MARKETING

EduTot: Environmental Factors Impacting Marketing

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EduTot: Environmental Factors Impacting Marketing

Introduction

Environmental factors have a significant influence on almost every business by means of population demographics, social and cultural consumption values, trade agreements with the United States, economic performance measures, and marketing infrastructure. This paper analyzes the environmental factors impacting marketing in the context of EduTot, an educational toy company in four countries namely Spain, Ireland, Morocco and Venezuela.

Discussion

Spain comprises of 47 million people, and has a nominal GDP. In terms of marketing, TV advertisement is usually used to market goods and service. The literacy rate of Spain is also very high; hence it is easy to gain the attention and interest of Spanish people towards educational toys and easy to create awareness. Moreover, it is not difficult to obtain retail support in Spain. There are number of competitors in Spanish toy market such as Hypermarkets and Toy specialists (LeClair, 2000).

In Ireland, toy market is rapidly increasing; for instance, in 2005, the average spending on toys per child in the age range of 0-14 years was about $ 326. However, the industry does not have several key toy distributors, as well as do not have toy manufacturing industry. The literacy rate and free trade agreement are advantageous factors of Ireland toy industry.

Toys retail sales in Morocco grew at a compound growth rate of 3.8 percent per year from 2004 to 2009. However, lower rate of literacy in Morocco can be a vibrant source of educational toy; however, to create awareness tends to be difficult in such market. On the other hand, the percentage of age group of 0-14 years is much more than Spain and Ireland. Hence, by employing suitable and effective marketing strategy, EduTot educational toy company can introduce and capture huge market share in Morocco toy industry.

The population of Venezuela is approximately 28 million with a huge group of children aged between 0-14 years, which is approximately 29.5 percent of the total population that is tend to be the potential target market of educational toys. The good literacy rate of the country demonstrates their interest in education; hence, it is uncomplicated or easy to promote educational toys among children. The well-structured marketing infrastructure of Venezuela also helps in introducing and promoting such toys. Well-organized and stable economy of the Venezuela also supports the introduction of educated toys (Carlos & Sousa, 2011).

The toy industry in these countries can be characterized by numerous diverse toy manufacturers. There is a niche of educational toy companies within the huge toy industry. This niche industry of educational toy is fairly new and emerges within the past five years, as the toy convergence and as a tool of education that becomes legitimized. For many years, there was a lack of awareness among people that a toy could educate an individual, as well as, helps in child development. On the other hand, it was implicit that a toy was a tedious way of occupying an attention and time of ...