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The External Marketing Environment - Coggle Diagram
The External Marketing Environment
It´s importance
Knowledge of the external environment is crucial for making intelligent future marketing strategies and plans.
The external environmental factors require marketing managers to continually monitor and evaluate the marketing environment to spot trends and other essential signals for enhancing business growth and development.
Businesses can´t change the external environment, they can only adapt to that changes.
Six critical environmental marketing factors
Social influences
Factors such as societal values, behaviors, and attitudes.
Helps determine customer preferences, buying behaviors, and attitudes about given products and services.
Legal influences
The federal, state, and local agencies often formulate regulations that affect business operations and marketing activities with the view of protecting consumers and other firms.
Marketing managers must be aware of the laws in order to successfully and legally execute the marketing mix.
Economic influences
Consumers' disposal incomes, inflation levels, and recessions are vital economic considerations for marketers.
Income regulates an individual's buying behavior. So a change in income changes consumer spending patterns.
Inflation influences demand for specific products.
Political influences
Political factors influence marketing strategies through policies and legislations and setting a national culture that informs business operations.
Besides the legislations formulated to guide business operations, the government levies taxes on firms.
Technological influences
The rapid technological change demands that marketers gain in-depth knowledge of technological development and its influence on marketing strategy.
Businesses that fail to track technological changes cannot survive in today's fast-paced marketing environment.
Competitive influence
Marketers must be aware of their competitors' activities to achieve sustainable success.
Entails the number and relative size of each competitor and the extent of interdependence within the industry.
Technological changes often introduce new competitors and transform the existing business models.