Environmental Factors

Case Study
Pages 5 (1255 words)
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Sam's Club is a membership retail club that allows members to buy from a complete line of jewelry, collectibles, electronics, apparel, flowers, organic foods, groceries, meats, and more. Since its first store opened in 1983, Sam's Club has grown to serve more than 47 million members in the United States with its more than 580 locations across the country (Sam's Club, 2007).


Cultural, political, economic, technological, and competitive environments differ from nation to nation. Marketing on a global scale requires that Sam' Club representatives make adjustments to existing marketing plans to meet local conditions; understanding the nuances of these environmental factors will prove advantageous. Market research, such as that done by Wal-Mart Sotres, Inc., plays a very large role in addressing these factors and understanding the adjustments that must be made to effectively market on an international level.
Social and cultural environmental factors focus on the interactions of groups of people within a nation: characteristics, growth projections, numbers, and interactive behaviors (Bearden, et al., 2003). The economic environmental factor refers to the buying power of potential consumers. Understanding how strong or weak the consumer economy is in a new country will ensure Sam's Club's ability to meet and exceed the customers' expectations and needs. Marketing practices and several ethical concerns can be discovered by researching a nations political system. For example, labor laws vary from one nation to another; advertising laws may be different and various regulations in different nations can affect marketing practices and, occasionally, marketing effectiveness (Bearden et al., 2003). ...
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