CIM Coursebook 06 07 Marketing Environment (CIM Coursebook)

360 Pages·2006·7.36 MB·English

by  Mike Oldroyd

Marketing Environment
2006–2007

Marketing Environment
2006–2007
Mike Oldroyd
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Contents
Preface Welcome to the CIM coursebooks ix
Unit 1 The nature of the organization and the impact of its environment 1
The importance of the marketing environment 2
Business classifications 5
The formal and informal economy 5
The legal form of trading organizations 11
Vision and the organization’s mission 19
General organizational objectives 23
How are goals established? 28
What causes the goals to change? 30
The organization as an open system 30
The interface between marketing and other functions 32
Managing the marketing environment: a contingency approach 33
Unit 2 The micro-environment 39
The business as a resource converter 40
The environmental context of the organization 41
The macro-environment 42
The micro-environment 49
Stakeholder pressures 54
Pressure groups 59
The consumerist movement 61
Summary 64
Environmentalism 64
The response 66
Pressures for a positive organizational response 68
Conclusions on pressure groups 68
Unit 3 Analysis of the competitive environment 71
Monitoring competitors 72
Summary 77
Five-force analysis of competitive structures 78
Strategic and marketing implications 83
The nature of competition policies 86
Legislation and competition 87
Fair Trading Act 1973 88
Monopolies and mergers legislation 89
Other areas of legislation and the marketer 91
Monitoring the micro-environment 91
Main sources of information 92
Unit 4 The macro-environment 97
Understanding the macro-environment 98
The source of the decline 103
Conclusions 106
v
Contents
The challenge of change 106
Internal and external information systems 108
Key marketing skills: what kind of information is required? 109
Summary of sources of information and assistance in the macro-environment 111
Unit 5 The demographic, social and cultural environment 116
Trends in population 117
The dependency ratio 120
World population 121
Aggregate population 122
Population structure 123
Marital status and household structure 125
Regional distribution 125
Ethnic groups 126
Occupational structure 127
The workforce in employment: some important trends 127
The changing role of women in work and society 131
The social and cultural environment 134
Social class 138
Reference groups 139
The family 140
Lifestyle 141
A summary of segmentation bases in consumer markets 142
Final thoughts on culture 143
Implications for marketers 143
Unit 6 The economic and international environment 146
Government economic objectives 147
Key concepts 149
The importance of gross domestic product (GDP) 155
The uses of national accounting data 156
Limitations of the data: are we really better off? 156
The business cycle 158
Objectives: higher employment 161
Control of inflation 163
Balance of payments 167
Economic indicators 168
Economic policies 168
Trade and exchange rate policies 172
The impact of international trade 174
The basis for trade: at the micro level 177
Frictions in the international environment 178
Unit 7 The political and legislative environment 183
The political environment 184
The legal framework 198
Role and objectives of legislation 200
Some of the positive impacts on the marketing environment 203
Appropriate action 204
Fair trading and the consumer 205
Protecting the consumer 207
Implications for the marketer 208
vi
Contents
Unit 8 The technical/information environments 212
Definition of terms 213
Characteristics of technology 214
The role of business 217
What are the technical imperatives? 218
Fifty-year innovation cycle 220
Creative destruction 221
Microprocessors: a metatechnology with universal applications 221
The technological diffusion process 222
Technological transfer 224
Technological forecasting 224
Information technology and marketing applications 226
Future applications of technology 228
Unit 9 Environmental information systems – coping with the challenge of
environmental change 237
Monitoring the marketing environment 238
The importance of information 239
Marketing skills: information at your fingertips 240
The marketing information system (MkIS) 241
Online business information 243
The importance of marketing research 245
Coping with the environmental challenge: the key problems 246
Coping with the challenge of environmental change: the broad approaches 251
The environmental set 252
Impact analysis 253
SWOT analysis 256
Marketing information system (MkIS) – a summary 257
The continuing impact of new information communication technology (ICT) 258
Appendices
1 Guidance on examination preparation 261
2 Assignment-based assessment 273
3 Answers and debriefings 283
4 Learning materials 297
5 Past examination papers and examiners’ reports 300
6 Curriculum information and reading list 335
Index 343
vii

Preface
Welcome to the
CIM coursebooks
An introduction from the author
This coursebook provides a student-centred framework to help you successfully pass the
examination through understanding how organizations and their dynamic marketing environ-
mentsrelateandinteract.Social,legislative,economic,political,technological,informationand
competitive environments affect virtually every organizational function and activity, not least
those concerned with marketing.
The Professional Certificate syllabus specifies the knowledge and understanding, skills and
application that students are required to demonstrate through the various assessments to
achieve the award. It is based on the so-called ‘Statements of Marketing Practice’, which are
a set of practical observations defining the tasks marketers typically perform at various stages
of their career. In the case of the Marketing Environment these include:
o Collecting information
o Interpreting and Presenting Information
o Contributing Information and Ideas to the Strategy Process
o Contributing to the production of Marketing Plans and Budgets.
The units that follow will help you to translate theory into application by illustrating how the
‘learning’elementsofthesyllabuscanbeintegratedintoactivemarketingpractice.Itshouldbe
read in conjunction with other Certificate subjects since there are numerous overlaps and
synergies to be exploited, particularly with Customer Communications (for exemplars of busi-
ness format and development of information communication technologies) and Marketing
Fundamentals (for stakeholder analysis and marketing applications/implications). For those
progressing to Diploma, the concepts form general building blocks that specifically underpin
marketing strategy and planning.
This coursebook will also develop what CIM refers to as ‘Key Skills for Marketers’. These
represent transferable knowledge and competencies common to all business professionals,
and form an important part of the ‘complete’ marketer’s armoury in future-orientated
organizations:
o UsinginformationcommunicationtechnologiesandtheInternet–seeUnits3,4,8and9.
o Using financial information and metrics – see particularly Units 3–9.
o Presenting information – see activities, examination question debriefs and Units 3, 4
and 9.
o Improving own learning and performance – see exam hints and later activities.
o Working with others – see some of the activities.
o Problem-solving – see questions and activities throughout the text.
o Applying business law – see particularly Units 3 and 7.
ix