Week 4- The Marketing Environment

When companies create their marketing plans, the marketing environment is one of the most important factors that are focused on. The marketing environment is very broad, but that is a good thing because it gives marketers a large selection of areas to figure what area of the environment would need most focus to properly market their good or service. Target markets, ethnic demographics and purchasing power are all factors that can be focused on when trying to properly market a good or service.

Breitling would be considered a luxury company that targets consumers of high income. Being that their watches are priced at $1,200 and higher the marketing department for Breitling wouldn’t choose to place an advertisement for their company in a low income neighborhood or magazine that is not know to be frequently picked up by upper class consumers. Purchasing Power, which is a factor in the marketing environment, plays a large role in the strategy of a high-end company like Breitling.  To be able to afford a luxury watch, which means purchasing without interfering with your normal monthly expenses, your purchasing power would have to be extremely high. So either your standard of living is very low or your funds are very high. Not to say that a person with a low income can’t obtain a luxury watch, but obtaining and affording are two different things. Breitling marketers seem to not take a gamble with consumers who have a low standard of living or low income, so they place their ads in avenues that are popular amongst high end consumers such as GQ magazine and The Wall Street Journal. magazine and The Wall Street Journal.