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Environmental Influences Paper - Essay Example

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Environmental influences such as demographic factors, culture, political and economic situation in the country affect the marketing of any kind of product in a country. This paper will discuss how the environmental factors of Germany affect marketing in the country for foreign and as well as domestic companies.
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Download file to see previous pages This is the reason why understanding the demographics is of critical importance for an organization. According to the July 2008 estimates, the population of Germany is approximately 82,315,548. (Central Intelligence Agency, 2008) The total population figure has also been falling recently. For a company that produces or supplies necessary goods like food, clothing or shelter, this factor is very important because the higher the population, the higher will the demand and customer base for their products. Since the population in Germany is one of the largest in the world, this country would positively affect marketing. The male and female proportion in the population also affects marketing of gender specific goods. Besides this the age structure will also affect the marketing of goods. For example, a company that wishes to introduce health care facilities for the old population of the country would need to know if there is a need in the country. At present, the age structure if Germany is such that the most of the population lies between the ages of 0-60. (Federal Statistical Office, 2007) This is ideal for any type of company except for those who target older population. However, in Germany, the birth and death rates are decreasing, which increases the threat of aging population. This may also affect the marketing in the country.
Social and cultural factors influence the consumer's behavior to a g...
For example, in Germany, most spoken language is German and no other language is preferred (German Culture, 2008). This factor may affect the approach that organizations use in order to market their goods and services.
The social structure also determines the marketing strategy in a country. For example, a company producing luxury goods needs to know the size of their potential customer base. The social structure in the country they are operating in will influence this. If the country has a low percentage of people in high class society, this country might not be the most ideal place for this company to launch this product. Germany is a modern and a cosmopolitan country and majority of the population lies in middle class. This may considered by companies while marketing their products.
Political and Legal
The Political and Legal factors of a country determine the marketing to a great extent. The company needs to know if there are any regulations set on production and marketing of any type of goods. For example, in Muslim countries such as Pakistan, alcoholic drinks are not allowed to be marketed. These factors affect the marketing of goods and services in a country. Also there are laws set by government and consumer protection agencies regarding the methods advertising. These will also affect the marketing strategy of an organization. There are no such legal or political factors in Germany that will greatly influence marketing there. The political conditions are stable and there are no such legal requirements that hinder marketing in any manner. Production and marketing of all types of goods and services is promoted there.

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