Unpacking the 3 External Influences on Business Marketing Objectives
Marketing objectives are the goals that businesses set to achieve through their marketing efforts. While marketing objectives can vary widely across businesses and industries, they are all influenced by three external factors: economy, competition, and technology.
Economy
The state of the economy is one of the most critical external factors influencing a business’s marketing objectives. In economic boom times, businesses may set more aggressive marketing objectives, such as increasing market share or launching new products. However, in a downturn, businesses may need to focus on cost-cutting and maintaining their existing customer base.
For instance, let’s take the example of a company that sells luxury goods. During a strong economy, the company may set an ambitious marketing objective of expanding their market share to new geographic regions. However, during an economic downturn, the company may need to focus on retaining its existing customers and offering discounts to keep them engaged.
Competition
The level of competition in a particular industry can significantly impact the marketing objectives of a business. In industries with high competition, businesses may need to set more aggressive marketing objectives to stay relevant and capture market share. On the other hand, in industries with less competition, businesses may be able to set more modest marketing objectives.
For example, let’s consider the food delivery industry with high competition. A new player in the industry may need to set ambitious marketing objectives, such as dominating a specific geographic region or offering unique dishes, to attract customers and remain competitive. Conversely, a company that operates in an industry with less competition may need to set more modest marketing objectives, such as maintaining a loyal customer base and keeping up with industry trends.
Technology
The rapid advancement of technology is another essential external factor that significantly influences marketing objectives. The emergence of new technology often changes customer behavior and expectations, which can lead to the need for new marketing objectives.
For instance, the rise of e-commerce has dramatically impacted traditional brick-and-mortar retailers, forcing them to adapt their marketing objectives to cater to their online customers. An example of this is offering online discounts or launching an e-commerce platform.
Conclusion
In conclusion, understanding the effect of external factors on a company’s marketing objectives is critical to setting realistic and achievable goals. By considering the three critical external factors of economy, competition, and technology, businesses can remain agile and adjust their marketing objectives based on the changing market trends and customer behavior.
