Table 4 Political Factors. 4 Legal Factors. 4 Regulatory

Table of Contents
Part 1: Discuss the importance of environmental scanning within the Marketing Environment. 2
When do you do Scanning?  Aoife. 2
Who does scanning for? / Who is scanning for?. 2
Why do you do scanning / what is the objective of scanning? Gabriela. 2
How do you do Enviornmental scanning? Tanvi 2
Part 2: Identify and analyse Macro Environmental Factors of Tower Hamlets. 4
Define Macro enviornent ?. 4
Factors: 4
Political Factors. 4
Legal Factors. 4
Regulatory Factors. 4
Social  Factors. 4
Economical Factors Tanvi 7
Legal Aaron. 10
Technologoical 10
Part 3: Recommendations. 12
4P’s of Marketing. 12
Product: 12
Price: 12
Place: 12
Promotion: 12
Understanding Consumer Behaviour 13
Understanding Organizational Buying Environment 14
Understanding Marketing Ethics and Corporate Social Responsibility. 14
STP Analysis. 14
Market Segmentation and Positioning. 15
Conclusion. 22
 

 

Part 1: Discuss the importance of environmental scanning within the Marketing Environment.

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There are: 209 words without parentheses ()

 

Albright (2004 p.40) describes environmental scanning as the “internal communication of external information”.

External information refers to the relationships, events and trends influencing the micro, macro and market environments in which an organisation exists or might wish to begin networking within (Aguilar, 1967; Kroon, 1990; Babatunde and Adebisi, 2012).

The objective of this ongoing process is to interpret and forecast potential opportunities, threats and concerns and enable effective decision making (Brennan et al., 2008) in order to successfully create “a sustainable competitive advantage” (Yüksel, 2012 p. 52).

Babtunde and Adebisi (2012) describe three ‘modes’ of environmental scanning. Ad-hoc scanning is reactionary and might be triggered by a sudden change in environment.  Regular scanning requires organisations to make a commitment to reassessing their situation frequently, often annually. Continuous scanning is a long-term form of information collection. The process involves acquiring relevant information, interpreting and dispensing it to the managers who can best communicate it effectively.  (Brownlie, 1994)

Levitt  (1986 p.12) advises we prepare for the “world of constant change” by “studying and responding”. Environmental scanning is the first action that enables an organisation to adapt by acquiring information (Bérard and Delerue, 2010 p.169).

Though the factors monitored during scanning are out of the control of the organisation, their monitoring and anticipation is key to the organisation’s future (Kroon, 1990; Fatoki, 2016). Brownlie believed that environmental scanning is one of the ‘cornerstones of strategic marketing” as we are still exercising it today (1994 p.703).

 

 

 

How do you do Environmental scanning? Tanvi

 

1.    By identifying the trends that relate to each force, an organization is able to create and implement a successful marketing program (Blythe, 2005 p. 27; Igbaekemen, 2014 p. 18)    (Blythe, 2005, p 27; Igbaekemen, 2014, p 18).

2.    That is because it is able to amend its marketing strategy accordingly, to react to trends of economic forces such as those that affect consumer spending, to react to technological changes, establish the forms of competition, and  rules and regulations that marketing efforts should be carried out in accordance to (Blythe, 2005 p. 27; Igbaekemen, 2014 p. 18) (Blythe, 2005, p 27; Igbaekemen, 2014, p 18).

3.    The focus on data acquisition in environmental scanning enables organizations to improve the chances of detecting early problems (McGonagle and Vella, 2012 p. 17) (McGonagle & Vella, 2012, p 17).

 

 

Part 2: Identify and analyse Macro Environmental Factors of Tower Hamlets

Define Macro environment?

Find a relevant quote ?

 

Factors:

Political Factors

The political issues also include the extension of the European Union with an agenda of localism. The political issues also include the extension of the European Union with an agenda of localism. The government also enforced on to privatization as well as checking the tax policies and social welfare policies. The lack in economy of the Tower Hamlet Borough is also caused due to the complex levels of the government in the area.

