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 selection and preferences and therefore, it is important for marketers to be aw atomic number 18 of such trends. Underlying trends are relatively slow moving changes in the marketplace that may occur for a itemise of reasons. A successful marketers needs to keep track of these changes and respond accordingly. The nature of the trends is likely to differ sometimes they are consumer led and sometimes business led. However, businesses moldiness realize that in order to gain a competitive edge and better satisfy the customers, these trends are needed to be taken into account. Macro factors are those that have an indirect impact on the business, too known as PESTEL. It includes factors that urinate 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. With respect to marketers of cosmetics products, these factors play a crucial role and can have a significant impact on the industry structure. Political factors populate 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 friendship at large. And most importantly there is an increased emphasis from government, on socially responsible behavior. Concerning political factors from cosmetic industrys point of view, wonky political conditions of the relevant regions can be troublesome for the business with respect to imports and exports. Moreover, an increase or decrease in tax rates can also impact the profitability of the business favorably or unfavorably. Environmental factors mainly include the surroundings, weather and climate change. With major climate change occurring due to worldwide 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 scuttlebutt material that may 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 help firm avoid legal costs and increase its goodwill. Moreover, use of natural ingredients, favored by the consumers also adds value. Change in social trends can impact the penury for a firms products. Aging population, income groups, sprightlinessstyle and social set 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 incre ase. For instance, 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 process. It tends to impact both the business process and the final offering. With the advent of internet for instance, the distribution channels have become realistic 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 sophisticated designs, respectively. Technology, thus can