Final answer:
The controllable variable that Amy Sims should consider along with price, product, and channels of distribution is promotion. Promotion is a part of the marketing mix that a company can adjust to influence demand, which is different from uncontrollable external factors such as demand, political forces, competition, and economic climate. So the correct answer is option E.
Step-by-step explanation:
Amy Sims is preparing a marketing plan and begins by examining the variables she has control over, which include price, product, channels of distribution, and promotion. The correct answer is E. Promotion. This is because the controllable variables, often referred to as the marketing mix or the 4 Ps (Product, Price, Place, and Promotion), are the elements that a company can adjust to influence demand for its product or service.
Unlike demand, political forces, competition, and economic climate, which are considered external factors beyond a company's control, promotion is directly influenced by the company's marketing strategies. When economists analyze market changes, they often use the assumption of ceteris paribus to consider how one specific change impacts either demand or supply while holding other factors constant.
Factors that can shift the demand curve include changes in tastes, population, income, and prices of substitute or complementary goods. Factors that can shift the supply curve include input prices, natural conditions, changes in technology, and government interventions such as taxes or subsidies. By understanding these factors, a business can better plan and adjust its marketing mix in response to changes in the market.