Marketing Principles for Business Coursework Example | Topics and Well Written Essays - 2000 words

Marketing Principles for Business - Coursework Example Marketers ought to take a bold approach in their attempt to understand the external environment of the business and the PESTEL model emerges as the most comprehensive approach to the external environment. PESTEL is a mnemonic that denotes Political, Economic, Social, Technological, Legal and Environmental aspects of the external environment. This framework helps marketers in checking and keeping track with the external environment when planning to execute a given strategy. As much as the external environment is not under the control of a business, it is possible to tailor the marketing approach to suit the prevailing economic factors (Koumparoulis, 2013, p.32). The categorization of the external environment aspects by the PESTEL model is ideal since it aligns the environmental assessment to the strategy of the business. The political factors of the external environment concern the possibility of the economy or industry to be influenced by the state government. The government can intervene through trade tariffs, tax policies, and restrictions to trade, environmental regulations, labor regulations and fiscal policies. For instance, the imposition of a new tax may have the effect of changing an entire revenues generating unit of a business (Koumparoulis, 2013, p.33). These interventions are intended to protect either the consumers or the businesses. For instance, the Sherman Act (1890) serves to inhibit firms in U.S. to restricting trade through the creation of cartels and monopolies. To that end, marketers need to anticipate and respond effectively to political factors by adjusting the marketing policy in an appropriate manner. The economic factors significantly influenced the manner in which a business is conducted and its profitability. Economic factors include exchange rates, interest rates, and patterns of economic growth, inflation rate and the disposable income of the consumers. For instance, an increase in