What are the economic factors affecting your marketing plan?

What are the economic factors affecting your marketing plan?

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What are the economic factors affecting your marketing plan?

Economic factors are part of the PESTEL, that are affecting the Macro-Environmental Analysis (External Marketing Audit) of your Marketing Plan.

What are the economic factors affecting your marketing plan?

  1. Inflation Rate.
  2. Interest Rate.
  3. Income levels.
  4. Resources of country.
  5. GNP (Growth National Product)/GDP (Growth Domestic Product).
  6. Employment Level.
  7. Exchange Rate – Currency Valuation.
  8. Consumer Spending Pattern.

Inflation Rate (economic factors affecting your marketing plan):

  • The inflation rate is affecting the Purchasing Power in each country, which affects the ability of the consumers to buy, that affecting your chance of making profit and hinder any new entrants in the market.
  • When the inflation rate increase, the purchasing power decrease, and the disposable income decrease then chance of making profits of your product decreases.
  • The following picture indicates you with the inflation rates around the world.

Interest Rate (economic factors affecting your marketing plan):

Increasing the interest rate will be decrease the purchasing power of the consumers, which affect their ability to buy your products.

Income levels (economic factors affecting your marketing plan):

The income levels of the country you are going to market your product in, is determine the pricing strategy of your products or services. This will indicate if the people in that country are being able to purchase your products or not.

Resources of your country (economic factors affecting your marketing plan):

Increasing country resources are affecting organizations and companies to release new product, also this is telling you which are the industries that you need to invest your money in.

GNP (Growth National Product)/GDP (Growth Domestic Product) (economic factors affecting your marketing plan):

Gross domestic product (GDP) is defined as the “value of all final goods and services produced in a country in one year”. On the other hand, gross national product (GNP) is defined as the “value of all (final) goods and services produced in a country in one year, plus income earned by its citizens abroad, minus income earned by foreigners in the country”

Any business model passes by the previous four stages:

     So also the GDP of any country should pass by all of the four stages, as the following graph:

Employment Level (economic factors affecting your marketing plan):

Exchange Rate – Currency Valuation (economic factors affecting your marketing plan):

Consumer Spending Pattern (economic factors affecting your marketing plan):

All of the previous eight factors could be determined perfectly in your county if you check the following website:

https://www.cia.gov/library

Check the C.I.A. World Factbook which provides you with clear data about all factors you need to know about your country.

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