What are the political factors affecting business environment in a marketing plan?

Considering, analyzing and understanding

the political factors affecting your business environment

What are the political factors affecting business environment in marketing plan?

1.      Taxation. 2.      Protection of environment. 3.      Employment law. 4.      Health and Safety. 5.      Foreign Trade Agreement (FTA).                6.      Stability of political system.

Taxation (a political factor affecting your business environmental analysis of your marketing plan):

When the taxation decreases, this will lead to increase in the disposable income (gross income minus income tax on that income). When the normal individual's disposable income increase, this will results in increasing the buying power, which means the individuals are becoming more able to buy things and facilities, so you have a good chance to make a profit from selling your product to that country (which has a good buying power).

Protection of the environment (a political factor affecting your business environmental analysis of your marketing plan):

•          Are you going to manufacture a product which could harm the environment?

•          If you are going to harm the environment in small extent, you should know that there is are tax and penalties from the government for the environmental damage you make. Also you should select the place of your factory, if your company is going to build a factory that manufacture your product, then choose a region that is close to factories environmental areas and try to be away from the main populations.

•          Do you have manufacturing wastes that could harm the environment? You should consider this issue well, because there are millions of dollars could be spent on making products, developing factories which its wastes are less harmful to the environment and human health. And by the way this will get you a profit on long term and you will have a good corporate social responsibility (CSR) towards society, environmental groups, pressure groups, legal and regulatory authorities in your country.

Employment law (a political factor affecting your business environmental analysis of your marketing plan):

•         What about the hiring and firing costs in the country that you are going to market your products in?

•          Are employees in your country having instability in their job? Do they have stability with their job?

•          You should know how much the normal cost that you are going to purchase to your employees (if you are going to make new companies) or your employees (are they satisfied with their salaries), what about the compensation and benefit schemes? Do you have a good compensation and benefit scheme to your employees (because the normal people of your country are stable at their job)?

Health and Safety (a political factor affecting your business environmental analysis of your marketing plan):

You should know that your product has the highest safety profile and minimum hazard on consumers' health. Also you need to read and apply the 'Consumer Safety Act 1974'.

Foreign Trade Agreement (FTA) (a political factor affecting your business environmental analysis of your marketing plan):

•          The Foreign Trade Agreement (FTA) gives the companies that are from foreign countries to penetrate your country market and marketing their products there. So you should know if the Foreign Trade Agreement (FTA) applied in your country or not.
•          If the no. of imported products (that comes from the foreign countries) decrease, that will help you to establish your product in the market (if your product is newly starting its business in that market).

Stability of the political systems (a political factor affecting your business environmental analysis of your marketing plan):

You should know and study the political stability of the country that you will market you products in. This issue affects your long term investment of your products; also it gives you indication about the duration that you should spend in marketing your products in that country.

Related articles to macro environmental factors in marketing planning:

• What are macro environmental factors in marketing planning?
• How to conduct macro environmental factors analysis in marketing plan?
• Why do we need macro environmental factors analysis (PESTEL)?
• What are the economic factors affecting business environment in a marketing plan?
• What are the social factors affecting business environment in a marketing plan?
• What are the technological factors affecting business environment in a marketing plan?
• What are the environmental factors affecting business environment in a marketing plan?
• What are the legal factors affecting business environment in a marketing plan?
• What is sustainability in business environmental analysis of marketing plan?

Related articles to marketing audit:

1. What is a marketing audit?

2. How to conduct a marketing audit?

3. Micro environmental factors affecting business environment in marketing plan:

3.1. What are the internal environmental factors in marketing plan?

• What is the business factors affecting internal business environment in marketing plan? (Part 1, 2, 3 and 4).
• What is the competitive factors affecting internal business environment in marketing plan?
• How are suppliers affecting internal business environment in marketing plan?
• What are customers’ issues affecting internal environmental in marketing plan?
• What are stakeholders factors affecting internal business environment of marketing plan (part1, 2).

3.2.      Porter’s Five Forces:

• What are porter’s five forces Model?
• What is rivalry among existing competitors in Porter's Five Forces Model
• What is threat of new entrants in Porter’s Five Forces Model?
• What is threat of substitutes in Porter’s Five Forces Model?
• What is the Bargaining Power of Suppliers in Porter’s Five Forces Model?
• What is Bargaining Power of Buyers in Porter’s Five Forces Model?

3.3.      SWOT Analysis:

• What is a SWOT Analysis in marketing plan?
• What is a SWOT Analysis used for?
• How to do a SWOT Analysis in marketing plan?
• Free SWOT Analysis Template PowerPoint and Word