Transcript ch02 - GEOCITIES.ws

OHT 2.1
The European marketing environment
Brassington and Pettitt: Principles of Marketing, 3rd Edition
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OHT 2.2
STEP analysis
Organisations do not operate in a vacuum. They need to
look outwards at the following factors:
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Socio-cultural.
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Technological.
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Economic and competitive.
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Political and legal.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
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OHT 2.3
Elements of the external environment
Figure 2.1
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OHT 2.4
Environmental scanning
The collection and evaluation of information from the wider
marketing environment that might affect the organisation
and its strategic marketing activities.
An important task but often a difficult one.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
© Pearson Education Limited 2003
OHT 2.5
Information sources
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Previous experiences.
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Personal contacts.
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Published research studies.
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Government statistics.
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Trade sources.
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Specially commissioned market research.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
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OHT 2.6
Socio-cultural influences
Figure 2.2
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OHT 2.7
Company/industry examples
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Body Shop.
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Huntingdon Life Sciences.
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McDonald’s.
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Organic food stuffs.
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The arms industry.
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Marks & Spencer.
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The aviation industry.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
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OHT 2.8
Technological environment
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Fast moving and changing environment.
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An environment with far reaching effects on businesses
and their products/services.
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Technological advances can affect materials,
components and products, manufacturing business
processes, administration and distribution systems.
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OHT 2.9
The technological advances
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Technology developed for other purposes, e.g.
academic, medical or military use.
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Market driven technological advances, e.g. companies
R&D departments searching for specific solutions to
marketing problems.
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OHT 2.10
Technology and materials – an example
Elite sports people want to maximise their performance and
look to sports clothing manufacturers to provide sports
wear that provides that added edge.
Speedo the swim wear manufacturer has its shark’s skin
suits that it claims reduces drag and enhances a
swimmers performance in the water.
The Italian swim wear company Diana (and the official
supplier to the UK swimming team) has its own
developed fabric which does not absorb water as other
fabrics do.
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OHT 2.11
Technology helping the dialogue between a company
and its customers
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Technology has helped market research - complex sets
of data can be input and analysed quickly and safely.
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Database technology allows the storage, retrieval and
maintenance of detailed customer profiles and the
creation of personalised customer marketing offers.
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Information sharing and communication between
company and customers.
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Means of ordering goods and services.
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OHT 2.12
Macroeconomic influences on the
flow of goods and services
Figure 2.4
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OHT 2.13
Economic impact examples
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Rates of VAT vary across Europe - this had led to
‘unofficial markets’ e.g. illegal imports of tobacco and
alcohol.
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Interest rate rises can influence the amount of cash a
consumer has available to purchase luxury items, for
example.
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Exchange rates - for example strong exchange rates
mean that imports become cheaper, exports however
become more expensive.
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International trading blocs for example EU trade
agreements, General Agreement on Tariffs and Trade
(GATT), etc.
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OHT 2.14
Market structures
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Monopoly.
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Oligopoly.
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Monopolistic competition.
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Perfect competition.
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OHT 2.15
Market structures (1 of 4)
Monopoly:
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Where one supplier has sole control over a market and
there is no competition.
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Where there is a captive market with no alternative
source of supply.
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A strong positive image, good customer service, and fair
pricing are essential.
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OHT 2.16
Market structures (2 of 4)
Oligopoly:
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Where a small number of companies account for a large
share of the market.
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Where a certain amount of interdependence exists
between the key players.
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Oligopolists spend time watching each other.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
© Pearson Education Limited 2003
OHT 2.17
Market structures (3 of 4)
Monopolistic competition:
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Many competitors in market.
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Each has differentiated products.
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OHT 2.18
Market structures (4 of 4)
Perfect competition:
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Involves many small producers all supplying identical
products that can be substituted for each other.
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Producers do not influence or determine price.
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There are no barriers to market entry or exit.
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Buyers and sellers have complete information about
what is happening.
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OHT 2.19
The political and regulatory environment
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National and local governments - to determine and
maintain the legislative framework within which
organisations do business. Examples include contract
law, consumer protection, competition and trading
policies.
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The European Union - guidelines and directives which
aim to achieve consistency across member states.
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Regulatory bodies - for example Office of Fair Trading,
Advertising Standards Agency, Competition
Commission, etc. These bodies are there to monitor and
regulate commerce.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
© Pearson Education Limited 2003