External influences on marketing objectives

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External influences on marketing objectives

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Competitors' actions

  • Actions of competitor businesses may well affect the marketing objectives of a business.
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Technological change

  • Operating in markets characterised by fast-changing technologies are likely to set themselves ambitious marketing objectives possibly with large increases in sales volume
  • Due to such markets are often relatively open with new businesses able to gain large slices of market share quickly
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Market factors

  • Degree of competition faced by a business.
  • Mature market with little or no room for new entrants, businesses are likely to set modest marketing objectives given that they are cinstrained by the intensity of competition and the relatively few opportunities to grow significantly.
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PESTLE ANALYSIS

  • POLITICAL FACTORS
  • ECONOMIC FACTORS
  • SOCIAL FACTORS
  • TECHNOLOGICAL FACTORS
  • LEGAL FACTORS
  • ENVIRONMENTAL FACTORS
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POLITICAL FACTORS

  • Include political pressure from bodies that can exert political pressure
  • Such as government, agencies or at local level, such as town councils
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ECONOMIC FACTORS

  • Increasing in consumer spending, falls in interest rates and low inflation can all improve the chances of a business increasing its sales and profit.
  • An increase in the number of new businesses may reduce the market share of a company that is dominant
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SOCIAL FACTORS

  • Changes in tastes can affect spending by consumers.
  • Fashionable products can often increase sales rapidly
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TECHNOLOGICAL FACTORS

  • New products may be created as technology develops
  • The internet has also helped to increase consumer awareness of products
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LEGAL FACTORS

  • Include legislation from government
  • Example laws might restrict the typ of advertising used for a product in an attempt to differentiate it from those of rivals.
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ENVIRONMENTAL FACTORS

  • Can often influence the type of product that a business produces, such as the development of businesses selling managed wood as an alternative to other wood or plastic products.
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