Mkt 421 Week 5 Individual Essay Example
Environmental Factors Affecting Marketing Decisions
June 10, 2011
University of Phoenix
Harry Derderian
MKT/421 Marketing
Environmental Factors Affecting Marketing Decisions Management is faced with many decisions when considering the environmental factors that affect marketing. This includes global economic interdependence, demographics, cultural differences, social responsibility, ethics, and technology. It is imperative for a company to understand how these factors can greatly affect the outcome of a company’s marketing plan. Today’s globalization of companies has led to an economic interdependence that influences the decisions that companies make. A global economic interdependent environment is when the economies of many companies are linked in such a way that the success or failure of one economy affects all the others. The global economic interdependent environment is constantly being reinforced by free trade agreements between countries. The lowering of trade barriers between countries increases the dependency between nations for goods and services. PepsiCo is represented in over 200 countries. PepsiCo makes many decisions that impact the economies in areas where it sells its products. PepsiCo has worked with 300 small farmers in San Gabriel, Mexico to purchase corn. This decision has lead the local economy to form the San Gabriel cooperative and is currently considering purchasing a tractor to improve productivity (Strom, 2011).
Demographics
The demographics of a market will also affect the marketing decisions a company makes. A company must consider such factors as age, education, and population size when entering a foreign market. Demographics help to define the target market. Therefore, understanding the demographics of a country assists in defining the products it should offer. Elizabeth Wilson understands the importance of the demographics of a market and says, “When crafting your business plan or giving it an overhaul, it’s critical to
June 10, 2011
University of Phoenix
Harry Derderian
MKT/421 Marketing
Environmental Factors Affecting Marketing Decisions Management is faced with many decisions when considering the environmental factors that affect marketing. This includes global economic interdependence, demographics, cultural differences, social responsibility, ethics, and technology. It is imperative for a company to understand how these factors can greatly affect the outcome of a company’s marketing plan. Today’s globalization of companies has led to an economic interdependence that influences the decisions that companies make. A global economic interdependent environment is when the economies of many companies are linked in such a way that the success or failure of one economy affects all the others. The global economic interdependent environment is constantly being reinforced by free trade agreements between countries. The lowering of trade barriers between countries increases the dependency between nations for goods and services. PepsiCo is represented in over 200 countries. PepsiCo makes many decisions that impact the economies in areas where it sells its products. PepsiCo has worked with 300 small farmers in San Gabriel, Mexico to purchase corn. This decision has lead the local economy to form the San Gabriel cooperative and is currently considering purchasing a tractor to improve productivity (Strom, 2011).
Demographics
The demographics of a market will also affect the marketing decisions a company makes. A company must consider such factors as age, education, and population size when entering a foreign market. Demographics help to define the target market. Therefore, understanding the demographics of a country assists in defining the products it should offer. Elizabeth Wilson understands the importance of the demographics of a market and says, “When crafting your business plan or giving it an overhaul, it’s critical to