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Saturday, 14 September 2013

Real world Marketing 2

In a previous post we looked at the four Ps and 3 Ps of our Marketing Model
http://fruitsofsuccesswithhugh.blogspot.co.uk/2013/08/marketing-today-essentials-1.html

Our marketing model looks straight forward but now we need to put some real world factors into the model to make it useful for practitioners.



'Real World' Factors
The next group of factors to be taken into account in our marketing model are collectively referred to as the PESTLE factors.  When considering each of our four P’s we must do so taking into account the following:

POLITICS

The political environment can significantly affect our marketing plans and strategy.  National and international considerations must be constantly monitored so that we can adapt our marketing to changes in legislation, taxation regulations, controls or political climate. 

The internal politics of customer organisations may also cause a change in approach, especially with direct selling.

ECONOMY
Economic factors will also have a direct effect on the success or failure of any product.  In general our economy is cyclical and follows a pattern of recession, depression, recovery and prosperity.  No product can be launched without considering the overall state of the nation's economy and the effects of, for example, recession on potential purchasers.
 

SOCIETY
Sociological factors can have significant impact on product development and the way we price, distribute and promote.  Fashion influences vary from industry to industry, but green issues are becoming increasingly significant in every area of business.  We also need to take into consideration demographic information, ethical and other social attitudes.


TECHNOLOGY
We need to ensure that our marketing is keeping pace with developments in technology to stay ahead of the competition.  New materials and developments in electronics can make products obsolete overnight.

As well as the PEST factors there are two other key elements which we must take into consideration when building our marketing plan:


LEGAL

Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety. Companies need to know what is and what is not legal in order to trade successfully. If an organisation trades globally this becomes a very tricky area to get right as each country has its own set of rules and regulations.



ENVIRONMENTAL

As increasing scarcity of raw materials has become more critical over the last twenty years  factors such as  pollution targets, doing business as an ethical and sustainable company, carbon footprint targets set by government.. More and more customers are demanding that the products they buy are sourced ethically, and if possible from a sustainable source.
 
 
TIME
The TIME factor is a critical element when any marketing plan is being considered.  No product can succeed, in spite of its relevance and quality, if it is launched too soon or too late.  Too soon and there is no market for it - too late and competitors may be so strongly established that it is impossible to make real impact in the market.

COMPETITION
 
Although we should not become obsessed with competitive suppliers we need to ensure that our information about prices, products, developments and activity is up to date so that our marketing plan can counteract competitor activity


 


Related Links

http://fruitsofsuccesswithhugh.blogspot.co.uk/2013/08/marketing-today-essentials-1.html

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