Some of the environmental factors affecting global and domestic marketing decisions include: social environment, economic environment, technological environment, competitive environment, cultural environment, political/legal environment, and ethical environment. Every business organization, whether global or domestic, has existing external factors that affect its operations. The company can have control over some of these external factors, while others are beyond organization’s control.Continue Reading
The principal objective of a business is to realize a synergy in the overall operations. Companies take advantage of various marketing mix such as different exchange rates, labor rates, tax rates, skill levels, and marketing opportunities to realize a greater whole, which is more than the sum of the individual parts. Social factors comprise of demographic characteristics of the population and its values, such as gender differences, consumers buying behaviors, cultural diversity and attitudes. Economic factors refer to issues pertaining to income, expenditures, and resources that related to the cost of operating a business and households.
Business is highly affected by technological environment. These include inventions, tools, equipment or innovations. A business must embrace cutting-edge technology to enhance efficiency in their operations. Companies’ marketing decisions are greatly influenced by competition from firms offering a similar product or a different product that satisfies the same need. Superior technologies and effective marketing strategies give a company a competitive advantage over its competitors. For a business to succeed, the company must be able to manipulate the controllable factors of the marketing mix within the fixed environment.Learn more about Marketing & Sales