Legal Factors

 The government implied the highest working hours for an employee for 48 hours in a week and not more than that and a proper 11 hours of rest in the 24 hours duration. The employment law is strictly followed in the Tower Hamlet Borough Council which also takes care of health and safety issues (Barron et al., 2015) Barron, Hulten and Vanyushyn (2015) .The major issue in the Council is regarding the state aid issue. Moreover, the area is also maintaining a competition policy and legislation planning for the same.

 

Regulatory Factors

Tower Hamlets council, just like all the other councils, is subject to laws not only affecting London alone but the whole of England Tower Hamlets Council (2009) The enactment of any regulations that the council has to comply with may negatively or positively impact the council and the greater Tower Hamlets borough community Tower Hamlets Council (2009). In the recent past, most of these regulations have had an economic impact with a good example being the bedroom tax. Tower Hamlets Council (2009)

 

Social  Factors  Gabriela

The standard of living in the Tower Hamlets Borough Council is hard to maintain due to the increase in ageing of the population. The workforce in the Borough Council is comparatively low which proves to be challenging for the social welfare. Due to the lack of opportunities in the area the number of immigrants increased. The lifestyle of the people working or living in the Tower Hamlets Borough Council is different due to the ethnic and the religious issues Zsidisin Et al. (2015). Another socially analysed issue is that the people are not in a healthy state and are also suffering from obesity. The high prices of the rents due to the economic purpose make it unaffordable for various people to provide rents.

This graph shows that changes in immigration figures from 2006 till 2016 increased, so the council needs to be aware about drivers of changes.

    

 

SOURCE

Mixed Ethnicity

 

This pie chart represent the mixt of cultures and different ethnic groups residing in Tower Hamlets Council.

   

SOURCE

 

A major consequence of the housing crisis facing Tower Hamlets and the whole of London is overcrowding. Due to the increased cost of housing, many people now leave in conditions that do not offer enough bedrooms and living space. As a consequence, it is highly likely that Tower Hamlets residents will start considering alternative places to call home. The borough stands to lose residents that consider Tower Hamlets too crowded to raise a family.

 

Competitive factors

A look at Tower Hamlets Council (2015, P 2) (Tower Hamlets Council, 2015a; Tower Hamlets Council, 2015b) (Tower Hamlets Council, 2015a; Tower Hamlets Council, 2015b) shows that such measures of borough well-off like deprivation measures are usually reported comparatively. Boroughs are always compared in many aspects. One aspect is service delivery. It is then not far-fetched to say that other borough councils are competitors for Tower Hamlets council. For example, all boroughs seek to improve the quality of life for their residents and that makes the attraction of investments a priority. How attractive Tower Hamlets is as an investment destination then becomes a construct of the other forces. That is, it is likely that would-be investors will consider the existing regulatory framework, socio-economic conditions, and technology considerations. For Tower Hamlets council, that makes the understanding and dealing accordingly with all these environmental forces important.

 

Cohesion and community problem 

The graph below shows views about the area, cohesion and influencing decisions for community of Tower Hamlets.

 

83 per cent said they are satisfied with their local area as a place to live – similar to previous year

 87 per cent of those surveyed agreed that the local area is a place where people from different backgrounds get on well together

Around half of all respondents (49 per cent) felt they could influence decisions affecting their local area – similar to ratings for the last two years.

 

Source

 

Economical Factors Tanvi

 

Just like other areas in London, Tower Hamlets has been experiencing a housing crisis characterized by a shortage of affordable homes being built, a waiting list for social housing with over 20,000 households, and numerous households living in temporary accommodation. All these can be blamed on a surge in demand for housing from overseas investors, and ballooning rents. A proposal by the London Mayor for new social housing to charge rents at 20% less than the market rate was deemed as not enough an effort by the Tower Hamlets citizens. If the situation goes on unchecked, current residents may get priced out of Tower Hamlets and the borough will lose its appeal to most Londoners who see it as too expensive.

