Provide a brief description of each external marketing environmental factor (i.e. CREST- Competition, Regulatory, Economic, Social, and Technological) as they apply to your product/service. Based on your research, comment on whether these factors present an opportunity or threat to your plan.
According to my research, there are two external marketing factors that apply to my product which is economical and social factors.
1. The economic external marketing factor refers to the condition of the economy and how much a consumer has available to spend on a product. Consumers spend less on "wants" when the economy is in bad shape because they don 't need these wants. I would consider my energy drink a "want" instead of a "need" because the consumers …show more content…
Since middle-class individuals will consume my product, I will try to place my product in middle-class areas. In doing so, my product sales will increase because people with higher incomes are more likely to purchase my product. Also, I can use the demographic information to understand where my customer base is situated.
Other economic factors:
3. The external technological factor Is the change in how companies operate over time through innovation. One of the biggest changes over the past 20 years is the invention of online shopping. (McAfee, 2016) I believe this can be an opportunity for my company in the future because we can sell our products directly to the consumer.
4. The external regulatory factor is the rules that the government places on a product or service. For example, the government has regulations on what age a person can smoke of drink. (McAfee, 2016) This could be a threat to my company because some countries have banned the sale of energy drinks to minors. Although my product is an organic version, I believe the government will just do a blanket ban to avoid regulatory confusion. For example, Lithuania recently banned the sale of energy drinks to minors. (Thrastardottir,
According to my research, there are two external marketing factors that apply to my product which is economical and social factors.
1. The economic external marketing factor refers to the condition of the economy and how much a consumer has available to spend on a product. Consumers spend less on "wants" when the economy is in bad shape because they don 't need these wants. I would consider my energy drink a "want" instead of a "need" because the consumers …show more content…
Since middle-class individuals will consume my product, I will try to place my product in middle-class areas. In doing so, my product sales will increase because people with higher incomes are more likely to purchase my product. Also, I can use the demographic information to understand where my customer base is situated.
Other economic factors:
3. The external technological factor Is the change in how companies operate over time through innovation. One of the biggest changes over the past 20 years is the invention of online shopping. (McAfee, 2016) I believe this can be an opportunity for my company in the future because we can sell our products directly to the consumer.
4. The external regulatory factor is the rules that the government places on a product or service. For example, the government has regulations on what age a person can smoke of drink. (McAfee, 2016) This could be a threat to my company because some countries have banned the sale of energy drinks to minors. Although my product is an organic version, I believe the government will just do a blanket ban to avoid regulatory confusion. For example, Lithuania recently banned the sale of energy drinks to minors. (Thrastardottir,