Name and describe the six external forces that affect marketing decisions.

Question

What will be an ideal response?

Answer 1

Demographics: can be defined as the statistical characteristics of human populations, such as age or income, used to identify markets. They provide a statistical description of a group of people and are extremely useful in marketing.

Economic conditions: are important in understanding the ability of custom­ers to purchase products and services.

Technology Transformations: Few areas in business have been more affected by technology than marketing. Technology has been one of the major catalysts for change in the marketplace. Faster, smaller, and easier-to-use computers and powerful software facili­tate sophisticated analyses right on the desks of front-line managers from anywhere in the world.

Natural World: Everyone lives on planet Earth, and business operates within the con­straints of available natural resources.

Political/Legal Environment: Political judgments and, more broadly, the legal environment significantly affect company decisions and sometimes an entire industry.

One of the most important external environmental factors to consider is the competition. Companies want to know as much as possible about competitors' products and strategies. In highly competitive markets, companies are constantly adjust­ing their strategies to the competition.