TOPIC 1: Marketing Introductioniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
What is Marketing?
● Ambiguous definition
● The management process which
identifies, anticipates and supplies
customers requirements efficiently
and profitably, exceeding customer
needs better than the competition
TOPIC 2: Marketing Environmentiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
External Forces Affecting Markets
● External environment feeds into the threats and opportunities of a brand (SWOT)
Macro Environment (External Force)
● Use PESTLE approach
● Elements are interconnected and do not need to necessarily adhere to just one category
Political Economic Social Technological Legal Environmental
Uncertainty Corporate tax Seasonal Cloud Bans & Environmental
(e.g. Brexit) trends computing policies lobbying
Governments
May lead to such as the US Recently people We have shifted Place Can restrict
businesses offer a low have been more from DVDs to restrictions on companies’
relocating their corporate tax to health on-demand the kinds of manufacturing
production businesses to conscious
plants and promote streaming products firms methods and
leading to a services as it is can offer, as raise costs or
headquarters, economic
greater demand more reliable well as make it cheaper
and creating activity
contingency for vegan, manufacturing if subsidies are
plans E.g. Amazon sugar-free and E.g. Netflix is methods and available
paid 0 corporate gluten-free the market distribution
E.g. Ford tax in 2018 products leader E.g. carbon tax
announced that (alongside
E.g. Australia’s fines and
a ‘no-deal’ many other E.g. Quorn has cigarette plain solar/wind
Brexit would be giants) through expanded its
catastrophic for finding packaging power subsidies
1
, its business, loopholes product range, policy and bans
closing its plant and more types on monopoly
in England of vegan milks firms &
resulting in on the market anticompetitive
1,700 job losses
behavior
Trade unions Rising average Increased 3D printing
household stress levels /
E.g. the EU is a incomes & time pressures Technological
Customs Union growing innovation
which enables middle class impacts the way
We live more
the free flow of we do things
fast-paced lives
labor, goods Greater
and services incomes means and require E.g. according
more spending products that to Tech Insider,
on luxury are instant and 3D homes can
goods, on-the-go be built for
increasing the under $4,000
market for more E.g. ready meal which can bring
luxury products and fast food more
and decreasing opportunities
chain
the market for to people
companies such
more inferior
goods as Charlie
Bighams and
KFC have
experienced
massive growth
Internal Forces Affecting Markets
Micro Environment (Internal Force)
Internal forces are equally as important to
understand as external forces because they also
feed into the threats and opportunities of a brand
The micro environment refers to factors that are
controllable by management
Customers — B2C, B2B, local, international?
Suppliers – price and resource availability
considerations
2
, Porter’s Five Forces Framework
Identifies the five different factors that affect an organisation’s competitiveness
Strategy Company Example Description
Low cost Walmart Use information systems for:
leadership
(a) Inventory replenishment system. When items run out, more are
automatically ordered
(b) Streamlining operations, making use of JIT production
Product Google Is no longer just a search engine. Other products include Google
differentiation Maps, Google Drive
Nike
Nike makes use of customization. NIKEiD allows customers to
make sneakers their own
Buyer Amazon Uses buyers’ preferences and purchases to give them
bargaining personalized recommendations, increasing switching costs
power
Market niche Etsy Online marketplace focusing specifically on hand-made items
3
What is Marketing?
● Ambiguous definition
● The management process which
identifies, anticipates and supplies
customers requirements efficiently
and profitably, exceeding customer
needs better than the competition
TOPIC 2: Marketing Environmentiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
External Forces Affecting Markets
● External environment feeds into the threats and opportunities of a brand (SWOT)
Macro Environment (External Force)
● Use PESTLE approach
● Elements are interconnected and do not need to necessarily adhere to just one category
Political Economic Social Technological Legal Environmental
Uncertainty Corporate tax Seasonal Cloud Bans & Environmental
(e.g. Brexit) trends computing policies lobbying
Governments
May lead to such as the US Recently people We have shifted Place Can restrict
businesses offer a low have been more from DVDs to restrictions on companies’
relocating their corporate tax to health on-demand the kinds of manufacturing
production businesses to conscious
plants and promote streaming products firms methods and
leading to a services as it is can offer, as raise costs or
headquarters, economic
greater demand more reliable well as make it cheaper
and creating activity
contingency for vegan, manufacturing if subsidies are
plans E.g. Amazon sugar-free and E.g. Netflix is methods and available
paid 0 corporate gluten-free the market distribution
E.g. Ford tax in 2018 products leader E.g. carbon tax
announced that (alongside
E.g. Australia’s fines and
a ‘no-deal’ many other E.g. Quorn has cigarette plain solar/wind
Brexit would be giants) through expanded its
catastrophic for finding packaging power subsidies
1
, its business, loopholes product range, policy and bans
closing its plant and more types on monopoly
in England of vegan milks firms &
resulting in on the market anticompetitive
1,700 job losses
behavior
Trade unions Rising average Increased 3D printing
household stress levels /
E.g. the EU is a incomes & time pressures Technological
Customs Union growing innovation
which enables middle class impacts the way
We live more
the free flow of we do things
fast-paced lives
labor, goods Greater
and services incomes means and require E.g. according
more spending products that to Tech Insider,
on luxury are instant and 3D homes can
goods, on-the-go be built for
increasing the under $4,000
market for more E.g. ready meal which can bring
luxury products and fast food more
and decreasing opportunities
chain
the market for to people
companies such
more inferior
goods as Charlie
Bighams and
KFC have
experienced
massive growth
Internal Forces Affecting Markets
Micro Environment (Internal Force)
Internal forces are equally as important to
understand as external forces because they also
feed into the threats and opportunities of a brand
The micro environment refers to factors that are
controllable by management
Customers — B2C, B2B, local, international?
Suppliers – price and resource availability
considerations
2
, Porter’s Five Forces Framework
Identifies the five different factors that affect an organisation’s competitiveness
Strategy Company Example Description
Low cost Walmart Use information systems for:
leadership
(a) Inventory replenishment system. When items run out, more are
automatically ordered
(b) Streamlining operations, making use of JIT production
Product Google Is no longer just a search engine. Other products include Google
differentiation Maps, Google Drive
Nike
Nike makes use of customization. NIKEiD allows customers to
make sneakers their own
Buyer Amazon Uses buyers’ preferences and purchases to give them
bargaining personalized recommendations, increasing switching costs
power
Market niche Etsy Online marketplace focusing specifically on hand-made items
3
