Hello, my name is Dominic Appiah. Welcome to the Fundamentals of Marketing. In this week, we are going to discuss the microenvironment, analytic tools, which is SWOT, strength, weaknesses, opportunities, and threats, and Porter's five forces. The macroenvironmental analytic tool will be discussed as well, which is PESTO, that is political, economic, social, technological, legal, and environmental factors. The marketing environment consists of the artists, which are the stakeholders, or individuals, and forces which affect a company's ability to operate effectively in providing products and services to its chosen markets. Marketing environment is made up of the macro environment and the microenvironment. The forces that affect the macro environment includes economic factors, political and legal factors, social factors, ecological factors, and technological factors. The arctics that affect the micro environment include suppliers, customers, distributors, and competitors. A number of economic forces can influence their macro environment. These include economic growth and unemployment. Economic growth and unemployment, the general state of the economy at both national and international levels can have a profound effect on a company's prosperity. The interest and exchange rates sets the cost of money and determines the amount paid by a business, and individual's on sums they borrow. Lower interest rates can cause a boom in consumer borrowing reflecting a high level of consumer confidence. The exchange rate is the rate at which currency is exchanged for another. Changes in the exchange rate can affect the cost of supplies that accompany purchases from abroad or the level of demand for its products from overseas customers. Taxation, direct taxes are taxes on income and wealth. Examples, income tax, inheritance tax, etc. Indirect taxes include value-added tax, which is VAT. Two types of social forces can influence the marketing environment. These are demographic forces. These relate to changes in the population. The most significant factor from a social perspective is the dramatic growth in the world's population over the past 200 years. This presents opportunities for marketers in the form of growing markets. Cultural forces. Culture is the combination of values, beliefs, and attitudes possessed by a national group or subgroup, creating potentially lucrative niche markets for products and services. These include examples such as the European Union and Brexit, that is the UK's departure from the European Union. We have consumer legislation and code of practice. These include examples such as climate change, pollution, which is pressure from regulators and consumer groups, which helps reduce pollution, recycle and non-width full packaging also are some of the effects. These might include examples such as apps, mobile device, robotic use, Internet, and computers. A number of artists can influence the micro-environment. These include customers, distributors, suppliers, and competitors. Organizations need to consider the needs, drivers, and networks of all of these artists, as well as the behavior of bias and the organization's relationship with them. SWOT. SWOT stands for strength, which is things the company does well. Qualities that separate the company from its competitors. Tangible assets such as capital, proprietary technologies, etc. Weaknesses are things that the company lacks. Thing competitors do better, resource limitations and unclear unique selling points. Opportunities. Opportunities are underserved markets for specific products, fewer competitors in a specific market. An emerging need for their businesses, products, and services. Threats. Threats are emerging competitors, negative press coverage, changes in regulation, changes in customer attitudes and behaviors. Porter's Five Forces of competitive position analysis is a framework for assessing and evaluating the competitive strength and position of a business organization. This module is based on the concept that there are five forces that determine the competitive intensity and attractiveness of the market. Let's have a look at Porter's Five Forces model. Supplier power is an assessment of how easy it is for suppliers to drive up prices, determined by the number of suppliers in the market, the uniqueness of their products or services, and the cost of switching from one supplier to another. Buyer power is an assessment of how easy it is for buyers to drive prices down, determined by the number of buyers in the market. The importance of each individual buyer to the organization, and the cost to the buyer of switching. Competitive rivalry. The main driver is the number and capability of competitors in the market. A large number of competitors offering undifferentiated products and services will reduce market attractiveness. Threats of substitution. Where close substitutes products exist in a market it increases the likelihood of customers switching to alternatives in response to price increases. This reduces both the power of suppliers and the attractiveness of the market. Threats of new entry. Profitable markets attract new entrants, which erodes profitability. Unless incumbents benefit from strong and durable barriers to entry. For example, they possess patents, economies of scale, capital requirements, or advantages conferred by government policies. Profitability will decline to a competitive rate. The marketing environment comprises a microenvironment and macro environment. Six key forces constitute the macro environment, which is economic, social, political, legal, technological, and ecological. For artists constitutes a microenvironment, customers, distributors, suppliers, and competitors. Sustainability is a central challenge facing businesses. Thank you for listening.