In marketing there are many factors that one can control when making marketing decisions. On the other hand there are numerous factors that one can not control, especially when marketing globally. Many environmental factors, such as, economic, political, technological, competitive, and cultural factors affect the global and domestic marketing decisions made by any company. Decisions must be made to minimize the threats to the company and increase the opportunities.
Take Starbucks for example, who markets in 26 different countries and across the United States. When making marketing decision in different countries Starbucks must take economic factors into consideration. A countries income distribution is an economic factor that a company must look into. (Armstrong pg. 522) Countries with unstable economies may not have the income to afford the products sold. Also, the countries industrial structure helps shape their economies. Countries with subsistence economies may consist mostly of households with very low family incomes. (Armstrong pg. 522) In contrast, industrialized nations may have low-, medium-, and high-income households. Also, even in low-income and developing economies, people may find ways to buy products that are important to them. (Armstrong pg. 523) So, Starbucks should take all these economics factors into consideration when marketing and pricing their products globally and also domestically.
Political factors also effect Starbucks marketing decisions. There are four elements that are considered in the political environment when marketing globally. According to Marketing: An Introduction, some nations are quite receptive to foreign firms and others are qu ...