1. Macro analysis PESTLE Part 2
Lesson 3
Macro analysis PESTLE
Part 2

2. Marketing Environment The Technical Environment
There is a need to distinguish between high/HI tech and low tech
High tech is technology in the widest sense
Lo tech is functional eg the Clockwork Radio.
Rate of Change/Innovation

3. Marketing Environment The Legal Environment
Legal = Regulatory framework
Concentrating on the aspects that directly relate to the marketing / commercial activities of an organisation
To start - what are the regulatory areas that you are concerned with?

4. The Legal Environment Laws versus Regulation The law is an ass! =
Regulation is flexible and quick !!
And has the threat of law
RELATED TOPIC CONSUMER LOBBYING

5. The Law making process Parliamentary process
The Queens’ Speech
Green Paper - general view point - Conference Pledges
White Paper - Statement of Intent
Draft BILL
1st reading
2nd reading
Committee Stage
(amended) Report Stage
3rd Reading- Both Houses
Royal Assent = ACT
Interpretation of Law = Case Law

6. Specific Laws PLUS …. Companies Act 1985 Trade Descriptions Act 1968
Consumer Credit Act 1974
Sale of Goods Act 1979
Sale of Goods and Services Act 1982
Consumer Protection Act 1987
Data Protection Act 1984 (1987)
Equal Pay Act 1970 (1983)
PLUS ….

7. Key Legislation Areas for Businesses
Criminal Law
Employment Law
Consumer/Competition Laws
Company Law
Contract Law
European Rulings

8. PLUS
Patents
Health and Safety
Finance Act

9. The Regulatory Environment
Two main aspects
Government made law UK
European
International conventions
Self regulation
Industry
Professional

10. The Regulatory Environment
The four Ps (four Cs) approach
Product - Liability Trademarks Trade Descriptions
Price - Unit pricing Resale Price Maintenance
Place - arrangements with distributors - Silhouette Cartels
Promotion - Trade Descriptions Act, Advertising Issues

11. Codes of Ethics
AMA
CIM
CBI

12. Encouraging Environmental Concern
Government actions
Supply chain pressures
External pressures
Self regulation

13. What is the relevance of social responsibility for the following
Confectionery manufacturer
Oil company
Car manufacturer
Furniture retailer
Mobile phone operator
Supermarket operator

14. Social Criticisms of Marketing
High prices
High costs of distribution
High advertising/promotional costs
Excessive mark ups
Deceptive practices
misleading advertising
High - pressure selling
Shoddy / unsafe products
Planned / inbuilt obsolescence
Penalising the disadvantaged

15. Marketing’s impact on society
Encouraging materialism
Imbalance between private and public goods - social goods BUPA versus NHS
Cultural pollution
Abuse of industry power

16. Consumers’ rights
Information
Protection
Safety
Heard
KENNEDY

17. VISA / Scottish Widows/ Holiday Inn, Law Society Ed, Excel, CIM
Homework
Obtain company report for a blue chip
Find out at least three mission statements
What type of organisations are these?
VISA / Scottish Widows/ Holiday Inn, Law Society Ed, Excel, CIM
Explain the potential marketing advantages possessed by a small business compared to a public limited company.USE A POINTS FORMAT
NEWS

18. Stakeholders
Internal
Connected
External

19. Internal Stakeholders
Employees
Managers
Owners / shareholders

20. Connected Stakeholders
Shareholders - again!
Customers
Suppliers
Creditors
Distributors
Partners - Joint Ventures

21. External Stakeholders
‘Government’ - local - central - supra national
Regulatory authorities
Local communities
Media
Environmental / pressure groups
Financial Institutions
Competition??

22. Stakeholder analysis Seven Steps
Which publics are important to the organisation’s operations
Are they increasing or decreasing in importance?
Strength of relationships
Impact of corporate actions/operations on the publics

23. What actual/potential impact could they have on the organisation?
What are the interests/motivations of each public group
Which publics pose a threat and which an opportunity

24. Stakeholder issues
Recognising the issues that the organisation faces in terms of stakeholders

25. Stakeholder relationships
How to you measure them?
Leverage!
Porters Five Forces
Relationship Marketing
What is the ideal relationship

26. Stakeholders Motivations
Employees
How they are treated
What do they want?
United Biscuits Policy?
Managers?

27. Customers Suppliers What do they want? Depends upon the involvement?
Do they want a relationship?
Suppliers

28. Community Government Competitors Definition of social responsibility
Environmental impact
Heathrow
MacDonalds
Builders
Government
Competitors

29. STAKEHOLDERS AND ETHICAL BEHAVIOUR
What are ethics?
Accepted code of behaviour
A set of standards - business and personal
Dealing sensibly with STAKEHOLDERS (publics)
The Human Side of Business

30. Socio Economic Groupings
ABC1C2DE
A Upper middle class - Senior managers and senior professionals 3%
B Middle class - professionals and managers - Higher Education 10%
C1 Lower middle class - Junior managers / white collar workers 24%
C2 Skilled working class - plumbers electricians etc 30%
D Working class - semi-skilled / unskilles manual workers
E Unemployed / pensioners (on state pensions)

31. Other classifications
ACORN
MOSAIC
Psychographic/ behavioural
Family life styles
Value groups
Lifestyle
New Social Order

32. Culture
Ideological system
Technological system
Organisational system
Cultures are supranational

33. The natural environment and marketing
Role of environmental groups
Social responsibility
Greenhouse effect
Impact on politicians
Ageing population
Family Life Cycle

34. Sources and Methods Sources Methods Primary data Secondary data
Market Research techniques
Surveys
Focus Groups
Environmental scanning