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Business Studies IGCSEPDF 120
212 pagesrevision 46931
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Factors Influencing Marketing Strategy
Technological
changes
Factor
Target market
characteristics
Market size and
competition
Type of product
Legal and ethical
constraints
Business resources
and budget
Stage of product life
cycle (PLC)
Explanation
Online marketing, e-commerce, and data analytics have
transformed how strategies are made and implemented.
Age, income, and lifestyle of the customers affect how and
where the product is marketed.
Highly competitive markets need aggressive promotion and
competitive pricing, while niche markets may rely more on
product differentiation.
Certain countries have laws restricting advertising content,
pricing methods, and quality standards (explained below).
The financial strength of the business determines how much
can be spent on advertising, R&D, and promotional
campaigns.
The characteristics of the product determine how it is
marketed. A luxury watch will require a different strategy from
a basic household cleaner.
New products may use price skimming and heavy advertising,
whereas mature products might use extension strategies and
promotional discounts.