Question

infulence of the economy on the market planning

Answer 1

Answer--Economy plays an important role for the sale of any commodity , marketers plans marketing strategy according to the condition of the economy ,as if economy is in developing stage then marketers fixed prices according to the salary and wages of consumers but in case of developed countries the price of commodity is usually higher then compare to the developing countries.

Some economic factors which influence the market planning are--

1.Demand and Supply--Demand and supply of the commodity is totally based on the consumption of good and services by the consumers,excess demand will leads to loss for the producers.So there should be complete analysis of demand and supply.

2.Taxes --Taxes is factor by which the cost of commodity increases or decreases ,unnecessary taxes by governments can result in price rise of the commodity which will decrease demand of the commodity.

3.Inflation Rate -Inflation rate is main factor for market planning because inflation influence the demand and supply of the commodity.

4.Interest rates- Less interest rate means more money to spend, more interest rate means less money to spend.