NAME: CHRISTOPHER MUNENE NO: 1018463 UNIT: TOPICS IN MARKETING MANAGEMENT CODE: CMK 424
Selling goods in the global marketing is extremely challenging. Discuss the major political, economic, socio-cultural, technological, legal and ecological challenges that a global marketing manager may have to contend with?
The following analysis known as the PESTEL analysis is a framework used to scan the organization’s external macro environment which refers to forces that are part of the larger society and affect the micro environment. Selling and marketing goods in the global market intensifies these issues and creates a larger challenge for marketing managers. The macro environment is where organisations do not have any control.
Political factors refer to the stability of the political environment and the attitudes of political parties or movements. How and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. From the list it is clear that political factors often have an impact on organisations and how they do business. Organisations need to be able to respond to the current and anticipated future legislation, and adjust their marketing policy accordingly.
Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods). Furthermore, governments have great influence on the health, education, and infrastructure of a nation.
Economic factors have a significant impact on how an organisation does business and also how profitable they are.
References: Housing Industry association (2011), An introduction to PESTLE analysis Kotler, Phillip and Gary Armstrong (2006), Principles of Marketing Narayanan, V. and Fahey, L. (1994) “Macro-environmental analysis: understanding the environment outside the industry”.