External influences on marketing The role of marketing External influences on marketing © Pearson Education Ltd 2017. Copying permitted for purchasing institution only.

External influences on marketing activity Several factors that are external to the business also need to be considered when deciding what marketing activity to undertake: Political factors such as government cuts/spending Economic factors such as a rise in VAT Social factors such as demographics Technological factors such as social media use Environmental factors such as a 5p charge for plastic bags Legal factors such as Consumer Protection (Distance selling) regulations. Research One Water. Discuss how the business used environmental issues to its advantage and managed to find a gap in the market. Political: A cut in government spending to schools has meant school budgets are cut. This could have a big impact on a business that sells its goods/services to schools. Lots of primary schools nowadays outsource the teaching of PE and employ specialist companies to teach their sports lessons. If primary school budgets are cut, they may not be able to afford this specialist teaching and this would then affect the specialist sport company as they would not be making as many sales. This would mean they would have to increase their marketing to other businesses such as private nurseries or develop different services. Economic: If VAT was to rise, this would make prices of most goods more expensive. This would be likely to affect the amount of goods that people can buy. This affects the marketing activities of businesses as they may decide not to bring out new products as people are spending less, or decide to change the prices of their products to increase sales. Social: The characteristics of the human population are called demographics. Knowledge of these helps marketing departments to know what products to offer. For example, the increase in migrant populations in the UK has meant that supermarkets are continually looking to offer an increased range of foodstuffs from different countries to meet this demand. Technological: Changes in technology present opportunities and threats to a business. They can impact the manufacturing of products, meaning higher economies of scale or higher-quality goods. 3D printing, for example, has meant that some products have become cheaper and produced quicker to meet demand. Technology has also changed the way that businesses promote their goods, with the use of social media. Environmental: Environmental factors can lead to changes in social trends and opinions and to new legislation being passed, for example the 5p plastic bag tax. This has, for example, had an effect on the way businesses package their goods. Some businesses have opted to offer customers free-of-charge paper bags, while others have not. Legal: Businesses are often constrained by laws and regulations governing how they market their products, for example by the ASA (Advertising Standards Authority) or the Data Protection Act, which impacts how they conduct market research. Note: Ethical is covered on the following slide. © Pearson Education Ltd 2017. Copying permitted for purchasing institution only.

External influences on marketing activity Political: A cut in government spending to schools has meant school budgets are cut. This could have a big impact on a business that sells its goods/services to schools. Lots of primary schools nowadays outsource the teaching of PE and employ specialist companies to teach their sports lessons. If primary school budgets are cut, they may not be able to afford this specialist teaching and this would then affect the specialist sport company as they would not be making as many sales. This would mean they would have to increase their marketing to other businesses such as private nurseries or develop different services. Political: A cut in government spending to schools has meant school budgets are cut. This could have a big impact on a business that sells its goods/services to schools. Lots of primary schools nowadays outsource the teaching of PE and employ specialist companies to teach their sports lessons. If primary school budgets are cut, they may not be able to afford this specialist teaching and this would then affect the specialist sport company as they would not be making as many sales. This would mean they would have to increase their marketing to other businesses such as private nurseries or develop different services. Economic: If VAT was to rise, this would make prices of most goods more expensive. This would be likely to affect the amount of goods that people can buy. This affects the marketing activities of businesses as they may decide not to bring out new products as people are spending less, or decide to change the prices of their products to increase sales. Social: The characteristics of the human population are called demographics. Knowledge of these helps marketing departments to know what products to offer. For example, the increase in migrant populations in the UK has meant that supermarkets are continually looking to offer an increased range of foodstuffs from different countries to meet this demand. Technological: Changes in technology present opportunities and threats to a business. They can impact the manufacturing of products, meaning higher economies of scale or higher-quality goods. 3D printing, for example, has meant that some products have become cheaper and produced quicker to meet demand. Technology has also changed the way that businesses promote their goods, with the use of social media. Environmental: Environmental factors can lead to changes in social trends and opinions and to new legislation being passed, for example the 5p plastic bag tax. This has, for example, had an effect on the way businesses package their goods. Some businesses have opted to offer customers free-of-charge paper bags, while others have not. Legal: Businesses are often constrained by laws and regulations governing how they market their products, for example by the ASA (Advertising Standards Authority) or the Data Protection Act, which impacts how they conduct market research. Note: Ethical is covered on the following slide. © Pearson Education Ltd 2017. Copying permitted for purchasing institution only.

External influences on marketing activity Economic: If VAT was to rise, this would make prices of most goods more expensive. This would be likely to affect the amount of goods that people can buy. This affects the marketing activities of businesses as they may decide not to bring out new products as people are spending less, or decide to change the prices of their products to increase sales. Political: A cut in government spending to schools has meant school budgets are cut. This could have a big impact on a business that sells its goods/services to schools. Lots of primary schools nowadays outsource the teaching of PE and employ specialist companies to teach their sports lessons. If primary school budgets are cut, they may not be able to afford this specialist teaching and this would then affect the specialist sport company as they would not be making as many sales. This would mean they would have to increase their marketing to other businesses such as private nurseries or develop different services. Economic: If VAT was to rise, this would make prices of most goods more expensive. This would be likely to affect the amount of goods that people can buy. This affects the marketing activities of businesses as they may decide not to bring out new products as people are spending less, or decide to change the prices of their products to increase sales. Social: The characteristics of the human population are called demographics. Knowledge of these helps marketing departments to know what products to offer. For example, the increase in migrant populations in the UK has meant that supermarkets are continually looking to offer an increased range of foodstuffs from different countries to meet this demand. Technological: Changes in technology present opportunities and threats to a business. They can impact the manufacturing of products, meaning higher economies of scale or higher-quality goods. 3D printing, for example, has meant that some products have become cheaper and produced quicker to meet demand. Technology has also changed the way that businesses promote their goods, with the use of social media. Environmental: Environmental factors can lead to changes in social trends and opinions and to new legislation being passed, for example the 5p plastic bag tax. This has, for example, had an effect on the way businesses package their goods. Some businesses have opted to offer customers free-of-charge paper bags, while others have not. Legal: Businesses are often constrained by laws and regulations governing how they market their products, for example by the ASA (Advertising Standards Authority) or the Data Protection Act, which impacts how they conduct market research. Note: Ethical is covered on the following slide. © Pearson Education Ltd 2017. Copying permitted for purchasing institution only.

