Environmental Factors - Research Paper Example

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Environmental Factors

Marketing environment factors profoundly influence company's marketing operations. The paper attempts to explore various environmental factors such as free-trade Agreements, global demographic changes, increased competition, technological advances, legislative compliance that influence marketing decisions of General Motors (GM) in its domestic and international operations. Impact of Free-trade Agreements In 1994, the US entered into a Free Trade Agreement with Mexico and Canada called NAFTA. Just in the prior year in 1993, GM exported only 1600 vehicles to Mexico but in 1999, gearing its marketing efforts, the company could export 52,000 vehicles to Mexico despite currency crisis in Mexico (The Trade Partnership, 2004). This demonstrates that GM could take advantage of free trade agreement to boost their sales. Demographics and Physical Infrastructure People’s behavior, characteristic, their growth trends will largely influence the demand of goods and it becomes extremely important for a company to know about demographic changes taking place locally and globally so that company can divert its marketing efforts to exploit these changes. Different countries have different population growth rates. Higher population growth rate in a country or region is likely to create higher demand for a product. ...Show more

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Environmental Factors Paper Organization: General Motors Introduction General Motor, with its long history as automobile manufacturer, currently markets its products in 120 countries. In most of the countries, it operates through its direct subsidiaries. World automobile market has expanded manifold in last few decades…
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