Question

“The process of continually collecting information from the external marketing environment.”

Marketers must be aware of the surrounding environment when making marketing mix decisions. The external environmental factors that marketers need to evaluate are: 1. Competitive 2. Economic 3. Social/cultural 4. Technological 5. Political/legal.

For each of these products describe how 2 of these environmental factors can or will affect the marketing of these products. For each product you need to discuss 2 different environmental factors, that are listed above, and how each one will affect the marketing of these products.

Cars

Clothing

Electronics

Travel/Vacation

Answer 1

Cars:

Analysing external market factors can be done through PESTLE Framework, which stands for political, economical, social, technological, legal and environmental factors.

Now we shall describe the factors which might impact the marketing of cars (Automobile industry) .

1) Competitive: On speculating the global business environment, we can see that various low cost manufacturers to premium car maker are competing to attract new customer. A minor shift in one corner of world might increase or decrease the level of competition in a particular country.

2) Economic:

It covers the tax policy, global forces of economics, government policy, subsidies, GDP and FDI flow rate etc.

It has wider impact to car selling as well as advertising practices. A higher tax rate might be decrease the manufacturing while heavier advertising might be required.

3) Technological: Now a day, a Car company has very advanced technology to offer. German, Japanese, American, Chinese etc. are the name of some technological adherence in car manufacturing. Now a days, electric car, driverless car (Google) , GPS based car etc. are developed by global companies to create a new segment of customers.

Electronics:

In this sector, we can see a change from CRT to CFL, CFL to LED and LED to OLED. These types of lamps, devices are coming frequently to the market, Television, Electric Bulb, and other electronic devices have great innovation and impact of various environmental factors.

Impact of Competition:

Companies are fighting for launching advanced products based on global demand. LG, Sony, GE, samsung,Onida, Bajaj ,Crompton etc. like companies has made great products which has sound positioning across the globe.

Technological factors: Technological changes impact global sale of electronic products. LED products are great in demand in developing countries.

Clothing:

Technological impact:

Clothing industry has been seen to improve it in terms of better yarn, quality and other goodness etc. It could be possible due to change in the production technology.

Social impact:

People like clothes which are associated with social trends, lifestyles, cultural inputs etc. Companies target the customers group as per their culture, religion, attitude and likeness etc. It could be seen as a transition of various cultures across the globe.

Travel:

Technology:

Now internet helps organization to attract new customers across the globe. A better audio, video and image based advertising can be done to attract global tourist to various unknown destinations.

Aviation, hotel, Entertainment etc. has greatly taken new shape which helps tourism sector to grow.

Competition:

Due to huge competition in this industry, company’s cheaper tour packages to global customers. It also enables them to earn substantial revenue due to increased customer base.