• Research and development (R&D) - market research is carried out and the product's technical feasibility tested, before the product is put on the market.

• Introduction or launch - emphasis is placed on promotion to build up product awareness, encouraging interest in its features and benefits and creating a desire to buy it.

• Growth - sales grow rapidly as most customers are aware of the product, many have tried it and are starting to develop customer loyalty.

• Maturity - sales levels are maintained and the product has an established place in the market. Competition may become very intense.

• Saturation - supply is plentiful and it is difficult to find new customers.

• Decline - sales of the product have fallen. They are not covering the manufacturing costs and the product is therefore unprofitable. The well-prepared business will have a second product ready for introduction to the market to replace the declining product.

r) с

Put the following examples under the correct heading in the STEEP analysis table below:

14.1

a Carbon footprint

b Consumer trends

с Implementation of a ‘green agenda’

d Interest rates

e Legislation in relation to Health &c Safety in the workplace

f Local by-laws

g Local demographic changes - following the impact of economic migration h Recycling of waste products

i Trade unions

j Use of online social networking for communicating with other businesses & clients

к Use of sustainable forestation for purchasing of raw materials

2. Find three terms in A with the word instrument. Then find one or more suitable synonyms for the word instrument, as it is used in this context.

3. Following the talk by Mansour Said Ali, the students are asked to describe how they carried out their marketing project. Complete Elspeth Goetz’s description using terms from B.

‘I’m a bit of a health freak and as I knew the producers of the local spring water were

trying to the market in the region, I proposed my services free of charge.

The marketing manager determined a sample and my brief

for the was to survey the consumption pattern for the 20-25 age group, the

of which would then be put to a panel for further analysis. The

data stage was fun but I did spend a lot of time designing the so

that it could be used both face to face in interviews as well as via an online

resource. I know the position of this particular producer is currently fairly

poor, but I hope that on of the data I was able to collect they will see the

potential at least for this particular age group of customers.

с

Over +о

Prepare a STEEP analysis for a product you know well to be marketed in your country or region. What factors identified in your STEEP analysis have a particular impact on your organization's marketing strategy? (You may wish to look at www.mintel.com or www.keynote.co.uk to help with this.)

Market research

STEEP analysis

Martin is a senior manager in a major supermarket chain. He is speaking to an MBA class about how he and his team make significant business decisions:

‘As you may know, STEEP analysis involves examining the social, technological, economic, environmental and political factors that affect an organization. It generally relates to a marketing and strategic instrument for scanning the macro environment in which we carry out our business activities. Regular use of such a management instrument can help us find opportunities for growth and set a clear direction for our operations.

The first slide gives you a clear idea of what the acronym STEEP stands for ...’

Social

• Changing demographics over time, based on patterns of birth, death, etc. in the population

• Changes in lifestyle, recreation and leisure patterns

• Changes in social trends, including migration patterns

Technological