Exchange Rate — Currency Valuation economic factors affecting your marketing plan: Both local and national economies can influence marketing decisions by determining how much expendable income your consumer base has to spend Factors affecting marketing how much fear they may have about spending it.
If you were to invest in marketing products or services in a country such as Egypt now, you would run the risk of losing your customer base if a war breaks out because of the current political instability in the country.
For competitors that are larger than your organization, you need to carefully construct your marketing plan, because they will likely be able to outspend your organization. These days a company has to take a deeper look at potential markets than ever before because just about anything will sell if you market it the right way and in the right place.
When the economy is weak and many people are unemployed, companies often lower their prices. 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. People are more likely to buy them when their prices drop and less likely to buy them when their prices rise.
In international markets, currency exchange rates also affect pricing decisions. Price fixingwhich occurs when firms get together and agree to charge the same prices, is illegal.
Sentiment indicators are commonly used to gauge how certain groups are feeling about the current economy. Relevant Class Structure When you are marketing your product or service internationally you must also take into consideration class structure because it varies widely from country to country.
The available market to target is reduced and marketing efforts are attached to rising costs with less return.
Wars can have a very large impact on your business in a foreign country. The average customer value essentially decreases, while the cost-per-acquisition increases.
For example, while sales of the iPhone remain fairly constant in the United States, the Koreans felt the phone was not as good as their current phones and was somewhat obsolete. World Factbook which provides you with clear data about all factors you need to know about your country.
Stay tuned, Be Guerrilla! Interest Rates High-end goods, such as jewelry and cars, are often purchased on credit. This quota ensures Indonesian farmers they will have a place to sell their onions and encourages them to continue growing them.
Unfair trade laws are state laws preventing large businesses from selling products below cost as loss leaders to attract customers to the store. Federal Reserve can effectively slow or attempt to speed up growth within the country.
For example, if unemployment rates increase, the demand for goods and services will drop.Marketing decisions must take into account these environmental factors to create an accurate picture of the marketplace and the company's standing within it.
To ignore the outside factors is to set yourself up for failed marketing and lost revenue that can, in turn, affect the health of your entire brand. Internal Factors of Marketing Plans. 5 Factors Affecting Attention in Marketing Communication. Advantages & Disadvantages of Two External Factors When It Comes to Marketing Products.
The internal marketing environment of a firm comprises all those factors which are inside firm marketing activities, including the firms' employees, firms policies, firms capital assets, firms organizational structure and its products and services. Attitudes, Values & Belief: Social Factors in Marketing Next Lesson Marketing Environment: External Influences on Marketing Strategy Chapter 3 / Lesson 1 Transcript.
external factors affecting or likely to affect the period of implementation of the strategy. Dynamic changes in the business environment, global economy and. There are different aims of marketing; to increase awareness of the product or service, to increase market share, to research customer needs, to communicate with different customers and to solve any problems which involves affecting the process of marketing.Download