The research paper has been prepared on “Environmental Factors in global and domestic marketing”. The main objective of this research is to understand the complete meaning of this subject and analyze the current marketing fundamentals. Several evidences have been used to support the topic. It presents key concepts that are practical and useful.
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Prior to starting with discussing the Environmental factors for domestic and Global marketing, we must get an understanding of what is marketing? And what is the significance of marketing in the growth of a firm? MarketingA is the one of the most important process by which companies attract customer interest in goods or services. It generates the plan and strategy that underlies sales techniques, business communication, and business developments.A It is an integrated process through which companies retain the existing customers and attract new customers which is directly proportional to turnovers and profit. The adoption of marketing strategies requires businesses to shift their focus fromA productionA to the perceived needs and wants of their customers as the means of stayingA profitable. Marketing is used to identify theA customer, to satisfy theA customer, and to keep the customer. As a customer with respect to the marketing of a company, my expectation would be what new the firm has to offer. To keep the interest of customer a firm must keep on upgrading the feature of product or bringing new products and keep the marketing to the best. Marketing is based on various environmental factors which are Social Economical Technological Competitive Regulatory Social factor defines the demographic characteristics of population, gender differences, buying patterns of the customer, culture attitudes and diversity. Economical factor defines the standard of living on customers, purchasing power of the customers, expenditures, and resources that affect the business running cost. Technological factor defines the engineering work. Competitive factor defines firms which work in same area or in layman language produce same product or provide same services. Regulatory factor defines patenting of the product, licensing related, taxes, contracts, permits etc
Global Economic interdependence is all about the relationship between countries or regions that depend on each other for the business and product or service to be consumed. This interdependence comes with the skill of the labor, the availability of labor, cheap labor and natural resources used into manufacturing of the products etc. The manufacturer of product A is the buyer of B and the producer of B may be buyer of C, so this creates an interdependence cycle. If A is good in business then B business is enhanced as A has purchasing power to buy B. Let me explain this with an example.USA outsource the Information Technology related work to countries like India and China coz India and China has cheap labor which has expertise into Information Technology which is making US economy strong and also the development of these counties as it is generating job opportunities into Asian countries, with this increase in standard of living and purchasing power Indian and Chinese can afford to purchase US products.
Demographic and physical infrastructure has huge impact on the firm’s policy making and planning the lines on which the firm would work. For example there is a construction company Paul Constructions which is deciding which cities it should target for next 5 years to put on their project, for this Paul Construction has to consider which cities are growing in population and the standard of living of people of cities going up so that they can purchase the special product of the firm. Some firms start up their branch only in cities which has great infrastructure .Infrastructure is a main thing which support to a firm. An IT company which has all international clients then must be near to an international airport so that the client and employee do not take time in travelling. Good roads and other ways of transportation decide the time the product reaches market from the assembly line, any sort of delay is revenue losses. Suppose a luxury car company wants to set up a show room into a city then it has to consider the purchasing power of the people of the city or region. It doesn’t make a sense that a manufacture set up a branch or show room where hardly somebody has the standard of buying the product.
Culture relates to language, religion, values, education, social organization, technology and material culture, law & politics and aesthetics. International marketing must keep in mind the cultural aspect of the region where they want to promote the business in coming time. The region which has a different language or style then marketing in same language or style has great impact on customers. The marketing manager must keep in mind that the marketing strategy has positive religious aspect, there should not be any hurting to religious feeling of the customers. There are vast variations of values and attitudes between nations and even within. Deep knowledge and detailed analysis of the local environment is needed prior to taking product or service to that locality. The level and nature of education vary between nations and regions, so with respect to marketing right medium and way has to be applied so that consumer gets attracted to the product, for example audio advertisements are more significant in regions where literacy rate is low rather than printed. A marketing manager has to consider how a nation’s society is organized; the level of influence of class or casts upon a society needs to be considered. Technology and Material culture has to be also kept in mind while preparing the marketing strategy where in one must consider the power sources, roads, and other infrastructure and how fast in a region technology advancement would happen etc. The political ideology on which the society is based will impact marketing strategy for example UK has completely different political setup then an African country, Aesthetics is all about bringing the artist out of you through any medium may be smell, taste or color
Business ethics and corporate social responsibility is a big factor in deciding marketing plan and strategy. Business ethics and corporate social responsibility is not about laws and regulations within the firm or the legal standards but it is gaining the confidence and respect of the consumer to sell the product. Firms are aiming towards better business practices and ethical behavior. Demand of a product of the company is directly promotional to the higher standard of corporate social responsibility. For example Indian IT companies believe in transparency of the funds it gets from the client so that the client gets a clear picture of what he is paying? Is he paying right? Such a practice earns them the respect and confidence of the clients. There are a number of actions which a company can take but they may legal but unethical. Some companies ignore this factor in order to earn right profits but have to face consequences afterwards.
Foreign corrupt practices act was enacted by congress in 1977 to stop the bribery practices to gain foreign business. This act has two salient points 1) how to spot FCPA issues and 2) how to recognize a bribe violation.
Technology has great impact on marketing research and strategy. Technology changes or rather advances the ways in which the research is done, the way marketing manager gets tuned with advance technology coming in. There is a huge impact of technology in storing, retrieving the companies and consumers data which helps in vast way in doing marketing research. The advancement of technology has brought in the better ways of communicating with customers for example now customer do not have to go out to stores to buy a product rather they can order it online using internet. Internet is the biggest means of advertisements and marketing, sites for various companies and firm who maintains customer relationship where customer can input feedback s and complains of a product he/she has bought or get online assistance of how to use it etc. Search engines like Goggles etc help in great deal in finding the information and collection of raw, fact and figures to bring up the marketing strategy.
Research Paper on Environmental Factors in global and domestic marketing. (2017, Jun 26).
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