MKT 421 Week 5 Individual Assignment - Environmental Factors

MKT 421 Week 5 Individual Assignment - Environmental...

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Environmental Factors 1 Running head: ENVIRONMENTAL FACTORS Environmental Factors University of Phoenix MKT/421 - Marketing
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Environmental Factors 2 Environmental Factors: IKEA Founded in 1943 by Ingvar Kamprad, IKEA is, over 60 years later, the world largest furniture retailer, providing products in a flat packing concept and at low prices. They have 226 stores in Europe, Asia, and America with revenues of $17.7 Billion as of August 2005. 70% of their marketing communication is based on their famous annual catalog. There are many environmental factors that affect IKEA’s global and domestic marketing decisions. An analysis of those factors, the influence of the global economic interdependency and the effect of trade practices and agreements, the demographic and physical infrastructure, the cultural differences, social responsibility and ethics versus legal obligations, the effect of political systems and the influence of international relations and the Foreign Corrupt Practices Act of 1977, and finally the effect of technology are discussed herein. Influence of Global Economic Interdependence & Effect of Trade Practices and Agreements The economy, the trade practices, and agreements are factors that help understand the purchasing power of customers, thus it deals with income, prices, savings, debts, and GDP. When a company has the intent of going for globalization, they have to carefully observe and study those factors, in order to have an appropriate marketing mix and in particular a price that is adapted to the country they are targeting. IKEA is present in industrializing and industrial economies where there is potential for selling their goods and touching the middle class, their target market. The demographics and physical structure are essential to determine in marketing, it includes the gender disparity and differences, their buying patterns and habits, their culture, their
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Environmental Factors 3 religion, and their diversity. It is essential to determine the profile of the customer to have a successful marketing mix. Influence of Cultural Differences
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MKT 421 Week 5 Individual Assignment - Environmental...

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