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E4: identify and explain the external influences affecting the development of the marketing strategy:

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Introduction

E4: identify and explain the external influences affecting the development of the marketing strategy: Pest (political, economic, social, technological) Analysis POLITCAL: This is concerned how political developments, regionally, nationally, and internationally might effect my product. It might include a consideration of legislation, such as consumer laws, regulation, such as control of water companies, political pressures and the government's view of certain activities. All these policies are set up by the government which can have a major impact on the operation of my product. The ingredients of my product must be stated outside the bottle (wrapper) which will be telling consumers exactly what ingredients does my product contain. Also if lets say the bottle contains 380 ml of drink, it than must have exactly the exact amount of drink inside the bottle, as the weights and measures acts 1963 and 1985 states- "Legislation making it illegal to sell goods below their stated weight or volume, together with enforcement procedure through trading standards officers and the office of fair trading" As I will be employing workers in my business, I need to make sure that all employees are getting the best minimum wage of �4.50 ph. ...read more.

Middle

The level of consumer demand is a key variable affecting the quantity of sales and the price at which output can be sold. Interest rates will determine the cost of finance to the company. Final profits will be taxed by the government. The economic cycle of recession and recovery is an important influence on the opportunities and threats to the organisation. UK's employment status: The relationship between unemployment and demand for my product is essential to note when considering a marketing strategy. If the unemployment rate is high, people have less disposable income. Seeing that my product is not a luxury good, it might not be greatly affected. People will drink fizzy drinks to satisfy their needs; therefore, my product tends to be income inelastic. The only affect it could have on my product is the fact that customers could switch to cheaper brands. If the unemployment rate is low, it means more people are in employment, resulting to greater expenditure levels. If unemployment rate rises, I will have to base my marketing strategy on other features like flavours, taste and etc may be these points could help motivate my consumers to purchase my product The strength of pound: Inflation: Inflation is a continuous persistent rise in the general price level and is usually measured by retail price index. ...read more.

Conclusion

Also the Fizzy drinks can affect children's behaviour; scientists have confirmed. By drinking a lot of fizzy drink can affect the concentration of individuals and can have big impact on the children's brains. All these changes in the society can affect my product dramatically. There is also lots of crime happening in Nottinghamshire. The guns used have increased lately by 30%, taking the position of Nottinghamshire to a very bad state. Over many years Nottinghamshire have remained the second most criminal place in UK. This means that heavy security have to be provided to protect the business from burglars. TECHNOLOGICAL: Changes in technology can affect my product market planning in variety of ways. As I said that I will be producing my product in choice of consumers. This can be very costly due to quality and doing promotion to increase the awareness of the product. This probably can lead to greater obsolescence and shorter product life cycles. Another external influence which can affect my product is that parents have stated in BBC New's network that wending machines which sell fizzy drinks should be closed down due to the high level carbonate which damage teeth's and as well as increase the weight of individuals. This will make the merchandising of my products more difficult. ...read more.

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