Principles and practice Assignment Example | Topics and Well Written Essays - 1500 words

Principles and practice - Assignment ExampleThus trends in external environment can have a major on consumer choice and preferences and therefore, it is important for marketers to be aware of such trends. Underlying trends are relatively slow moving changes in the marketplace that whitethorn occur for a number of reasons. A successful marketers needs to keep track of these changes and respond accordingly. The character of the trends is possible to differ sometimes they are consumer led and sometimes business led. However, businesses must realize that in order to gain a competitive edge and better satisfy the guests, these trends are needed to be taken into account. Macro factors are those that have an indirect impact on the business, similarly known as PESTEL. It includes factors that create opportunities and threats to business and is categorized as the far environment. These include variables such as political, environmental, socio-cultural, technological, economic and legal. W ith consider to marketers of decoratives products, these factors play a crucial role and can have a momentous impact on the exertion structure. Political factors consist of laws, government agencies and pressure groups that influence and limit various organization action plans. For instance, legislation affecting cosmetics business has increased worldwide. Also, various laws exist that protects companies, consumers and interest of the society at large. And closely importantly there is an increased emphasis from government, on socially responsible behavior. Concerning political factors from cosmetic industrys point of view, unstable political conditions of the relevant regions can be troublesome for the business with see to imports and exports. Moreover, an increase or decrease in tax rates can also impact the advantageousness of the business favorably or unfavorably. Environmental factors mainly include the surroundings, weather and mode change. With major climate change oc curring due to global warming and with greater environmental awareness, this external is becoming a significant issue to consider. It is particularly important to cosmetic firms as the industry involves many input material that whitethorn bring damage to the environment. Also products are susceptible to climate changes, and thus need thorough analysis. Concerning environmental factors, firm can create value and better satisfy customers by adopting environmental friendly approach. This would serve well firm avoid legal costs and increase its goodwill. Moreover, use of natural ingredients, preferred by the consumers also adds value. Change in social trends can impact the demand for a firms products. age people, income groups, lifestyle and social class highly affect cosmetic demand. Thus, social factors affect the customer needs and size of potential market. With changing fashion trends, increased awareness and better life styles, demand for cosmetics is likely to increase. For ins tance, an increased awareness amongst men may lead to an altogether new cosmetic line. Similarly, aging population is likely to increase demand for anti-aging cosmetics. New technology creates new products and knead. It tends to impact both the business process and the final offering. With the advent of internet for instance, the distribution channels have become virtual with cost efficiencies for cosmetic industry. Other innovations include bar coding and computer aided design that enables companies to keep track of its customer preference and offer innovative designs, respectively. Technology, thus can