chapter two

• Many different factors can influence the way in which they conduct business
• Marketers are faced with many challenges
• Building good relationships with all stakeholders (i.e. customers, suppliers, employees etc.) is vital
• Marketing environment


  Identify what you can and cannot control but still influences your organization
• The move from the production orientation to the societal and relationship marketing orientation has made it much more important to consider these other areas that influence a business
• Scanning and an environmental analysis is essential
• Marketing research must be done
• Components of the micro-environment


  • Top management
  • Suppliers
  • Distributors
  • Customers
  • Competitors
• Suppliers


  Supply companies with the resources needed to produce goods and services
• Distributors


  Deal with assisting the firm in the promotion, selling and distribution of final goods and services to consumers
• Types of customer markets

  • Consumer market
  • Business market (B2B)
  • Reseller market
  • Government market
  • Global market
• Analysing the competition will assist an organization in creating a sustainable competitive advantage
• Components of the macro-environment

  • Demographic environment
  • Social environment
  • Economic environment
  • Political and legal environment
  • Natural environment
  • Technological environment
• The macro-environment is typically not manageable by the organisation
• Demographic environment


  Important environment to understand for segmentation and targeting purposes
• Demographic environment components


  • Population
  • Generational cohorts
  • Living Standards Measure (LSM) – to be replaced with Socio-Economic Measure (SEM)
• Social environment


  Attitudes and beliefs shared by the community
• The social environment influences products, prices, place and promotion
• Factors influencing social environment

  • Impact of digital era on customer values
  • Internet and culture
• Factors influencing economic environment

  • Employment and income
  • Interest rates
  • Inflation
• The political environment plays a crucial role in the delivery of services that assist businesses to produce goods and services for their consumers within a particular country
• The laws adopted by a country can have major implications for a business's operations and for the marketing team
• Companies must be able to adapt to technological changes in their industry
• Technological changes also give rise to opportunities, especially since they make so much data available for analysing prospective customers
• Companies want to be involved in developing better ways to produce products that do not cause harm to the environment
• Consumers attitudes towards the environment are changing, for instance consumers are demanding environmentally friendly packaging
• SWOT analysis


  A tool used by organisations to identify their strengths, weaknesses, opportunities and threats
• S & W are internal while O & T are external
• The SWOT analysis assists managers to make strategic decisions
• SWOT analysis for Nandos

  • Strengths: Selling flame-grilled chicken which is affordable, Popular brand and has established food franchises international, Specialises in chicken with a various flavours, Advertisements that uses humour
  • Weaknesses: Low level of presence in small cities, Limited choice for vegetarians, Limited options of chicken dishes
  • Opportunities: Grow the selling of Nando's products online, Diversify Nando's offering to offer more innovate products, Enter the hotel industry
  • Threats: Increase number of competition producing flame grilled chicken, Risk of bird flu, Chicken being dumped from other countries such as Brazil
• Main aspects learned in this chapter

  • How does the marketing environment present companies with both opportunities and threats
  • Differentiate between the micro and macro environments
  • Why do organisations scan both the micro-environment and the macro-environment