Global Marketing Environment and Its Effect on Marketing
Global Marketing Environment and Its Effect On Marketing
In this paper, I briefly analyzed global marketing environment and its effect on global marketing. There are 6 components of the global marketing environment: (1) Economic Environment, (2) Social Environment, (3) Technical Environment, (4) Institutional Environment, (5) Legal, Political Environment, and (6) Competitive Environment (Corner, n.d.) The changes of these components affect the market directly and create opportunities or threats for the companies. Therefore, executives should understand the marketing environment to make good decisions. I explained each component in order.
Social Environment
Social environment includes all factors and trend that related to the people in the society (Corner, n.d.). Changes in the social environment affect consumers buying behavior and preferences. For instance in America, healthy food trend decrease the consumption of donuts. Also populations demographic features are another important factor in marketing. In the USA, aging population creates new business such as senior facilities. Marketing people should consider both cultural and demographic features of society to be successful.
Economic Environment
Economic environment factors which all income and production related affect the purchasing power of the market (Corner, n.d.). Therefore it is a key to assess when the company decide whether to enter a market, features of a product, the price of a product, production amount, costs, profit margin, deciding market strategies such as market penetration.
Political/Legal Envorinment
Governmental activities and legal structure of a market determine the market a place how much safe to invest or how much easy to do business. For instance, after China’s membership of the WTO and improvement of legal structure, made China easier to do business and investors flocked in China.
Technological Environment Technological innovations change products and production
In this paper, I briefly analyzed global marketing environment and its effect on global marketing. There are 6 components of the global marketing environment: (1) Economic Environment, (2) Social Environment, (3) Technical Environment, (4) Institutional Environment, (5) Legal, Political Environment, and (6) Competitive Environment (Corner, n.d.) The changes of these components affect the market directly and create opportunities or threats for the companies. Therefore, executives should understand the marketing environment to make good decisions. I explained each component in order.
Social Environment
Social environment includes all factors and trend that related to the people in the society (Corner, n.d.). Changes in the social environment affect consumers buying behavior and preferences. For instance in America, healthy food trend decrease the consumption of donuts. Also populations demographic features are another important factor in marketing. In the USA, aging population creates new business such as senior facilities. Marketing people should consider both cultural and demographic features of society to be successful.
Economic Environment
Economic environment factors which all income and production related affect the purchasing power of the market (Corner, n.d.). Therefore it is a key to assess when the company decide whether to enter a market, features of a product, the price of a product, production amount, costs, profit margin, deciding market strategies such as market penetration.
Political/Legal Envorinment
Governmental activities and legal structure of a market determine the market a place how much safe to invest or how much easy to do business. For instance, after China’s membership of the WTO and improvement of legal structure, made China easier to do business and investors flocked in China.
Technological Environment Technological innovations change products and production
References: Corner. (n.d.). Global Marketing Environment. Retrieved August 1, 2012, from http://www.mhhe.com/business/marketing/bearden/about_the_text/pdfs/chap3.pdf)