There are several forces that can affect the marketing strategy of a firm. These forces are divided into two main types. One is macro, and the other is micro. In this article, we will discuss the macro-environmental factors that affect the marketing of translation companies.
So let’s start!
The first macro-environmental factor that we are going to discuss is Technology.
1. Technology
There is no doubt that technology has affected marketing like never before. Remember when firms distributed pamphlets and newsletters to market their products or services?
It may not be that long ago for some, but for Generation Z, it will be. Nonetheless, technology has changed the way business is conducted. Every company has adopted technology in their marketing processes. If we talk about translation agencies like Italian translation services, they have changed their translation processes by implementing technological changes.
Let’s see how technology has affected the marketing programs of various organizations.
a) E-Commerce
From traditional brick-and-mortar to selling products and services online, technology has offered e-commerce platforms to companies. They enable firms to reach a wider audience. A small-scale company working in the huts of Haiti can now sell their products in European countries. And that is all because of E-commerce platforms.
Consequently, we have also seen a shift in marketing strategies. Now, consumers have a lot of options. And because of that, companies have to approach selling from a different perspective.
We can take the example of Amazon. It is an E-commerce platform that connects consumers and sellers. It offers products at a competitive price. Meanwhile, collecting consumer data so personalized messages can be sent to them. But to ensure that consumer data is personalized, translation services are utilized.
b) Social Media
Some of the biggest MNCS in the world utilize social media platforms to market their product or services. These platforms have become obligatory for any business wanting to create a market presence.
The fact that social media has allowed firms to connect with their customers in real time is irreplaceable.
Nike, for instance, uses social media platforms to offer its products. And most importantly, connect with the consumers. Nike’s Instagram presence has done more good than any other billboard.
c) Artificial intelligence
Marketing is entering its new phase with the advent of artificial intelligence. Businesses can utilize AI to create more customized and personalized messages. Moreover, AI will enable companies to predict how their customers will behave. This will enable more optimized marketing campaigns. Regarding gaming translation services, they have adopted AI practices to translate video games into numerous languages. And that too in a short period.
For instance, how Youtube or even Netflix can recommend those videos and movies that match your interests? They can do it by AI, which allows them to use customer information, such as your viewing history and preferences, to recommend relatable content.
2. Economic Conditions
Economic conditions are essential macroeconomic factors that influence a company’s marketing decisions.
Let’s discuss how that is.
a) Inflation:
Inflation is the gradual increase in the prices of goods and services. If inflation is high, it will affect how consumers purchase things, forcing them to reduce their spending. Consequently, businesses have to alter their marketing strategies. If translating a video game becomes expensive, it will be rare for publishers to take assistance from any gaming translation company.
b) Unemployment:
High unemployment rates can reduce the overall consumer spending power, leading to decreased sales for many businesses. In such a scenario, companies may have to adjust their marketing strategies to attract consumers with discounts.
c) Exchange Rates
The exchange rate might not affect small-scale businesses operating in a tiny locale. However, companies doing business on a global scale can suffer a lot amid volatile exchange rates.
For instance, if your local currency is robust, foreign consumers will need help to purchase your products. Hence, it will decrease your overall sales. Consequently, businesses have to readjust their marketing strategies accordingly. And shift towards foreign markets that will offer them more favorable exchange rates.
3. Political And Legal Forces
Political and legal forces affect the way business is operated in a region. Governments can impose various laws and regulations that hinder or smoothen business operations. Only some organizations can thrive amidst political instability.
Let’s discuss what some of these political and legal forces might be.
a) Taxes and Tariffs:
Governments may impose taxes and tariffs on goods and services. This will increase the cost of production for businesses. For example, a tax on imported goods can reduce profits for companies that rely on them.
b) Trade Regulations:
Governments may restrict trade between countries. For example, a government may prohibit the importation of certain products, which can impact the supply chain.
c) Consumer Protection Laws:
Government laws can protect consumers from unethical business practices. For example, consumer protection laws may require businesses to provide accurate information about their products or services. They may need them to give refunds or exchanges if a product is defective. Hence, one should always take assistance from companies that have never participated in unethical practices. For instance, if you are looking for a translation firm that adopts ethical practices, you can approach Mars Translation.
Conclusion
In this article, we discussed the macroeconomic factors that influence the marketing programmes of an organization. The key takeaway from this article is that an organization should pre-prepare for any external factor that is not in its control. This will allow the company to handle any hindrance and keep doing business.
