Influences on Marketing Activity
Influences on Marketing Activity
Economic Factors
- Various economic factors such as inflation, interest rates, and unemployment levels can heavily influence marketing activities.
- Economic stability or instability in the target markets impacts the marketing strategies.
- Economic growth rate, exchange rate, and disposable income of consumers are other important factors.
Technological Factors
- Today’s market is highly technology driven thus advancements in technology significantly influence marketing activities.
- Developments such as e-commerce, mobile technology, and social media are crucial in designing marketing strategies.
- The advancements allow businesses to reach a larger market and reduce costs.
Social Factors
- Social trends and changes can have a great impact on how businesses market their products.
- Changes in lifestyle, culture, attitudes, and consumer behaviour significantly affect the marketing campaign strategy.
- Companies need to ensure the product is relevant to the target group’s lifestyle and values.
Legal Factors
- Any changes in legislation can have a profound impact on a marketing campaign.
- Laws related to marketing such as consumer protection, advertising standards, and data protection need to be adhered with.
- Businesses must make sure their marketing activities are legal, ethical, and socially responsible.
Political Factors
- The political environment can impact the marketing strategies of businesses, especially international ones.
- Government policies, trade agreements, tax laws can influence the pricing, advertising, and many other marketing activities.
- Companies have to align their marketing plans with the prevailing political scenario.
Market Competition
- The degree of competition in the market is a big influence on a company’s marketing activities.
- A highly competitive market might require more aggressive marketing strategies.
- The strategies of competitors and their marketing activities can have a direct effect on a business.
Environmental Factors
- Environmental and sustainability issues are increasingly being considered by businesses.
- An increased consumer focus on sustainability and environmental friendliness can influence a company’s marketing strategy.
- High environmental standards can be a selling point for a company in their marketing efforts.
Remember that the PESTLE model (Political, Economic, Social, Technological, Legal and Environmental factors) can help analyse the external influences on marketing activity.