          Lane (2014 p.4) (2014, p 4) established that welfare reforms effected by the government in the early part of the decade would impact the Tower Hamlets resident worse than it would impact residents from most other boroughs. It was estimated that by 2015, the reforms would leave the average Tower Hamlets resident £1670 worse off per year. Lane (Lane, 2014 p.4)  (2014, p 4). That is a big blow to a borough that is already poorly ranked in terms of income deprivation. Research carried out by the Tower Hamlets council established that Tower Hamlets is one of the most derived areas especially when it comes to income deprivation. According to the study, a quarter of its residents are income deprived and the borough is ranked 6th in terms of the most income deprived boroughs in England. Such a situation poses enormous consequences for the borough residents’ education, wellbeing, and health. Lane (2014 p.5) (2014, p 5) points out that residents reported a worsening of their health and children’s education after reforms. The tower hamlets council will have to come up with ways for mitigating the negative effects of the welfare reforms. Lane (2014 p.5) (2014, p 5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The economic conditions of the Tower Hamlet Borough council are poor because of the unemployed people residing in the area and there are no opportunities for funding. The business in the area cannot grow due to the seasonal issues which also affects the rate of business. The skilled workers are not ready to work in a place with no evolving business and limited growth. The major growth in the economy of London is occurring in the south east parts. As, the Northern part of London is industrially active and the Southern part of London is mainly based for the service sectors. This accounts in the lack of income in the Tower Hamlet Borough Council.

 

(Tower Hamlets Council, 2015a) (Tower Hamlets Council, 2015b)

 

This line graph depicts the change in economic growth of Tower hamlets from the period of 2005 to 2015.

 

Legal Aaron

 

Technologoical

Tower Hamlets Council (2009, P 9) confirms that the council has had to reassess its channels of service delivery with a bias towards the internet in order to improve service delivery and cut down on the costs of service delivery. Considered services include parking permits and the borough’s lettings services (Tower Hamlets Council, 2009, P 11). In the report, the council expresses its desire for reviewing its telephone-based and face-to-face channel arrangements across all customer-facing services. (Tower Hamlets Council, 2009, P 11). Although the report is from a long time ago, the report highlights the fact that internet based service delivery channels may provide the next frontier for improving service delivery targeted at the public. In light of this, it is imperative that the council takes advantage of internet-based solutions in its service delivery endeavours or it will risk having an obsolete service delivery operation. In addition, since Tower Hamlets Council (2009, P 11) establishes that a significant proportion of the borough’s residents support a shift to internet-based service delivery, it is important that this cost reducing opportunity is capitalised.

The technologies are widely available in terms of internet in the Tower Hamlet Borough which helps in the sharing of information widely. Moreover, the area is always ready for the adoption of new technologies and developments. The innovation potential in the area is high as well as overall communications. The main issue residing about the technologies in the Tower Hamlet Borough Council is the promotion opportunity scale is very poor.

 

Part 3: Recommendations

Recommendations as To How Tower Hamlets Borough Council May Best Position Itself to Deal with the Identified Opportunities and Threats

 

4P’s of Marketing

 

The Tower Hamlet Borough Council low in economic conditions when compared to the different other Borough Councils in London in the United Kingdom. The marketing mix of the Borough Council covers the 4P’s of marketing which includes product, price, place and promotions. This also helps in explaining the marketing strategy to overcome the issues of the Tower Hamlet. The 4P’s are stated as follows:

Product: The Tower Hamlet Borough Council being a low economic council of the East London can serve the residential places for affordable rates which surely increases the inhabitants in the area.

Price: The pricing strategy can prove to be beneficial as the lower prices in the accommodation can create a lot of business opportunities for the local people of the Tower Hamlet Borough Council Gallupe and Jiang (2015).(Gallupe and Jiang, 2015)

Place: The Borough Council is located near the river Thames which can be prove to be a scenic beauty for a lot of travelers, travelling around the world. The natural beauty can also be considered as a source of business.

