How Factors in the External Business Environment Influence Marketing Strategies and Outcomes
Using an organisation you are familiar with; explain how factors in the external business environment influence marketing strategies and outcomes
‘Betfair betting exchange processes more than seven million transactions a day- that’s more than all European stock exchanges combined.’(Betfair, 2011) With this sentence we can observe the magnitude and growth that an online gambling company like Betfair.com has achieved. To reach this point they have dealt with many issues in their external environment and they have overcome these problems through intelligence in their marketing strategies.
Marketing is ‘the management process of anticipating, identifying and satisfying customer requirements profitably’ (CIM, 2011). Almost any company has to satisfy their customers’ requirements if they want to survive in any industry, and for Betfair the evolution of the marketing concept is particularly important. This concept has changed from the production era through the selling era and the consumer era, now we are in what is considered to be ‘The New Era’(Solomon et al, 2009). In this Era companies are building long term bonds with customers and they believe that their company has a role within society. And here is where Betfair has done an excellent job into adapting to the New Era, they have more than 3 million registered customers (Betfair, 2011) and are continuously implementing corporate responsibility programs.
To better analyse what factors from the external business environment Betfair takes into account we will look at the PESTEL model which contains many of the variables that our company has to study when deciding such strategies like expanding internationally or introducing new services.
The online gambling industry did not exist a few decades ago, and the main reason for the development of it and the massive growth it has achieved is the technological environment. One of the main external elements that affect Betfair’s strategy is therefore technological
‘Betfair betting exchange processes more than seven million transactions a day- that’s more than all European stock exchanges combined.’(Betfair, 2011) With this sentence we can observe the magnitude and growth that an online gambling company like Betfair.com has achieved. To reach this point they have dealt with many issues in their external environment and they have overcome these problems through intelligence in their marketing strategies.
Marketing is ‘the management process of anticipating, identifying and satisfying customer requirements profitably’ (CIM, 2011). Almost any company has to satisfy their customers’ requirements if they want to survive in any industry, and for Betfair the evolution of the marketing concept is particularly important. This concept has changed from the production era through the selling era and the consumer era, now we are in what is considered to be ‘The New Era’(Solomon et al, 2009). In this Era companies are building long term bonds with customers and they believe that their company has a role within society. And here is where Betfair has done an excellent job into adapting to the New Era, they have more than 3 million registered customers (Betfair, 2011) and are continuously implementing corporate responsibility programs.
To better analyse what factors from the external business environment Betfair takes into account we will look at the PESTEL model which contains many of the variables that our company has to study when deciding such strategies like expanding internationally or introducing new services.
The online gambling industry did not exist a few decades ago, and the main reason for the development of it and the massive growth it has achieved is the technological environment. One of the main external elements that affect Betfair’s strategy is therefore technological
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