How the Internal and External Environment Effect Hublots Marketing - Essay Example

Hublot’s marketing Internal factors are features that exist within the firm and can be managed by the firm itself. The organization usually have control over them. They include management, branding of the company products, purchasing power, financial capability of the firm e.t.c.While the external factors are those that are beyond the company regulation. They include, political factors, competitors, suppliers, and technology, social and cultural nature of the society. The external category are in two parts, macro and micro (Worthington & Britton2006). Macro tends to influence the company indirectly e.g. politics while micro tends to influence the company indirectly. The internal influences tends to determine the marketing in more outlook. The management usually makes decision that influences the marketing department in their objectives and priorities. Financial capability of the firm also plays a lot in marketing. The financial structure and policies should allow enough funds for the implementation of the marketing plans and strategy, thus if hub lot company have limited funds or in event locate less capital for the marketing department, then the department would not achieve their target as watches are products that need a huge investment on marketing policies to keep up with the new ones that my emerge. On the other hand, research and development of hub lot watches should ensure production of quality, attractive and be creative and innovative so that the product can compete in the market (Worthington & Britton2006). The image that the company portrays and branding of the product helps the marketing to create intermediaries and channels through which hub lot watches may enter into new market and rival the competitors. Hence the internal factors are key efficiency in marketing of the hub lot company. External influences are situations that are beyond the company control. It is important for a company to manage their competitors in the market as they influence a lot on the performance of the company product more so in pricing and market share of the product. Thus firms like hub lot watches must have efficient marketing system to be more productive and keep in pace to the new inventions. Economic factors do influence the market on various scenario since it determines the distribution of goods within the economy e.g. infrastructure, and since this are goods which needs to reach market for their respective customers, efficient movement must be available. Technology that is adopted by the hub will show a good role in marketing of the company products. It provides means by which production takes place which affects the decision of the organization. Cheaper and affordable modern technology will result in higher yields and more resources available for research that will improve market tremendously. Marketing decisions also do depend on political and legal factors of a country. Before any marketing decisions are made, considerations must be made on the political will, laws of the nation and ideas of the opposition. A good political environment and favorable rules makes it easier for implementation of marketing strategies and providing expansionary markets in other countries increasing revenue to hub lot watches(Ghosal, 2013).. The beliefs of the people in the society and their cultural system have also a big influence on marketers like hub. This mainly affects when for instance the company is undertaking its advertising policy as not all products can be advertised openly. Political factors determines a great deal for any successful business as they manages the law and regulation of production. Economic factors enhances production as they make it easy for supplier and buyers of the good. Technological on the other hand provides good innovation skills to keep up with the competitors of the product and remain relevant in the market. Social and cultural practice do help in marketing of the products as it provides a base to which potential customers are formed (Ghosal, 2013). The Porters Five Forces is a theory conceived by Michael E Porter so as to govern the competitiveness and intensity of the market. They include, threat posed by new entrants, rivalry among existing firms, supplier power, buyer power and threats exposed by substitute products in the market. These issues helps to realize the position of the organization and its strength in the market. Supplier power, the provider of any given input can easily influence the decision made by the organization as they can easily move prices up. Depending on the nature of the supplier i.e their exceptionality in the market and the ease by which the organization can shift from one supplier to the other, greatly determines the prices charged for their products. Buyer’s power, porter argues that they dictate terms to any organization as they influence the purchasing power of the company. Their size in the market determines relative prices and their movement from one supplier of the commodity to the other making them to be always the key point in organization decision making. Competitive rivalry, these are the producers of either of the same or differentiated products into the market. Many competitors in differentiated services attracts the market while producer of the same goods reduces attractiveness of the market. Threat of substitution, many manufacturers of alternative goods makes the market prices to be volatile as customers easily moves to consume other goods in case of price adjustments making the market to be less attractive(Camillus, J2011). Threat by new entrants, firms will enter into the market so long as there is an exorbitant profits which eat into the market gains. Unless the organization have powers like economies of scale, legal rights, the market will remain unattractive. Both internal and external factors contribute an important role in general successful of the organization (Camillus, J2011). They work hand in hand implementing various policies of the organization and non can be left out in key decisions. For instance poor financial planning hinders marketing and the general product while without good rules and regulations in organization dealings, the company is deemed to fail. References Camillus, J. C. (2011). 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Business Strategy and Firm Reorganization: Role of Changing Environmental Standards, Sustainable Business Initiatives and Global Market Conditions. Business Strategy and the Environment, 4, n/a-n/a. Read More