What are the business factors affecting your marketing plan?
There are 4 business factors affecting internal business environment in marketing plan; managerial factors, competitive factors, financial factors and technical factors.
Before you read this article, you need to understand what are the internal environmental factors in marketing plan?
Ease of exit (business factors affecting your marketing plan):
If any company is going to lose its main capital and profits, they should know if they are going to continue in that market or they would be withdrawing themselves from this market. So if they will withdraw their products, they should do it with the least possible loses = Ease of exit.
Liquidity (business factors affecting your marketing plan):
To start your own project, or to conduct your integrated marketing communications; marketing campaigns, advertising…etc you should know that you need a liquidity of Money (Cash Flow) to conduct your business.
Degree of financial leverage (business factors affecting your marketing plan):
Is the company having a strong financial resources? Are they starting or continuing their business based on high leverage of financial resources?
Ability to compete on price (business factors affecting your marketing plan):
Some companies are considering the price issue; Hence (Cost Leadership marketing strategy) is their competitive advantage (advantage that make them unique in the marketplace) like a good quality and low price or affordable price (for the economic level of the consumers). So if your product is going to compete on price, you should price your product in a way that makes it competitive (not low, not high).
Elasticity of Price (business factors affecting your marketing plan):
Elasticity of price is one of the price determinants which are determining and affecting your pricing strategies.
- When your products’ competitors lowered their price, you should take strategy that determines if you are going to lower your price or not. Also you should know if their new price could affect your business or not (because may be you are competing by other factors rather than price e.g. high quality, while your competitors are competing by price).
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