What is the PESTEL framework?
Depicts the macro-environmental factors that the company faces .
How do customers, the company, competitors and corporate partners affect marketing strategy?
Customers play an important role as the key driver for firms – without the customer, nothing gets sold. This means that firms must be able to satisfy the customers’ needs and wants by providing a valuable product. However, firms must monitor their competitors to see what they’re offering that appeals to the customers and thus the firm must be able to gain competitive intelligence so as to not lose their customers to their competitors. Marketing partners such as suppliers, marketing research firms, consultants and transportation firms play an important role in finding out want customers want and getting it to them when and where they want it. Therefore, effective coordination with these partners is vital.
What does a firm’s immediate environment consist of?
Company, competition and corporate partners
– The role of the company is to understand its core competency and integrate it to whatever existing knowledge, facilities, patents, etc.. and apply that to initiatives to penetrate new markets and/or develop new products.
For example, Google’s core competency lies with indexing and monetization from ads, so the question is whether they should cut back on their 50+ products and focus on that particular core competency
– With competitors, the firm must strive to use a proactive rather than a reactive strategy by understanding their strengths and weaknesses (both their own as well as their competitors’)
– A well-functioning relationship between a firm and its partners is vital in facilitating the provision of product/service to their customers when they (customers) want it .
– Stability of the political environment
– Influence of government policy, laws and regulation
– Government trade agreements such as ASEAN
– Taxation and government rebate policies
[?] The economy will influence patterns of consumer spending
– Interest rates, economic growth and consumer confidence
– Income levels, savings, credit and spending
– Level of inflation, employment rates
– Exchange rates and balance of trade
[?] A firm must understand cultural issues and demographics to identify specific customer groups
– Religion, culture, subcultures, values, attitudes and beliefs
– Population trends- age, household size, marriage and divorce trends, places lived, ethnicity
[?] Technological advances helps marketers provide consumers with more products, and provide services more efficiently
– Whether offerings can be made more cheaply and for a better standard of quality using new technologies
– venues of innovation
– improvement of communication and/or distribution through the use of technology
– environmental influences including ecological and environmental aspects such as weather, climate and climate change
– Laws – Competition and Consumer Act, The Privacy Act, etc…
– Regulations from industry bodies
What are some social trends?
Thrift, health and wellness, green marketing, privacy , and time-poor-ness
–> these trends will impact what consumers purchase and consume
Everything a firm does should revolve around their customer. The firm must discover their needs and ants and then provide a valuable product that can satisfy them.
Collaboration with partners and an understanding of their competitors helps to add value
Describe the differences among the various generational cohorts
Generational cohorts : Groups of consumers from the same generation who are likely to have similar purchase and consumption behaviours due to their shared experiences and stages of life. Each of the cohort segments exhibit different consumption patters, attitudes towards the world and preferences with regard to marketing efforts
1) Gen Z (born 2001-2014)
2) Gen Y (born 1977-2000)
3) Gen X (born 1965-1976)
4) Baby Boomers (born 1946-1964)
A strategic effort by firms to supply customers with environmentally friendly merchandise
Exploiting consumers by disingenuously marketing goods or services as environmentally friendly, with the goal of gaining public approval and sales
The influence of the area within a country in which people live