8)Publics This refers to any group that has actual or potential interest in or impacts on an organisation’s ability to achieve its objectives. It includes the following:Marketing Management manual byPeter Mwaura 5
Financial publics- Influences the company’s ability to obtain funds e.g. banks, investment housesMedia publics- they carry out news features and editorial opinion about an organisation- newspaper,radio, television.Government publics-involves the regulation of business activities- standards, licensingCitizen-action publics- include other groups whose activities influence business activities: consumergroups are concerned with protection of consumers from harmful products. Environment groups areconcerned with environmental protection.Local publics-involves actions of neighbourhood residents and community organisations, whether ornot they support the organisation.General public-involves the attitude of the general public towards company products and activitiesaffecting company image.Internal publics-includes workers, mangers, volunteers, board of directors and the need to motivatethem towards the achievement of company goals and objectives. This can be done through internalcommunication. b) External marketing environment1) Economic environmentThis is the most important environmental factor which a business organisation should take intoaccount. It covers those factors that give shape and form to the development of economic activities.a) General economic conditionsThis includes Economic system, National income and its distribution, Monetary policy andFiscal policyEconomic system-determines the extent to which the organisation has to face different controls andconstraints by the economic factors.Economic systems include capitalistic, mixed and socialistic economies-organisations have to facedifferent types of control ranging from total freedom to total control.Economic system puts restrictors over the functioning of the business.National income and its distributionThis refers to the money value of economic activities of a given country. It determines the purchasing power of people and consequently the demand for products.Monetary policyMonetary policies regulate economic growth through expansion or contraction of money supply. This also determines purchasing power.Fiscal policyDeals with tax structure and government expenditure. It is adopted for the followingpurposes;(i)To mobilise maximum possible resources(ii)To optimally allocate resources so as to attain maximum growth(iii)To attain greater equality in the distribution of wealth(iv)To maintain price stabilityEffects: Tax structure affects growth of individual organisationsGovernments’ spending affects economic activities.Marketing Management manual byPeter Mwaura 6
Factor market aspect of economic environmentA business should take into account the following:Natural resources The availability of natural resources-land, minerals, fuel etc. becomes a strategic planning factor fororganisations requiring such resources for production process.