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I explained each component in order. Social Environment Social environment includes all factors and trend that related to the people in the society (Corner, n. D. ). Changes in the social environment affect consumers buying behavior and preferences. For instance in America, healthy food trend decrease the consumption of donuts. Also populations demographic features are another important factor in marketing. In the USA, aging population creates new business such as senior facilities. Marketing people should consider both cultural and demographic features of society to be successful.
Economic Environment Economic environment factors which all income and production related affect the purchasing power of the market (Corner, n. D. ). Therefore it is a key to assess when the company decide whether to enter a market, features of a product, the price of a product, production amount, costs, profit margin, deciding market strategies such as market penetration. Political/Legal Environment Governmental activities and legal structure of a market determine the market place how much safe to invest or how much easy to do business.
For instance, after China’s membership of the WTFO and improvement of legal structure, made China easier to do business and investors flocked in China. Technological Environment Technological innovations change products and production process. Also consumer needs change as well. Today, for most of people having a PC is a must. Innovation on products and communication channel changes profile of marketing activities as well. For instance having a strong R, is the only way o be a market leader in some industries.