BUSINESS MARKETING - External forces that can offer opportunities or

threats and affect how firm can start and/or stay

Market Opportunity Analysis: CONSUMER ANALYSIS in a relationship with their customers.
 Strategic Marketing
- Core strategy 1. Political Factors
- Market Segmentation, Targeting and Brand a. Tax Policy
Positioning (STP) b. Labor Law
 Tactical Marketing c. Environmental Law
- 4P’s of marketing (Product, Place, Price, d. Trade Restrictions
Promotions) e. Tariffs
- Put together to influence consumers to buy the f. Political Stability
company’s brand rather than the competitions. g. Education
h. Health
i. Infrastructure
Strategic Marketing Tactical Marketing
CONCEPT Thought process Taking action near 2. Economic Factors
(Big Idea-Big Picture) term (How to) - The impact of a country’s financial indicators on
how businesses operate and make decisions.
PURPOSE To attain the To execute the
company’s strategy a. Economic Growth
objectives
ACTIVITIES Understanding the Promoting and - A higher economic growth means more goods and
environment, selling to the services expressed in gross national product (GNP)
industry, customers, consumers or gross domestic product (GDP) in a
competition, brand country.
KEY STP 4P’s b. Inflation rate
CONCEPTS - Higher prices means higher inflation rate affecting
the purchasing power, which lead to, or warrant a
wage increase.
 Marketing c. Exchange rate
- Value creation (serving customers better than - A higher foreign exchange rate has two meanings:
competition) exporters get more peso when they ship out
- Value capture (profit maximization)
goods while imported products become more
expensive to buy due to peso for every dollar.
d. Interest Rate
- A higher interest rate means more interest
expense to be aid and higher cost of capital.
3. Social Factors
- How the demand for a company’s products and
how firms should operate are affected by social
demographics, attitudes and opinions on issues.

 Marketing Environment
- Forces outside of marketing
- Macro-environment (national issues)
a. PESTLE Trends
b. Industry Analysis
c. Key Factors for Success
- Micro-environment (company issues) 4. Technological Factors
a. 6C’s - How technological aspects affect innovation,
productivity, investment and cost.
 PESTLE TRENDS a. R & D
 - A higher quantity of patents indicates the extent
of innovation of a country. Patent also affects
entry in a particular industry.
b. Automation
- An automated factory can increase production
efficiency and productivity, meaning more output
in less time and less cost.
c. Technology Incentives
- Having incentives affects investment decision, so
the frequency of upgrading technology may be
sooner than later.
d. Rate of Technological Change
- Each exchange in technology can affect cost,
innovation mindset and product life cycle
decisions, as well as influences outsourcing
decisions.
5. Legal Factors
- How the laws of a country can affect how
companies adopt policies as to its operation, cost
structure and the demand for its products.
a. Discrimination Law
- An employer in the Philippines cannot
discriminates an employee on account of age,
gender, marriage or joining a union.
b. Consumer Law
- “No return, no exchange” policies of stores are
prohibited in the Philippines.
c. Antitrust Law
- The Philippine Competition Law passed in 2015,
provides a fair playing field among competition.
d. Employment Law
- An employee is deemed regularized after 6
months of service, unless otherwise specified and
agreed upon.
e. Health and Safety Law
- The Generic Drug Law of 1988 mandated doctors
to write the generic name of their prescribed
medicines.
6. Environmental Factors
- Ecological and environmental aspects that can
affect businesses such as insurance, tourism,
farming.
a. Weather
b. Climate Change (affecting the companies
operate and products they offer)
INDUSTRY ANALYSIS
 Identifies the FIVE interacting forces that affect the
profitability of an industry. These forces enable
firms to identify competitive pressures (those with
high threat) as well as opportunities in the
marketplace.
1. Threats of New Entrants
a. Economic of Scale
- promotion is a must
b. Production Differentiation
- stand out
c. Capital Requirements
d. Switch Cost
- ability to change suppliers from one another to
another affects new entrants
e. Access to Distribution
- is a chain of businesses or intermediaries through
which a good or service passes until it reaches the
end consumer. It can include wholesalers,
retailers, distributors,
and even the internet.
f. Cost Disadvantage Independent of Scale
- National Bookstore gets not just preferential
rental rate nut preferential location as an anchor
store of SM Malls. This advantage is hard to
replicate by competition.
g. Government Policy
2. Threat of Substitutes
- should be considered from the perspective of
buyers and how they make purchase decisions.
3. Rivalry among Existing Competition
- Rivalry among existing competition is described to
be the most intense in a price war, followed by a
promo war, which can significantly lower
profitability. Rivalry among existing competition is
considered high when prices are adjusted
downward frequently.
4. Bargaining Power of Customers
- Lower price strategy
- Lowering price offset the bargaining power of
price-sensitive customers.
6C’s of Micro-Environment Analysis
1. Company
- think about a value chain within a company where
one department supplies another department
material, information and relationships so a
company can be both efficient
and effective in creating value to their customers.
2. Customers
 Consumer Markets
 - Individual buyers who buy for their own
use
 Business Markets
- Organizational buyers who buy as input to
their own products.
 Government Markets
- Government agencies that buy to produce
public services.
 International Markets
- Buyers from countries
 Reseller Markets
- Organizational or individual buyers who
buy for resell at a profit without adding
anything to the product.
3. Competition
a. Direct Competition
- Similar offerings deemed from the
perspective of customers
b. Indirect Competition
- Offerings deemed as substitutes to
another product or service
4. Channel
5. Complementors
- individuals or businesses who can help an
organization, understand, promote and/or
sell its product or services.
6. Communities
- public stakeholders where the
organization needs to be sensitive to their
public opinions.