Promotion: The availability of technology and the different types of organization in the Tower Hamlet Borough Council it can be a better opportunity to conduct business by the medium of promotion. The technology availability can helpful in promotions on the internet and the organizations can help in building audience.

 The Four P’s Analysis of the Tower Hamlet Borough Council

(Source: Gallupe and Jiang, 2015)(Gallupe and Jiang, 2015)

 

Understanding Consumer Behaviour

The political issues also include the extension of the European Union with an agenda of localism. The government also enforced on to privatization as well as checking the tax policies and social welfare policies. The lack in economy of the Tower Hamlet Borough is also caused due to the complex levels of the government in the area. The skilled workers are not ready to work in a place with no evolving business and limited growth. The major growth in the economy of London is occurring in the south east parts. As, the Northern part of London is industrially active and the Southern part of London is mainly based for the service sectors. This accounts in the lack of income in the Tower Hamlet Borough Council. The lifestyle of the people working or living in the Tower Hamlets Borough Council is different due to the ethnic and the religious issues (Patel et al. 2014). Another socially analyzed issue is that the people are not in a healthy state and are also suffering from obesity. The high prices of the rents due to the economic purpose make it unaffordable for various people to provide rents. The innovation potential in the area is high as well as overall communications. The main issue residing about the technologies in the Tower Hamlet Borough Council is the promotion opportunity scale is very poor.

 

Understanding Organizational Buying Environment

The Tower Hamlet Borough Council being a low economic council of the East London can serve the residential places for affordable rates which surely increases the inhabitants in the area. The pricing strategy can prove to be beneficial as the lower prices in the accommodation can create a lot of business opportunities for the local people of the Tower Hamlet Borough Council (Heller, 2015)(Heller, 2015). The Borough Council is located near the river Thames which can be prove to be a scenic beauty for a lot of travelers, travelling around the world. The natural beauty can also be considered as a source of business. The availability of technology and the different types of organization in the Tower Hamlet Borough Council it can be a better opportunity to conduct business by the medium of promotion. The technology availability can helpful in promotions on the internet and the organizations can help in building audience.

 

Understanding Marketing Ethics and Corporate Social Responsibility

The Tower Hamlet Borough needs to focus widely on building more and more business opportunities to show the skills and even help in increasing the economy of the Borough Council. The people can provide shelter at affordable rents and also convert the buildings in to hotels for the travellers. The lower cost of housing can build economy on scale with a long term approach. The increase in housing areas can also help in development of more businesses and henceforth, increasing the total revenue (Gerbino et al., 2016)(Gerbino et al. 2016). To support this expansion various organizations are required to help and increase the diversity. Due to the lack of promotion, the people and some organizations with the help of internet promote the natural beauty of River Thames to increase the economy and the present condition of the Tower Hamlet Borough Council.

 

 

STP Analysis

The Segmentation, Targeting and Positioning are a necessary analysis that is to be carried out in order to identify different factors. As the segmentation helps in identifying and focus on the geographic locations, demographics, social and the other factors. The targeting basically focuses on the target customers that are to be satisfied. The positioning is a significant part of the analysis because it shows the feedbacks of the customers.  The STP Analysis of the Tower Hamlet Borough Council is done as follows:

Segmentation: The research and information gathered shows the demographics of the locality as a residing place for the mid-age people with lack of opportunities to mark their skills. 57 percent of the locality people are male and the rest are female. The research also provided information that with a business is started it can gain profit in a short span of time Chari et al. (2014). The river Thames and different organizations can be a source of income for a few businesses. Additionally, the residential houses can be provided at affordable prices to receive a regular income. The lifestyle of people in the area is not very different from the other Borough Councils of London so it is easier to manage things.

