Economic forces are factors such as monetary and fiscal policies, interest rate, employment, inflation rate, demographic changes, political changes, energy, security, and natural disasters. All of these have a direct effect on how businesses produce and distribute their products or services.
A number of forces over which it has little or no control affect a company’s marketing activities. Taken together, they make up its external marketing environment , which includes regulatory and political activity, economic conditions, competitive forces , changes in technology, and social and cultural influences.
Economic forces Unemployment level. Inflation rate. Fiscal policies. Government changes.
Some of the biggest economic factors that affect marketing are demand and supply. Often, the goal of a marketing campaign is to drive up demand. When demand is high, the price of a product can also be high, increasing profitability for a business. When demand is low, the price lowers too.
Economists divide the factors of production into four categories: land, labor , capital , and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services.
The factors that make up the macro – environment are economic factors, demographic forces, technological factors, natural and physical forces, political and legal forces, and social and cultural forces.
They include: Exposure to hazardous substances in the air, water, soil, and food. Natural and technological disasters. Climate change. Occupational hazards. The built environment .
The Macro Environment consists of 6 different forces. These are: Demographic, Economic , Political , Ecological, Socio-Cultural, and Technological forces. This can easily be remembered: the DESTEP model, also called DEPEST model, helps to consider the different factors of the Macro Environment .
There are three main factors that drive economic growth: Accumulation of capital stock. Increases in labor inputs, such as workers or hours worked. Technological advancement.
Economics provides a framework for understanding the actions and decisions of individuals, businesses and governments. It provides a means to understand interactions in a market-driven society and for analyzing government policies that affect the families, jobs and lives of citizens.
Examples of Economic Factors Tax Rate. Exchange Rate. Inflation. Labor. Demand/ Supply. Wages. Law and policies. Governmental Activity.
What are Five Economic Factors of Business? Supply and demand. Interest rates. Inflation. Unemployment. Foreign Exchange rates.
Factors affecting stock market Supply and demand . There are so many factors that affect the market. Company related factors. Investor sentiment. Interest rates . Politics. Current events. Natural calamities. Exchange rates.
Marketing drives a consumer economy , promoting goods and services and targeting consumers most likely to become buyers. Higher sales for a business that employs successful marketing strategies translate into expansion, job creation, higher tax revenue for governments and, eventually, overall economic growth.