The Seven External Factors of the Market Place
The Seven External Factors of the Market Place
Today I will explain one by one each of the seven external factors. To start: The Political-Legal Environment: It is a political and corporate relationship. Companies aim to franchise with and support political candidates through their activities to help promote their business. Socio-cultural Environment: A business’ development and prosperity is based on the cultural and social value of whatever they have to offer. The world’s view on things are always involving so a business must always stay up on these ever changing trends to better promote and develop new products.(Ebert & Griffin, 2009) Technological Environment: The technological environment has been created to update and refresh our views and lifestyles by creating new goods and services. Economic Environment: The economic environment is the platform for all businesses world wide. It relegates a business spending patterns, pricing, marketing strategies etcetera. Competitive Environment: The competitive environment consists of the general competition between companies. They compete for the limelight to attract buyers. This has to be done properly for proper promotion is crucial to a business’ continuity. Demographic Variables: is akin to data mining; used to help identify consumer qualities; such as the age, gender, income, race, and etcetera. This helps determine a markets segmentation strategy. As for the Natural Environment: it is the typical weather, and natural resources that concern human continued existence and market activity. (Natural Environment, 1999-2010)
Now I am going to explain the advantages and disadvantages of two of the external factors? One of the two that I have chosen is the Competitive Environment. There are many but just to name a few (Ollman.B, 2004-2010) some advantages are: there is more modernization as firms look for new goods to sell and cheaper ways to do their work; a great diversity of consumer goods become available
Today I will explain one by one each of the seven external factors. To start: The Political-Legal Environment: It is a political and corporate relationship. Companies aim to franchise with and support political candidates through their activities to help promote their business. Socio-cultural Environment: A business’ development and prosperity is based on the cultural and social value of whatever they have to offer. The world’s view on things are always involving so a business must always stay up on these ever changing trends to better promote and develop new products.(Ebert & Griffin, 2009) Technological Environment: The technological environment has been created to update and refresh our views and lifestyles by creating new goods and services. Economic Environment: The economic environment is the platform for all businesses world wide. It relegates a business spending patterns, pricing, marketing strategies etcetera. Competitive Environment: The competitive environment consists of the general competition between companies. They compete for the limelight to attract buyers. This has to be done properly for proper promotion is crucial to a business’ continuity. Demographic Variables: is akin to data mining; used to help identify consumer qualities; such as the age, gender, income, race, and etcetera. This helps determine a markets segmentation strategy. As for the Natural Environment: it is the typical weather, and natural resources that concern human continued existence and market activity. (Natural Environment, 1999-2010)
Now I am going to explain the advantages and disadvantages of two of the external factors? One of the two that I have chosen is the Competitive Environment. There are many but just to name a few (Ollman.B, 2004-2010) some advantages are: there is more modernization as firms look for new goods to sell and cheaper ways to do their work; a great diversity of consumer goods become available
References: All Business. A D&B Company. (1999-2010). Business Definition for Natural Environment Retrieved from: http://www.allbusiness.com/glossories/natural-environment/4964749-1.html Ebert, R.J. & Griffin, R.W. (2009). Business Essentials. (7th Ed). Upper Saddle River, N.J: Person-Prentice Hall Ollman. B. (2004-2010). Market Economy: Advantages + Disadvantages Retrievedfrom:http://www.nyu.edu/projects/ollman/docs/china_speech2.php Small Business Bible. (2008). Some advantages and disadvantages of information technology Retrievedfrom:http://www.smallbusinessbible.org/advan_disadvan_informationtechnology.html