The Marketing Environment Flashcards
PESTEL Factors
Political Economic Social Technological Environmental Legal
Political Factors
About how and to what degree a government intervenes in the economy, and how they respond.
- Organisations need to anticipate and accommodate their marketing accordingly.
Economic Factors
Has an impact on how an organisation performs profitably.
- Interest rates, exchange rate, inflation, economic growth, disposable income of households.
Social Factors
Factors that involves the culture of society through shared attitudes and beliefs of the population.
- of particular interest as marketers aim to understand customers and what drives them.
Technological Factors
A field that is ever changing and impacts the way we market products/ services.
- new ways of producing goods and services.
- new ways of distributing goods and services.
- new way of communicating with the target market.
Environmental Factors
Increasingly important due to the scarcity of raw materials, prompting consumer demand for ethically and sustainably aware/ sourced goods.
- only come to light in the pat 15 years.
Legal Factors
The impacts of laws set by government including Heath and Safety, equal opportunities, advertising standards, consumer rights, product labelling and safety.
- Global trade is difficult due to other countries having different legislation.
SWOT Analysis
An overall evaluation of the companies strengths, weaknesses, opportunities and threats.
Strengths
Internal capabilities that may help the company reach its objectives.
Weaknesses
Internal limitations that may interfere with the companies ability to achieve its objectives.
Opportunities
External factors that the company may be able to exploit to it advantage.
Threats
Current and emerging external factors that may challenge the companies performance.
Environmental Scanning
The internal and external analysis of the environment to determine development and factors that will influence an organisations success.
Why Environmentally Scan?
To account for change.
“…change is the only uncertainty”
- Schnarrs, 1998.
E.g - communication - letters, telephone, emails, social media…
Change Types
Drivers of change
Impacts of change
Results of change