What is the external marketing environment?

Published on August 31, 2023   14 min
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Hello and welcome to this session on the external marketing environment. My name is Annmarie Hanlon and I teach marketing at Cranfield University's School of Management in the UK. Some of these themes are taken from my book digital marketing. Let's get started.
In this session we look at what happens if you fail to address the external marketing environment, and then we use the PESTLE framework to assess all elements in the external marketing environment.
The external marketing environment is part of the wider marketing environment which we need to consider in marketing. Other elements include the internal marketing and the performance environment.
You can choose to respond to the external marketing environment or ignore it, as several well-known companies have done, Nokia was a leading telecoms company with a long history. At one stage they sold the most popular mobile phone, the Nokia communicator yet the company disappeared, as it was bought by Microsoft and its chief executive said,'' we didn't do anything wrong but somehow we lost.'' They failed to monitor the external environment and did not see the changes taking place in the market. MySpace was a popular social media platform but failed to hold on to its users who joined other platforms such as Facebook. It failed to innovate and listen to its customers. Myspace still exists as a much smaller network for musicians and bands. Blockbuster Video provided video rental but charged high fines if you returned your movies late. Two friends who experienced the fines, looked for another method of video rental and founded Netflix. Blockbuster failed to address this competitor and with so many physical stores, its costs increased and it could not keep up with online competitors.