Question

the marketer must be conscious of its environment. as a consultant of a toy manufacturing firm, discuss any five macro environmental factors and show how they could influence the operations of the business

Answer 1

Five macro environmental factors that can influence the toy business are:

Demographic forces: Each and every chunk of the market is affected by universal demographic forces. These are age, education level, cultural characteristics, country and region, lifestyle, and so on. As a toy producer you need to be updated with the needs of the kids as per the demographic area.

Technological factors: These factors are related to skills and ability that are implemented into production, as well as all the materials and technology that a particular product requires to be made. They are essential and can have a big impact on how well your business is running. It boils down to even the most basic factors, such as what kind of maintenance trolleys you use in order to preserve your tools and equipment for as long as you possibly can. As a toy maker you need to be very careful about the technology you use to produce toys as they are mainly made for kids and should not harm them while being equally updated about the kind of technology used by the industry.

Natural forces: Every business must also take into account the very planet and its resources. There are those that can be renewed, such as forests and agricultural products, and those that cannot, such as coal, minerals, oil, and the like. Both are strongly related to production. As the toy producer you need to take into account the type of material you use for making the products. You need to be aware about the type of natural disasters, weather, pollution, climate change, environmental laws etc.

Legal forces: The market develops according to the political and legal environment in various areas. This means that every business needs to be up to date with such forces worldwide in order to be able to make the right decisions. As the producer you need to take care about the laws that are prevailing in the place about that particular product. These may be Copyright law, Employment law, Fraud law, Discrimination law, Health and Safety law, Import/Export law.

Social forces: Finally, it is crucial to understand that the product that you bring to the market can have a strong impact on society. For example, your production needs to eliminate every practice that is hazardous to society, and show that it is socially responsible. As the toy maker you need to think what type of toys the society will prefer to buy, their affordability, beliefs, Consciousness about health issues, Social classes, Structure and size of a family, Growth rate of the population, Emigration and immigration rates, Life expectancy rates and age distribution, Different lifestyles.

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