Following are the different Constituents of Global Marketing Environment
1. Physical Environment: The constituents of physical environment are rivers, forests, lakes, clir conditions, natural resources, geographical location and territorial size of a country. The political economic decisions, religion, language, culture, transport, business activities, determination of usage, etc. are influenced by the physical environment. Country’s natural environment is important the prosperity of its people. These natural resources are used for the benefits of people or enterprise irrespective of their state of depletion.
In the past few years, people have become concerned nationwide and even internationally, regar the way humans interact with one another, the setup of their economic systems and the natural environm of the planet. One of the main components of the economic setup is ‘business’ as it affects nature by util its resources and altering the earth’s ecological systems.
2.Economic Environment: The term economic environment refers to all the external economic fac that influence buying habits of consumers and businesses. These factors consist of production proce and wealth attribution system prevalent in countries. For example, the USA will face competition China and India in the near future. Even though the per capita income of the USA is seven times and tw times than China and India respectively, these two countries are rich in human resource as their popula is very high.
Infrastructure and marketing practices like public services, banking, utilities, communica and transportation facilities are also considered while making plans to enter an international mar Inadequacy on account of infrastructure can hinder the plan related to manufacturing, promoting distributing products and services in certain countries.
3. Cultural Environment: According to Kulckhohn and Strodtbeck. Cultural environment is the general body of common values and beliefs that helps in ascertaining what is right of wrong for a social group. When such values and beliefs are shared by the public of a country, it becomes the national culture. Usually, these values and beliefs seem to emerge from factors like lauguage, history, geographical situation historical background, education and administration. Therefore, an organisation cannot initiate its cultural alysis without analysing such factors.
Following are the various components of a culture environment:
(c) Social organisations
(d) Attitudes and values
(e) Education system.
4. Political Environment: Political environment is the state, government and its institutions and gislations and the public and private stakeholders who operate and interact with or influence the system. other words, a global company needs to assess the political environment of the host country before nducting its business activities. Alteration in government generally brings about alterations in rules, licies and outlook of conducting international business.
5. Legal Environment: The policies, laws and regulations formulated by the government for nducting the business operations constitute the legal environment of the country. It is the government no formulates the legal system of a country. It is responsible for defining the priorities based on which the siness activities are monitored and controlled. Alongwith the policies and procedures, the government o decides the constraints of business operations, which is an integral part of the legal environment. 6. Technological Environment: Technology is one of the most significant factors for marketing the ducts in global market. The influence of technological development is clearly evident in the various ets of marketing procedure.
‘Technology is a systematic application of scientific or other organised knowledge to practical tasks.’ J.K.Balbraith