Premium Essay

How Economy Affect the Marking Mix

In: Business and Management

Submitted By juck1
Words 622
Pages 3
How the economy affect the marketing mix. Chan Nang Hin, Economic forces include factors that affect how much money individuals, their willingness to spend and businesses can spend and how they choose to spend it, such as income, prices, levels of saving, inflation rate, unemployment rate, levels of debt, availability of credit and distribution of income.

These factors have a great impact on potential customers, partners and the company itself. And rarely, yet recently, economic crises. A crisis represents “a low probability, high impact situation that is perceived by critical stakeholders to threaten the viability of the organisation” (Peason and Clair 1998, p.66). The devastating effect of crises, may result in destroying businesses, some being suppliers and partners of other companies, it could start a chain reaction of dependent firms closing down. This potential threat makes it vital for managers to understand, prevent and minimize the potential threat of such economic issues.

The marketing department may seem to have little to do with preventing damage of economic crisis but, in fact, there's plenty of strategies that may help.
For example, the marketer's choice of target market can be customized to target customers with inelastic demand fluctuations. People with high saving, high income and wealth. These people are less likely to be affected by the economic environment.
The choice to produce products with less elastic demand changes, for example, clothes, food, everyday needs can ensure the company's safety and income during economic downturns.
Promotion, will primarily be based on which target market is targeted, partners and suppliers are also attracted by these advertisements, so choosing the promote the right messages may attract the more financially prepared suppliers and therefore, minimizing the threat of suppliers closing down in…...

Similar Documents

Free Essay

How the U.S Economy Affects International Countries

...Paul Woods PSC 485 Dr. Edward Kwon 4-14-11 How the U.S Economy affects International Countries The United States of America has the most expansive economic system that out rivals any other country when compared to the U.S. The thought that if the United State’s financial system were to crumble would have a devastating effect for not only the United States but that of every other country in the northern as well as the southern hemisphere. It’s no surprise that the United States is one of the biggest exporter/importers in the world, but when the biggest country suffers economic turmoil, how does it affect the entire international community? The first question that I want to bring to the surface is what kind of impact does the Federal Reserve Bank have upon the United States economy and what exactly do their powers entail? In order to find out why our economy is in the shape it’s in, we must go straight to the source and find out what they are able to do as well as what must be done to keep our economy afloat. The second research question that I want to address covers the economic crisis that occurred in 2008-09, when Wall Street crashed, making it the second worst financial crisis since the Great Depression in 1929. We will deeper and examine the government bailouts and how it affected the GDP of domestic industry and on the international scale. Finally, our third question will be how we can focus our attempts to avoid instances like this in the future. We will......

Words: 2492 - Pages: 10

Premium Essay

Short Critical Essay Explaining How the Poor Economic Climate in the Uk Might Affect the Marketing Mix of a Start-Up Retail Venture in the High Street.

...Write a short critical essay explaining how the poor economic climate in the UK might affect the marketing mix of a start-up retail venture in the high street. I will look critically at setting up a retail business on the high street in the current economic climate and the affect this may have on the marketing mix. I will first give a brief overview of the economic situation in the UK and high street retail in general. The UK economy has undergone a protracted period of instability since the banking crisis of 2007/08, which sparked economic downturn for the UK and caused a dramatic fall in both consumer and business confidence. Between 2008 and 2012, the UK experienced two periods of recession and has been subject to austerity measures, such as public spending cuts, welfare reforms and increased taxation, imposed by the UK Government in an attempt to reduce the country’s budget deficit and reverse economic decline. These measures coupled with high inflation, rising levels of unemployment and low wage growth have contributed to less disposable household income and subsequently lower consumer spending across most of the UK. The economic constraints of the last five years, such as falling consumer spending, increasing operating costs for businesses (20% rise since 2006) alongside less available, affordable borrowing to businesses have led to large numbers of high street retailers closing their doors. The Centre for Retail Research (2013) reported that 54 retail......

