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Study Notes

Internal and External Influences on Marketing Objectives

AS, A-Level
AQA, Edexcel, OCR, IB

Last updated 22 Mar 2021

There are many potential internal and external influences which shape and influence the marketing objectives of a business.

Internal Influences on Marketing Objectives

Corporate objectives

As with all the functional areas, corporate objectives are the most important internal influence. A marketing objective should not conflict with a corporate objective


The financial position of the business (profitability, cash flow, liquidity) directly affects the scope and scale or marketing activities.

Human resources

For a services business in particular, the quality and capacity of the workforce is a key factor in affecting marketing objectives. A motivated and well-trained workforce can deliver market-leading customer service and productivity to create a competitive marketing advantage

Operational issues

Operations has a key role to play in enabling the business to compete on cost (efficiency / productivity) and quality. Effective capacity management also plays a part in determining whether a business can achieve its revenue objectives

Business culture

E.g. a marketing-orientated business is constantly looking for ways to meet customer needs. A production-orientated culture may result in management setting unrealistic or irrelevant marketing objectives.

External Influences on Marketing Objectives

Economic environment

The key factor in determining demand. E.g. many marketing objectives have been thwarted or changed as a result of the recession. Factors such as exchange rates would also impact objectives concerned with international marketing.

Competitor actions

Marketing objectives have to take account of likely / possible competitor response. E.g. an objective of increasing market share by definition means that competitor response will not be effective

Market dynamics

The key market dynamics are market size, growth and segmentation. Changes in any of these undoubtedly influence marketing objectives. A market whose growth slows is less likely to support an objective of significant revenue growth or new product development

Technological change

Consumer and other markets are now affected by rapid technological change, shortening product life cycles and creating great opportunities for innovation. These have to be taken into account when setting marketing objectives.

Social & political change

Changes to legislation may create or prevent marketing opportunities. Change in the structure and attitudes of society also have major implications for many markets.

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