Factors Affecting Marketing Mix

Factors That Affect the Marketing Mix External Factors • Elements outside of the business’s control that affect the marketplace

Internal Factors • Elements within the business that can be monitored and adjusted by the organization and that affect the marketplace.

External Factors That Affect the Marketing Mix 1. 2. 3. 4. 5. 6.

Customer attitudes Economic conditions Technological advances Political forces Natural forces Competition

External Factors That Affect the Marketing Mix •

Customer attitudes o Individuals’ feelings or opinions affect everything from fashion to food, from cars to planes and may change quickly and without warning.

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Economic conditions o

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Layoffs, unemployment rates, interest rates, and cost of living affect customer spending.

Technological advances o

New technology may make a product obsolete or may help in improving product quality or productivity.

External Factors That Affect the Marketing Mix •

Political forces o May impact both business decisions and customer spending. • • •

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Government regulations National security and international relations Consumer trust of the system

Natural forces o

Natural occurrences as simple as a thunderstorm can impact sales for all different types of businesses.

External Factors That Affect the Marketing Mix  Competition - Activity among competitors may affect traffic and sales in the business. o For example: Is your biggest competitor currently implementing a customer appreciation program to motivate customers to shop exclusively at their store?

Internal Factors That Affect the Marketing Mix • Company objectives • Company policies • Financial situation

Internal Factors That Affect the Marketing Mix •

Company Objectives o o

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Exactly what does the business want to achieve? Is the goal to be the market leader or is it to maintain a level of business to assure surviving the first critical years? These very different goals will require different marketing mix decisions.

Internal Factors That Affect the Marketing Mix • Company policies o Will you offer store credit to your customers? o Will you provide paid vacation time for employees?

Internal Factors That Affect the Marketing Mix •

Financial situation o Cash flow patterns should be analyzed regularly to maintain an organization’s financial stability.

Marketing Concept • A business should strive to satisfy customers’ needs and wants while generating a profit. – Customer focused – Repeat customers = profit

Marketing Concept ill can make a

Do whatever it takes to make the customer happy and make a

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