2.2 The Forces that Shape Your Strategy
What You Can’t Control but Better Pay Attention To
Your marketing team can control the marketing mix (the product, price, place, and promotion) you offer to your target customers. But the world around you? That’s a different story.
The external environment is made up of forces you can’t control. They change constantly and affect both how your customers behave and how your business performs. Seasoned marketers keep a close eye on these forces and adapt their strategies as things evolve.
Here are the big five forces you need to watch: social, economic, technologic, competitive, and regulatory.
1. Social Forces
(What people value, believe, and how they live their lives.)
Social forces include things like culture and demographics; basically, what people care about and how they behave. These forces shape what people buy, where they shop, how they shop, and even when they make purchases.
Strategy in Action: Tide, Cleaning Up and Going Green
For decades, Tide has been one of the most recognized laundry detergent brands in the world, known for cleaning power and convenience. But as consumer values shifted toward environmental responsibility, Tide saw both a threat and an opportunity. Sustainability wasn’t just a niche concern anymore—it was becoming a mainstream buying factor, especially among younger generations.
To stay relevant and keep customers loyal, Tide embraced the rising trend of sustainability in both its product line and its brand messaging. Procter & Gamble (Tide’s parent company) introduced eco-friendly product variations like Tide Purclean, which offers plant-based ingredients without sacrificing cleaning performance. Tide also committed to reducing plastic waste by launching reusable and recyclable packaging innovations, including partnerships with TerraCycle and efforts to reduce overall packaging material.
The strategy didn’t stop with the product. Tide’s Cold Water Clean campaign encouraged consumers to wash their laundry in cold water to save energy, framing the brand not just as a detergent, but as a champion of smart, sustainable cleaning habits.
Target: Eco-conscious consumers and households seeking effective, environmentally friendly cleaning solutions
Positive Outcome: Powerful cleaning with less environmental impact
Marketing Mix:
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Product: Eco-friendly formulas like Tide Purclean and concentrated detergents that reduce packaging waste
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Price: Competitive pricing in line with other premium detergent options
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Place: Widely available in supermarkets, big-box retailers, and online
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Promotion: Sustainability-focused campaigns (e.g., Cold Water Clean) and partnerships with environmental organizations
Procter & Gamble. (2023). 2023 Citizenship Report: Environmental Sustainability. https://us.pg.com/citizenship-report-2023/environmental-sustainability/
Hiebert, P. (2021, March 29). Tide wants everyone to wash their laundry in cold water. Adweek. https://www.adweek.com/brand-marketing/tide-wants-everyone-to-wash-their-laundry-in-cold-water/
Kalvapalle, R. (2016, October 20). This eco-friendly detergent makes use of 65 percent biological ingredients. Clean the Sky. https://www.cleanthesky.com/innovation/ecofriendly-detergent
2. Economic Forces
(What people can afford)
The economy affects how much money people have to spend and what they choose to spend it on. Marketers pay attention to income trends— gross income, disposable income, and discretionary income—because pricing strategies only work if customers can actually afford what’s being offered.
Strategy in Action: Walmart, Saving Money and Winning in Tough Times
Walmart has built its entire business model around one simple promise: Everyday low prices. That strategy becomes especially powerful when economic forces tighten customer spending power.
During economic downturns or periods of high inflation, many shoppers prioritize value and affordability over premium brands. Walmart has capitalized on this by expanding its range of private-label products, which offer similar quality at lower prices compared to national brands. Additionally, Walmart leverages its enormous scale to negotiate lower prices with suppliers—savings it passes along to consumers.
In recent years, Walmart has also boosted its online and curbside pickup options to attract budget-conscious shoppers seeking both convenience and value.
Target: Price-sensitive families and individuals looking to stretch their budgets without sacrificing variety or convenience
Positive Outcome: Access to a wide range of products at consistently low prices
Marketing Mix:
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Product: Broad assortment including name brands and value-priced private-label alternatives
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Price: Everyday low pricing (EDLP) model
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Place: Extensive network of physical stores and a growing online platform
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Promotion: Price-focused advertising campaigns and loyalty programs
Walmart Inc. (2023). 2023 Annual Report. https://corporate.walmart.com/content/dam/corporate/documents/esgreport/reporting-data/tcfd/walmart-inc-2023-annual-report.pdf
Rivas, T. (2024, April 30). Walmart is the nation’s largest grocer. Why it added a new private label food brand. Barron's. https://www.barrons.com/articles/walmart-largest-grocer-new-brand-33552c69
Intelligence Node. (2023, May 15). Why Walmart's EDLP Strategy is a Game-changer. https://www.intelligencenode.com/blog/walmart-edlp-everyday-low-pricing-strategy/.
3. Technological Forces
(What’s new, what’s next, and how it changes the way people live)
Technology shapes how products are created and delivered and even how customers interact with brands. New tech can create huge opportunities or make older products obsolete.
Strategy in Action: Domino’s, Delivering Pizza and Innovation
Domino’s has evolved from a basic pizza delivery chain to a technology-driven convenience brand. As technology changed how consumers shop, order, and interact with brands, Domino’s has leaned in hard.
In response to the digital shift in customer expectations, Domino’s introduced online ordering early, developed an easy-to-use mobile app, and even launched innovations like the Domino’s Pizza Tracker. The company didn’t stop there. They’ve tested autonomous delivery vehicles, drone deliveries, and AI-powered ordering systems.
