International Business program

Marketing (MARKEC04)

A-cluster (1 year)
st

Week 2 / 2023-2024

Book Chapter 4 (pages 88-102)

Weekly Schedule
Main Topics Preparation Before Class

•Introduction to Marketing Read Chapter 1

•Needs, Wants and Demands Read Chapter 2
•Marketing Planning Read Chapter 4 (p. 103-112)
•Internal Marketing Environment analysis (Project W1) Watch Tutorial Videos
•Strengths and Weaknesses

•SWOT analysis (Project W3) Read Chapter 4 (p. 87-102)

•Opportunities and Threats Watch Tutorial Videos
•External Marketing environment analysis (PESTEL, Porter’s Five Forces) (Project W2)

Read Chapter 4 (p. 113-116)

•Marketing Growth Strategy (Project W3) Read Chapter 5
•Segmenting, Targeting, Positioning (Project W3) Watch Tutorial Videos

•Marketing Mix (Product & Promotion) (Project W4) Revise Chapter 1 (p.12-15)
•Proposition levels Read Chapter 6
•POD POP Watch Tutorial Videos
•Product Life Cycle & Diffusion Process

Read Chapter 7
•Marketing Mix (Price & Place) (Project W5) Read Chapter 10
•Introduction to Digital Marketing Watch Tutorial Videos

•Introduction to Sales and Personal Selling Read Chapter 8

•Recap
Week 2 Learning Outcomes

After today’s class:

 You understand how to analyze the macro/external
environment of a firm
 You understand how to analyze the
meso/performance environment Chapter 4
 You can formulate opportunities and threats (pages 88-102)
 Understand how to make a SWOT-analysis for a firm
The Three Marketing Environments
Stakeholders
Competitors Performance environment
Suppliers (meso-environment = external)
Intermediaries
Consumers
Political
Economic
Socio-Cultural
Technological
Legal
Ecological Employees
Cash Flow
External environment Capital Assets
Materials
(macro-environment)
Structure

Baines – Fig 4.1

Internal environment
Prepare Before Class
External Environment (macro-environment)
Broad forces, outside the firm, that affect the
firm’s ability to survive and serve its
customers.
• Affect the firm positively or negatively (opportunities or threats) - Not
about the product
•The political, economic, technical, legal, ecological and sociocultural
trends
•Firm cannot directly control external factors but can respond to them via
planning
PESTLE Analysis and Impact on
Organisation
Political
- tax policy
- competition
policy
Out of the many
Environmental - export restriction Economic trends you will
- waste disposal
- inflation rates find, pick the
- energy
consumption
- GDP trends ones that are the
- unemployment
- environmental law most relevant to
Organisation the organization,
ie with the largest
Legal Socio-cultural impact on the
- demographics
- companies law
- levels of
firm’s ability to
- employment law
- licensing law Technological
education survive
- lifestyles
- R&D
- technology
transfers
- obsolescence
rates
 Poll – What indicators are
used to analyze the macro
environment of Australia?

 Type in your findings in Team

Chat

Source: MarketLine/PESTEL
Source: MarketLine/PESTEL
 Why is it important?

-> Impact on Organisation

-> Risk of not adapting to

the environment…
 Class Discussion – Apply PESTLE
What forces affect the travel industry to survive/serve its customers?
Political
- tax policy
You are responsible for the marketing of a travel
agency in Arnhem. - competition
policy
Environmental - export restriction Economic
Which one of the PESTLE element do you think is
- waste disposal
the most important to consider because of the - inflation rates
- energy
pandemic? consumption
- GDP trends
What changes in the external environment are - unemployment
- environmental law
really important and why?
Organisation

Legal Socio-cultural
- demographics
- companies law
- levels of
- employment law
education
- licensing law Technological
- lifestyles
- R&D
- technology
transfers
- obsolescence
rates
 Class Discussion – Apply PESTLE
What forces affect the travel industry to survive/serve its customers?
Political
- tax policy
Which other one of the PESTLE factor do you
think is also very important to consider because - competition
policy
of the pandemic? Environmental - export restriction Economic
What changes in the external environment are
- waste disposal
really important and why? - inflation rates
- energy
- GDP trends
consumption
- unemployment
- environmental law

Organisation

Legal Socio-cultural
- demographics
- companies law
- levels of
- employment law
education
- licensing law Technological
- lifestyles
- R&D
- technology
transfers
- obsolescence
rates
Group Activity - The External Environment and
Opportunities & Threats Identification

• Read text about John Wesh’s Candy Bar

• Argue which Opportunity & Threat elements given are correct or
incorrect. Explain why.
• Fill in your responses directly in the document in your Team Channel

External
Week 2 Learning Outcomes

After today’s class:

 You understand how to analyze the macro/external
environment of a firm
 You understand how to analyze the
meso/performance environment Chapter 4
 You can formulate opportunities and threats (pages 88-102)
 Understand how to make a SWOT-analysis for a firm
Meso Environment (performance environment)

