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Reading 2: The marketing environment - Coggle Diagram
Reading 2: The marketing environment
Basics
Marketers analyse the market enviroment
through market research
Marketing intelligence
Micro environment
Focuses on: stakeholder groups and audiences which are in the organisations immediate environment and affect activities & success.
Groups in Micro enviroment
Customers
consumer markets
G&S purchased by individuals/households for personal use
business markets
B2B sales
reseller markets
G&S purchased to resell
government markets
G&S purchased by gov for the delivery of public services
international markets
G&S purchased by buyers in other countries
G&S = Goods and Services
Marketing intermediaries (MI)
many organisations use MI who help with distributing, selling or promoting G&S to customers
Phsycial distributors
resellers
wholesalers
retailers
agents
dealers & brokers
marketing consulatants
advertising
media
marketing research agencies
MI role = assisting an organisation to bring value to customers. status of 'organisation partners'.
suppliers
supply organisations
relationships with suppliers are obviously vital
can be treated as partners however, relationships can be tested; cost increases
competitors
direct competitors
similar G&S
subsitutes
satisfy customers needs with alternative means
new entrants
new to market - enhanced G&S
Organisations need to monitor these to offer better value & avoid loosing custom to them
publics
can influence an organisations activities/reputation
financial organisations/person
Media
TV, radio, newspapers
government
consumer groups, activists, local communities, general public
Macro enviroment
consist of external factors which can affect an organisations business - referred to as STEEPLE
Factors in macro environment
social
Present opportunities for innovation
hello fresh - eating healthier has never been easier
technological
opportunities to take advantage of strategic windows
3D printing
economical
changes in conditions can stimulate innovation
Xercise4less provides gym contacts you can put on hold - not promoting financial strain on the customer
environmental
can present challanges
Complying with expectation products are recycleable can also be an opportunity to innovate
political
can present both threats and opportunities
PPP collaborates public bodies and private companies
legal
changes in legislation can create a strategic window
data protection act provided opportunities for organisations offering these services already
ethical
consumers awareness of the social & environmental impact of some organisation activities creates opportunities for organisations to meet demand for ethical offers.
competitive advantage
strategies for achieving competitive advantage
cost leadership
being the lowest-cost provider
Ryanair
differentiation
distinguish an offering from competitors
lush - ethical products
focus
specialising in a niche segment
niche focus on cost
niche focus on differentiation
it will be different for a organisation to apply all three of these strategies
Competitive positions and differential advantage
5 forces model
threat of new entrants
bargaining power of customers
bargaining power of suppliers
threat of subsitutes
awareness of the 5 forces model can help a organisation understand the structure of its industry
steps to identify differential advantage
identifying the offerings market segments
establish the offerings desired & demanded attributes for each customer segment
determine which of these attributes the organisation offers
determine which of the attributes competitors offer
consider what the customer perceives the competitors strengths to be
identify gaps between customers expectations and their perceptions of competitors marketing programmes
can the organisation fill these gaps to achieve differential advantage?
8.can the organisation emphasise the differential advantage through marketing programmes?
can the organisation sustain this differential advantage or could competitors copy it?
if there are no gaps, what other differential advantage could be developed?
pinpoint changes the organisation needs to make to research and development, engineering or marketing activities to make the most of existing or potential differential advantage
strategical objectives and strategic focus
Ansoff matrix helps an organisation decide on its competitive strategy to support strategic objectives
4 growth opportunities categories representing organisation portfolio to achieve growth
market penetration
present product, present market
market development
present product, new market
product development
new product, present market
diversification
new product, new market