ENVIRONMENTAL FACTORS

Factors Effecting Marketing Decisions



Factors Effecting Marketing Decisions

Introduction

General Motors (GM) is the leading car manufacturing company in the world. In last few years company's sales decrease sharply and it comes at the verge of bankruptcy. Honda and Toyota are the main competitors of GM and are continuously taking market share from GM in American market. GM is now fighting back to compete with its competitors by producing more reliable and affordable cars. If we look at marketing strategy of GM, it is more customer focus now (Melissa, 2009). When GM comes to mind, the concept of big, powerful cars, big guzzling engines, and lack luster interiors arises. Today most of the companies show ads based on gas efficiency as well as the design and the luxurious interiors. GM uses celebrities in their commercials, reminding customers of the old sentiment about riding in a “Cadillac” or “Chevy”. Main advantage that GM have over its competitors that they are original American car manufacturer. Most people support this and using this as a marketing tool is not a bad idea. Americans will only buy cars that are cost effective, prove to be dependable, that perform well and gave a fine overall ownership experience.

Global Economic Interdependence and Trade agreements

The world is a global village now, and businesses are expanding. Not every country can produce everything, every country in now dependant on other in the one way or other. This gives opportunities to businesses to expand globally. There is no difference in marketing either company is doing domestic or international marketing the definition of marketing still applies. Decision of expanding globally, however, broadened the scope of marketing. Going, universal means selling your goods and services to people of other country. For this, understanding of the market is very important, for example, if company's local language is “English” decided to expand geographically, and want to do business in the “French language”. For this reason company should be aware of the French cultural values that should be taken into account. Companies in order to market their product in any other country, should understand the norms of that country. Marketing products in other countries will always require to first understanding the attitude and behavior of that market. If GM wants to exports cars to Japan then GM should first understand the values and norms of Japanese society.

Trade agreements, can have influence the marketing strategy of the company. In 2005, free trade agreement between America and Australia were signed. By signing this agreement, 99 percent of the U.S. manufactured exports will become duty free in Australia. This will increase the exports of American manufacturers by US$ two billion. This will also results in thousands of job in Australia as superior American technology will replace domestic products. It is always a good opportunity to promote company image as superior company by portraying its exports. Telling domestically and internationally, customers that how company is expanding will have a positive impact on market. As GM increases its exports to international countries, GM can portray this to shows that the company is manufacturing quality ...