Professional Documents
Culture Documents
BA230
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12/16/2015
The environment
• Macroenvironment – major trends
• Demographic – age, subcultures, education, geographic
clustering
• Economic – income groups, sources of income
• Socio-cultural – values, attitudes, beliefs, lifestyles
• Technology – available technologies, acceptable
technologies
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PEST Framework
• Political – government rules and regulations
imposed on the industry, home market,
regulatory bodies, funding, grants initiatives,
trading policies and the like
• Economic – home economy situation, trends,
taxations, seasonality, weather issues, market
and trade cycles, etc.
PEST Framework
• Socio-cultural – demographics of target
customer, lifestyle trends, consumer attitudes and
opinions, social factors, brand, company, etc.
• Technological – effect of information technology,
research funding, replacement technology/
solutions, maturity of technology, information and
communications, etc.
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PESTLE Framework
• Legal – Rules and regulations, upcoming rules
and regulations (national, regional, city,
industry, trade, etc.)
• Ecological – Environmental issues, trends and
sentiments, new materials, depleting materials,
etc.
The environment
• Microenvironment – competitive arena
• 5 Forces
• Buyers
• Suppliers
• Competitors
• Substitutes
• Potential entrants
• Internal capabilities and resources
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Environmental Scan
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Strengths
• Competitive advantages
• “Unfair advantages”
• “What you have that others don’t”
• Short-term or Long-term
Sample Strengths
• patents
• strong brand names
• good reputation among customers
• cost advantages from proprietary know-how
• exclusive access to high grade natural resources
• favorable access to distribution networks
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Weaknesses
• Structural weaknesses
• Resource-based weaknesses
• “What others have that you don’t”
• Short-term or Long-term
Sample Weaknesses
• lack of patent protection
• a weak brand name
• poor reputation among customers
• high cost structure
• lack of access to the best natural resources
• lack of access to key distribution channels
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12/16/2015
Sample Opportunities
• an unfulfilled customer need
• arrival of new technologies
• loosening of regulations
• removal of international trade barriers
Sample Threats
• shifts in consumer tastes away from the firm's products
• emergence of substitute products
• new regulations
• increased trade barriers
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THE MARKETING
INFORMATION SYSTEM
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MARKET RESEARCH
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Research approaches
• Observational research
• Unobtrusive observation
• Personal, or through devices
• Video cameras
• Sensors
• Other recording devices
• Answers the question of “How”
Research approaches
• Ethnographic research
• Immersion into market’s lives
• In-depth observation
• “Case method”
• May reveal unarticulated desires that do not
emerge through other research methods
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12/16/2015
Research Approaches
• Focus Group Discussions
• 6 to 10 people
• Paid or given tokens
• Quiet location
• Have “rapporteur” and assistant
• Monitored by client or marketing managers
Contact Methods
• Mail/email questionnaires, Telephone, Personal
interviews
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12/16/2015
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DEMAND FORECASTING
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12/16/2015
Demand Forecasting
• Potential market – consumers with sufficient level of
interest in product
• Available market – those with interest, income and access
• Target market – the qualified, available market
• Penetrated market – the actual buyers
Potential buyers
x Ave. quantity purchased
x Price
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12/16/2015
• Expert opinion
• Past data
• Buyer intentions
• Test markets
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