Micro-environment[ edit ] Company aspect of micro-environment refers to the internal environment of the company. This includes all Departmentalization departments such as management, finance, research and development, purchasing, Business operations and accounting.
Spending power is constantly shifting, and marketers are competitive as they seek traffic, conversions and return on their investments. In some cases, marketing campaign success is solely determined by the effectiveness of messaging and delivery on the campaign.
In times of economic turmoil, however, uncontrollable economic factors can also influence marketing processes and success.
High Unemployment Rates An increase in unemployment rates are followed by reduced spending and fewer disposable dollars available per household. Marketing campaigns focused on unnecessary products and services become less effective, as the buying power decreases.
Cost-savings focused campaigns may increase, especially when brands emphasize their brands with the consumer base. Although high unemployment reduces spending power for common items and markets such as real estate, which requires a strong middle class, luxury products tend to remain stable, as unemployment has a higher impact on the middle class than on the wealthy.
Campaigns for high-end vehicles, jewelry and other luxury products can remain steady.
Economic Recessions A major recession can upset entire markets, while driving down consumer confidence across the board. As money shifts away from the middle class and as even the wealthy tighten their grip on money, marketing becomes extremely difficult.
The available market to target is reduced and marketing efforts are attached to rising costs with less return. The average customer value essentially decreases, while the cost-per-acquisition increases. Markets such as debt consolidation and short-term lending options can, however, increase in value and can ramp up marketing efforts, as they offer a solution to difficult financial times.
Consumer Confidence While confidence is an emotional factor, it ties directly to the economy and has a major influence on marketing. Marketing efforts are easier and more effective when the audience is less skeptical.
Consumer confidence means that the public believes that the economy is strong and that its income is positioned well enough to spend on disposable items. Times of high-consumer confidence and spending power are excellent for business, as marketing campaigns are well received and response is high.
Periods of low-consumer confidence and poor market conditions will challenge the business model. In some cases, this is detrimental and can lead to losses and shuttered doors. The businesses that adapt marketing efforts to overcome low-consumer confidence will however have a refined model that is more recession-proof than their competition.Factors Affecting Marketing Functions.
Factors affecting marketing functions are the conditions, situations or aspects that may hinder or enhance the achievement of promotional goals of a business.
Marketing is an important activity that every business has to always conduct in order to promote its brand and products to the target market.
Internal and External Factors Affecting the Four Functions of Management Dina Pastor, Anelys Thompson, Christine Brown MGT April 7, Dick Amabile Internal and External Factors Affecting the Four Functions of Management In relation to the four functions of management, there are several internal and external factors that affect an organization’s success.
Jul 19, · The environmental factors that are affecting marketing function can be classified into: 1) Internal environment and 2) External environment Internal Environment of Marketing: This refers to factors existing within a marketing firm.
Environmental Factors Affecting Marketing Functions. Macro-marketing “Macro-marketing literally deals with big/important issues, beyond comparatively simple exchanges between buyers and sellers, or even relationships between companies and urbanagricultureinitiative.com a more interconnected world of markets, marketers, and their stakeholders, macro-marketing is an important mechanism to study both.
These environmental factors can be categorized into external and internal environment of the businesses. The internal environment of the company includes the factors which are within the company and under the control of company like product Organizational culture, Leadership, and Manufacturing(quality).
Jul 19, · Various factors affecting marketing function. The environmental factors that are affecting marketing function can be classified into: 1) Internal environment and.
2) External environment. Internal Environment of Marketing: This refers to factors existing within a marketing firm.