Environmental Factors

Tastes and Trends

To be successful, a marketing plan should focus on consumer preferences and current market trends. For example, many large retailers have decided to adapt to consumers' increasing enthusiasm for social media by establishing corporate Twitter accounts and opening online storefronts in Facebook. Consumers no longer need to visit a retailer's main website to buy; some platforms allow them to make the purchase without ever leaving Facebook. Companies that fail to take major trends into account may find their sales lagging behind competitors'.

Budget and Economy

Your budget plainly has a role in your marketing decisions. It dictates how much advertising you buy and where you can afford to place it. The overall economy also has a massive influence on your marketing decisions. If you're marketing in a down economy, your consumers won't be willing to pay a premium for your product, and your advertising should probably point out that the product saves your customers money, costs less than your competitor's product, or lasts a long time and is therefore a good value. In a strong economy, your strategy probably will change. You'll be able to charge more, and your ad message may stress the pleasure or convenience your product offers your customers.

Competitors

Prudent marketing decisions must factor in competitors -- how many you have and how good they are at what they do will affect your marketing plans. If, for example, your competitors are able to offer their product for a much lower price than yours, your marketing strategy must stress the fact that your product is of a higher quality, that your warranty is better, or that your product lasts longer. If you have few or no local competitors, you're free to expand into new markets. You may choose to broadcast your ad on a Spanish-language television station, for example.

Legal and Political

Changes in the political and legal environment can restrict or even end certain marketing activities. The...