1.1.

​ Factors affecting Marketing – Mix 4Ps activities

1.1.1.​ External Factors
External factors are outside the direct control of the organization but must be
constantly monitored and adapted to. They can be categorized into macro and
micro-environmental factors (Jobber and Ellis-Chadwick, 2020).
1.1.1.1. Macro - Environmental Factors
1.1.1.1.1. Political and Legal
Government regulations and policies impose direct constraints on all marketing
mix decisions. For example, safety and labeling standards dictate a product's design
and packaging (Product), while taxation policies directly influence final consumer
Price. Laws governing channel agreements and retail operations affect distribution
networks (Place), and stringent regulations concerning truth in advertising and data
privacy govern all Promotional activities (Kotler and Keller, 2019).
1.1.1.1.2. Economic
The economic environment, including inflation rates, business cycles, and
consumer spending power, is a primary driver of marketing strategy. During periods of
economic prosperity, companies can focus on premium products and value-added
pricing. Conversely, in a recession, the emphasis may shift to essential product
features and more competitive or discounted pricing strategies to maintain sales
volume (Jobber and Ellis-Chadwick, 2020).
1.1.1.1.3. Social
Evolving social values, cultural norms, and demographic trends fundamentally
shape consumer expectations. The rising global focus on health and sustainability has
led to a proliferation of eco-friendly and organic Products. Similarly, cultural nuances
determine the appropriateness of branding and the messaging used in Promotional
campaigns, requiring localization to resonate with different demographic groups
(Solomon, 2023).
1.1.1.1.4. Technological
Technological advancement is a powerful disruptor and enabler for the
marketing mix. It drives innovation, leading to the creation of entirely new Product
categories. In terms of Place, e-commerce and mobile technology have revolutionized
distribution, enabling direct-to-consumer models. Technology also facilitates dynamic
Pricing algorithms and has created new digital Promotional channels like social media
and search engine marketing (Chaffey and Smith, 2022).
1.1.1.2. Micro - Environmental Factors
1.1.1.2.1. Competitors
A firm's marketing mix is inherently relative to the strategies of its competitors.
The features, quality, and design of a Product are often developed in response to
competitors' offerings. Pricing decisions are frequently made with reference to
competitors' price points, using strategies like price matching or penetration pricing.
Companies also strive to secure distribution Places that are at least as accessible and
convenient as those of their rivals (Porter, 2008).
1.1.1.2.2. Customers
The needs, wants, and buying behaviors of the target customer are the ultimate
external influence. The entire marketing mix must be designed to deliver superior
customer value. The Product must satisfy a core customer need, the Price must align
with the customer's perceived value, the Place must offer convenience that matches
their shopping habits, and the Promotional message must speak to their aspirations
and beliefs (Kotler and Armstrong, 2021).
1.1.2.​Internal Factors
Internal factors are elements within the organization's control that determine its
capacity to implement marketing strategies effectively (Aaker, 2017).
1.1.2.1. Company Strategy and Objective
The overarching goals and mission of the company set the strategic direction
for the marketing mix. A firm aiming for rapid market share growth will likely adopt a
low-Price, high-Promotion mix, while a company pursuing a position as a quality
leader will focus on premium Product development and selective distribution (Place)
(Aaker, 2017).
1.1.2.2. Company Resources
The company’s internal resources have a decisive influence on how the
marketing mix is designed and executed. Kotler & Keller (2011) stress that marketing
decisions must be grounded in the resources and competencies available within the
firm.
Companies with strong financial backing can allocate larger budgets to
research and development, product innovation, branding, and integrated marketing
communications, while firms with weaker finances often focus on survival strategies
such as cost control and competitive pricing.
Technological expertise also shapes the marketing mix by enabling process
improvements, product differentiation, and innovation that enhance customer value.
For example, firms with advanced R&D can introduce superior product features,
packaging, or sustainability solutions that directly strengthen the “Product” element of
the mix.
Human capital is equally vital, as the skills, creativity, and motivation of
employees affect not only product and service quality but also customer engagement
and after-sales support.
Managerial capabilities, including leadership and strategic planning, determine
how effectively resources are deployed across channels, promotions, and pricing
strategies.
Moreover, efficient logistics and supply chain management can expand market
reach and reduce distribution costs, thereby influencing the “Place” dimension of the
mix.
In short, company resources function as both a constraint and an enabler of
strategic marketing choices: it sets the boundaries within which firms operate but also
provides the tools to deliver superior value and build a sustainable competitive
advantage (Kotler & Keller, 2011).
1.1.2.2. Corporate Culture

Corporate culture influences how employees think, collaborate, and deliver

value to customers. Lovelock and Wirtz (2016) emphasize that a market-oriented and
innovative culture encourages adaptability and teamwork, resulting in stronger
marketing execution and consistent customer experiences. Conversely, a
production-focused or risk-averse culture discourages experimentation and limits
creativity in marketing communication. This affects how organizations innovate in
their products and respond to emerging consumer trends.

1.1.2.2. Innovation Capability

Innovation capability represents the organization’s ability to generate and apply

new ideas that enhance customer value (Tidd & Bessant, 2021). Firms with strong
innovation capabilities are better positioned to adapt their products, pricing, and
promotional strategies to changing market conditions. Kotler and Keller (2011) argue
that innovation drives competitiveness by keeping the marketing mix dynamic and
customer-centered. Without this capability, companies risk product stagnation and
outdated brand perception, particularly in fast-moving consumer goods (FMCG)
markets.
1.1.2.2. Organizational Structure and Coordination

The company’s structure and internal coordination affect how efficiently

marketing decisions are implemented. Aaker (2017) explains that a flexible and
collaborative structure enables information sharing between departments, allowing
faster adaptation to market shifts. In contrast, a rigid or hierarchical structure can
create communication delays, reducing responsiveness and cross-functional
cooperation. Kotler and Keller (2011) highlight that coordination among marketing,
sales, and production teams ensures consistent application of the 4Ps and alignment
with corporate objectives.

Ref​
Aaker, D. A. (2017). Strategic Market Management. John Wiley & Sons.
Chaffey, D., & Smith, P. R. (2022). Digital Marketing: Strategy, Implementation &
Practice (8th ed.). Pearson.

Jobber, D., & Ellis-Chadwick, F. (2020). Principles and Practice of Marketing (9th
ed.). McGraw-Hill Education.

Kotler, P., & Armstrong, G. (2021). Principles of Marketing (18th ed.). Pearson.

Kotler, P., & Keller, K. L. (2019). Marketing Management (15th ed.). Pearson.

Kotler, P., & Keller, K. L. (2011). Marketing management (14th ed.). Pearson.

Porter, M. E. (2008). Competitive Strategy: Techniques for Analyzing Industries and

Competitors. Free Press.

Solomon, M. R. (2023). Consumer Behavior: Buying, Having, and Being (14th ed.).
Pearson.

Aaker, D. A. (2017). Strategic Market Management (11th ed.). Wiley.

Lovelock, C., & Wirtz, J. (2016). Services Marketing: People, Technology, Strategy
(8th ed.). Pearson Education.

Tidd, J., & Bessant, J. (2021). Managing Innovation: Integrating Technological,

Market and Organizational Change (7th ed.). Wiley.​