Targeting: The targeting is to be done on the employees of the different organizations by providing them shelter near to the office premises and also the travellers visiting the Thames River for relaxation and for business purposes.

Positioning: The feedback can be gathered by the increase in the revenue of the Tower Hamlet Borough and also the increase in economy of the area.

 

Market Segmentation and Positioning

The research and information gathered shows the demographics of the locality as a residing place for the mid-age people with lack of opportunities to mark their skills. 57 percent of the locality people are male and the rest are female. The research also provided information that with a business is started it can gain profit in a short span of time (Agbim et al., 2014)(Agbim, Oriarewo & Zever. 2014). The river Thames and different organizations can be a source of income for a few businesses. Additionally, the residential houses can be provided at affordable prices to receive a regular income. The lifestyle of people in the area is not very different from the other Borough Councils of London so it is easier to manage things. The targeting is to be done on the employees of the different organizations by providing them shelter near to the office premises and also the travellers visiting the Thames River for relaxation and for business purposes. The feedback can be gathered by the increase in the revenue of the Tower Hamlet Borough and also the increase in economy of the area. Therefore, it can be stated that the Segmentation, Targeting and Positioning are a necessary analysis that is to be carried out in order to identify different factors. As the segmentation helps in identifying and focus on the geographic locations, demographics, social and the other factors. The targeting basically focuses on the target customers that are to be satisfied. The positioning is a significant part of the analysis because it shows the feedbacks of the customers.

 

 

 

          To deal with the housing crisis, the Tower Hamlets council should initiate enough Community Land Trust (CLT) projects. This will play a big part in checking the rising cost of new homes as using public land greatly slushes the construction costs. In addition, making houses affordable ensures that Tower Hamlets residents can afford to leave comfortably and not in overcrowded conditions.

          The Tower Hamlets council should strive to support the borough residents to find and keep work in order to mitigate the effects of the welfare reform on an already income deprived average borough resident. Lane(Lane, 2014 p. 73) (2014, p 73) reports that the council should ensure that the endeavour is adviser-led, personalised, and case management support is provided. To support the effort, the council and its partners should offer work-focused training.

          The internet provides an opportunity for the improvement of service delivery for Tower Hamlets council. It is important that the Tower Hamlets council makes it a point to repeat its Channel Strategy study frequently to ensure that it maximizes the roll-out of internet-based customer service solutions. That will enable the council to perform regular service delivery mappings, assessments of customer access models, and customer segmentation. For example, Tower Hamlets Council (2009, P 12) established that the ‘well-off’ segment of the borough’s public provides more opportunity for automation and cost reduction.

          From a competitive point of view, Tower Hamlets Council will have to research and understand how the existing regulatory framework, socio-economic conditions, and technology considerations fair when compared to those of the other boroughs. Then, it should respond accordingly to ensure it remains an attractive borough not only for potential investors but also for other.

The Tower Hamlet Borough needs to focus widely on building more and more business opportunities to show the skills and even help in increasing the economy of the Borough Council. The people can provide shelter at affordable rents and also convert the buildings in to hotels for the travellers. The lower cost of housing can build economy on scale with a long term approach. The increase in housing areas can also help in development of more businesses and henceforth, increasing the total revenue Day (2014). To support this expansion various organizations are required to help and increase the diversity. Due to the lack of promotion, the people and some organizations with the help of internet promote the natural beauty of River Thames to increase the economy and the present condition of the Tower Hamlet Borough Council.

 

 

 

 

 

 

Conclusion

From the above report it can be concluded that the marketing mix strategy can be helpful for the Tower Ham

let Borough Council to overcome the issues that were analysed in the marketing environment. Hence, with the help of the different sections in the report the environment of marketing in the Tower Hamlet Borough Council can improve from the present conditions. Finally with the market segmentation and positioning analysis it was made easy to understand the locality and also the customers that are to be targeted and satisfied by providing them products with affordable costs. It will be helpful for the council to enhance the chances of earning greater customer satisfaction.

 

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