There are two sides of the market as the market has to understand and work with. These two factors are controllable factors which are known as the four Ps of marketing; price, promotion, place, product, and uncontrollable factors, social, economic, technological, regulatory, and competitive. The establishment has complete control of the controllable factors, however, what happens when a company is faced with uncontrollable factors
5 Environmental Forces
Examples of these factors would be; consumers changing needs and wants (social), changes in technology (technology), the government set new rules (rules), the economy (economic), and competitors enter the market (competition). Sales Manager has two options, working with or against these factors. A company’s success depends on how efficiently they deal with these issues when they occur.
For example, we know that the house phones are becoming extinct because mobile (technology) so that companies that offer home care to make changes or stop selling services. Changing the marketing mix (four P) is usually how most organizations adapt to this new change. Now we can get the house phone for $ 9.99 per month (prices) than most cell phone plans start at around 40 dollars a month. The home service adjusted to changes in technology (uncontrollable factors) by changing one of the (controllable factor) four P. They understand that change in technology is something they have no control and there was nothing they could do to stop the change from occurring. This is where planning and forecasting are huge in marketing.
However, planning and forecasting are only one part of a rule when it comes to turning these factors we have discussed in this article. The Internet has become a great resource for people to find what they are looking for. However, it also changed the way we do business and by understanding these environmental forces and get more on how you use the web, you will be far ahead of the curve when making the necessary changes to ensure your business remains good.