Marketing Environment (unit 11)

Marketing Environment (unit 11)

1. Business Strategies

   • Grow Sales e.g. launch new products, expand distribution and start selling to overseas.
   • Increase Profits; e.g. increase selling price, reduce the amount spent on advertising.
   • Build Customer Awareness; e.g. implement a public relations programs and increase advertising.

2. ECONOMIC FACTORS (all variable; changeable)

   • Inflation; is an increase in the price of goods and services.
   • The Interest Rate; is the annual percentage charge made for borrowing money.
   • Unemployment; it is measured by the number of people available for work and actively seeking jobs.
   • The Rate of Exchange; shows the value of one currency measures by how much it will buy in other currencies.

3. TECHNOLOGICAL FACTORS;

   • The reason why things are quicker & more exciting. Production methods have changed, less staff needed. Marketing has changed; social media. However many businesses have problems deciding when to adapt to this new technology.

4. LEGAL & REGULATORY FACTORS

   • Most business laws protect stakeholders such as consumers and employees. E.g. The Consumer Protection Act 1987, which means producers are liable for loss or damages caused to consumers by defective products.

5. SOCIAL & ETHICAL FACTORS

   • Consumer concerns have led to many firms to consider whether their behaviour is ethical; e.g. paying suppliers the right price and accommodating employees spiritual needs.