Forces that affect a firm’s ability to

compete in its industry
•Affect the firm positively or negatively (Opportunities and threats) -
Not about the product
•Determine the attractiveness of the market
•Firm has some influence on these external factors and can respond to
them via planning
An industry is a group of firms producing products
that are close substitutes
Assessing the industry with the
Porter’s Five Forces model
Porter:
The long-term return on invested capital
within a given industry is a function
of five competitive forces:
Threat of new entrants
Bargaining power of buyers
Bargaining power of suppliers
Threat of substitute products and services
Intensity of rivalry among competitors in an
industry

Baines – Fig 4.3

Baines – Fig 4.3
Class Discussion – Apply PORTER
What forces affect Netflix to compete in its industry?
Class Discussion – Apply PORTER
What forces affect Netflix to compete in its industry?
Finalizing Porter’s Five Forces Analysis
The stronger the competitive forces, the lower the
potential profit for firms within the industry

An attractive industry has

high entry barriers
suppliers with little bargaining power
buyers with little bargaining power
few competitive threats from product substitutes
relatively moderate rivalry among competing firms
 Group Activity - Applying Porter’s Five Forces to the
Hairdresser Retail Industry

• Assess the Hairdresser retail industry (scope Arnhem) using Porter’s

Five Forces model
• Fill in your responses directly in the document in your Team Channel

External
 Group Activity - Applying Porter’s Five Forces to the
Book Retailer Industry

• Assess the book retailer industry using Porter’s Five Forces model
• Fill in your responses directly in the document in your Team Channel

External
Week 2 Learning Outcomes

After today’s class:

 You understand how to analyze the macro/external
environment of a firm
 You understand how to analyze the
meso/performance environment Chapter 4
 You can formulate opportunities and threats (pages 88-102)
 Understand how to make a SWOT-analysis for a firm
To revise
The Three Marketing Environments
Stakeholders
Competitors Performance environment
Suppliers (meso-environment)
Intermediaries
Consumers
Political
Economic
Socio-Cultural
Technological
Legal
Ecological Employees
Cash Flow
External environment Capital Assets
Materials
(macro-environment)
Structure

Baines – Fig 4.1

Internal environment
 Internal…
External…
Meso…
What’s next ?
SWOT Analysis
From the internal analysis and
INTERNAL

external analysis,
the company summarises the
findings so that it can take
EXTERNAL

decisions on the strategy to follow.

The summary is called a
SWOT analysis.
Establishing the SWOT
Prioritize your strengths,
weaknesses, opportunities and
threats and summarize them in 3
or 4 bullet points.

Be as specific and concrete as

possible.

Relevancy?
Importancy?
Probability?

TEMPLATES
https://creately.com/blog/examples/sw
ot-analysis-templates-creately/

Baines – Fig 4.5

Group Activity 1: SWOT Analysis
• Use the activity assignment in your Channel
• For each statement, state whether it is a S, W, O, or T.
• Choose one statement for each SWOT-factor and discuss the potential
marketing implication of it and write a brief description in the column
‘implications’, provided.
SWOT Starbucks
• Watch this video and write down
the SWOT analysis of Starbucks.

• Which strength do you believe is the

strongest? + explanation
• Which weakness do you believe is
the weakest? + explanation
• Which opportunity do you believe is
according to current events the best?
+ explanation
• Which threat do you believe is
according to current events the one
to watch out for the most? +
explanation
Compare these two SWOTS
Week 2 Learning Outcomes

After today’s class:

 You understand how to analyze the macro/external
environment of a firm
 You understand how to analyze the
meso/performance environment Chapter 4
 You can formulate opportunities and threats (pages 88-102)
 Understand how to make a SWOT-analysis for a firm
Homework – in your group
 Go to MarketLine and find a PORTER analysis report for an industry of
your choice
 Go to OnderwijsOnline/AMR MKT1A/Further Reading and select one of
the Porter 5 Forces reports (should be for a different industry than the
report you have found on MarketLine)
 Compare the section “5 forces analysis” of the two reports looking at the
indicators/parameters that are used to assess the forces
-> What differences and similarities do you see?
-> Write it down (1/2 A4) (submit in Teams before Week 3 class)
Tutorial videos
Watch the following videos to recap today’s class

•PESTLE
•https://www.youtube.com/watch?v=sP2sDw5waEU (8:42)
•https://www.youtube.com/watch?v=GFVKKTwkANY (3:17)
•https://www.youtube.com/watch?v=mAjVr3Dlrq4 (4:21)

•Porter’s 5 forces
•https://www.youtube.com/watch?v=3AD-M5GqalM (6:25)
•https://www.youtube.com/watch?v=OCnlArFuU-E (7:45)

•SWOT analysis
•https://www.youtube.com/watch?v=7JmDXDZYx0s (6:16)