Discuss the various environmental factors that affect marketing
Answers
Various factors affecting marketing function.
The environmental factors that are affecting marketing function can be classified into :
1) Internal environment and
2) External environment
Internal Environment of Marketing :
This refers to factors existing within a marketing firm. They are also called as controllable factors, because the company has control over these factors :
a) it can alter or modify factors as its personnel, physical facilities, organization and function means, such as marketing mix, to suit the environment.
There are many internal factors that influence the marketing function, they are :
Top Management : The organizational structure, Board of Director, professionalization of management..etc..Factors like the amount of support the top management enjoys from different levels of employees, shareholders and Board of Directors have important influence on the marketing decisions and their implementation.
Finance and Accounting: Accounting refers to measure of revenue and costs to help the marketing and to know how well it is achieving its objectives.Finance refers to funding and using funds to carry out the marketing plan. Financial factors are financial polices, financial position and capital structure.
Research and Development : Research and Development refers to designing the product safe and attractive. They are technological capabilities, determine a company ability to innovate and compete.
Manufacturing : It is responsible for producing the desired quality and quantity of products.Factors which influence the competitiveness of a firm are production capacity technology and efficiency of the productive apparatus, distribution logistics etc.,
Purchasing : Purchasing refers to procurement of goods and services from some external agencies. It is the strategic activity of the business.
Company Image and Brand Equity : The image of the company refers in raising finance, forming joint ventures or other alliances soliciting marketing intermediaries, entering purchase or sales contract, launching new products etc.
In organization, the marketing resources like organization for marketing, quality of marketing, brand equity and distribution network have direct bearing on marketing efficiency. They are important for new product introduction and brand extension, etc..
External Environment of Marketing.
External factors are beyond the control of a firm, its success depends to a large extent on its adaptability to the environment.
The external marketing environment consists of :
a) Macro environment, and
b) Micro environment