8 Publics This refers to any group that has actual or potential interest in or

8 publics this refers to any group that has actual or

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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 by Peter Mwaura 5
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Financial publics - Influences the company’s ability to obtain funds e.g. banks, investment houses Media publics - they carry out news features and editorial opinion about an organisation- newspaper, radio, television. Government publics -involves the regulation of business activities- standards, licensing Citizen-action publics - include other groups whose activities influence business activities: consumer groups are concerned with protection of consumers from harmful products. Environment groups are concerned with environmental protection. Local publics -involves actions of neighbourhood residents and community organisations, whether or not they support the organisation. General public -involves the attitude of the general public towards company products and activities affecting company image. Internal publics -includes workers, mangers, volunteers, board of directors and the need to motivate them towards the achievement of company goals and objectives. This can be done through internal communication. b) External marketing environment 1) Economic environment This is the most important environmental factor which a business organisation should take into account. It covers those factors that give shape and form to the development of economic activities. a) General economic conditions This includes Economic system, National income and its distribution, Monetary policy and Fiscal policy Economic system -determines the extent to which the organisation has to face different controls and constraints by the economic factors. Economic systems include capitalistic, mixed and socialistic economies-organisations have to face different types of control ranging from total freedom to total control. Economic system puts restrictors over the functioning of the business. National income and its distribution This 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 policy Monetary policies regulate economic growth through expansion or contraction of money supply. This also determines purchasing power. Fiscal policy Deals with tax structure and government expenditure. It is adopted for the following purposes; (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 stability Effects: Tax structure affects growth of individual organisations Governments’ spending affects economic activities. Marketing Management manual by Peter Mwaura 6
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Factor market aspect of economic environment A business should take into account the following: Natural resources The availability of natural resources-land, minerals, fuel etc. becomes a strategic planning factor for organisations requiring such resources for production process.
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