Words: 1967 - Pages: 8

Premium Essay

How Business Affects the Economy

...How Business Affects the Economy In most countries, business is the primary section of its economy. Businesses are what drive an economy up or down. A key component of how well businesses help the economy are the entrepreneurs. These brave risk takers put it all out on the line: time, money, and other resources in hopes to start a business and make a living. As they make money, they spend it helping other businesses blossom. This creates a prosperous cycle for all involved. Since these businesses flourish, this creates the needs to jobs for those who need them. All in all, the standard of living increases across a wide span area, as well as the quality of life due to many families now being able to provide for themselves. But businesses also contribute to social awareness by advocating for the well-being of its members. For-profit and nonprofit organizations are similar as they are different. It is true that they both can make a profit. But the key difference is how those profits are used. For-profit organizations are generally are out make a profit and distribute profits between owners, employees, shareholders and the business itself. But nonprofit organizations use all their profits for programs and services aimed at meeting peoples unmet or under-met needs, such as food, water, shelter and education. Nonprofit organizations are more concerned with providing a service or goods that help with environmental or human needs. Most nonprofit organizations are......

Words: 1046 - Pages: 5

Premium Essay

How Television Affects Children

...How Television Affects Children COM/156 October 28, 2012 How Television Affects Children Did you know that a study that was reported by the American Academy of Pediatrics discovered that there is more violence in children’s programming than any other programming?(Adams, 2010) Today’s children are influenced by what they see and hear on television whether they are watching a cartoon or an educational program. While some television shows are educational, television can have a more serious effect on a child, like disruptive behavior and obesity. At times, television may seem like a good idea. Many people use it for a source of entertainment, especially in children. There are some positive effects that result from a child watching television. Today, children have the opportunity to watch shows like Dora, Barney, Blue’s Clues, and Sesame Street. I remember when I was a child watching shows like Sesame Street and Mister Roger’s Neighborhood. Educational shows should contain information that can teach a child about letters, which can improve a child’s vocabulary. Other shows can teach children about shapes, manners, feelings, and even a foreign language. Some television programming can even allow children to explore their imagination and creativity, giving them the opportunity to travel around the world and learn new cultures. Shows which are on the Discovery or History channel and even the National Geographic channel are a good source for educational programming. These......

Words: 1506 - Pages: 7

Premium Essay

How Smartphones Affect Relationships

...Technology: How Smartphones and Social Networking Have Changed Our Parental Relationships Audience and Accommodation: My audience is going to be the parents. I am targeting them so they know that in order to keep up with their children who have gone off to college, they understand how powerful smartphones are, how we use them to communicate with them, and how there may be better ways to stay in touch. Hook: My hook is going to be a personal reflection on how I stay in communication with my parents with my smartphone. (Ms. Griffiths told me to do this) Stable Context: This is where I talk about smartphones, and then give background on how relationships are formed and maintained throughout what I will later describe as emerging adulthood with parents. Destabilizing Condition: With the rise in technology, smartphones, and social networking sites, I don’t think that some forms of technology, in particular social networking sites, are the best way to stay in touch. Main Claim: My main claim is that the relationship between the emerging adult and the parent should not be solely based on technology. If the parent doesn’t have social networking site profiles, then they need to adjust to what the emerging adult wants to communicate by in order to maintain a stable relationship. Significance: With so many different forms of communication now, not all are beneficial to the emerging adult. Relationships that are formed and maintained online are not the......

Words: 1304 - Pages: 6

Premium Essay

Discuss How Rising Oil Price Might Affect the Macroeconomic Performance of an Economy (25 Marks)

...Discuss how rising oil price might affect the macroeconomic performance of an economy (25 marks) In economies, oil is a highly desired resource that plays a key role in the production of goods and services and in the provision of energy, meaning that even small fluctuations in its price can lead to supply side shocks for nations as well as lower demand for imports as a component of aggregate demand. A supply side shock is a shock that will shift the Aggregate supply curve and in the case of oil will be a negative shock because it will increase costs for an economy, as they are dependent on it. Oil is, for a large number of products and services, fundamental to their production, be it in the manufacturing of the good itself or the energy needed to perform tasks in transportation, heating storage etc This therefore follows that oil is a major cost of production for goods and on a macro level effects Aggregate supply shifting it to the left. In indicated by the shift from AS1 to AS2 in the graph. The magnitude of the shift will be dependent on any stabilisers the economy has in place to dampen the effect of the shock such as fast acting fiscal responses, like reducing the tax on oil but it is undoubtedly true that these will not cushion the shock completely. A shift in, AS will have two important effects: an increase in inflation due to the new raised price level and an increase in unemployment. It could have been argued that in the short run, the economy would hold true...

