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Thursday, June 16, 2011

Uncontrollable Market Forces of a Marketing System

Image attribution: Renjith Kishnan. Standard royalty free license

Uncontrollable macro environmental forces of a marketing system include variables outside the scope of a marketing campaign's control. Marketers account for these factors before hand by gathering data, product testing, statistical analysis, forecasting etc., and this helps reduce the risk of uncontrollable macro-environmental factors. Some of these uncontrollable macro-environmental forces of a marketing system are described below.

• Consumer behavior

Consumer behavior is part of the marketing system and is often proselytized to using a marketing campaign. However, the accuracy of game theory, and consumer behavior formulas such as the Fishbein Model, statistical modeling, Luce models, Logit models etc. are limited in scope according to a study by John H. Roberts and Gary L. Lillien called 'Explanatory and Predictive Models of Consumer Behavior.'

• Economic environment

The economy at large is far greater than any single business or industry to control, and is consequently an uncontrollable macro-environmental force of a marketing system. The economy is part of a marketing system because it is what allows that system to functionally operate. If an economy experiences slow growth, or adverse financial conditions it can put pressure on both consumers and business marketing campaigns.

• Cultural norms and mores

Cultural zeitgeist, beliefs, and trends can change and this may happen more or less frequently depending on the political and social structure of that culture. Since these too are often larger than any single marketing campaign, there is certainly an element of uncontrollability when relying on such norms and mores to guide marketing decision in the marketing system in which commerce and culture exist side by side.

• Legislative mandates

A nexus of lobbying, power, political objectives, and goals of the legislative body influence the making of law. In terms of marketing, legal regulation is an uncontrollable macro-environmental force of a marketing system in so far as lobbying can fail and that not all regulation is designed to favor marketers. As regulatory policy changes, marketing projects may see a need to adjust in order to benefit under new and new regulations.

In summary, macro environmental conditions or forces can affect marketing in an uncontrollable way.  These uncontrolled variables can be studied and minimized however, thereby allowing greater control or less uncontrollability.

To illustrate the previous point, according to an article in the Journal of Macromarketing called 'Wisdom: Exploring the Pinnacel of Human Virtues as a Central Link from Micromarketing to Macromarketing', micro-marketing decisions on a large scale have an impact on the macromarketing environment.
This implicates micro-marketing as has having some control over what is considered uncontrollable at the macro level. Moreover, the article in the Journal of Macromarketing also claims uncontrollable variables caused by poor marketing decisions can be influenced by adjustments to 'knowledge shortcomings'.

Sources:

1. http://bit.ly/hweEJc (Roberts and Lillien)
2. http://bit.ly/ew1acj   (Managerial Marketing)
3. http://bit.ly/fQq5t9   (Journal of Macromarketing)

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