Question

Elucidate how external factors can influence the marketing environment ?

Answer 1

The influence of external factors on the marketing environment

The external factors are influencing the marketing environment very much. Political and regulatory factors, economic factors, competitive factors, technological factors, social and cultural factors, etc. are the important external factors influencing the marketing environment. These external environmental factors shall bring both opportunities and threats to an organization. So it is very important that the organizations are closely monitoring the external factors influencing the marketing environment. The influence of different external factors on the marketing environment shall be elucidated below.

Political and regulatory factors

Governments may come up with many new regulations mainly for protecting the interest of consumers and businesses. Such regulations may influence the marketing environment either positively or negatively, For example, a regulation banning the advertisement of tobacco products may affect the marketing environment of both the tobacco industry and the media businesses.

Economic factors

The marketing managers must pay heed to regular developments in the economic front. These developments in the economic scenario may also either result in optimism and hope or pessimism and despair. For example, if the prices are stable in an economy, the marketing would be easy for an organization.

Competitive factors

The marketing environment of an organization is heavily affected by the competitive environment. The strategies adopted by a competing organization are exerting a big influence on the marketing environment of organizations.

Technological factors

The technological factors of an organization would be highly dynamic in nature. New and new technologies are being introduced every day. The technological environment may provide an organization with a chance to improve their existing product or service. It also may provide an organization an avenue for promoting a product or service.

Social and cultural factors

The social and cultural environment shall heavily influence the marketing environment of an organization. A lot of changes could take place in the social and cultural environment over time, for example, a product introduced five years ago may not be relevant at present for the customers due to social and cultural changes in the environment.

Please give Up-vote if you like the answer. Thank you.