How can economic influences affect marketing strategies? Identify three key economic variables and ...

Economic variables included in the text include:
- GDP which is a measure of the economy's productivity. Periods of economic growth are accompanied by increased consumer and business spending offering opportunities for marketers.
- Inflation, a general increase in the prices of goods and services, reduces the real purchasing power of consumers and presents a challenge for marketers as they strive to maintain market share.
- Employment levels indicate the percentage of the labour force that is currently employed. High levels of unemployment reduce the buying power of the jobless, and create uncertainty for the working. Both tend to reduce spending and create challenges for marketers. In periods of low unemployment, spending is less restrained and marketers have greater opportunities.
- Real income is closely related to inflation and indicates the volume of goods and services that money can buy. If wages have not kept pace with inflation, consumers lose purchasing power over time. While necessities will remain a priority, marketers of luxury goods will see a decline in demand for their products.