Environmental Factors Essay

The Coca-Cola club was established in 1886 in the United States. Today, the Coca-Cola social clubs products ar avail fitting in over 200 different countries. Each estate contains its own demographics and separate factors that influence the marketing planning and promotions for the Coca-Cola product lines. These factors convert by location and roll in the hay buoy include culture, customs, and even legal matters. The Coca-Cola Comp any(prenominal) has been able to successfully examine these factors and occasion marketing campaigns that grant all toldowed the confederacy to grow in leaps and bounds over the past 100 years. spherical economic interdependenceGlobal economic interdependence is when different economies assert upon one a nonher and ordure include goods and service exchanges. Coca-Cola is one of the about famous soft drink brands in the world because they have successfully marketed their products across the globe. These unusual economies rely upon Coca-Cola products to stock their shelves to meet the consumers demand. With much(prenominal) a strong demand, countries would want the companys product in topical anaesthetic stores to increase sales and thus taxes collected.In rules of order to get products to foreign markets, Coca-Cola is go about with trade restrictions and agreements. Restrictions can include tariffs which impose taxes on merchandise goods or quotas that limit the amount of certain product that is brought into the terra firma (Kotler, Keller, 2012). These restrictions can lead to questions as to whether unloading that foreign market is profitable. A spirited tariff could cut into profits while other trade restrictions whitethorn not allow a product to enter the market at all. A stiff market to enter whitethorn require a very detailed and successful marketing plan in order to reach the most potential consumers. A failed plan could result in the company paying more for the product to enter that market kind of tha n the amount of money macrocosm made.Demographics and infrastructureDemographics must be examined precedent to entering a foreign market. Household income, population, and age can all play a factor in a marketing plan. shortsightedcountries such as those in Africa may not be able to afford to purchase a product and in that respectfore, would not be include in a marketing plan for a high priced item. Also, if there is a limited amount of infrastructure the product may not be able to be transported. Countries that lack infrastructure such as paved roads or electricity would become thorny markets for Coca-Cola to enter. Without roads or railroads, Coca-Cola would not be able to deliver their product to the consumers. electricity is typically needed in order to keep the beverage chilled and to say sales transactions. A country lacking infrastructure get out have a effortful time getting popular goods to their consumers. heathenish differencesCultural differences play a compon ent in the marketing process. Different cultures will have different ideals and may even use products for different reasons. What may be acceptable in the American market may be a sign of disrespect in another. Knowledge of cultural differences can make or break a marketing campaign and likewise the entire company. For example, the Japanese commercials tend to have more animation and songs in the commercial. Also, the culture is also more advanced in technology so vending machines argon more advanced in Japan than the ones we call here in America. Finally, different cultures may see certain products or ingredients as unhealthy. What may be delicious to consumers in China may be horrid to the taste buds of those in America. Social responsibility and morals versus legal promisesSocial responsibility and ethics are values that should be followed but not necessarily obligated to do so. On the other hand, legal obligations force a company to perform certain actions. For example, Coca -Cola is not legally obligated to set a certain price on their product. However, they are legally obligated to place nutritional and ingredient discipline on the product. As previously mentioned, different cultures play a role in marketing. What one culture may see as a social responsibility may be a legal obligation in another. As many know, Coca-Cola once contained the drug cocaine. Legally, cocaine is forbid in the United States but may not be in other countries. What whatsoever may not know is that Coca-Cola still contains an displume from the coca leaves that is not classified as illegal (New York Times, 2013). In some cultures, it may be unethical to sell a product that has anyderivatives from any mind altering plants.Political systems and the influence of international dealingsPolitical systems can decide whether to allow a product to enter their market or impose extreme conditions that must be met. In addition, international relations can play a bust as to where a prod uct goes. Currently, the United States has a trade restriction with Iran that limits what can be exchanged between the two countries. Iran, once considered an ally, is now an malevolent and thus trade restrictions are in place. Coca-Cola may find it difficult to get their product into this market through a legit trade agreement. If Coca-Cola was faced with the fact that nobody would be allowed to import their product, they would be able to widen a marketing plan for domestic use that would portray that they are the only country who gets to receive the product. impertinent fog Practices Act of 1977The Foreign Corrupt Practices Act of 1977 prohibits bribes being paid to foreign officials to assist in obtaining or keeping business (U.S. Securities and Exchange Commission, n.d.). This Act would prohibit Coca-Cola from bribing an Iranian official to allow them to export their product to the country. Because of this Act, large corporations can no longer pay foreign officials to keep th eir products in stores of countries that have tabu them either by local or international law. These different laws and stipulations create barriers for a product to be introduced into foreign and domestic markets.TechnologyAdvancements in technology have made marketing both easier and more difficult at the same time. Social media sites such as YouTube now enhance products before the user can watch the video they intended to view. As technology advances, previous innovations become cheaper and open the doors for new consumers to obtain these products. As the amount of people who are able to access the internet increases, so does the amount of people that can view advertisements. One of the newest fads for technology is make more products color. Environmental friendly products are now the sizeable rage and consumers will pay more for a product if it is deemed green. Advances in technology will eventually lead to more products being green and thuscreating a decline in the demand.C onclusionThe Coca-Cola caller was established in 1886 in the United States. Today, the Coca-Cola Companys products are available in over 200 different countries. Each country contains its own demographics and other factors that influence the marketing planning and promotions for the Coca-Cola product lines. Factors such as political influences, technology, and cultural differences all play a part on marketing. Differences in these factors can determine whether a product should be entered into the market. It is the responsibility of the manufacture, such as Coca-Cola, to perform their due diligence and mensurate its findings.ReferencesNew York Times. (2013). How Coca-Cola Obtains Its Coca. Retrieved from http//www.nytimes.com/1988/07/01/business/how-coca-cola-obtains-its-coca.htmlU.S. Securities and Exchange Commission. (n.d.). Spotlight on Foreign Corrupt Practices Act. Retrieved from http//www.sec.gov/spotlight/fcpa.shtml