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Lesson 3

Lesson 3. Macro analysis PESTLE Part 2. Marketing Environment The Technical Environment. There is a need to distinguish between high/HI tech and low tech High tech is technology in the widest sense Lo tech is functional eg the Clockwork Radio. Rate of Change/Innovation.

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Lesson 3

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  1. Lesson 3 Macro analysis PESTLE Part 2

  2. Marketing EnvironmentThe Technical Environment • There is a need to distinguish between high/HI tech and low tech • High tech is technology in the widest sense • Lo tech is functional eg the Clockwork Radio. • Rate of Change/Innovation

  3. Marketing EnvironmentThe Legal Environment • Legal = Regulatory framework • Concentrating on the aspects that directly relate to the marketing / commercial activities of an organisation • To start - what are the regulatory areas that you are concerned with?

  4. The Legal Environment • Laws versus Regulation • The law is an ass! = • Regulation is flexible and quick !! • And has the threat of law • RELATED TOPIC CONSUMER LOBBYING

  5. The Law making process • Parliamentary process • The Queens’ Speech • Green Paper - general view point - Conference Pledges • White Paper - Statement of Intent • Draft BILL • 1st reading • 2nd reading • Committee Stage • (amended) Report Stage • 3rd Reading- Both Houses • Royal Assent = ACT • Interpretation of Law = Case Law

  6. Specific Laws • Companies Act 1985 • Trade Descriptions Act 1968 • Consumer Credit Act 1974 • Sale of Goods Act 1979 • Sale of Goods and Services Act 1982 • Consumer Protection Act 1987 • Data Protection Act 1984 (1987) • Equal Pay Act 1970 (1983) • PLUS ….

  7. Key Legislation Areas for Businesses Criminal Law Employment Law Consumer/Competition Laws Company Law Contract Law European Rulings

  8. PLUS • Patents • Health and Safety • Finance Act

  9. The Regulatory Environment • Two main aspects • Government made law • UK • European • International conventions • Self regulation • Industry • Professional

  10. The Regulatory Environment • The four Ps (four Cs) approach • Product - Liability Trademarks Trade Descriptions • Price - Unit pricing Resale Price Maintenance • Place - arrangements with distributors - Silhouette Cartels • Promotion - Trade Descriptions Act, Advertising Issues

  11. Codes of Ethics • AMA • CIM • CBI

  12. Encouraging Environmental Concern • Government actions • Supply chain pressures • External pressures • Self regulation

  13. What is the relevance of social responsibility for the following • Confectionery manufacturer • Oil company • Car manufacturer • Furniture retailer • Mobile phone operator • Supermarket operator

  14. Social Criticisms of Marketing • High prices • High costs of distribution • High advertising/promotional costs • Excessive mark ups • Deceptive practices • misleading advertising • High - pressure selling • Shoddy / unsafe products • Planned / inbuilt obsolescence • Penalising the disadvantaged

  15. Marketing’s impact on society • Encouraging materialism • Imbalance between private and public goods - social goods BUPA versus NHS • Cultural pollution • Abuse of industry power

  16. Consumers’ rights • Information • Protection • Safety • Heard KENNEDY

  17. Homework • Obtain company report for a blue chip • Find out at least three mission statements • What type of organisations are these? • VISA / Scottish Widows/ Holiday Inn, Law Society Ed, Excel, CIM • Explain the potential marketing advantages possessed by a small business compared to a public limited company.USE A POINTS FORMAT • NEWS

  18. Stakeholders • Internal • Connected • External

  19. Internal Stakeholders • Employees • Managers • Owners / shareholders

  20. Connected Stakeholders • Shareholders - again! • Customers • Suppliers • Creditors • Distributors • Partners - Joint Ventures

  21. External Stakeholders • ‘Government’ - local - central - supra national • Regulatory authorities • Local communities • Media • Environmental / pressure groups • Financial Institutions • Competition??

  22. Stakeholder analysis Seven Steps Which publics are important to the organisation’s operations Are they increasing or decreasing in importance? Strength of relationships Impact of corporate actions/operations on the publics

  23. What actual/potential impact could they have on the organisation? What are the interests/motivations of each public group Which publics pose a threat and which an opportunity

  24. Stakeholder issues • Recognising the issues that the organisation faces in terms of stakeholders

  25. Stakeholder relationships • How to you measure them? • Leverage! • Porters Five Forces • Relationship Marketing • What is the ideal relationship

  26. Stakeholders Motivations Employees • How they are treated • What do they want? • United Biscuits Policy? Managers?

  27. Customers • What do they want? • Depends upon the involvement? • Do they want a relationship? Suppliers • What do they want?

  28. Community • Definition of social responsibility • Environmental impact Heathrow MacDonalds Builders Government Competitors

  29. STAKEHOLDERS AND ETHICAL BEHAVIOUR • What are ethics? • Accepted code of behaviour • A set of standards - business and personal • Dealing sensibly with STAKEHOLDERS (publics) • The Human Side of Business

  30. Socio Economic Groupings • ABC1C2DE • A Upper middle class - Senior managers and senior professionals 3% • B Middle class - professionals and managers - Higher Education 10% • C1 Lower middle class - Junior managers / white collar workers 24% • C2 Skilled working class - plumbers electricians etc 30% • D Working class - semi-skilled / unskilles manual workers • E Unemployed / pensioners (on state pensions)

  31. Other classifications • ACORN • MOSAIC • Psychographic/ behavioural • Family life styles • Value groups • Lifestyle • New Social Order

  32. Culture • Ideological system • Technological system • Organisational system • Cultures are supranational

  33. The natural environment and marketing • Role of environmental groups • Social responsibility • Greenhouse effect • Impact on politicians • Ageing population • Family Life Cycle

  34. Sources and Methods • Sources • Primary data • Secondary data • Methods • Market Research techniques • Surveys • Focus Groups • Environmental scanning

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