Environmental forces are the forces that can impact organizations and occur in the external environment. These forces include politics, climate, the income of the customers, and technological changes. One can analyze these environmental forces through distinguished techniques; PEST analysis is one of the most common techniques to impact the business in certain ways. Environmental forces impact the organizations in the worst manner and appear as a threat. It is impossible for the firms to always track the environmental forces, although they can control them through appropriate strategies. Although the environmental forces are not controlled by the firms and can influence the firmâ€™s marketing activities, these forces in marketing can be identified as cultural influence, competitive forces, political activities of the nation, regulations, technology, social influences, and economic changes. These forces require the firms to adapt suitable marketing strategies to overcome the challenges and somehow control the outputs attained by the organizations. Strategic responses are needed for the business to respond to the environmental forces. However, it is important first to predict the changes that can occur in the business environment. It defines the long-term strategies of the firm based on certain situations. Usually, organizations focus on future opportunities and try to minimize the environmental risks by eliminating specific forces. However, these strategies can vary from one person to another.
Some common environmental forces are economic, competitive, political, social, and technological, as seen in the marketing environment. It can also influence consumer behavior and requires different strategies to overcome threats. Key environmental forces of the marketing environment are as follows:
Economic environment: The marketing managers can face changing market situations with economic changes. It is based on the economic news that requires alternate plans preparation by the marketing managers. Improvement in the economy can boost up the confidence of customers which helps increase the firmâ€™s sales.
Competitive environment: Competitive firms also play an important role for the firm and it is important for the firms to manage the competitive forces accordingly. Such as firms that are competing in the marketplace require to opt for a specific price strategy to maintain competition. It neither opt for a higher price nor for a lower price for similar products.
Political environment: The governmentâ€™s restrictions can impact the firms, such as particular bans on specific products. Local bodies, states, and federal governments issue specific rules and regulations for advertising, such as the tobacco industry can face numerous restrictions for advertisement.
Social environment: The firms must maintain effective social and cultural relations. Organizations promote diverse work cultures, but sometimes it can impact the firmâ€™s internal work environment including the customers.
Technological environment: Technology is changing with time. Thus, it is important for the firms to continually focus on research and development to adapt to the changes quickly and target a greater audience.
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