Unit 3: Identify factors and trends in the marketing environment and how they affect marketing planning
Identify key external national and international macro-environmental factors and different frameworks available.
To be able to assess the company’s position in the market, we need to be able to establish market conditions, competitive situation, customer behaviour and company performance. Factors and trends are often changing.
Here are some macro environment frameworks:
- PESTLE – political, economic, social, technological, legal, environmental
- PESTLEID – political, economic, socio-cultural, technological, legal, environmental, international, demograhic.
- STEEPLE – socio-cultural, technology, economic conditions, ecology (physical environment), political, legal, ethics.
Identify key industry and market external micro environmental factors and determine the nature of customer value and competition.
Micro factors are potentially controllable, these include:
Understanding different types of organisations.
There are a number of different types of organisations:
- Sole trader – controlled by one person
- Partnerships – owned by two or more people
- Private limited companies – small business, shares not in the stock exchange
- Public limited companies (PLC) – usually big companies, in the stock exchange
- Not for profit – no profit is made for directors, members or shareholders
- Government – eg Houses of Parliament, councils etc
The key internal factors and issues that determine organisational orientation and strategy development and execution are:
- Organisational goals
- Organisational objectives
- Corporate governance
- Risk management
- Rights and equitable treatment of shareholders
- Interests of other stakeholders
- Role and responsibilities of the board
- Integrity and ethical behaviour
- Disclose and transparency
- Identification of risks and hazards (health and safety, legal and professional, financial, environmental, hostile action, third party)
- Analysis and assessment
- Risk management and mitigation
- Risk reporting and policy
Changes in the environment can affect the organisation at different stages of the marketing planning process.
Carrying out a marketing audit to audit the macro environment to identify potential threats and opportunities.
Mission statements, vision and objectives:
Analysis of an organisations macro, micro and external environment will help it identify trends and see what the future may hold to help set objectives that are relevant to the changing environment.
The changing environment will influence the choice of strategic options. Eg – change in demographic trends may change the profile of the working population.
Understanding the environment will affect the marketing mix the company adopts and the way it implements its marketing plan.