Step Analysis & Marketing Strategy

Introduction (1) The

Marketing Environment Strategy STEP/PEST

Introduction (2) 

Value Chain > leading principle

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Management/ law / organisational structures

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Internationalisation

Marketing and sales (structure/functions)  Marketing strategies  Segmentation of markets  4 Ps  E-commerce 

Experiences in a company Every company has its own value chain and its own special way to reach its goals !

> “Maybe it’s time to update our mission statement.

Strategy, the big picture Company

Mission/ Mission E.g. Philips: ‘Lets make things statement ! better’

Goals of the company Who are we and what do we stand for?! In what market do we operate? (M-definition)

What & How

Strategic vision

What’s the Mpotential? Strategylevel Profit/non profit? Service/product? ?

Strategy level 

Corporate strategy – Take-overs, merges, acquisitions

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SBU: Business strategy – Productportfolio, new markets, products

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PMC: Functional strategy – Price, Place, Product, Promotion

Corporate strategy & Mission 

   

Corporate strategy: helps to control and coordinate the different areas of the organisation, finance, marketing, production, R&D, etc. to ensure that they are all working towards the same objectives. Mission Which product: what need is supplied for?? Which market?? Who are the buyers/ the consumers?

Mission Statement Examples :  Philips: “Our mission is to improve the quality of existance by introducing usefull innovations at the right moment.” ‘Lets make things better’ 

"Organize the world's information and make it universally accessible and

Strategy, the big picture Mission/ Mission statement

Planning proces Levels: Strategic, Tactical, operational

Marketing strategy

Informs, operationalises

•Competing in a product market •Selecting markets and segments

Corporate strategy •Allocation of resources •Portfolio of activities for org. •Organisation’s mission •Organisational objectives

Guides, directs, controls, coordinates

•Determining marketing mix

Overall picture Planning process: Monitoring and analysing

Strategy

Events, drivers, new goals, changing business/ profits External factors

Internal factors SWOT Strategic options, goals

Dynamic process

Environmental analysis

Strategy Operationalise Implementation

The marketing environment Macroenvironment Microenvironment / Industry Company

Elements of the external environment (STEP or PEST) Sociocultural

Technological

FIRM

Economic

Political / legal Environmental

The sociocultural environment Changing demographics “grey market” size of household  Change in lifestyle  Change in societal attitudes  Attitudes 

Change in lifestyle

Change in societal attitudes Business ethics

Environmental issues

Animal welfare Marketing Strategy

Personal ethics

Health and safety

Change in societal attitudes

Suppliers/ Markets Business ethics Labour prices Community service

Environmental issues

Product origins roduct content

Animal welfare Marketing Strategy

Personal ethics

Bribery Unethical practices

Farming methods

Health and safety

Ingredients Production

Technological environment  Materials, products and components : - Packaging Production processes:  Distribution  Marketing and customers: -

Fast pace of technological change High R & D costs and equally high budgets to ensure advancement. Increased regulation Internet: The emergence of the Internet made it possible for consumers to compare prices of products more easily than was previously possible.

Technological environment

Br. Retailer: database for demografic (!) facts

TNO: Whiter than white! Product + tester

The economic and competitive environment 

Macroeconomic:

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Taxation, Intrest rates, Exchange rates, International trading blocks

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Microeconomic

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Income distribution monopoly

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Environmental analysis  

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Increased pollution Shortages of raw materials such as oil and coal Increased cost of energy Government intervention in natural resource management

Political /legal environment    

National and Local governments European Union The G-7? (economical-political) Legal: official bodies  

ASA: Advertising Standards Authority OFT: Office of Fair Trading (UK)

Influenced by sociocultural factors: Pressure of public opinion, media, pressure groups

SWOT E n v ir o n m e n ta l S c a n I n t e r n a l A n a ly s is

E x te r n a l A n a ly s is

S tre n g th s W eaknesses

O p p o rtu n itie s T h r e a ts

SWOT Matrix

SWOT 

S & W: – present & past – internally controlled factors (4Ps)

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O & T: – –

present & future outward-looking, strategic view

SWOT Matrix

Internal

External

+

Strengths

Opportunities

-

Weaknesses

Threats

Finally Looking at the external environment: Situation of the moment:   

many factors great diversity of influences rapid changes

3. What influences a specific

company?

Literature Week 1 Lecture 2 Macro-Meso factors Reading Material: Kotler Principles of Marketing,  Chapter 3 The Marketing Environment, page 87-117  Chapter 6 The Global Marketplace, Looking at the global marketing environment, page 213-222 Lecture 3 Global Marketing Reading Material: Kotler Principles of Marketing,  Chapter 6 The Global Market Place, Deciding on the global marketing programma, page 229-238