Calma, Paolo Rodrigo B. Ar. Wilkie B.

Delumen

Professional Practice 01 – ARC 181 April 22, 2021

The Significance/Importance of 5 External Environments

in relation to Professional Practice

The External Environment has a major impact on the future of whole sectors as
well as individual companies. Managers must constantly change their tactics to
represent the world in which their companies function in-order to stay ahead of the
competition. Doing an external study at the start of the plan evaluation phase is a good
exercise. To conduct a PECTS survey, gather your squad. Following the study, you
would have a better understanding of the world in which the company operates, the
variables that will influence it, and the problems that need to be addressed in the plan.
The leader should fill in the factors suggested by the team regarding the political,
economic, social, and technical circumstances, or PECTS for short, during the
discussion.

These causes, as well as changes in them, poses both risks and opportunities,
necessitating changes in marketing strategies. Marketers must constantly track the
world in which their businesses work in order to spot patterns and other indicators that
circumstances may be changing. Let’s take a closer look at each of the five external
climate factors and see how they impact a company's marketing activities.

Businesses may be subject to regulations or limits imposed by federal, state, and

local governments. Regulation's aim is to protect both customers and enterprises.
Businesses support some rules (such as copyright laws) while opposing others (such as
restrictions on advertising). The cigarette industry, for example, has had to adapt to a
federal ban on television and radio advertisements. Recently, several food producers
have expressed dissatisfaction with legislation demanding the marking of trans-fat
content. The radio industry is deeply concerned with penalties levied by the Federal
Communications Commission for violations of "decency requirements."

Every day, communications executives are bombarded with economic news.

They must absorb it, evaluate its effect, and adjust their marketing strategies
accordingly. Often (but not recently), the news is cause for celebration: the economy is
expanding, unemployment is down, and consumer sentiment is rising. At other moments
(such as today), the news leaves us nervous: our economy is sluggish, factory
productivity is down, unemployment claims are up, consumer morale has fallen, and
credit is difficult to obtain. Naturally, when the economy is expanding, employment is
plentiful, and markets are steady, business thrives. Since customers are ready to buy,
marketing goods is simpler. When the economy slows (or stalls) and unemployment
rises, consumers have less money to spend, making the marketer's work more difficult.

Videotape manufacturers who were keeping an eye on industry technical

developments would almost certainly have taken measures to keep up (go into DVDs)
or even shield themselves from losses (maybe even getting out of the market). In
addition to rendering old products outdated, technical advancements result in the
development of new products. New innovations also have effect on the marketing mix in
another way: they change how businesses sell their goods. Consider the Internet's
disruptive developments, which provide advertisers with a digital platform for marketing
and selling a wide variety of goods and services. Marketers must stay up to date with
technical developments and change their tactics to capitalize on prospects and avoid
risks.

Marketers must therefore be aware of social and cultural trends that may
influence purchases. The ideals and perceptions of American consumers are in almost
endless flux; what is fashionable one year is out of fashion the next. The PECTS
analysis is just a check list to guarantee that you have considered all the important
variables. It is extremely beneficial to lead the community through the preliminary
review. When the team has a clear picture at the start of the strategic plan, it would be
easier for them to implement a good approach.