1. MES Week 1 Marketing and Entreprise Strategy Susan Simei-Cunningham

2. MES Week 1 THE MICRO ENVIRONMENT

3. MES Week 1 Learning Outcomes At the end of the sessions, you should be able to: –Explain the importance of understanding the organisation’s marketing environment –Define internal and the micro

4. MES Week 1 Last Week Recap The macro environment and show the relationship between the subject and the syllabus.

5. MES Week 1 Flashcard Exercise Online exercise for recap.

6. MES Week 1 The Organisations Marketing Environment 5 M’s – Internal stakeholders Markets Men Materials Machines Money MICRO – Connected stakeholders Intermediaries Suppliers Customers Competitors Other Stakeholders What is this?

7. MES Week 1 The Macro Environment The business environment consists of all the actors and forces outside marketing that affect the marketing management’s ability to develop and maintain successful relationships with its target customers.

8. MES Week 1 The Micro Environment The micro environmental components are: The company Suppliers Marketing channel firms (intermediaries) Customer markets Competitors Publics Combined they make up the company’s value delivery system.

9. MES Week 1 Task- Discussion Will these factors vary according to sectors, or industry?

10. MES Week 1 THE MICRO ENVIRONMENT

11. MES Week 1 The Micro Environment The micro environment is said to generate some level of influence over the company but this is indirect. We shall now look at the factors/elements within the micro environment.

12. MES Week 1 Suppliers Suppliers are organisations and individuals that provide the resources needed by the company and its competitors to produce goods and services. They are an important link in the company’s overall customer “value delivery system.” What must we consider with suppliers?

13. MES Week 1 Business Intermediaries These companies promote, sell, and distribute goods to final buyers. 1). Resellers are distribution channel organisations. 2). These include wholesalers and retailers who buy and resell merchandise. 3). Resellers often perform important functions more cheaply than the company can perform itself. (outsourcing)

14. MES Week 1 Business Intermediaries Physical distribution firms stock and move goods from their points of origin to their destinations. E.g warehouses. Marketing service agencies target and promote a companies products. Financial intermediaries help finance transactions and insure against risks.

15. MES Week 1

16. MES Week 1 Customers The company must study its customer markets closely since each market has its own special characteristics. These markets normally include:

17. MES Week 1 Customers Types 1) Consumer markets (individuals and households that buy goods and services for personal consumption). 2). Business markets (buy goods and services for further processing or for use in their production process).

18. MES Week 1 Customers 3). Reseller markets (buy goods and services in order to resell them at a profit). 4). Government markets (agencies that buy goods and services in order to produce public services or transfer them to those that need them). 5). International markets (buyers of all types in foreign countries).

19. MES Week 1 Competitors Every company faces a wide range of competitors. A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace. No single competitive strategy is best for all companies.

20. MES Week 1 Publics A public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. A company should prepare a marketing plan for all of their major publics as well as their customer markets.

21. MES Week 1 Case Study Times100 Case study on the internal environment. http://www.thetimes100.co.uk/case-study-- using-pestel-to-design-effective-strategies— 104-262-1.php Supplier relations http://www.nokia.com/corporate- responsibility/environment/case-studies -hips

22. MES Week 1 THE INTERNAL ENVIRONMENT

23. MES Week 1 The Internal Environment All factors that are internal to the organization are known as the ‘internal environment’. They are generally audited by applying the ‘Five Ms’ which are Men, Money, Machinery, Materials and Markets.

24. MES Week 1 Internal Environment The internal environment is as important for managing change as the external. As marketers we call the process of managing internal change.

25. MES Week 1 Case Study Case Study in: Johnson, G. et al., 2005. Exploring Corporate Strategy. 7th ed. Essex: Pearson Education Ltd.

26. MES Week 1 Summary It is clear that for a strategy to be successful, the orgainsation must understand the and player in all of the environment and measure their impact.

27. MES Week 1 Syllabus Reference Review the syllabus

28. MES Week 1 Homework 1 MCQ http://www.oup.com/uk/orc/bin/97801992883 04/01student/mcqs/ch02/

29. MES Week 1 Homework 2 Examine the importance of Value Creating Activities in relation to Porter’s value chain model and the internal environment.

30. MES Week 1 Homework 3 MCQ http://www.oup.com/uk/orc/bin/97801992883 04/01student/mcqs/ch04/