Marketing Enviornmental Factors - Essay Example

Global interdependence has become a critical success factor for marketers in the 21st century. Nike Corporation offers apparel products with emphasisin footwear. These products are a basic necessity for all humans. The target market of the company extends to the entire global population of 6.96 billion people (Census). The company’s marketing efforts have to reach a bigger scope than other multinational companies. The distribution of its products is a key variable that Nike has to emphasize since the distributors are the supply chain players that bring the product to market.

To operate in a global environment Nike has to learn and get educated in matters concerning trade practices and agreements. Nike in the past was hurt tremendously by its ignorance concerning international labor standards. The sweatshop scandal in the late 1990’s had a negative impact in the marketing efforts of the company as the firm lost nearly half its yearly sales in the aftermath of the scandal. The company has to determine the different tariffs and tax laws associated with penetrating all 210 countries around the globe.

All major free trade agreements that are in place globally must be studied carefully to take advantage of the trading opportunities these agreements offer. Some of the major free trade agreements around the world include NAFTA, European Union, TFF, SAFTA, and APTA. Nike has to learn the rules, regulations, and protocols concerning trade stipulated by the World Trade Organization (WTO). Demographics and physical infrastructure are important variables Nike has to consider in its marketing plans.

The size of the population and the income capacity of its customers determine the attractiveness of a particular international market. Developed economies are safer targets than emerging economies. A developed economy is an economy with a gross domestic product per capita above $9,000 a year. Certain emerging economies must be targeted by Nike including the BRICS. The BRICS includes China, Russia, India, Brazil, and South Africa. China and India combined have over 1/3 of the earth’s population.

Other demographic attributes of the population should be targeted by Nike such as the sporting activity level of the population. Countries in which sports are a big part of the culture are better suited for the sale of athletic shoes. The physical infrastructure of a country must be considered. Electricity, water, and good roads are necessary to perform business. Communication infrastructure such television networks, radio, phone, and internet capabilities are also needed to implement effective marketing campaigns.

Social responsibility is very important for companies operating in today’s economy. Nike knows this more than other companies since their lack of social responsibility a decade ago almost led to the complete demise of the company. A high ethical standard is expected by the shareholders and other stakeholders of the corporation. The company must not violate any laws and regulations of a country. Two important areas of emphasis concerning regulations are labor and environmental laws. Incorporating environmental friendly raw materials into the products the company manufactures can become an effective strategy to join the green movement.

In regards to ethics Nike cannot be satisfied with complying with the minimal wage requirements of certain countries since the firm can afford to pay more and the mission of the company should be to raise the standard of living of the all workers that directly or indirectly provide labor in Nike’s production process. Work Cited Page Census.gov. 23 September 2011. “U.S. and World Population Clocks.” U.S. Census Bureau. 23 September 2011.