Environmental Factors and Marketing - 1323 Words

Environmental Factors and Marketing Decisions Will a successful marketing plan in one country work in another country? This is unlikely to occur due to many different cultural, political, economic, technological, and competitive environments. Marketing mixes require adjustments to meet local conditions and companies that understand these environmental factors can create advantages when positioning their products or services. Wal-Mart is a global organization and uses market research to understand the market environments before making marketing decisions. Introduction Wal-Mart operates over 6,100 stores worldwide, employs 1.8 million associates, and operates in 15 different countries (Annual Report, 2006, p. 12). Lee Scott,†¦show more content†¦In fact, out of 600 new store openings planned for 2007, one-third will be international location (Annual Report, 2006, p. 12). How is Wal-Mart expanding so fast and successfully in the global market? Wal-Mart elected to purchase existing grocery store chains instead of entering into a new market without brand identification. The competitive environments in Central and South America shaped the way Wal-Mart expanded. Instead of building new stores, Wal-Mart purchased existing retailers and kept their same name. Wal-Mart does business under Seiyu in Japan, Bodega Aurrera in Mexico, Asda Living in the United Kingdom, Todo Dia in Brazil, and CARCHO in Central America. Around the world, Wal-Mart operates 9 different formats to reach its target markets (Annual Report, 2006, p. 16). This strategy provides an instant marketing mix that will allow Wal-Mart to make distribution changes to increase profits. This strategy may also prevent some of the negativity Wal-Mart receives domestically by squeezing out the smaller merchants. Domestic Segment In the United States, Wal-Mart appeals to the target market through various stores such as Sam s Club, Wal-Mart NeighborHood Markets, Super centers, and general merchandise stores. While Wal-Mart successfully reached its target market, it is beginning to face community opposition to some expansion efforts. Social Responsibility Social responsibility and ethics play an important role for keeping life-longShow MoreRelatedEnvironmental Factors of Marketing1287 Words   |  6 PagesEnvironmental Factors of Marketing This paper will discuss the five environmental factors that influence global and domestic marketing decisions that organizations must make. These five environmental factors are technology, demographics, government, culture and economics. Companies are affected differently by these factors depending on the industry they are in and the size of the organization. I will be using the Washington Plaza Hotel to illustrate how these environmental factors affect theRead MoreMarketing Micro and Macro Environmental Factors1669 Words   |  7 PagesMacro and micro environments both fall into the categories of environmental scanning. The general scope of environmental scanning is that it is a component of global environmental analysis. While analyses are typically carried out on the macro environment, the micro environment still has an important role to play. In summary, the macro environment is involved with the industries, companies, markets, clients and competitors, while the micro enviro nment can be represented by the suppliers, competitorsRead MoreEnvironmental Factors and Marketing Decisions Essay1251 Words   |  6 PagesEnvironmental Factors and Marketing Decisions Will a successful marketing plan in one country work in another country? 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Making a strategic decision which is the first and the critical phase in a developing strategic marketing plan is influenced by many factors that need further analysis in order to make the right decision. Moreover, These factors are divided into two categories: macro environmental factors and internal environmental factors .Porter’s fiveRead MoreEnvironmental Factors Paper981 Words   |  4 PagesEnvironmental Factors Paper This paper will discuss the five environmental factors that influence global and domestic marketing decisions that organizations must make. The five environmental factors are social, economic, technological, competitive, and regulatory. The social forces of the environment as defined in Marketing, include the demographic characteristics of the population and its values (Kerin Berkowitz, Hartley Rudelius, 2006, p. 74). This includes gender differences, buying