1. Factors That Affect the Marketing Mix External Factors Elements outside of the business’s control that affect the marketplace Internal Factors Elements within the business that can be monitored and adjusted by the organization and that affect the marketplace.

2. External Factors That Affect the Marketing Mix 1.Customer attitudes 2.Economic conditions 3.Technological advances 4.Political forces 5.Natural forces 6.Competition

3. External Factors That Affect the Marketing Mix Customer attitudes oIndividuals’ feelings or opinions affect everything from fashion to food, from cars to planes and may change quickly and without warning. Economic conditions oLayoffs, unemployment rates, interest rates, and cost of living affect customer spending. Technological advances oNew technology may make a product obsolete or may help in improving product quality or productivity.

4. External Factors That Affect the Marketing Mix Political forces oMay impact both business decisions and customer spending. Government regulations National security and international relations Consumer trust of the system Natural forces oNatural occurrences as simple as a thunderstorm can impact sales for all different types of businesses.

5. External Factors That Affect the Marketing Mix  Competition - Activity among competitors may affect traffic and sales in the business. oFor example: Is your biggest competitor currently implementing a customer appreciation program to motivate customers to shop exclusively at their store?

6. Internal Factors That Affect the Marketing Mix Company objectives Company policies Financial situation

7. Internal Factors That Affect the Marketing Mix Company Objectives oExactly what does the business want to achieve? oIs the goal to be the market leader or is it to maintain a level of business to assure surviving the first critical years? oThese very different goals will require different marketing mix decisions.

8. Internal Factors That Affect the Marketing Mix Company policies oWill you offer store credit to your customers? oWill you provide paid vacation time for employees?

9. Internal Factors That Affect the Marketing Mix Financial situation oCash flow patterns should be analyzed regularly to maintain an organization’s financial stability.

10. Marketing Concept A business should strive to satisfy customers’ needs and wants while generating a profit. –Customer focused –Repeat customers = profit

11. Marketing Concept Do whatever it takes to make the customer happy and make a ill can make a Do whatever it takes to make the customer happy and make aPROFIT