analysis

•Five forces analysisFive forces analysis

SWOT analysisSWOT analysis

•Strengths (internal)Strengths (internal)

•Weaknesses (internal)Weaknesses (internal)

•Opportunities (external)Opportunities (external)

•Threats (external)Threats (external)

PEST analysisPEST analysis

•Political factorsPolitical factors

•Economic factorsEconomic factors

•Socio-cultural factorsSocio-cultural factors

•Technological factorsTechnological factors

Political/legalPolitical/legal

• Monopolies legislationMonopolies legislation

• Environmental protection lawsEnvironmental protection laws

• Taxation policyTaxation policy

• Employment lawsEmployment laws

• Government policyGovernment policy

• LegislationLegislation

• Others?Others?

Economic FactorsEconomic Factors

• InflationInflation

•EmploymentEmployment

•Disposable incomeDisposable income

•Business cyclesBusiness cycles

•Energy availability and costEnergy availability and cost

•Others?Others?

Sociocultural factorsSociocultural factors

• DemographicsDemographics

• Distribution of incomeDistribution of income

• Social mobilitySocial mobility

• Lifestyle changesLifestyle changes

• ConsumerismConsumerism

• Levels of educationLevels of education

• Others?Others?

TechnologicalTechnological

•New discoveries and New discoveries and innovationsinnovations

•Speed of technology transferSpeed of technology transfer•Rates of obsolescenceRates of obsolescence•InternetInternet•Information technologyInformation technology•Others?Others?

Five Forces Analysis: Key Questions and Implications

• What are the key forces at work in the competitive environment?

• Are there underlying forces driving competitive forces?

• Will competitive forces change?• What are the strengths and weaknesses of

competitors in relation to the competitive forces?• Can competitive strategy influence competitive forces

(eg by building barriers to entry or reducing competitive rivalry)?

MicroenvironmentMicroenvironment

• Refers to the environment mostly Refers to the environment mostly closely linked to the organizationclosely linked to the organization

• Comprises organizations and Comprises organizations and individuals who directly affects the individuals who directly affects the activities of the organizationactivities of the organization

• The actors in the immediate The actors in the immediate environment that affects the firm’s environment that affects the firm’s capability to operate in its chosen capability to operate in its chosen marketmarket

The Company’s The Company’s MicroenvironmentMicroenvironment

• The organization’s internal The organization’s internal environmentenvironment

• SuppliersSuppliers

• Marketing IntermediariesMarketing Intermediaries

• CustomersCustomers

• PublicsPublics