Marketing Environment

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Understanding the External Marketing Environment INTRODUCTION “All businesses operate within an environment, which directly or indirectly affects the way in which they function, just as we as consumers live within a cultural and social environment which to a greater or lesser degree determines the way in which we behave as individuals.” said Elaine O’Brien, University of Strathclyde. Unlike the controllable marketing mix variables, the environmental forces are not controllable by marketers. However, marketers can control how they deal with those uncontrollable forces by identifying and monitoring those forces that are relevant to their firms. They also must forecast changes in these forces if they are to develop effective…show more content…
This environment is composed of laws, government agencies and pressure groups that influence and limit various organizations and individuals. However, sometimes these laws also create opportunities for business. The followings are some ways interpreting how the marketing functions of businesses are impinged: At the most general level, the stability of the political system affects the attractiveness of a particular national market. While radical change rarely results from political upheaval in most Western countries, the instability of many Eastern European governments leads to uncertainty about the economic and legislative framework in which goods and services will be provided. At a national level, government passes legislation that directly affects the relationship between the firm and its customers and between itself and other firms. Sometimes legislation has a direct effect on marketers, for example a law giving consumers rights against the seller of faulty goods. At other times, the effect is less direct, as where legislation requiring local authorities to put out to tender some of their duties has the effect of creating more competitive relationships between firms in a market The government is additionally responsible for protecting the public interest at large, imposing further constraints on the activities of firms, for example where the government lays down design standards for cars to protect the public

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