The Seven External Factors of the Market Place
Today I will explain one by one each of the seven external factors. To start: The Political-Legal Environment: It is a political and corporate relationship. Companies aim to franchise with and support political candidates through their activities to help promote their business. Socio-cultural Environment: A business’ development and prosperity is based on the cultural and social value of whatever they have to offer. The world’s view on things are always involving so a business must always stay up on these ever changing trends to better promote and develop new products.(Ebert & Griffin, 2009) Technological Environment: The technological environment has been created to update and refresh our views and lifestyles by creating new goods and services. Economic Environment: The economic environment is the platform for all businesses world wide. It relegates a business spending patterns, pricing, marketing strategies etcetera. Competitive Environment: The competitive environment consists of the general competition between companies. They compete for the limelight to attract buyers. This has to be done properly for proper promotion is crucial to a business’ continuity. Demographic Variables: is akin to data mining; used to help identify consumer qualities; such as the age, gender, income, race, and etcetera. This helps determine a markets segmentation strategy. As for the Natural Environment: it is the typical weather, and natural resources that concern human continued existence and market activity. (Natural Environment, 1999-2010)
Now I am going to explain the advantages and disadvantages of two of the external factors? One of the two that I have chosen is the Competitive Environment. There are many but just to name a few (Ollman.B, 2004-2010) some advantages are: there is more modernization as firms look for new goods to sell and cheaper ways to do their work; a great diversity of consumer goods become available...
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