Share
Explore BrainMass

Global and Domestic Marketing: Environmental Factors

How does three of the following affect global and domestic marketing?

Political
Legal
Social
Culture
Technological
Business ethics

Solution Preview

Please refer to response attached (also presented below), as well as one relevant article. I hope this helps and take care.

RESPONSE:

1. How does three of the following affect global?

Environment factors can be either drivers or barriers to global marketing.

a. Political
1. Trade policies: open trade policies, technical standards and regulations favor globalization
2. Technical Standards
3. Regulations

b. Culture
1. Same likes and styles favors globalization
2. Frugal versus extravagant culture: similar cultures favor globalization and visa versa.
3. Difference in costs across countries does not favor globalization

c. Social
1. Common customer needs favors globalization. For example, the facsimile industry's customers have more homogeneous needs than those of the furniture industry.
2. Global customers: if a firm's customers are other global businesses, globalization may be necessary to reach these customers. Furthermore, global customers often require globally standardized products.
3. Global channels of customers require a globally coordinated marketing plan. Strong established local distribution channels inhibit globalization.
4. Transferable marketing: whether marketing elements such as brand names and advertising require little local social adaptation. World brands with non-dictionary names may be developed in order to benefit from a single global advertising campaign.

For example, the furniture industry did not lend itself to the globalization before the 1960s. Because furniture has a high bulk compared to its value, and because furniture is easily damaged in delivery, transport delivery was usually high. Government trade barriers were also were unfavorable. The Swedish furniture company IKEA pioneered a move towards globalization in the furniture industry. IKEA's furniture was unassembled and therefore could be shipped more economically. IKEA also lowered costs by involving the customer in the value chain; the customer carried the furniture home and also assembled the furniture herself. IKEA also had a frugal culture that gave it cost advantages. IKEA successfully expanded in Europe since customers in different countries were willing to purchase similar designs. However, after ...

Solution Summary

This solution explains three environmental factors (e.g. political, legal, social, culture, technological, or business ethics) that affect global and domestic marketing. Supplemented with an informative article.

$2.19