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MARKETING RESEARCH External Factors Influence - Coggle Diagram
MARKETING RESEARCH
External Factors Influence
PESTEL Analysis
Political Factor
Government subsidies and incentives
Grant, tax incentives (Matrade programme)
Political stability
Instability/conflict (disrupted/delayed)
Trade policy
Changes to trade policies, such as tariffs or trade agreement
Tariff on imported material, lower barrier of trade agreement
Regulation and standard
Regulation from government for safety and sustainability (E1,E2, Fumigation)
Environment Factor
Availability of raw material
Wood (crucial raw material, but limited resources)
Adopt forestry practices (reforestation, responsible sourcing and alternative material)
Waste management
Adopt effectives waste management (recycling, repurposing and waste reduction)
Help to reduce operating cost and improve sustainability
Legal Factor
Product safety regulation
Do not contain harmful chemical/material
Ensure the product do not pose any risk to consumers
Failure to comply can lead to legal action/loss of reputation and financial losses.
Intellectual property laws
Patent, trademark and copyright
Protect creativity & innovation of furniture manufacturer (competitive advantages)
Making sure all heavily invested in R&D are protected
Labor laws
Right of minimum wage, working hours, workplace safety etc.
Non compliance can lead to lawsuits, financial penalties
Social Factor
Demographic changes
Diverse population (adapt to meet consumer needs and preferences)
Hybrid/ Hot desk (Ergonomic, storage solution etc.)
Changing consumer preferences
Consumer concern (cost-effective, environment, sustainability, customizable)
Cultural attitudes
Status symbol (High end brand)
Minimalism/simplicity (Functional aesthetic pleasing)
Technological Factor
Data analytics & AI (artificial intelligence)
Helping in term of marketing and branding
Google Ads, SEO/SEM etc.
Analyzing consumer preferences and behavior data
Identify trends and develops product to meet consumer need
Production Automation
Precise, cost-effective, save time, high volume of production, etc.
Maintain product consistency and quality
High cost to maintain (Capital, maintenance, broke down)
Online and e-commerce platform
Enormous amount of e-commerce platform offered by the company & agency
Consumers have many choices to shop (cause the consumer fraction is based on e-commerce preferences)
Need to cater too many platform to meet the right buyers (Increase the cost)
Economic Factor
Consumer spending pattern
Purchase affected during economic uncertainty (pandemic, crisis, rebilling etc.)
Growth and recession
Demand higher or slow down
Inflation and currency fluctuation
Fluctuate currency in the global market
Price imported material
Export (Exchange rates -competitiveness in international market
4P'S Strategy (APEX & Local competitors)
Price
Promotion
Product
Place