1. INTEGRATED MARKETING COMMUNICATIONS LECTURE 4: THE MARKETING COMMUNICATIONS ENVIRONMENT AND BUYER BEHAVIOUR

2. Objectives At the end of this input the participant will be able to: Understand the environment in which organisations/marketers and communicators work Understand the environment in which organisations/marketers and communicators work Gain recognition of PEST/STEP/SLEPT ‘models’ of the macro environment Gain recognition of PEST/STEP/SLEPT ‘models’ of the macro environment Appreciate also the micro environment essential for marketing analysis Appreciate also the micro environment essential for marketing analysis Understand (a) Characteristics of the environment, (b) Strategic environmental issue management and (c) the critical components of the environment Understand (a) Characteristics of the environment, (b) Strategic environmental issue management and (c) the critical components of the environment

3. CHARACTERISTICS OF MICRO & MACROENVIRONMENT The ME consists of all those factors that affect the organisation and its markets and any factors that affect the relationship between an organisation and its markets. The ME consists of all those factors that affect the organisation and its markets and any factors that affect the relationship between an organisation and its markets. Matching takes place in the ME Matching takes place in the ME Markets are dynamic and needs fast- changing Markets are dynamic and needs fast- changing The organisation usually has little or no control over ME forces them but can influence them. The organisation usually has little or no control over ME forces them but can influence them.

4. STRATEGIC ENVIRONMENTAL ISSUE MANAGEMENT The importance of environmental analysis. The importance of environmental analysis. The difficulties of monitoring the environment that surrounds the organisation The difficulties of monitoring the environment that surrounds the organisation Implications for the development and implementation of marcomms strategy Implications for the development and implementation of marcomms strategy

5. STRATEGIC ENVIRONMENTAL ISSUE MANAGEMENT Four stages of such a process need to be considered: Four stages of such a process need to be considered: 1. ENVIRONMENTAL SCANNING 2. KEY ENVIRONMENTAL ISSUE IDENTIFICATION 3. IMPACT EVALUATION 4. FORMULATION OF RESPONSE STRATEGY

6. CRITICAL COMPONENTS OF THE MICRO AND MACRO ENVIRONMRENT 1. MICROENVIRONMENT (MIE) THE ORGANISATION/COMPANY THE ORGANISATION/COMPANY SUPPLIERS SUPPLIERS MARKETING INTERMEDIARIES MARKETING INTERMEDIARIES CUSTOMERS CUSTOMERS COMPETITORS COMPETITORS PUBLICS PUBLICS

7. CRITICAL COMPONENTS OF THE MICRO AND MACRO ENVIRONMRENT 2. MACROENVIRONMENT (MAE) NATURAL/ENVIRONMENTAL/GREEN NATURAL/ENVIRONMENTAL/GREEN TECHNOLOGICAL TECHNOLOGICAL POLITICAL/LEGAL/ETHICAL POLITICAL/LEGAL/ETHICAL REGULATORY/ETHICAL REGULATORY/ETHICAL DEMOGRAPHIC DEMOGRAPHIC ECONOMIC ECONOMIC SOCIO-CULTURAL SOCIO-CULTURAL

8. CRITICAL COMPONENTS OF THE MICRO AND MACRO ENVIRONMRENT SOME EXAMPLES NATURAL/ENVIRONMENTAL/GREEN Packaging e.g. use of recyclable materials Packaging e.g. use of recyclable materials Greater (unnecessary) consumption e.g. energy saving products Greater (unnecessary) consumption e.g. energy saving products Positioning/advertising claims Positioning/advertising claims

9. CRITICAL COMPONENTS OF THE MICRO AND MACRO ENVIRONMRENT SOME EXAMPLES TECHNOLOGICAL One coat paints (real innovation) One coat paints (real innovation) brand “Solo”; positioning ease of use/speed brand “Solo”; positioning ease of use/speed Media implications of internet/mobile phones etc. Media implications of internet/mobile phones etc.

10. CRITICAL COMPONENTS OF THE MICRO AND MACRO ENVIRONMRENT SOME EXAMPLES POLITICAL/LEGAL/ETHICAL Protection of companies Protection of companies Protection of consumers e.g. tobacco advertising ban Protection of consumers e.g. tobacco advertising ban Larger interests of society e.g. healthy eating campaigns Larger interests of society e.g. healthy eating campaigns

11. CRITICAL COMPONENTS OF THE MICRO AND MACRO ENVIRONMRENT SOME EXAMPLES REGULATORY/ETHICAL Issues of taste and decency Issues of taste and decency Use/abuse of stereotypes Use/abuse of stereotypes Gender roles, age, relationships etc Gender roles, age, relationships etc Race, religion, morals and ethics Race, religion, morals and ethics

12. Examples Do adverts demean women, men or old people? E.g. Do adverts demean women, men or old people? E.g. –OHP’s: Kaliber, Harvey Nichols, Loin King, Lee jeans –PPoint: Daniel Christian

15. Examples Are there double standards when it comes to men vs. women? E.g. Wonderbra vs. Wonderpants (OHP’s) Are there double standards when it comes to men vs. women? E.g. Wonderbra vs. Wonderpants (OHP’s) Or does it depend on the media and who sees the images? E.g. Sophie Dahl and Opium Or does it depend on the media and who sees the images? E.g. Sophie Dahl and Opium

17. Examples Is it right that advertisers try to challenge attitudes, values etc in pursuit of advertising and brand images? Is it right that advertisers try to challenge attitudes, values etc in pursuit of advertising and brand images? –Benetton (OHP) –Campaign for Racial Equality (OHP) –Police recruitment advert (OHP) –Anti-fur campaign

19. And what about sex ………… Can be useful strategy to gain attention, but what if it is seen to be offensive, embarrassing, is affected by cultural issues? Can be useful strategy to gain attention, but what if it is seen to be offensive, embarrassing, is affected by cultural issues? –Calvin Klein (OHP) –Gossard Bras

21. Examples Marketing/communicating undesirable products or ideas Marketing/communicating undesirable products or ideas –Joe Camel (OHP) –Anti-smoking campaign (OHP) –Barnardos Child Poverty campaign

23. CRITICAL COMPONENTS OF THE MICRO AND MACRO ENVIRONMRENT SOME EXAMPLES DEMOGRAPHIC Age Age Family size Family size Non-family households Non-family households Geographic shifts Geographic shifts

24. CRITICAL COMPONENTS OF THE MICRO AND MACRO ENVIRONMRENT SOME EXAMPLES ECONOMIC Income Income Unemployment Unemployment Savings Savings Changing expenditure Changing expenditure

25. CRITICAL COMPONENTS OF THE MICRO AND MACRO ENVIRONMRENT SOME EXAMPLES SOCIO-CULTURAL Beliefs Beliefs Norms Norms Values Values People’s relations People’s relations

26. TYPES OF CUSTOMER The learning customer Buying knowing feeling action problem

27. TYPES OF CUSTOMER The self-justifying customer Buying action feeling knowledge problem

28. TYPES OF CUSTOMER The routine customer Buying knowing action feeling problem

29. TYPES OF CUSTOMER The professional customer New task knowing feeling action Routine action knowing feeling

30. Any Questions