Environmental Factors Essay

The Coca-Cola participation was established in 1886 in the United States. Today, the Coca-Cola smart sets ingatherings are avail adequate to(p) in all over 200 different countries. Each country contains its have demographics and other factors that influence the selling planning and promotions for the Coca-Cola ingathering lines. These factors vary by location and preserve intromit culture, customs, and even legal matters. The Coca-Cola Company has been able to successfully examine these factors and create marketing campaigns that have allowed the attach to to grow in leaps and bounds over the past 100 years. spherical economic interdependenceGlobal economic interdependence is when different economies rely upon wiz another and can 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 intersections across the globe. These outside(prenominal) economies rely upon Coca-Cola produc ts to stock their shelves to meet the consumers demand. With such a strong demand, countries would want the companys product in local stores to increase gross sales and thus taxes collected.In order to get products to foreign markets, Coca-Cola is set about with trade restrictions and agreements. Restrictions can include tariffs which impose taxes on imported goods or quotas that limit the amount of received product that is brought into the country (Kotler, Keller, 2012). These restrictions can lead to questions as to whether move ining that foreign market is profitable. A heights 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 may supplicate 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 rather than the amount of money being made.Demographics and infrastructureDemographics mustiness be examined prior to get into a foreign market. Household income, population, and age can all shimmer a factor in a marketing plan. Poorcountries such as those in Africa may not be able to afford to purchase a product and t presentfore, would not be included 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 roadstead or electricity would become tough markets for Coca-Cola to enter. Without roads or railroads, Coca-Cola would not be able to fork over their product to the consumers. Electricity is typically needed in order to keep the beve foolishness chilled and to record sales transactions. A country lacking infrastructure bequeath have a difficult time getting popular goods to their consumers.Cultural differencesCultural differences play a role in the marketing process. Different cultures will hav e 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 also the entire company. For example, the Nipponese commercials tend to have more animation and songs in the commercial. Also, the culture is also more advanced in technology so vending machines are more advanced in Japan than the ones we see here in America. Finally, different cultures may see certain(prenominal) products or ingredients as unhealthy. What may be scrumptious to consumers in China may be horrid to the taste buds of those in America. societal responsibility and ethics versus legal obligationsSocial responsibility and ethics are values that should be followed but not inescapably obligated to do so. On the other hand, legal obligations force a company to perform certain actions. For example, Coca-Cola is not licitly obligated to set a c ertain price on their product. However, they are legally obligated to place nutritional and ingredient information on the product. As previously mentioned, different cultures play a role in marketing. What one culture may see as a hearty responsibility may be a legal obligation in another. As many know, Coca-Cola at once contained the drug cocaine. Legally, cocaine is outlawed in the United States but may not be in other countries. What some may not know is that Coca-Cola still contains an extract from the coca leaves that is not sort 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 relationsPolitical 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 part as to where a product goes. Currently, the United States has a trade restriction with Iran that limits what can be exchanged between the twain countries. Iran, once considered an ally, is now an evil 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 develop a marketing plan for domestic use that would pose that they are the only country who gets to receive the product.Foreign Corrupt Practices bout of 1977The Foreign Corrupt Practices move 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 monthlong pay foreign officials to keep their products in stores of countries that have ban ned 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 promote products before the user can watch the video they mean to view. As technology advances, previous innovations become cheaper and open the doors for new consumers to obtain these products. As the amount of mint 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 making more products green. Environmental friendly products are now the big rage and consumers will pay more for a product if it is deemed green. Advances in technology will lastly lead to more products being green and thuscreating a decline in the demand.ConclusionThe Coca-Cola Company 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 referable diligence and evaluate 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