Lesson 5 Analysis of the Competitive and economic environment

External analysis is one of the critical aspects of designing a marketing plan as it explores the wider business environment likely to affect the business. Although the external factors are often beyond the control of an organization, a critical analysis provides the foundation upon which the organization can explore existing opportunities to allow the organization to be more competitive or possible threats that the organization must be prepared to deal with. In a marketing plan, assessing the economic impact is critical in exploring the strategies that an organization must consider to remain competitive in the market (Cepel, Belas, Rozsa & Strnad, 2019). Besides, economic factors significantly determine the consumer’s purchasing power and their spending patterns, and as such, factors are critical in evaluating an organization’s business projection. It is this critical for organizations to explore the key economic indicators that must be considered in a marketing plan.
GDP
GDP is often used to describe whether a country’s economy is experiencing a recession or attractive investment. As indicated in the GDP, a bad economy implies that the economy is bad for investment, and there are lower earnings. Consequently, the purchasing power of the target…