Environmental Factors
Environmental factors affect many areas in marketing, in a domestic and international economy. This forces companies to be socially responsible for their products and their marketing strategies. As presented by Perreault and McCarthy in Basic Marketing-Managerial Approach page fifteen and fourteen. They describe that consumers in a market direct economy have great freedom of choice. They are not forced to buy any goods or services, except those that must be provided for the good of society like national defense, schools, police, firemen and healthcare. These goods and services are paid for by the consumer threw taxes. Companies can produce goods and do what they like with them as long as they stay within the laws and regulations of the government.
Companies need to be also mindful of the competition. Consumers are very fickle and they will go with the product or company that suits their needs and budgets. That is why companies need to offer consumers higher quality and high value products to meet the needs of the consumer. They are finding many new ways to improve their product or services to meet their consumer’s needs. This is why companies find that it is more important to focus on satisfying each of the consumers needs than to focus on the product detail itself.
The competitive markets are affected by many environmental factors. Managers need to deal with each issue as it comes along. Some of these factors cannot be controlled and some can. In these cases the managers can plan and prepare for any eventuality that may come their way.
There are many environmental factors that affect the company in different ways; these are the economic and technological environment, the competitive environment, political environment, and the cultural ...