LECTURE 3 - MARKET ENVIRONMENT TOOLS

Question 1

understanding the market environment

Answer 1

key points:
- importance: recognizing external forces affecting a firm’s ability to connect with customers
- tools: PESTLE (Macro Environment) and 5 C’s (Micro Environment)

Question 2

types of marketing environments: internal environments

Answer 2

• elements within the firm, like employees, processes and internal policies

Question 3

types of marketing environments: micro environments (5Cs)

Answer 3

• customers: understand their needs, buying behavior, and value perception
• competitors: evaluate business impact, opportunities, threats, and substitute products
• company: assess business model, strategy, strengths, and weaknesses
• collaborators: identify upstream and downstream partners (suppliers, distributors)
• context: larger macro trends (PESTLE) impacting the market

Question 4

types of marketing environments: macro environment (PESTLE)

Answer 4

external factors affecting the industry at large

Question 5

PESTLE Analysis

Answer 5

• political: government stability, regulations, and tax policies
• economic: interest rates, inflation, labor costs, and economic cycles
• socio-cultural: demographics, cultural trends, education, ethics, and lifestyle changes
• technological: innovations, access to technology, and energy advancements
• legal: industry regulations, consumer laws, and environmental legislations
• environmental: climate change, ecological concerns, pollution targets, and carbon footprints

Question 6

microenvironment case example: food delivery services

Answer 6

• trends: increase use of delivery apps due to convenience and changing lifestyles
  Micro environment analysis for UberEats (5Cs):
• customers: seek convenience, variety and new dining experiences
• competitors: direct (Ubereats, Menulog, Deliveroo) and indirect (restaurants with dine-in options)
• company: leverage fast delivery, strong platform presence
• collaborators: network of drivers, local restaurants and regulatory bodies
• context: macro trends like urbanization, dual-income households, and tech-savvy consumers

Question 7

external trends influencing food delivery

Answer 7

• socio-cultural: growing multiculturalism, dual-income households, health-conscious choices
• economic: impact of COVID-19, labor costs, inflation
• technological: internet accessibility, 4G/5G, and app-based delivery models
• legal: evolving legislation on labor rights and urban parking
• environmental: COVID-19 effects on home delivery trends and potential future restrictions

Question 8

external trends influencing food delivery

Answer 8

• socio-cultural: growing multiculturalism, dual-income households, health-conscious choices
• economic: impact of COVID19, labor costs, inflation
• technological: internet accessibility, 4G/5G, and app-based delivery methods
• legal: evolving legislation on labor rights and urban parking
• environmental: COVID-19 effects on home delivery trends and potential future restrictions

Question 9

SWOT ANALYSIS EXAMPLE: FOODORA

Answer 9

• strengths: early mover in Australian food delivery
• weaknesses: regulatory issues, worker dissatisfaction, limited customer options
• opportunities: complementary services, green delivery initiatives
• threats: high competition (UberEats, Deliveroo), regulatory changes, shifting consumer preferences