Transcript Marketing and Entreprise Strategy

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Marketing and Entreprise
Strategy
Susan Simei-Cunningham
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THE MICRO ENVIRONMENT
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Learning Outcomes
At the end of the sessions, you should be able
to:
– Explain the importance of understanding
the organisation’s marketing environment
– Define internal and the micro
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Last Week Recap
• The macro environment and show the
relationship between the subject and the
syllabus.
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Flashcard Exercise
• Online exercise for recap.
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The Organisations Marketing
Environment
MICRO –
Connected stakeholders
Customers
5 M’s –
Internal stakeholders
Markets
Men
Materials
Machines
Money
Competitors
Intermediaries
Suppliers
Other
Stakeholders
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What is this?
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The Macro Environment
The business environment consists of all the
actors and forces outside marketing that affect
the marketing management’s ability to develop
and maintain successful relationships with its
target customers.
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The Micro Environment
The micro environmental components are:
• The company
• Suppliers
• Marketing channel firms (intermediaries)
• Customer markets
• Competitors
• Publics
Combined they make up the company’s value
delivery system.
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Task- Discussion
Will these factors vary according to sectors, or
industry?
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THE MICRO ENVIRONMENT
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The Micro Environment
• The micro environment is said to generate
some level of influence over the company
but this is indirect.
• We shall now look at the factors/elements
within the micro environment.
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Suppliers
• Suppliers are organisations and individuals
that provide the resources needed by the
company and its competitors to produce
goods and services. They are an important
link in the company’s overall customer “value
delivery system.”
• What must we consider with suppliers?
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Business Intermediaries
These companies promote, sell, and distribute
goods to final buyers.
1). Resellers are distribution channel
organisations.
2). These include wholesalers and retailers
who buy and resell merchandise.
3). Resellers often perform important functions
more cheaply than the company can perform
itself. (outsourcing)
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Business Intermediaries
• Physical distribution firms stock and move
goods from their points of origin to their
destinations. E.g warehouses.
• Marketing service agencies target and
promote a companies products.
• Financial intermediaries help finance
transactions and insure against risks.
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Customers
• The company must study its customer
markets closely since each market has its
own special characteristics. These markets
normally include:
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Customers Types
1) Consumer markets (individuals and
households that buy goods and services for
personal consumption).
2). Business markets (buy goods and
services for further processing or for use in
their production process).
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Customers
3). Reseller markets (buy goods and
services in order to resell them at a profit).
4). Government markets (agencies that buy
goods and services in order to produce
public services or transfer them to those that
need them).
5). International markets (buyers of all
types in foreign countries).
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Competitors
Every company faces a wide range of
competitors.
A company must secure a strategic
advantage over competitors by positioning
their offerings to be successful in the
marketplace.
No single competitive strategy is best for all
companies.
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Publics
• A public is any group that has an actual or
potential interest in or impact on an
organization’s ability to achieve its
objectives. A company should prepare a
marketing plan for all of their major publics
as well as their customer markets.
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Case Study
• Times100 Case study on the internal
environment.
http://www.thetimes100.co.uk/case-study-using-pestel-to-design-effective-strategies—
104-262-1.php
• Supplier relations
http://www.nokia.com/corporateresponsibility/environment/case-studies -hips
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THE INTERNAL
ENVIRONMENT
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The Internal Environment
• All factors that are internal to the
organization are known as the ‘internal
environment’. They are generally audited by
applying the ‘Five Ms’ which are
• Men,
• Money,
• Machinery,
• Materials and Markets.
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Internal Environment
• The internal environment is as important for
managing change as the external.
• As marketers we call the process of
managing internal change.
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Case Study
• Case Study in: Johnson, G. et al., 2005.
Exploring Corporate Strategy. 7th ed. Essex:
Pearson Education Ltd.
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Summary
It is clear that for a strategy to be successful,
the orgainsation must understand the and
player in all of the environment and measure
their impact.
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Syllabus Reference
• Review the syllabus
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Homework 1 MCQ
• http://www.oup.com/uk/orc/bin/97801992883
04/01student/mcqs/ch02/
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Homework 2
• Examine the importance of Value Creating
Activities in relation to Porter’s value chain
model and the internal environment.
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Homework 3 MCQ
• http://www.oup.com/uk/orc/bin/97801992883
04/01student/mcqs/ch04/