How Factors in the External Business Environment Influence Marketing Strategies and Outcomes

Topics: Marketing, Bookmaker, Gambling Pages: 5 (1787 words) Published: June 3, 2012
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 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 improvements. As an example Betfair has launched recently an advertising campaign to promote betting through the mobile phone, this campaign which is called ‘ Stars and Strikes’ shows football players of their partner Manchester United competing in a bowling tournament and it shows the possibility of betting live through the mobile phone. Betfair is trying to gain a leading position in the mobile phone betting industry by using more advanced technology in comparison to their competitors, this external factor like technology is improving at such a rate that any company in this sector has to keep taking it into consideration when deciding what kind of new services they will offer. This marketing strategy apart from showing the improvements in technology it shows Betfair’s credibility in the football betting market which is important given that it is one of the most popular sports worldwide. In January 2010 Betfair was officially certified with the Carbon Trust standard, which proves they have taken real action on climate change by reducing their carbon footprint (Betfair, 2011). The Environmental issue is another factor of their external environment that Betfair are considering when marketing their brand. At this new era in which we live companies that are very well known and exposed to the public need to encourage themselves and employees to treat well the environment through simple actions like turning off lights or reducing waste, customers nowadays give a greater importance to how companies benefit society and Betfair is conscious of this by offering extensive information in their website on how they are reducing the use of energy. Another external factor which should be considered of vital importance for Betfair in their marketing strategies is the political and legal environment. All the countries in which they operate are going to have differences in regulations either in taxation, licenses or prohibitions of some products. A very recent example is the complaint of...
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