Question

Subaru developed a new luxury car model, but, after performing some market tests, it realized that it was pricing its vehicles too high, even for the luxury market. Subaru had to make some changes in its marketing mix. Unfortunately, it made the mistake of launching its product right when a recession hit. As unemployment rose, sales of luxury products such as Subaru's new luxury vehicle tend to decrease. In this case, the pricing of its vehicle is a(n) _______ force for Subaru, while the economic downturn is a(n) _______ factor.

Answer 1

In this case, the pricing of its vehicle is a controllable force for Subaru, while the economic downturn is a(n) uncontrollable factor.

Explanation:

It is essential for any business hat looks into the 4P's of the marketing mix for its success its operation. The 4P's includes, product, price, place and promotion. The careful choosing of the product that is in demand, the right place to sell that product where there is more demand, price that we decide to sell the product and the promotion techniques like ads that are used to sell that product plays a major role in the determination the success of the business.

Controllable factors are these 4 P's in which the decision is under the control of the business owner. The uncontrollable factors are those that are related to the environment. These includes tax, political and economic conditions, Competition,etc that cannot be controlled by the owner of the business.