Question

2-Explain the Economic environment as one of the macroenvironment forces, then explain its effect on the marketing decisions and activities in terms of SWOT analysis

Answer 1

All the firms are affected by macroenvironmental forces, in which economic forces are one of the factors which affect the marketing of a business which can increase and decrease the need for your product.

Where economic factors affect the business by two ways, by affecting production level of the business and for customer decision process making. Some economic factors are interest rate, inflation, recession, demand and supply etc.

For example- suppose there is recession in the economy in which people loses there job, consumers are less willing to pay for the goods and service where people are trying to buy less goods and service and save more

And if suppose demand in the market for the product is high then price will rise therefore which attract more production and increase the supply in the market

A portion of the positive inward characteristics are diversifying opportunities and worldwide brand acknowledgment. strength answer question, for example, What worth do we bring to the client? What do we progress nicely? What is having any kind of effect? A portion of the weakness remember a reliance for outside merchants just as long haul obligation. They likewise have a reliance on a more seasoned shopper. weakness address questions, for example, What requirements improving? What isn't working? What do our clients despise? In taking external opportunity factors influencing Gap that are certain you can see they have a business opportunity for hefty size ladies' clothing and they are developing the online business. There is likewise an open door for development in Asia. opportunity address the accompanying inquiries: What ought to be changed? What should the organization start or quit doing? At last, dangers are those outside variables that can't be controlled however are as yet a thought. The Gap has solid rivalry, slow monetary recuperation, and expanded work costs. threats answer the accompanying inquiries: What are the threats to the business? Are there any monetary, political, or client patterns? Are there any economic threats like recession or increase in taxation.