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Identify Enviromental Factors that Affect Global and Domestic Marketing Decisions

Environmental Factors

What are some factors in the environment affecting Disney's global and domestic decisions in marketing? Include:

- The impact of trade agreements/practices and global economic interdependence.

- The role of physical infrastructure and demographics.

- The role of differences in terms of culture.

- The role of ethics vs. legal obligations and social responsibility.

- The role and influence of international relations and political systems.

- The role of the Foreign Corrupt Practices Act, local, national, and international legislation.

- Influence of technology.

Solution Preview

The Walt Disney Company, with its domestic television channels, theme parks, cellular service and products, approaches domestic markets by targeting very distinct and well defined segments, for each brand category. Disney also markets many of its products, theme parks, resorts and services in several locations abroad. Paris, Hong Kong, Singapore and Dubai are just of few of the company's theme park locations. Disney character products and ESPN, one of the largest sports channels in the world, are also marketed abroad. The approach Disney uses for global marketing of resorts, theme parks, services and products appear to be one that is tailored to the particular region of each location.

The many environmental factors that affect marketing of Disney brand products and services, both domestically and globally, include economic conditions, brand awareness, demand for products and services, cultural values or customs, trade and tariff regulations, supply chain activities, political conditions in each country and demographics of consumers in each region where the Disney brand is located. Global economic interdependence is of particular importance to Disney, as many of the global locations in which it operates theme parks, resorts and sports channel services are considered large economies, by global standards, which have the potential to impact or are impacted upon other large economies.

In an economic downturn, those economies that a nation does business with, in terms of services, trade or partnerships, will also be affected. If Japan does business with France, a weakened economy will translate into less tax based revenue which Disney provides for Japan. In turn, Japan will spend less on foreign investments in France, which can impact the economy of France. If tourism to Disney destinations in Asia is affected by weakened economies of surrounding countries, the economy of Asian countries in which Disney operates, are affected by decreased revenue through tourism. In order to maintain profitability, Disney may need to consider the pricing strategy and product mix. Even if continued low pricing may not be profitable, the organization could offer special low cost rates during off peak times or days of the week, to attract customers. It could also offer a two day pass for the price of one day. Both strategies create additional value to the consumer, while minimizing additional costs.

Trade affects various economies and marketing strategies, as some countries impose limits or caps on the amount of product sold. When corporations market to regions where such trade practices exist, marketing efforts must consider the cap that will exist on demand and how to refine marketing
strategies, so that those segments that are most likely to have a greater demand for products will be identified. Because there are costs associated with marketing, limiting marketing campaigns to those segments with the greatest demand will help maximize profits.

Product sales are often affected by trade agreements. However, trade agreements do not always have an overall positive effect on product sales. When ...

Solution Summary

This solution discusses environmental factors that affect marketing of Disney brand products and services in 1,875 words with five APA references.