A successful Marketer considers many different factors when determining which strategy would be most effective for the product or service that they are attempting to promote.
Some factors exist internally and require an audit of the inner-workings of the company to identify and strengths and weaknesses. These factors include personal and their level of training and education as well as resources like financial funds, materials and overall capabilities. However, the factors that are arguably more important are those that exist outside of the organization. These are factors that the company itself has no control over but need to be aware of so that they are able to react and handle them effectively. These are environmental factors and they include competitors, suppliers and buyers, the economy and society.
When a new idea/product/service enters a market and is successful, it leads to many other companies attempting to capitalize on it’s success and create something similar. New entrants (competitors) that could potentially enter the marketplace or that may already exist needs to be a forethought in a Marketer’s mind. These competitors and the substitute products that they may introduce could have a strong impact on the effectiveness of a companies campaign and marketing strategy.
The bargaining power of suppliers and buyers is another external factor that should be considered. It is most advantageous to use many different suppliers so that you aren’t forced into a position of paying higher prices because you have no other option. Making sure suppliers are rightfully compensated and respected can keep them in a company’s favor and ensure a profitable relationship. Also, buyers have a strong amount of power in the success of a business. If they decide to purchase products/services that they think are better or are less expensive, that could significantly affect another company’s profitability.
The economy also plays an important role in the success of a marketing strategy. Rise in prices and inflation cause people to spend less money, affecting businesses in every marketplace. Unemployment and lack of jobs also causes people to spend less money but if a marketing strategy for a new product/service can create jobs, this can be a way to react effectively to these factors and turn it into a strength. Interest rates, growth and/or recession are additional economic external factors marketers should consider. Factors in society such as cultural movements, trends and attitudes can affect what consumers choose to buy. Marketers should consider demographics, age groups, the different income brackets and marital status when conducting research for the most effective marketing strategy.