What are Political factors affecting marketing plan?
Considering, analyzing and understanding the political factors affecting your marketing plan is very important and essential How to write a marketing plan that will get you the profit you want.
Political factors are part of the PESTEL factors that are affecting the Macro-Environmental Analysis (External Marketing Audit) of your marketing plan.
What are the political factors affecting your marketing plan?
- Protection of environment.
- Employment law.
- Health and Safety.
- Foreign Trade Agreement (FTA).
- Stability of political system.
Taxation (political factors affecting your marketing plan):
When the taxation decreases, this will lead to increase in the disposable income (gross income minus income tax on that income). When the normal individual’s disposable income increase, this will results in increasing the buying power, which means the individuals are becoming more able to buy things and facilities, so you have a good chance to make a profit from selling your product to that country (which has a good buying power).
Protection of the environment (political factors affecting your marketing plan):
- Are you going to manufacture a product which could harm the environment?
- If you are going to harm the environment in small extent, you should know that there is are tax and penalties from the government for the environmental damage you make. Also you should select the place of your factory, if your company is going to build a factory that manufacture your product, then choose a region that is close to factories environmental areas and try to be away from the main populations.
- Do you have manufacturing wastes that could harm the environment? You should consider this issue well, because there are millions of dollars could be spent on making products, developing factories which its wastes are less harmful to the environment and human health. And by the way this will get you a profit on long term and you will have a good corporate social responsibility (CSR) towards society, environmental groups, pressure groups, legal and regulatory authorities in your country.
Employment law (political factors affecting your marketing plan):
- What about the hiring and firing costs in the country that you are going to market your products in?
- Are employees in your country having instability in their job? Do they have stability with their job?
- You should know how much the normal cost that you are going to purchase to your employees (if you are going to make new companies) or your employees (are they satisfied with their salaries), what about the compensation and benefit schemes? Do you have a good compensation and benefit scheme to your employees (because the normal people of your country are stable at their job)?
Health and Safety (a political factor affecting your business environmental analysis of your marketing plan):
You should know that your product has the highest safety profile and minimum hazard on consumers’ health. Also you need to read and apply the ‘Consumer Safety Act 1974′.
Foreign Trade Agreement (FTA) (political factors affecting your marketing plan):
- The Foreign Trade Agreement (FTA) gives the companies that are from foreign countries to penetrate your country market and marketing their products there. So you should know if the Foreign Trade Agreement (FTA) applied in your country or not.
- If the no. of imported products (that comes from the foreign countries) decrease, that will help you to establish your product in the market (if your product is newly starting its business in that market).
Stability of the political systems (political factors affecting your marketing plan):
You should know and study the political stability of the country that you will market you products in. This issue affects your long term investment of your products; also it gives you indication about the duration that you should spend in marketing your products in that country.
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