Words: 1341 - Pages: 6

Premium Essay

Discuss How Rising Oil Prices Might Affect the Macroeconomic Performance of an Economy

...Discuss how rising oil prices might affect the macroeconomic performance of an economy. (25 marks) There are four main macroeconomic objectives of the government it wishes to achieve in order to maximise the welfare of the society, they are: low and stable inflation, a favourable current account position on the balance of payments, low unemployment and sustained economic growth. One macroeconomic objective that might be affected by rising oil prices is the current account of the balance of payments. The current account is a record of the trade in goods and services, income flows, and current transfer. The balance of payments is a record of the financial transactions over a period of time between a country and its trading partners. With oil prices rising, import prices will also rise likely causing the levels of demand for oil to decrease. This means that that the price elasticity of demand is very low, so a price change causes a proportionately bigger change in quantity demanded because oil is a necessity due to high usage of oil for transport and there are very little substitutes. As the price increases, quantity demanded will fall but only by a small amount due to it being a necessity. Therefore spending on importing oil will likely rise. This means that imports will likely rise, worsening the current account. There is also inflation, as oil prices are rising. Inflation is the sustained rise in the average price level in an economy. Firms have to pay more to import......

Words: 698 - Pages: 3

Premium Essay

How Music Affects Mood

...mood and brighten their day. Music has the ability to connect people together and also has the ability to heal you, physically and emotionally. It can heal the brain and sometimes the heart from emotional damage. Often times, music is used in therapy and rehabilitation centers. Music affects your mood and how your brain functions. According to the online dictionary, “music is the art of sound and time that expresses ideas and emotions in significant forms through elements of rhythm melody and color.” An article states that “emotions are more than just something we feel -- they happen in the body, too” (Millar). In fact, the dictionary definition of emotion is, “an affective state of consciousness in which joy, sorrow, fear, hate is experienced.” The places where emotions are felt most commonly are within the heart. Emotions are highly affected by different types of music. What the brain is, is “the part of the central nervous system enclosed in the cranium of humans and other vertebrates, consisting of a soft, convoluted mass of gray and serving to control the mental and physical actions” (Dictionary). This is what allows people to feel, think and function. Different types of music can affect a person’s mind and emotions in different ways. For example, if they are sad and they listen to sad music it might make them cry. This could be because it reminds them of why they are sad. Another reason this could happen is because they can relate to the lyrics. It could remind them......

Words: 1248 - Pages: 5

Premium Essay

How China's Black Monday Could Affect Global Economies

...How China's Black Monday could affect global economies By Ravender Sembhy August 24, 2015 14:11 BST After the Chinese stock market suffered its biggest one day loss since 2007, plummeting 8.5%, the country's media have dubbed today "Black Monday". The ripple effect has been felt across the globe, with indices nosediving one after the other. The FTSE 100 fell below the 6,000 mark for the first time since 2013, and Japan's Nikkei, the German DAX and France's CAC all followed suit in recording heavy losses. The Shanghai Composite lost gains made in 2015, plunging 8.5%. Why is this happening? Slowing growth in the world's second largest economy has been spooking investors since the beginning of the year, which has contributed to the loss. China is targeting growth of 7% in 2015, down from 7.4% in 2014, as the country attempts to move from an export-led economy to one more focused on consumer spending. However, there are now worries it will fail to hit forecasts and economic data come in weaker. Earlier in 2015, investors signalled their concern about the slowdown by embarking on a selling frenzy that wiped out more than 30% – some $3tn (£1.9tn, €2.7tn) – of China's equity market value in one month. The Chinese government has responded by injecting billions into blue chip stocks, permitting its state pension fund to invest in domestic shares for the first time and by devaluing its currency in a bid to boost exports. But none of these actions appears to have had the......

