Environmental Factors Ã¯Â¿Â½ PAGE \* MERGEFORMAT Ã¯Â¿Â½1Ã¯Â¿Â½
Running head: ENVIRONMENTAL FACTORS
Tiffany Nicole Jackson
University of Phoenix
26 July 2007
The textbook, Marketing, Principles and Perspectives: Principles and Perspectives, list the following environments: Marketing, Social, Demographic, Cultural, Economic, Technological, Competitive, Institutional, and Political/legal. For this paper I will focus only on a few.
Demographic environment refers to the size, distribution, and growth rate of groups of people with different characteristics (Bearden & LaForge, 2004, chap. 2). These factors help a company determine the purchasing behavior of foreign consumers.
Cultural environment refers to factors and trends related to how people live and behave (Bearden & LaForge, 2004, chap. 2). Examples are ideas, beliefs, taboos, or values. These factors must be considered because some foreign consumers use products differently.
Economic environment includes factors and trends related to income distribution and the production of goods and services (Bearden & LaForge, 2004, chap.
2). Examples are a country's income level and industrial structure. There are four industrial structures: Subsistence, Raw material exports, Industrial, and Industrializing. These economies shape the income distribution. An example is an industrializing economy may have low through high income homes, while a subsistence economy, mostly agricultural, may have low income homes (Armstrong & Kotler, 2005, chap. 15).
In a Political/Legal environment there are least four factors to be considered by the organization. They are the government's bureaucracy, the monetary regulations, the political stability, and the country's attitude towards international buying. The government's bureaucracy is the way a country helps foreign companies. A company will need to know if a foreign country has good customs and market information. Monetary regulations must be considered because of the exchange rate. The company will want their profits in a currency that has value. The...