Question

• Why is knowing what is going on in the external environment important to marketers? Provide an example to support your answer.

Answer 1

It is important for the marketers to understand the external environment as this would help the marketers to understand the target audience, their needs and preferences. These information are very vital for the organization as it would boost up the sales of the products and services which would bring productivity. Marketers can also know what is going on with the environment and understand the changes of new direction made to it.

To make the advertisement effective, the marketers need to understand the external environment as different target market needs different channels of communication for advertisement as well as different drivers to trigger the demand of the customers. The sales of a company may change due to the economic and political changes in the country or all over the world. On the other hand, the social and demographic changes may affect the sales such as when there is a change in the lifestyle of the customers due to a new trend. Also, there is a changes in the sales when technology changes. All these knowledge and information are very critical which the marketers can use to increase the sales and profit margin of an organization and which later can give the organization a competitive advantage.

Hope this helps :)