Words: 930 - Pages: 4

Premium Essay

How Entrepreneurial Business Organization Affect a Growing Economy.

...NAME: BRIAN KIPRUTO CHELIMO Table of Contents Abstract 3 2.0 Forms of Entrepreneurship 4 1.0 Introduction 4 1CREATION OF EMPLOYMENT 4 2Poverty reduction 5 3Socio-economic and political solutions 6 4Economic growth and Development 7 2.1 Entrepreneurial Effects in the Growth of Economy 8 Conclusion 9 REFERENCES 10 Abstract According to Chell & Ozkan, (2010), an entrepreneur is someone who is willing to bear the riskofa businessventure where there is a significant chance for making profit.  Entrepreneurship is basically the practice of starting a business in order to earn profit on new found opportunities. Entrepreneurship is a challenging task as many businesses which start fail to take off. Entrepreneurship has many uncertainties especially when new products are created for which there is no existing market.Entrepreneurship affects economic growth in various ways. It is through entrepreneurship thatimportant innovations enter the  market leading to new products or production process whicheventually increases efficiency through bringing competition in the market. This paper discourses the impact of entrepreneurship on economies. Ideas and concepts that emerge from entrepreneurs increase our knowledge and what consumers may prefer through introducing variations of existing products and services in the market. This speeds up innovation of new products in the market as aresult of the longer working hours and more efficient nature of......

Words: 3374 - Pages: 14

Premium Essay

How to Describe a Nation’s Economy?

...How to describe a nation’s economy? Below you will find some criterion for describing a nation’s economy. You may not need to include all of the criterion for your final project. Try to choose those that you think would be helpful and relevant to Les Rigolettes Nantaises. Useful Resources * The World Bank provides a list of how it classifies countries according to GNI http://data.worldbank.org/about/country-and-lending-groups * The CIA World Fact Book can provide a brief overview of many of the criteria listed below http://www.cia.gov/library/publications/resources/the-world-factbook/ * Transparency International posts a country Corruptions Ranking every year http://www.transparency.org/cpi2014/results Criterion You should use the 7 criteria from the course textbook to structure your profile (pg 64): 1. Type of economy: Is the nation an advanced industrial state, an emerging economy, a transition economy, or a developing nation? 2. Type of government: Is the nation ruled by a monarchy, a dictatorship, or a tyrant? Is the nation dominated by another state, or is it a democracy with a multiparty system? Is it an unstable or terrorist nation? 3. Trade and capital flows: Is the nation characterized by almost completely free trade or incomplete free trade and is it part of a trading bloc? 4. The commanding heights: (e.g. the transportation, communications and energy sectors) Are these sectors state owned and operated? Is there a mix of state......

Words: 441 - Pages: 2

Free Essay

Affects of Industrialization on Economy and Society

...Assignment 1.1: Industrialization after the Civil War Thesis and Outline Jeevan Neupane Professor Dr. Anthony McCormack Strayer University January 27, 2016 Thesis Thesis: Industrialization had very significant impact in US economy. During the late 1800s, it led to the development of very prosperous middle-class which led to attraction of immigrant from Southern and Eastern Europe in search of American Dream. Not only that nearly half of American started living in the cities by 1920 which also helped women to enter the workforce in very large number. As a result of industrialization, corruption was on the rise, huge amount of money that could have been used for public works ended up in private pockets. Outline I. Three major aspects of industrialization between 1865 and 1920 that influenced US society, economy, and politics. A. First aspect of industrialization you will discuss B. Second aspect C. Third aspect II. List five (5) specific groups affected by industrialization and two examples for each. A. First group 1.first example 2. second example B. Second group 1.first example 2. second example C. Third group 1. first example 2. second example D. Fourth group 1. first example 2. second example E. Fifth group 1. first example 2. second example III. List five (5) ways that industrialization affected the life of the average working American during this period A. First way B.......

