Final answer:
To address the impact of external factors on marketing strategies, businesses must analyze market changes to ascertain their influence on demand or supply, acknowledge the roles of technology and globalization broadening competition, and maintain adaptive marketing strategies.
Step-by-step explanation:
When examining the impact of external factors such as political, economic, social, and technological forces on a company's marketing strategies, businesses must understand that these factors create a dynamic marketplace. To effectively navigate and respond to changes in the marketing environment, businesses need to:
- Analyze changes in the market to determine whether they affect demand or supply.
- Stay updated on global economic shifts, particularly the interplay between technology and globalization, which have drastically expanded competition and market boundaries.
- Adopt flexible marketing strategies that can quickly adapt to changing external factors.
Economists and marketers can handle the complexity of multiple changing factors by breaking them down into smaller components and analyzing how each affects either the demand or supply side of the market. By doing so, they can create more accurate economic forecasts and strategic marketing responses.
For instance, an improvement in communications technologies may increase competition as consumers have more options to source products on a global scale, thus, businesses need to enhance their online presence and consider the global competition in their marketing strategy.