Environmental_Factors

Environmental Factors Paper Marketing professionals today are not only concerned about the marketing mix, marketing plans or targeting the right consumers, but also changes in this fast-paced global society. This paper will discuss Wal-Mart and describe the high the high-level domestic and global environmental factors that may impact the organization's marketing decisions. The author will also explain how technology affects Wal-Mart’s marketing decisions, too. Finally, the paper will concluded with an analysis of the Wal-Mart’s social responsibility and ethics as it relates to the organizational marketing programs. Wal-Mart started out in 1962 as a humble discount store in Rogers, Arkansas founded by Sam Walton. Now, Wal-Mart is worlds largest retail company. The company operates retail stores in various formats. At the end of January 2008, the company operated 971 discount stores, 2,447 supercenters, 591 Sam’s Clubs and 132 Neighborhood Markets in the US.Wal-Mart also operates various international markets as well, these include the UK, Canada, Japan, Mexico, Brazil and China. (Datamonitor, 2008, p. 5). Since the company operates all over the world, it must deal with high-level environmental factors but domestically and internationally. A few of these factors are rapid changes and innovations, globalization as well as diversity (UOP, n. d.). The world is constantly evolving and these rapid changes lead to innovations that were not heard of ten years ago. At one time, Wal-Mart received goods by freight train or boat, now with the advent of super jets and mass distribution companies, Wal-Mart customers can receive goods within days after ordering them. In today’s society, marketers use these types of changes and innovations to their advantage. Customer needs are better accommodated because the product mix is more adaptable to suit the specific needs of different customers around the world (UOP, n. d.). As a global organization, Wal-Mart has to use all of its resources wisely. The marketing manager must consider well how to best allocate resources in the most effective and efficient manner. The customer wants and needs are paramount even though they constantly change. Wal-Mart must be proactive and anticipate how to meet the consumer’s wants and needs. The company uses different marketing mix for customers’ stateside and overseas. Although global standardization would held the company save money, by keeping down costs and prices, Wal-Mart has a wonderful distribution system that allow the company to purchase goods at a lower price. The Wal-Mart brand name is synonymous with receiving goods at discount (Armstrong and Kotler, 2005, p. 534). Diversity is another important marketing element that Wal-Mart truly values. Wal-Mart is dedicated to inclusion in every part of its business. The company’s diversity statement is as follows: “As the world's largest retailer, we value diversity and foster a working environment that enriches the personal and professional experiences of our associates, promotes excellence, and cultivates the intellectual and personal growth of the entire associate population. We make diversity part of our business plan, ensuring we can continue to be a global leader in all aspects of Diversity and Inclusion,” (Wal-Mart, n. d.). Wal-Mart marketers use this diversity statement to maintain build public relations. The company diversity statement allows all of their employees and consumers to feel as if they are valued. As with the other factors previously mentioned, technology positively impacts Wal-Marts marketing schematics on a large scale. Most consumers today have at least one personal computer in their home and these consumers may even operate a computer at work or in school. Do not overlook the sophisticated cellular phones that can send and receive messages and browse the internet. Marketers are using these technological gadgets to their advantage, too. Wal-Mart offers special discounts on products purchased via the internet. The product mix at local stores has changed, because these purchases prevent the store from overstocking items. Consumers are satisfied because in most cases the purchase can be delivered to a nearby store within days (UOP, n. d.). Since Wal-Mart is a global organization, being social responsibility and having strong ethics is important to consumers. Most consumers are morally conscious beings and want to purchase items from an organization that holds the same values. Marketers use these factors to when making decisions on when products are purchased from, how products are delivered. Additionally, marketers use social responsibility and ethics for public relations. Wal-Mart is a socially conscious company and makes major contributions to local and global causes. The company considers itself to be “a store of the community” and supports local charitable and community based organizations (Wal-Mart, n.d.). Wal-Mart has a Global Ethics Office that monitors the company’s code of conduct and basic beliefs. The three basic beliefs are 1) Respect for the Individual, 2) Service to the Customer and 3) Strive for Excellence. The code of conduct ensures that all employees and stakeholders act ethically. The top four guiding principles are 1) always act with integrity, 2) lead with integrity, 3) expect others to work with integrity, and 4) follow the law and be honest and fair. Wal-Mart is striving for excellence in all of its business practices and this helps the marketer to attract and retain customers and actively engage others in the distribution channel. Wal-Mart is a company that values it customers and marketers capitalize on this fact. Over the past 30 plus years, the company was able to build a strong consumer base and expand into oversees markets. As the company grew and the world change, marketers properly addressed environmental factors that could have crippled the company. Technological advances strengthen the company more by allowing marketers to address the needs of consumers quickly. In the past Wal-Mart may have dealt with social and ethical issues, the company is not embracing the world it and making positive changes. References Armstrong, G. and Kotler, P (2005) Marketing: An introduction, Seventh Edition, Published by Prentice-Hall. Datamonitor (May 19, 2008) Wal-mart stores, inc: Company profile Retrieved July 14, 2008 from http://web.ebscohost.com.ezproxy.apollolibrary.com/bsi/pdf'vid=6&hid=116&sid=58ae2174-2d2a-4f13-bdb1-62c469a47b0c%40sessionmgr103 UOP (n. d.) Mkt 421 week five: the dynamic environment of marketing. Retrieved July 14, 2008 from https://mycampus.phoenix.edu/secure/resource/resource.asp Wal-Mart (n. d.) Diveristy. Retireved July 14, 2008 from http://walmartstores.com/Diversity/ Wal-Mart (n. d.) Global ethics office. Retrieved July 14, 2008 from http://walmartstores.com/AboutUs/280.aspx Wal-Mart (n. d.) Community & giving. Retrieved July 14, 2008 from http://walmartstores.com/CommunityGiving/