Words: 295 - Pages: 2

Free Essay

How Stress Affects Health

...How Stress Affects Our Health November 25, 2015 How Stress Affects Our Health In life there is not one human being who has not felt the anxiety or heart pounding feeling of being stressed. I believe this is a silent disease that slowly takes over one’s life one way or another. According to Kiev (1974), from a medical standpoint stress is just a nervous tension because life is being lived too quickly; therefore, the energy is being wasted. Stress can wear an individual out and cause heath issues once entering adulthood. Feeling stressed is so common in everyday life that it has become a way of life. When individuals are under stress they tend to panic, not realizing the toll it is taking on their body and mind. Stress starts to affect the body by prolonging the levels of fat, causing the immune system to diminish and leaving the body weak and vulnerable to infections (Reinhold, 1996). There are several types of stresses that can affect you and cause cognitive issues, emotional issues, mental issues, and physical issues. A type of stress that many come across several times in their life is short-term stress. Probably the most common type of stress that there is. This type of stress that last for a small amount of time, hens the name short-term stress. An example of short-term stress is when there is a deadline on an assignment in school or work. It is something that once you have completed and turned in on the deadline all stress is completely gone. Chronic life......

Words: 1393 - Pages: 6

Free Essay

How Corruption Affect Petrobras

...How corruption affect Petrobras: Petroleo Brasileiro S.A. is a Brazilian based multinational company that explores, produce, transports, distributes oil and natural gas. Petrobras owns and operates biofuel, oil tankers, fertilizer plants and distribution pipelines across Brazilian territory. Petrobras is one of the largest producers of oil in the world and the biggest company in South America (employs over 80 thousand people) with a market value above $30billion. Most importantly, Petrobras has more than half of the voting rights are controlled by the government of Brazil (Standard & Poor’s, 2016a). Brazil’s rise was empowered by the oil giant Petrobras, with the biggest oil discoveries in the past decade. As for April, 2004 everything changed dramatically. Scandal started exposure regarding the acquisition of a Houston refinery, because the estimated cost of $1.19 billion from Astra through this acquisition, but only paid $42.4 million. Petrobras’ high ranked former executive (Paul Roberto Costa) was arrested due to supposed involvement in a money laundering arrangement in order to increase the cost in the constructions of a 9 refinery from $2.5billion to $18.5billion (Romero &Thomas, 2014). Petrobras also faces inspections that some employees received bribes totaling $139 million from SBM Offshore (German oil supplier). What is more, a contract with Odebrecht, one of Brazil largest construction and oil services providers was overbilled. According to Bloomberg,......

Words: 1280 - Pages: 6

Premium Essay

How China’s Currency Manipulation Affects Us Economy

...How China’s Currency Manipulation Affects US Economy Howe School of Technology Management Principles of Economics How China’s Currency Manipulation Affects US Economy Currency intervention is the action of one or more governments, central banks, or speculators that increases or reduces the value of a particular currency against another currency – this is according to Wikipedia. From January until October in 2010 imports from China to the United States this year were $299,026.0 million and only $72,276.2 million in exports to China, leaving a U.S. trade deficit of -226,749.8 million - this is according to the U.S Census Bureau U.S Foreign Trade Statistics. Here we can examine that Chinese imports to the United States were too high which makes U.S. Gross Domestic Profit (GDP) shrink because imports are subtracted to the Gross Domestic Profit. This trade deficit causes damage to the United States manufacturers and destroys jobs. Chinese products are very attractive because their low labor cost. When U.S. people purchase Chinese manufacturing goods, their manufactures are compensated in dollars which are placed in a United States bank account. Then, the Chinese need to exchange the dollars to Yuan and as a result via their banks they sell the dollars to the Chinese Central Bank which is known as the People’s Bank of China. Given that the U.S trade with China does not balance, the result will be a shortage of the Yuan and a......

Words: 833 - Pages: 4

SHIPPED FROM OVERSEAS TA-Black USB 2.0 Male To Male Extension Connector Adapter Cable Cord Black -60% KSh 201 KSh 503 Buy now | Scott M. Gimple | Richie Rich 1980