Explain the following marketing environmental factors. (a) Political; (b) Cultural; (c) Technological; (d) Economic; (e) Social

Answer Details

Marketing environmental factors explained

The marketing environment is made up of the external forces that affect a company's ability to serve its customers. The following are key factors:

(a) Political factors

These are the influences arising from government activities, laws, policies and political stability. Government regulations on prices, taxation, import and export, consumer protection and business licensing, as well as the level of political stability, affect how a firm markets its products.

(b) Cultural factors

These are the beliefs, values, customs, traditions, language and religion of the people in a market. Culture shapes what people buy, how they use products and what advertising appeals are acceptable, so marketers must respect cultural norms and taboos.

(c) Technological factors

These are the developments in science and technology that affect production, distribution and promotion. New machines, computers, the internet and improved methods create better products and new marketing channels, while making old products and methods obsolete.

(d) Economic factors

These are conditions in the economy such as income levels, inflation, interest rates, employment and general purchasing power. They determine how much customers can afford to spend and therefore the demand for a firm's products.

(e) Social factors

These are features of the society such as population size, age structure, family size, education, lifestyle and social class. They influence the type, quantity and quality of goods and services that people demand.