Previous evidence supports this theory. Research into the white goods market shows that, " sincethe market has been robust and benefited from a strong economy, due to high levels of personal disposable income and an active housing market with few windfalls.
Where the white goods industry is concerned, this could prove a problem although can also be of benefit to them. White goods are also known as durable goods. This would reduce the costs of any advertising overheads and increase both companies popularity.
If white goods companies are importing or exporting goods or resources trade fees and exchange rates are important. Business behaviour has an effect on buyer behaviour and all in all buyer- seller relationships.
When finding out exactly what the consumer wants and promoting the products can expensive and poses a problem as the company has to budget.
This essay will consider the white goods market and how the Macro-environment affects its marketing approach. Overall taxation on consumer goods will have an effect on price. This aspect can be seen as what is ethically and morally right in business behaviour.
The Macro-environment, factors outside of a firms control, have a major affect on a firms marketing approach and as a cause, these factors outside the firms control are harder to monitor, some of the factors are unpredictable and restricting.
The Government has two powers it can either; control business or encourage it. Goods of this nature "require more personal selling and support. When there is more money within the home, people are more likely to spend the money on home improvements for example in the kitchen, buying the latest, more efficient white goods.
Other countries political values need to be taken into consideration as larger white goods companies establish factories in countries where there is cheaper labour, land and resources.
The most obvious are the British Standards.
The political issues are not necessarily the most important but the most restricting to the way in which a business behaves thus the way in which it markets itself and its products.
Use examples of companies who produce white goods to illustrate your points. Also with the political issues legal ones are considered. The next aspect of the Macro-environment to consider is the Social and Cultural part. Demand will fall due to white goods not being seen as an everyday good but more of a one off good.
If there is a significant rise in tax this could discourage consumer buying as price increases. When the pound is strong businesses are able to get more for their money, this is of benefit to large companies like the white goods because not only does it encourage others abroad to invest in the country therefore increasing the strength of the pound it also encourages people to invest into companies therefore increasing revenues.
In a strong market consumer spending is high suggesting increased incomes. Following on, this draws attention to consumer incomes and spending. Inside the European Union trade is free and no barriers are present. The products need to be specific to the purpose they are meant fulfil and satisfy consumer needs.
During the year the white goods industry faced a great problem in that its main product, fridges that cannot be disposed of, threatening the Trade laws pose threats when taking account overseas marketing and distribution outside of the European Union. In relation to the Macro-environment, a firm is able to do a PEST analysis of the factors to see how these will affect the business and its product.
Any extra costs for imports or exports will again have an effect on the overall price of the good.Electrolux used the Zanussi acquisition to change its strategic positioning within the white goods industry worldwide.
Historically in the white goods industry, competitive strategies had been based on domestic country-markets. Regional (e.g. pan-European) strategies were perceived as being less appropriate, high-risk and unprofitable.
Research into the white goods market shows that, " sincethe market has been robust and benefited from a strong economy, due to high levels of personal disposable income and an active housing market with few windfalls." This therefore emphasizes that when considering PEST analysis the economy is an important aspect when considering a marketing approach in the white goods market.4/4(1).
“White goods” is an industry is characterized by longer inter-purchase time. Many customers seek informal opinion from friends and well wishers before buying expensive consumer durables.
So, customer interaction, before, during and after sales is extremely critical for white goods industry. White goods market research report covering industry trends, market share, market growth analysis and projection by mint-body.com White goods market report includes, What are market estimates and forecasts; which of White goods markets are doing well and which are not?
and White goods companies. Marketing and White Goods Industry Words | 7 Pages Marketing Assignment One Discuss how the Macro-environment can affect an organisations marketing approach. White Goods Industry Analysis. Marketing Assignment One Discuss how the Macro-environment can affect an organisations marketing approach.
Use examples of companies who produce white goods to illustrate your points. The Macro-environment, factors outside of a firms control, have a major affect on a firms marketing approach and as a cause, these factors outside the firms control are harder to .Download