Economic Factors Affecting Marketing
Economic elements are some of the factors that affect marketing negatively and positively. This is based on the fact that marketers today have learnt to make lemons out of lemonades to thrive in strong and weak economies. It is essential to note that a weak economy can be bad and good to marketers and vice versa.
Therefore, as a marketer or a person interested in marketing, it is imperative to understand how the economy can affect you or your business.
Fluctuating media that sways media buying
The media is a powerful communication tool. The newspaper industry in particular has been reeling in the past years and as such, many consumers have turned to the internet for most of the information they need. This means there is lower demand from advertisers. It also means decreased print outlets revenue. Low demand for products and services leads to job loss and in some cases, businesses end up being dissolved.
Therefore, when demand is low, there is need for marketers to keep an eye on the economy and how it fluctuates. Low demand means low consumption.
Good economic times
Good economic times also mean bad business for some establishments. In a healthy economy, many marketers andbusiness persons are forced to offer huge discounts on their products and services to make sales. For instance, fast food stores tend to thrive in a bad economy and do badly in a healthy economy. This is because consumers turn to alternatives including high end food service providers.
Speculation
Speculation is also one of the economic factors affecting marketing. According to experts in the field, it is always imperative to run a business with end in the mind. Savvy marketers will always monitor their external business environment in the process of selling their products and services. This is an essential step because it helps you to determine how the environment is going to affect the demand for products and services.
Marketing with the end in mind is essential for all marketers. In 2009 and early 2010 there was a bad economy across the globe. Travel industry was negatively affected and on the other hand, creative retailers focused more on staycation and made huge profits.
Price of commodities
The price of different products also affects marketing. Marketers can make huge profits if current rates are favorable. However, when prices of products are not favorable, marketers do not make good profits.
There are also instances where the government dictates the price of goods and services. In such a case, marketers have to stick to the prices and do not make the profits they desire.
Subsidies
Availability of subsidies affects marketing. They keep the prices of goods and services lower. This is because they provide alternatives to consumers who would have otherwise bought the needed products and services despite high prices.
Consequently, as a marketer, it is imperative to be aware of economic factors that can easily affect your business. By understanding the effects, it becomes easy to take appropriate measures that will allow for reasonable profits in weak and strong economies.
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