Environmental_Factors_of_Domestic_and_Global_Marketing

Environmental factors of Domestic and Global Marketing Jerome T. Covington MKT/421 February 21, 2011 Mr. Soumya Ghosh Environmental Factors of Domestic and Global Marketing Domestic and global marketing are an important aspect of any business. Both areas of marketing must be thoroughly understood in order for the marketing of a particular product to be effective. The process of marketing a product or service consists of many elements and is not done only one way at all times (Love to know, 2011). The marketing of a product does not solely depend on whether it will be marketed domestically or globally, however, whether a product or service is marketed domestically or globally is highly important. The importance of knowing whether a product or service will be marketed domestically or globally is high because companies such as Exxon-Mobile, for example, need to know one way or the other so as to make decisions and conduct research on how to go about marketing their products and services. The Exxon-Mobile Company will be the example used in this paper to explain the environmental factors of domestic and global marketing. Influence of Global Economic Interdependence/Effect of Trade Practices and Agreements The fact that Exxon-Mobile was created in the United States requires the company not to have to make any changes or adjustments in how they do business in the United States. However, once Exxon-Mobile decided to take their business practices across the seas, global economics and global trade practices have to be researched and analyzed for every country being considered for business. Exxon-Mobile is namely in the oil and petroleum business and oil is needed to help produce petroleum. Oil is a resource that is available in the United States, however, it is a resource that is not as plentiful and the United States would need it to be. The global economic interdependent influence the world has on Exxon-Mobile is that because oil is not as plentiful in the United States, Exxon-Mobile has a need to go outside of the United States and depend on many of the countries in the Middle Eastern regions of the world for oil. Trade practices and agreements affect Exxon-Mobile because of the many cultural, policy, and regulation differences between the United States and the rest of the world. The Federal Trade Commission (FTC) enforces the laws put in place by Congress that are to prevent anti-competitive business practices (Hg.org, 2011). Two other agencies assist in the regulation of these laws and they are: The Department of Commerce (DOC) and the International Trade Administration (ITA). Demographics and Infrastructure The importance of demographics and infrastructure is very high because of the fact that Exxon-Mobile is in the oil and petroleum industry. Exxon-Mobile will have to take into account whether schools, libraries, and other establishments will be part of the infrastructure. This demographic and infrastructural study will determine population, which then will determine where Exxon-Mobile can and cannot drill and where or where not to build and establish gas stations for cars to fuel up. The fact that demographics and infrastructure is being taken into consideration is very high also due to environmental purposes so that Exxon-Mobile can comply with environmental regulations. Influence of Cultural Differences Cultural differences has a major impact on the affect marketing may have on the country a company may be trying to market to. For example, according to Welsh (2005), Nestle’ suffered a negative blow in marketing in Africa when trying to market a breast milk substitute. This breast milk substitute was deemed to be the cause of malnutrition in babies because Nestle’ failed to take into consideration the reduced literacy levels in Africa. An example of marketing for Exxon-Mobile could be that they fail to take into consideration the cultural differences that influence the environmental regulations or the cultural differences in the automobile industry. Social Responsibility and Ethics/Legal Obligation The social responsibility and the legal obligation that Exxon-Mobile has to the rest of the world are very high simply because of the industry that Exxon-Mobile is in. Dealing with oil, gas, and petroleum requires Exxon-Mobile to be very mindful of environmental regulations across the world, especially when considering drilling anywhere. Not only does Exxon-Mobile have to be mindful when it comes to drilling, but they have to be mindful when it comes to establishing gas stations to fuel the vehicles in that country. Exxon-Mobile has to be mindful of the types of fuel that they make available to that country. Because in the United States, fuel are being made to be more environmentally friendly whereas in other countries these types of fuels may not pass their regulations. Political Systems/International Relations Various political systems, namely two types of political systems have to be taken into consideration. One is a democracy and the other is a communist political system. Exxon-Mobile would not have to make many adjustments dealing with other countries that have a similar democratic political system to the United States. However, dealing with a country like China, for example, various adjustments have to be taken into consideration. Foreign Corrupt Practices Act, 1977 The Foreign Corrupt Practices Act, 1977 was put in place due to companies doing business in other countries and the government officials in that country or the members of that particular company bribing each other in order to further conduct the business needed to accomplish the company’s goal in that country. That Act makes it illegal for any U.S. person to bribe any foreign official for the purposes of obtaining or retaining business (Ogrady, 1997). The influence of local, national, or international legislation may be that locally and nationally it is illegal for Exxon-mobile to bribe government officials. However, if Exxon-Mobile where to go to some of the countries in the Middle East where oil and gas is plentiful and government officials know this, they may require a certain amount of funds prior to U.S. persons being allowed access to certain things or places needed to conduct business. Technology Technology has played a major role in the oil and gas industry ranging from various types of drilling capabilities to how consumers buy their fuel to what types of fuels are made available to what countries due to the different regulations and environmental policies. Conclusion Overall, Exxon-Mobile has no problem in the domestic or the global arena as far as being able to conduct business. References Hg.org (2011). Trade practices. Retrieved February 21, 2011, from http://hg.org/ Love to know (2011). Global and domestic marketing. Retrieved February 21, 2011, from http://business.lovetoknow.com/wiki/Global_and_Domestic_Marketing Ogrady, C. (1997). Foreign corrupt practices act. Retrieved February 21, 2011, from http://library.findlaw.com/1997/Jan/1/126234.html Welsh, R. (2005). How cultural differences affect your global marketing message. Retrieved February 21, 2011, from http://www.rawpowerwriting.com/article.asp'id=9