Discuss any five uncontrollable factors that businesses could face and What Are its implications
Business marketing environment is made up of actors and forces that affect the company’s ability to develop and maintain successful transactions and relationships with its target customers. Various environmental forces influence an organization’s marketing system. Some are external to the firm and thus are largely uncontrollable by the organization. Others are within the firm and generally controllable. A firm needs to be aware that there are favourable and unfavourable trends in its external environment. Show
Controllable and Uncontrollable Variables In Marketing EnvironmentBusiness activities do not operate in a vacuum. But they are surrounded by environmental variables, which affect them, either positively or negatively. These marketing environmental variables are categorized into two, namely: CONTROLLABLE VARIABLESControllable variable refer to those variables that can be easily controlled by a business-man or a company to suit the demand of the business. They include the following: Recommended: Writing Article Review -Meaning, Uses, types, structure and 6 Steps to writing an article review UNCONTROLLABLE VARIABLESthese refer to those variables that a marketer has little or no control over them. But they can affect a marketer’s activities either positively or negatively. As such, a marketer has to devise ways of undertaking these activities under the umbrella of these variables. These variables include: Recommended: How to cite in Economic papers Since the marketer has little or no control to the uncontrollable variables, he can adjust to them. This can be done through the following strategies: Competition. It is important for marketers to understand their competition’s marketing mix. This involves looking at what they are doing and how they go about doing it. This allows you to see what they could be doing better, and use that information within your marketing strategy. And depending on your size, you may be able to influence your competition when you make the most of your signature strengths. Economy. The current economy must also be taken into consideration. Luxury items may not do as well in a hurting economy. You can see the opportunities available to offer the most affordable product. Your marketing strategy will need to be adjusted in order to maintain or increase your market position in challenging circumstances. Regulations. Changes in current laws and regulation are also key factors for companies to keep into consideration. As laws and regulations change, what kinds of products are allowed, how they are produced, exporting and importing regulations, and shipping can change drastically Technology. Having the latest technology can reduce costs, improve the quality of your product, and make marketing more effective. This can allow you to better target your customer, produce more efficiently, and create innovative products. As technology changes, your product or service may become obsolete, like the many manufacturers of buggy whips after the invention of the automobile. Social. Marketing can be improved by paying attention to current social trends, such as concern for the environment and going “green”. Knowing what is most important to your customers will allow you to fine tune your marketing strategy to better target customers and create the kind of products and services. Which factors are uncontrollable to the company and indirectly affect their working?Macro Environment is all that uncontrollable, external factors that affect a single business and businesses of that country in total. It can be political, cultural, economic, or ecological factors.
What are the controlled and uncontrolled factors that affect business organizations?Financially viable factors are equally controllable and uncontrollable. The convenient factors, such as price, earnings and interest charge are politically controlled. Unmanageable factors, such as purchaser capital and distribution of wealth, change and diverge, making them difficult to calculate.
What are the uncontrollable factors?Uncontrollable Risk Factors Definition
The uncontrollable risk factors are the details that affect the product that a company has no way of changing. These include political and economic climates, competitor choices and even the weather.
What are the 6 external factors that affect a business?Here are the nine types of external environment factors that affect businesses:. Technological factors. ... . Economic factors. ... . Political and legal factors. ... . Demographic factors. ... . Social factors. ... . Competitive factors. ... . Global factors. ... . Ethical factors.. |