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Environmental Factors Paper
Pages 4 (1004 words)
Economic Factors Affecting Marketing Decision Markets aim to discover the needs and want of customers and communicate the benefits of their products and services to them. In order to do this efficiently, the management needs to understand the marketing environment in which they operate.
Toyota is one of the world’s leading car manufacturing companies which produce and market more than 8 million cars every year. It has a global presence with manufacturing units in more than 27 countries and vehicles sold in more than 170 countries and regions (Toyota, 2010). This paper discusses how various environmental factors affect the marketing decisions of Toyota. Influence of global economic interdependence and the impact of trade practices and agreements It is quite important that Toyota understand the importance of economic interdependence and the impact of trade practices since the current economic situation calls all the countries in the world to be highly interdependent. Toyota can efficiently procure the vehicle parts from specific countries and strategically increase the market share in the countries where they do business. On May 2009, Toyota reported a record loss of $4.2 billion due to the global financial crisis. This shows that the performance of the firm is highly related to global economic conditions. Differences in tariffs, taxes and trade agreements between different countries need to be considered while pricing the products. A high import duty will make a country less attractive to do business with. ...
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