External influences on marketing activity Social: The characteristics of the human population are called demographics. Knowledge of these helps marketing departments to know what products to offer. For example, the increase in migrant populations in the UK has meant that supermarkets are continually looking to offer an increased range of foodstuffs from different countries to meet this demand. Political: A cut in government spending to schools has meant school budgets are cut. This could have a big impact on a business that sells its goods/services to schools. Lots of primary schools nowadays outsource the teaching of PE and employ specialist companies to teach their sports lessons. If primary school budgets are cut, they may not be able to afford this specialist teaching and this would then affect the specialist sport company as they would not be making as many sales. This would mean they would have to increase their marketing to other businesses such as private nurseries or develop different services. Economic: If VAT was to rise, this would make prices of most goods more expensive. This would be likely to affect the amount of goods that people can buy. This affects the marketing activities of businesses as they may decide not to bring out new products as people are spending less, or decide to change the prices of their products to increase sales. Social: The characteristics of the human population are called demographics. Knowledge of these helps marketing departments to know what products to offer. For example, the increase in migrant populations in the UK has meant that supermarkets are continually looking to offer an increased range of foodstuffs from different countries to meet this demand. Technological: Changes in technology present opportunities and threats to a business. They can impact the manufacturing of products, meaning higher economies of scale or higher-quality goods. 3D printing, for example, has meant that some products have become cheaper and produced quicker to meet demand. Technology has also changed the way that businesses promote their goods, with the use of social media. Environmental: Environmental factors can lead to changes in social trends and opinions and to new legislation being passed, for example the 5p plastic bag tax. This has, for example, had an effect on the way businesses package their goods. Some businesses have opted to offer customers free-of-charge paper bags, while others have not. Legal: Businesses are often constrained by laws and regulations governing how they market their products, for example by the ASA (Advertising Standards Authority) or the Data Protection Act, which impacts how they conduct market research. Note: Ethical is covered on the following slide. © Pearson Education Ltd 2017. Copying permitted for purchasing institution only.

External influences on marketing activity Technological: Changes in technology present opportunities and threats to a business. They can impact the manufacturing of products, meaning higher economies of scale or higher-quality goods. 3D printing, for example, has meant that some products have become cheaper and produced quicker to meet demand. Technology has also changed the way that businesses promote their goods, with the use of social media. Political: A cut in government spending to schools has meant school budgets are cut. This could have a big impact on a business that sells its goods/services to schools. Lots of primary schools nowadays outsource the teaching of PE and employ specialist companies to teach their sports lessons. If primary school budgets are cut, they may not be able to afford this specialist teaching and this would then affect the specialist sport company as they would not be making as many sales. This would mean they would have to increase their marketing to other businesses such as private nurseries or develop different services. Economic: If VAT was to rise, this would make prices of most goods more expensive. This would be likely to affect the amount of goods that people can buy. This affects the marketing activities of businesses as they may decide not to bring out new products as people are spending less, or decide to change the prices of their products to increase sales. Social: The characteristics of the human population are called demographics. Knowledge of these helps marketing departments to know what products to offer. For example, the increase in migrant populations in the UK has meant that supermarkets are continually looking to offer an increased range of foodstuffs from different countries to meet this demand. Technological: Changes in technology present opportunities and threats to a business. They can impact the manufacturing of products, meaning higher economies of scale or higher-quality goods. 3D printing, for example, has meant that some products have become cheaper and produced quicker to meet demand. Technology has also changed the way that businesses promote their goods, with the use of social media. Environmental: Environmental factors can lead to changes in social trends and opinions and to new legislation being passed, for example the 5p plastic bag tax. This has, for example, had an effect on the way businesses package their goods. Some businesses have opted to offer customers free-of-charge paper bags, while others have not. Legal: Businesses are often constrained by laws and regulations governing how they market their products, for example by the ASA (Advertising Standards Authority) or the Data Protection Act, which impacts how they conduct market research. Note: Ethical is covered on the following slide. © Pearson Education Ltd 2017. Copying permitted for purchasing institution only.

External influences on marketing activity Environmental: Environmental factors can lead to changes in social trends and opinions and to new legislation being passed, for example the 5p plastic bag tax. This has, for example, had an effect on the way businesses package their goods. Some businesses have opted to offer customers free-of-charge paper bags, while others have not.

External influences on marketing activity Legal: Businesses are often constrained by laws and regulations governing how they market their products, for example by the ASA (Advertising Standards Authority) or the Data Protection Act, which impacts how they conduct market research.