Gurus On Marketing

STEP factors influence significantly the way we do business today.
The STEP factors are inter-related. Fahey and Narayanan (1986) 34 stress
that the environment can only be understood as a system in which
each factor is related to and affects every other factor.
STEP factors and your business
Under each category – sociological, technological, economic and political
– identify factors appropriate to your business. Identify key variables
and assess their probability of change and the consequent impact of
that change on your business in terms of your revenue, profitability,
market and competition. Priority in terms of taking action should be
focused on high probability of change with high impact on your business.
Consider various scenarios for your business in formulating
marketing strategy.
Scenario planning
Scenario Planning helps organisations manage uncertainty and make
better decisions. It was originally developed within Royal Dutch Shell
which made the practice famous by using it to anticipate the Arab oil
embargo and also anticipate and prepare for the dramatic drop in oil
prices during the 1980s. It deals with the creation of multiple alternative
futures, representing situations that could reasonably occur.
According to Peter Schwartz 35 , a scenario planning guru, ‘Using scenarios
is rehearsing the future. You run through the simulated events as
if you were already living them. You train yourself to recognise which
drama is unfolding. That helps you avoid unpleasant surprises, and
know how to act.’
Scenario planning is like reading the weather: it may rain or snow;
there will be some sun and some light showers. Scenario planning
requires us to assume a ‘what if’ mindset, pliable enough to come up
with flexible strategies to accommodate multiple futures.
TEN GURUS AND STRATEGIC ANALYTICAL TOOLS 147