Marketing Marketing environment Introduction case - Stelvin screwcap Stelvin screwcap • One of the most significant innovations of the 1970s was the introduction of a new type of closure: The Stelvin® screwcap. • This closure improved the technical advantages of the standard closures used to seal wine flagons and completely removed problems of cork-taint (a specific flavour imparted by infected corks), inconsistent quality and leakage of wine, which used to characterise approximately 1 to 10 per cent of the wines sealed with a natural cork. • Yet, the new closure didn’t fit with consumers’ perceptions of a high-quality wine. Stelvin screwcap • In 1984, after a few years of poor sales performance after adopting the Stelvin® seal, several major Australian producers reverted to corks. • A decade or so later (in 2000), the Australian winemakers of the Clare valley region decided to reintroduce Stelvin® screwcaps, but only for closing their premium Rieslings. This time, the new closures were received more positively by the media and consumers, and gradually people began to accept the new type of closure. Stelvin screwcap • Over the last ten years, some of the so-called ‘new World’ wine-producing countries (such as Australia and New Zealand,) have converted to Stelvin® screwcaps. However, the ‘old World’ wine-producing countries (such as Italy, France and Spain) largely continue to seal their bottles with natural corks. What is marketing environment? All what surrounds and influence company Clever marketing managers are capable of reactions to company surroundings Reactivity • In the human body there is quiet lot of reaction mechanisms to its surroundings ready to produce action. • When temperature drops human blood circulates faster to warm important body parts. • The same applies to marketers. Companies which cannot react to its surroundings will face fundamental threats to its existence. What is in company surroundings? And what can influence its performance? Environment onion Internal environment Micro level Macro level Sharp, B. (2013). Marketing: Theory, Evidence, Practice (Pap/Psc edition). Oxford University Press. Macro level •Political forces •Economic forces •Social and cultural forces •Technology •Laws and regulations •Environmental forces Political forces • Represents connection between business and politics. • Monitoring political landscape • 3 times higher chance for companies to survive during financial crisis with connection to political power (USA Data). • Government influence heavily economic development by declaring programme priorities. • For some industries it is a crucial decision to be followed and evaluated at all time. • Construction business, highway constructions, railroad business, telecom Economic forces • Economic growth • Income distribution • Purchasing power • Industry data • Employment rate • Taxes • Inflation rate • Currency rates changes Social and cultural trends • Higher life expectancy • Money-rich Time-poor families • Faster return after maternity leave • Higher awarness about environmental challanges • Homogenisation of needs on global level • Higher divorce rate • Singles • Postponing marriage and babies • Smaller families • Global popculture themes Higher life expectancy • New customer segments with specific needs. • Spending power of seniors will hit US$10tn by 2020. • In USA very interesting group with high purchasing power. Traditional family setup collapse Smallerfamilies Smallerfamilies Technology • Digitalisation • Robotisation • Sharing economy • Social networks • New media • Personal productivity tools • Cloud computing • Artificial inteligence • Virtual reality • Augmented reality Information consumption settings Uber, Airbnb Facebook, Instagram WhatsApp, Viber Youtube, Netflix Booking, Kiwi Evernote, Pocket Dropbox, Google Drive Spotify, Soundcloud Khan Academy, TED How these brands disrupted their industries? Laws and regulations in Czech and EU • Country specific: • Business law • Tax law • Labour law • EU Legislation • GDPR Environmental challenges • Climate change • Pollution • Scarce resources • Recycling • Animal testing • Clean water • Plastics Micro level •Customers •Competition •Collaborators Micro level - Customers •Customer behaviour • Loyalty • Retention and acquisition strategies • Satisfaction surveys • Satisfaction/importance matrix •CRM Database • Personification • Overview Micro level - Customers •Loyalty Micro level – Customer perception Low High HighLow Nice to have Strategic advantages Acceptable disadvantages Strategic disadvantages Importance Satisfaction Micro level – Customer analysis •Dominique Jean Larrey • Author of triage method to sort wounded soldiers at the battlefield. • Three categories • Die anyway regardless of a medical care • Live anyway regardless of a medical care • Ones who would truly benefit from the medical care Micro level – Customer analysis •Customers could be divided accordingly based on their loyalty • Loyal who would buy regardless of the communication • Disloyal who would not buy regardless of the communication • Switchers who would eventually buy due to communication Micro level - Competition •Who is competitor for a cinema? •There are two types of competition • Direct • Indirect Indirect competitors are more difficult to identify and are easier to fail to notice! Micro level - Competition •Porter model •5 Competitive forces Porter analysis excercise •Huawei •IKEA •BMW •Luis Vuitton •Starbucks Micro level - Collaborators •Suppliers •Retailers Producent Wholesaler Retailer Customer Internal environment •Employees •Equipment •Finances •Functional Analytical tools for environmental scanning PESTLE 5C COMPANY ANALYSIS ò SWOT SWOT analysis •Assessing strengths and weaknesses as internal facts. •Assessing threads and opportunities as external factors. •Strengths and weaknesses have to be relative to competition on the market! •There should be always only facts and factors important for company value chain. SWOT - how to do it? Positive Negative InternalExternal Strengths Weaknesses Opportunities Threats Plus / minus matrix S1 S2 S3 S4 W1 W2 W3 W4 Standings O1 +++ 0 + 0 - 0 0 0 3 O2 + 0 0 0 0 - - 0 4 O3 0 ++ ++ + 0 --- 0 - 1 O4 0 + + 0 0 0 0 - 5 O5 + + ++ 0 - 0 -- 0 2 T1 0 0 - - 0 0 - - 3 T2 --- 0 0 0 --- -- 0 --- 1 T3 -- 0 - 0 --- - 0 0 2 T4 0 0 - 0 0 - 0 0 5 T5 - 0 0 0 0 - 0 - 4 Standings 1 3 2 4 2 1 4 3 TOWS matrix - consequences Strengths Weakness OpportunityThread SO strategy Use strengths to grab the opportunity WO strategy Use opportunities to eliminate weaknesses ST strategy Use strengths to eliminate thread WT strategy ? Recap Thank you for your attention