Chapter 19: Managing External Forces

Chapter Summary:

In this chapter, we explore factors outside of marketers’ control but that play a vital role in shaping an organization’s marketing strategies and tactics. As we will see, external forces present both opportunities and threats. Each force holds the potential to alter how an industry conducts its business and how individual marketing organizations make decisions. Our coverage includes an in-depth evaluation of seven key external forces: demographics, economic conditions, governmental environment, influential stakeholders, cultural and societal change, innovation, and competitors.

Key Issues:

  • What are External Forces?
  • The External Forces Facing Marketing
  • Demographics
  • Economic Conditions
  • Governmental Environment
  • Influential Stakeholders
  • Cultural and Societal Change
  • Innovation
  • Competitors

Cited References:

  1. While many organizations struggled when the coronavirus pandemic began several were well prepared as discussed here: Greg Ip and Angus Loten. “Most Businesses Were Unprepared for Covid-19. Domino’s Delivered.” The Wall Street Journal, September 4, 2020.
  2. For one writer’s opinion on industries that will be impacted by driverless vehicles see: Daniel Araya. “Top 10 Industries Transformed by Self-Driving Cars.” Forbes, January 10, 2019.
  3. For more information on U.S. legal and regulatory issues facing marketers see: “Advertising and Marketing.” Federal Trade Commission.
  4. For more details on Apple’s “1984” ad see: “1984 (Advertisement).” Wikipedia.
  5. For a listing of other companies that have been accused of false or misleading advertising see: John Harrington and Grant Suneson. “Cigarettes and Supplements Are Among the 42 Most Outrageous Product Claims of All Time.” USA Today, May 11, 2019.
  6. “Household Savings Forecast.” Organization for Economic Cooperation and Development.
  7. An example of the impact cultural shifts may have on marketers can be seen with how several companies have responded to products that some associate with racial stereotyping as described here: Jordan Valinsky. “Uncle Ben’s and Mrs. Butterworth’s Follow Aunt Jemima Phasing Out Racial Stereotypes in Logos.” CNN, June 17, 2020.
  8. Each year the Massachusetts Institute of Technology (MIT) lists the top technologies of the year. The current list and past lists can be found here: “10 Breakthrough Technologies.” MIT.
  9. For more on the Amazon-Kohl’s relationship see: Lauren Thomas. “Kohl’s Says Its Tie-Up with Amazon ‘Underscores’ Importance of Having Stores.” CNBC, June 18, 2020.
  10. Brian Naylor. “Equifax Breach Puts Credit Bureaus’ Oversight in Question.” National Public Radio, September 21, 2017.