Mkt 421 Week 5 Individual

1181 words 5 pages
Environmental Factors Affecting Marketing Decisions

June 10, 2011
University of Phoenix
Harry Derderian
MKT/421 Marketing

Environmental Factors Affecting Marketing Decisions Management is faced with many decisions when considering the environmental factors that affect marketing. This includes global economic interdependence, demographics, cultural differences, social responsibility, ethics, and technology. It is imperative for a company to understand how these factors can greatly affect the outcome of a company’s marketing plan. Today’s globalization of companies has led to an economic interdependence that influences the decisions that companies make. A global economic interdependent environment is when the economies of many
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PepsiCo continues to strive toward this commitment of creating a better tomorrow. For example, PepsiCo cannot manufacture its product without water so it takes great care to develop programs to sustain this valuable resource.
When entering a foreign market, a company must extensively research the requirements for entering into the market. Exporting is the simplest way to enter a foreign market. The issue with relying on exporting is the tariffs that countries place on foreign products to protect its local companies can be very costly. Mexico, however, offers joint venture options which are an ideal means to enter the foreign markets. Joint ventures give the company a local contact that can make it much easier to sell the company’s products. Several other methods of entering a foreign market include licensing, contract management, and joint ownership. A company must carefully consider the advantages and disadvantages of each option before entering a foreign market. Many foreign countries allow practices that are deemed unethical in other countries as a means for conducting business. In the United States the government enacted the Foreign Corrupt Practices Act of 1977 which addresses the issue of bribery and mandates it as an illegal business