Share on Facebook Businesses large and small are affected not only by their own internal factors, but also by environmental factors over which they have little if any control. Marketing decisions must take into account these environmental factors to create an accurate picture of the marketplace and the company's standing within it.
Social and cultural Figure 9. To spot trends and other signals that conditions may be in flux, marketers must continually monitor the environment in which their companies operate. The Political and Regulatory Environment Federal, state, and local bodies can set rules or restrictions on the conduct of businesses.
The purpose of regulation is to protect both consumers and businesses. Businesses favor some regulations such as patent laws while chafing under others such as restrictions on advertising. The tobacco industry, for example, has had to learn to live with a federal ban on TV and radio advertising.
More recently, many companies in the food industry have expressed unhappiness over regulations requiring the labeling of trans-fat content. All these actions occasioned changes in the marketing strategies of affected companies. Tobacco companies rerouted advertising dollars from TV to print media.
Food companies reduced trans-fat levels and began targeting health-conscious consumers. Talent coordinators posted red flags next to the names of Janet Jackson of the now-famous malfunctioning costume and other performers.
The telemarketing industry fired workers and scrambled to reinvent its entire business model.
- Environmental Factors that affect Global and Domestic Marketing Decisions Every company global or domestic has external factors that exist that eventually have an effect on the company’s operations. Jun 26, · 3 What Are Internal & External Environmental Factors That Affect Business? 4 The Role of Macro Environment in the Retail Industry Every business is . Major Environmental Factors That Affect Marketing Activities. Environmental Factors and Marketing Decisions Will a successful marketing plan in one country work in another country? This is unlikely to occur due to many different cultural, political, economic, technological, and competitive environments.
The Economic Environment Every day, marketing managers face a barrage of economic news. They must digest it, assess its impact, and alter marketing plans accordingly.
At other times like todaythe news makes them nervous—our economy is weak, industrial production is down, jobless claims are rising, consumer confidence has plummeted, credit is hard to get. Naturally, business thrives when the economy is growing, employment is full, and prices are stable.
Marketing products is easier because consumers are willing to buy. Sales will slip, and to counteract the anticipated slowdown, you might have to add generous rebates to your promotional plans.
The Competitive Environment Imagine playing tennis without watching what your opponent was doing. In particular, they need to monitor the activities of two groups of competitors: Coke and Pepsi, for instance, are brand competitors who have engaged in the so-called cola wars for decades.
Each tries to capture market share by convincing people that its soft drinks are better. Because neither wants to lose share to the other, they tend to resort to similar tactics.
In summerboth companies came out with nearly identical new colas boasting half the sugar, half the calories, and half the carbohydrates of regular colas. Both companies targeted cola drinkers who want the flavor of a regular soda but fewer calories.
By the way, both products failed and were taken off the market. Meanwhile, Coke and Pepsi have to watch Nantucket Nectars, whose fruit drinks are substitute products. What if Nantucket Nectars managed to get its drinks into the soda machines at more fast-food restaurants?
How would Coke and Pepsi respond? What if Nantucket Nectars, which markets an ice tea with caffeine, introduced an ice tea drink with mega amounts of caffeine?
Would marketers at Coke and Pepsi take action? What if Nantucket Nectars launched a marketing campaign promoting the health benefits of fruit drinks over soda? Would Coke and Pepsi reply with campaigns of their own? Would they respond by introducing new non-cola products?
Videotape makers who were monitoring technological trends in the industry would probably have taken steps to keep up go into DVDs or otherwise protect themselves from losses maybe even getting out of the market.
In addition to making old products obsolete, technological advances create new products. Where would we be without the cell phone, digital cameras, text messaging, LASIK surgery, and global positioning systems?
Do you think DVDs will suffer the same fate as videocassettes? New technologies also transform the marketing mix in another important way: Consider the revolutionary changes brought about by the Internet, which offers marketers a new medium for promoting and selling a vast range of goods and services.
Marketers must keep abreast of technological advances and adapt their strategies, both to take advantage of the opportunities and to ward off threats.
The Social and Cultural Environment Marketers also have to stay tuned to social and cultural factors that can affect sales. Think about the clothes you wore five years ago: Now put yourself in the place of a marketer for a clothing company that targets teenagers and young adults.Chapter 3 marketing.
STUDY. PLAY. Marketing environment. economic factors that affect consumer purchasing power and spending patterns. natural environment. the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
The environmental factors in marketing include political, economic, social, technological, environmental and legal factors (PESTEL). This PESTEL analysis is a framework that marketers use to analyze and monitor these factors in the external environment, according to the Professional Academy.
3 Six Microenvironmental Factors That Affect Businesses; 4 What Are Internal & External Environmental Factors That Affect environment can restrict or even end certain marketing activities.
The. Jun 26, · How Do Elements of a Marketing Environment Affect Marketing Decision-Making? Seven External Factors of Business Natural Environmental Factors That Affect Business.
Jun 26, · 3 What Are Internal & External Environmental Factors That Affect Business? 4 The Role of Macro Environment in the Retail Industry Every business is . How Environmental Factors Affect Business.
Every business, whether large or small, is affected not only from internal organizational factors but, from several external factors. Business-related activities impact the environment; however, Pollution may cause some major environmental events which can result in the disruption of supply.