1) Which are more important? Internal or External Factors?

Both, internal and external factors, are important. However, the latter weighs more
than the former factor in a sense that the marketer holds a little, or no control at all, with these
external factors of Marketing environment. Internal factors are easier to handle compared to
external factors since they are within the boundaries of the business or the company. External
factors, on the other hand, go beyond the corners of the company. Hence, it would be much
difficult for one to handle situations or problems that go beyond the walls of the company.
Furthermore, external factors affect how the company sustains, and at the same time, deals
with forces of the business world.

2) Why should firms look out for external factors?

Firms should look how certain external factors affect the company, such as whether
the company would be affected with these forces in a short-time or for a long-run. These
external factors may either be the firm’s source of opportunities or threats. Thus, the need to
be properly identified and evaluated. In this way, the firm can immediately grab the
opportunities at hand or think of solutions to address the problems it faces.

3) Not all external factors will affect a firm. Explain.

It can be that even though the firm is presented with so much external factors,
however, it is not guaranteed that all of those factors would affect a firm. The company may
withstand the troubles brought by a certain factor since such holds little or no relation to the
firm.

4) Why should KEY external factors be applicable to all competing firms? Explain.

Key external factors should be applicable to all competing firms since these are factors
that are present in the business world. These factors affect not just one firm in a specific type
of industry but also other firms in their normal course of business. Moreover, these key
external factors are crucial to every firm’s sustainability – whether or not such firm may be
able to adapt to the occurring forces outside its business or organization.

5) In identifying external factors, why should it be specific and measurable?

External factors should be specific and measurable for them to be evaluated and
addressed properly. In this way, the company would be able to come up with the most accurate
plan and strategy in dealing with the issues that may arise. Not only can the firm make better
planning and strategies, it can also come up with forecasts or expectations of what may be the
possible trend of their business.

6) How can external factors affect a firm’s marketing?

External forces can make or break the company. Marketing as defined by the American
Marketing Association as an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer relationships
in ways that benefit the organization and its stakeholders. Thus, it is safe to say that, a firm’s
marketing depends on the present external factors. Marketing strategies would differ as
different external factors occur.