Domino’s strategy isn’t just about pizza anymore; it’s about delivering convenience and using technology to remove friction from the ordering experience.
Target: Tech-savvy, convenience-seeking customers who value fast, reliable delivery
Positive Outcome: Easy, reliable ordering with innovative delivery options
Marketing Mix:
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Product: A wide variety of pizzas and sides with customizable options
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Price: Competitive pricing with frequent promotional offers
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Place: Delivery-first model supported by online, mobile, and voice-activated ordering
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Promotion: Tech-focused messaging highlighting convenience and innovation
Domino’s Pizza, Inc. (2024). 2023 Annual Report. https://ir.dominos.com/financial-information/annual-reports/
Buss, D. (2023, April 30). Domino’s is ready for driverless future, but future isn’t ready yet. Forbes. https://www.forbes.com/sites/dalebuss/2023/04/30/dominos-is-ready-for-driverless-future-but-future-isnt-ready-yet/
Sahota, N. (2024, March 5). AI in the fast lane: Revolutionizing fast food through technology. Forbes. https://www.forbes.com/sites/neilsahota/2024/03/05/ai-in-the-fast-lane-revolutionizing-fast-food-through-technology/
Wong, K. (2018, January 26). How Domino’s transformed into an e-commerce powerhouse whose product is pizza. Forbes. https://www.forbes.com/sites/kylewong/2018/01/26/how-dominos-transformed-into-an-ecommerce-powerhouse-whose-product-is-pizza/
QSR Magazine. (2023, March 15). How technology is reshaping the future of food delivery. https://www.qsrmagazine.com/story/how-technology-is-reshaping-the-future-of-food-delivery/QSR Magazine
4. Competitive Forces
(Who else wants your customers and how hard they’re coming for them)
Competition isn’t just about other companies selling similar products. It also includes substitutes (products that meet the same customer need, but in a different form, e.g., powered detergent verses liquid detergent verses detergent pods) and new entrants looking to grab market share. Marketers who ignore their competitors won’t stay in business long.
Strategy in Action: Netflix, Staying Ahead in the Streaming Wars
When Netflix launched its streaming service in 2007, it had little direct competition. Fast forward to today, and it’s facing aggressive rivals like Disney+, HBO Max, and Amazon Prime Video—not to mention substitute products like YouTube, TikTok, and gaming platforms.
To stay competitive, Netflix has focused on exclusive original content, including blockbuster shows like tranger Things and The Crown. They’ve also invested heavily in data-driven personalization, recommending shows and movies tailored to each viewer’s taste.
Netflix’s strategy has kept it ahead of both traditional competitors and emerging substitutes by offering content variety, convenience, and a user-friendly experience.
Target: Entertainment seekers who value convenience, content variety, and personalization
Positive Outcome: On-demand entertainment tailored to individual preferences
Marketing Mix:
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Product: Exclusive original content alongside licensed shows and movies
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Price: Tiered subscription plans at competitive rates
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Place: Streaming access across multiple devices globally
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Promotion: Personalized content recommendations and promotional partnerships
Netflix, Inc. (2024). 2023 Annual Report. https://ir.netflix.net/financials/annual-reports-and-proxies/default.aspx
Taylor, B. (2022, Summer Special Issue). How Coca-Cola, Netflix, and Amazon learn from failure. Harvard Business Review.
Associated Press. (2022, July 12). Netflix's recipe for success includes 'secret sauce' spiced with Silicon Valley savvy. AP News. https://apnews.com/article/7146b50bc23d72f752f7eba8d3b156e1
5. Regulatory Forces
(The rules you have to play by—whether you like them or not)
Governments set laws and regulations to protect consumers and promote fair business practices. These rules can affect every part of the marketing mix, from product safety to pricing to environmental impact.
Strategy in Action: Ford, Driving Toward a Greener Future
Government regulations have long influenced the automotive industry, particularly when it comes to fuel efficiency and emissions standards. As regulations worldwide have tightened, Ford has made major strategic shifts to stay ahead and turn regulatory challenges into competitive advantages.
The company has invested heavily in developing electric and hybrid vehicles, including the popular Ford Mustang Mach-E and the all-electric Ford F-150 Lightning. Ford has also committed to carbon neutrality by 2050 and continues to work on sustainable manufacturing practices.
By embracing regulatory changes rather than resisting them, Ford is positioning itself not just as a compliant automaker, but as a leader in sustainable transportation.
Target: Environmentally conscious consumers and early adopters of electric vehicles
Positive Outcome: Access to innovative, eco-friendly vehicles without sacrificing performance or style
Marketing Mix:
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Product: Electric and hybrid vehicles alongside traditional models
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Price: Competitive pricing with incentives for EV adoption
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Place: Global dealership network and online sales channels
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Promotion: Sustainability messaging and partnerships highlighting green initiatives
Ford Motor Company. (2023). 2023 Integrated Sustainability and Financial Report. https://corporate.ford.com/content/dam/corporate/us/en-us/documents/reports/2023-integrated-sustainability-and-financial-report.pdf
Bloomberg. (2024, February 8). Ford plans small, cheap electric cars to help reduce EV losses. Automotive News. https://www.autonews.com/automakers/ford-changes-ev-strategy-take-tesla-chinese-automakers/
Rathi, A., Natter, A., & Naughton, K. (2023, June 22). Ford gets $9.2 billion to help US catch up with China’s EV dominance. Bloomberg. https://www.bloomberg.com/graphics/2023-ford-ev-battery-plant-funding-biden-green-technology/
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