analyzing marketing environment n.
Skip this Video
Loading SlideShow in 5 Seconds..
Analyzing Marketing Environment PowerPoint Presentation
Download Presentation
Analyzing Marketing Environment

Loading in 2 Seconds...

play fullscreen
1 / 18

Analyzing Marketing Environment - PowerPoint PPT Presentation

  • Uploaded on

Analyzing Marketing Environment. ENVIRONMENT. Macro Environment. Micro Environment. Internal Environment. Financiers Suppliers Customers Competitors Public Mktg Intermediaries. Mission / Objectives Management Structure Internal Power Relationship Physical Assets & facilities.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Analyzing Marketing Environment' - keisha

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript


Macro Environment

Micro Environment

Internal Environment






Mktg Intermediaries

Mission / Objectives

Management Structure

Internal Power Relationship

Physical Assets & facilities









Company image

Human resources

Financial Capabilities

Technological Capabilities

Marketing Capabilities

importance of marketing environment
Importance of Marketing Environment
  • Identification of Opportunities
  • Identification of Threats
  • Deal with the Internal Environment
  • Better Understanding of the Market
  • Image Building
  • Better Performance
process of environmental analysis
Process of Environmental Analysis:

The analysis consists of four steps:

  • Scanning : Detect early signals of possible environmental change and detect environmental change already underway.
  • Monitoring : Purpose of monitoring is to assemble sufficient data to discern whether certain trends are emerging, identification of the trends and identification of areas for further scanning.
  • Forecasting : It is concerned with developing projections of the direction, scope and intensity of environmental change.
  • Assessment : To determine implications for the organisation’s current and potential strategy.
analysis of environment
Analysis of Environment
  • SWOT analysis
  • PEST analysis
  • Five forces analysis etc.
swot analysis
  • Strengths: unit’s resources and capabilities that can be used as a basis for developing a competitive advantage

Examples: good reputation among customers, resources, assets, people, : experience, knowledge, data, capabilities

  • Weaknesses: internal force that could serve as a barrier to maintain or achieve a competitive advantage; a limitation, fault or defect of the unit.

Example: gaps in capabilities, financial, deadlines, morale, lack of competitive

  • Opportunities: any favorable situation present now or in the future in the external environment.

Examples: unfulfilled customer need, arrival of new technologies, loosening of regulations, global influences, economic boom, demographic shift

  • Threats: External force that could inhibit the maintenance or attainment of a advantage; any unfavorable situation in the external environment that is potentially damaging now or in the future.

Examples: shifts in consumer tastes, new regulations, political or legislative effects, environmental effects, new technology, loss of key staff, economic downturn, demographic shifts, competitor intent; market demands; sustaining internal capability; insurmountable weaknesses; financial backing

pest analysis
PEST analysis
  • Political factors
  • Economic factors
  • Socio-cultural factors
  • Technological factors
  • Political/legal:
  • Monopolies legislation
  • Environmental protection laws
  • Taxation policy
  • Employment laws
  • Government policy
  • Legislation
  • Others?
  • Economic Factors:
  • Inflation
  • Employment
  • Disposable income
  • Business cycles
  • Energy availability and cost
  • Others?
  • Socio-cultural factors:
  • Demographics
  • Distribution of income
  • Social mobility
  • Lifestyle changes
  • Consumerism
  • Levels of education
  • Others?
  • Technological:
  • New discoveries and innovations
  • Speed of technology transfer
  • Rates of obsolescence
  • Internet
  • Information technology
  • Others?
porter five forces analysis
Porter five forces analysis
  • It is a framework for industry analysis and business strategy development
  • formed by Michael E. Porter of Harvard Business in 1979.
  • Three of Porter's five forces refer to competition from external sources. The remainder are internal threats
  • Threat of new entrants: Profitable markets that yield high returns will attract new firms. Factors are:-
  • Government policy
  • Capital requirements
  • Absolute cost
  • Cost disadvantages independent of size
  • Economies of scale
  • Economies of product differences
  • Product differentiation
  • Brand equity
  • Switching costs or sunk costs
  • Expected retaliation
  • Access to distribution
  • Customer loyalty to established brands
  • Industry profitability (the more profitable the industry the more attractive it will be to new competitors)
  • Threat of substitute products or services: The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives.

Potential factors:-

  • Buyer propensity to substitute
  • Relative price performance of substitute
  • Buyer switching costs
  • Perceived level of product differentiation
  • Number of substitute products available in the market
  • Ease of substitution. Information-based products are more prone to substitution, as online product can easily replace material product.
  • Substandard product
  • Quality depreciation
  • Bargaining power of customers (buyers); the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.

Potential factors:

  • Buyer concentration to firm concentration ratio
  • Degree of dependency upon existing channels of distribution
  • Bargaining leverage, particularly in industries with high fixed costs
  • Buyer switching costs relative to firm switching costs
  • Buyer information availability
  • Force down prices
  • Availability of existing substitute products
  • Buyer price sensitivity
  • Differential advantage (uniqueness) of industry products
  • RFM (customer value) Analysis
  • Bargaining power of suppliers: Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes.

Potential factors:

  • Supplier switching costs relative to firm switching costs
  • Degree of differentiation of inputs
  • Impact of inputs on cost or differentiation
  • Presence of substitute inputs
  • Strength of distribution channel
  • Supplier concentration to firm concentration ratio
  • Employee solidarity (e.g. labor unions)
  • Supplier competition: the ability to forward vertically integrate and cut out the buyer.

Intensity of competitive rivalry: the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.

Potential factors:

  • Sustainable competitive advantage through innovation
  • Competition between online and offline companies
  • Level of advertising expense
  • Powerful competitive strategy
  • Firm concentration ratio
  • Degree of transparency