Marketing in every business must consider the firm\'s external environment and t
ID: 368103 • Letter: M
Question
Marketing in every business must consider the firm's external environment and the environmental forces (or "marketing environments") that affect marketing decisions, successes, and failures. Recall and consider the major elements in the "marketing environments." Write an essay explaining how a firm's marketing strategy must consider each of those elements in the "marketing environment." In your discussion, give examples of how each element enters into the development of a market strategy.
Book: Business Essentials 11th edition.
Chapter 11 question 34 MBL
Explanation / Answer
It is a marketing term which company maintains successful relationship with customer with the firm’s factors and forces. Marketing environment mainly influences individuals and businesses to sell or purchase the products and services. The elements may vary from location, industry, people, product and market.
Elements of a marketing environment:
Demography
Culture
Economy
Political legal and regulatory forces
Competitors
Demography:
Demography covers about the gender, age, lifestyle of the people, income and education. Demography plays an important role in decision making in marketing environment. All the demographic factors influence big impact on the product sales. For marketing women products we should select the region like where women population is more instead of the men population and the marketing of the children products we should select the age criteria where children population is high and they should attract for the products. And the lifestyle and income also give big impact on the sales; product should satisfy the income and life style of the customers which they want to attract.
Culture:
Culture will definitely gives big impact on the product. The company should keep in mind and better design according to the culture of the country. If the product adoptable to the country culture they make profits. For example KFC launched the product in the Indian markets with homemade culture like Grill chicken.
Economy:
Economy has a role in marketing decisions. Economy can be local, regional or even global may cause increase or decrease spending depending on the buying power in the market place. If marketer entered into a downfall economy no customer ready to pay extra money for product where existing competitor already providing same at low cost. A fast growing country like India marketers of brands like Coco-cola, puma...Etc shifting marketing resources to the country to meet the requirements of 1000 million people
Political, legal and regulatory forces:
The regulations, law of the country may vary from country to country, some countries have free trade and others may have several rules and regulations. If the country has free trade with some rules the product can easily launch in country. If the taxes are more in the country it will impact on the cost of the product the sales price will be high. Some industries like pharmaceuticals are highly regulated to protect consumers. Marketers have to respond legislation imposing limits on advertising and promotion, also occurred with tobacco products and find new legal ways to reach the customers.
Competitors:
Marketing decision must factor in competitors, for example your competitor offering the same product with low cost, more warranty and long lasting , it will definitely makes stress on your marketing marketer should choose different way to market like advertising in the native language, giving more offers..Etc.