The STEEP Analysis – What to analyse in the marketing environment
What about the micro-economy?
- The analysis which can analyse the micro-economy of the company is the SWOT.
The word itself, STEEP is an acronym for the following words:
- Political (and legislative)
Basically anything can fit into these ‘categories’, so once this analysis is done, the firm can have a detailed overview on what factors determine the present trends and what can be predicted for the future.
In the following points you can find most of the important factors that can determine the above mentioned macro-economy. Companies usually have no influence on these factors, so they have to accept them and somehow try to adapt them and also try to take great advantage of them.
- population of the consumers
- age of the consumers
- sex of the consumers
- marital status of the consumers
- educational level of the consumers
- profession, residence of the consumers
- ethnicity of the consumers
- habits of consumers
- the extent of local migration/mobility
- social values
- approach of consumers
- number of births
- changes in technology
- patent regulations
- life-cycle of products
- extent of economical growth
- income of the consumers
- exchange rates
- loans and the conditions to get a loan
- rate of unemployment
- rate of investments
- price of energy
- natural resources
- the price to exploit these resources
- protecting the environment
- environmental regulations
Political and legislative factors
- political stability
- the political system
- competition laws
- regulation of monopolies
- tax policies
- price regulations
- financial regulations
- regulation of export
- regulation of import
- consumer protection
- protection of markets
- other special regulations of products
- trade unions
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What can the firm use and do to determine the impact of these factors?
- using predictions (for example for technology or economy /like weather forecasts/)
- group analysis (of the consumers)
- press analysis (to strain off some important social trends)
- analysing trends (like how will the number of consumers change)
- analysing the lifestyle of consumers (like what they prefer or how they react to something)
- analysing the resources of the company itself (what will and can the company do)
- determining the capabilities of the firm (how can the company achieve further success)
- using the results of the SWOT analysis (micro-economical impacts)
- analysing the competitors (what will they do)
- create scenarios to predict the possible impact of these factors (how can the company react to something)
- analysing the economical regulations (of the country where the firm is located)
- creating surveys and analyse the answers given to them (asking the consumers themselves)
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