Enviromental Factors Paper - Essay Example

Environmental Factors for Marketing Introduction While there are several methods of analyzing the business environment for any decision, I feel that the PESTEL analysis is one of the better ones since it helps in making long-term strategic decisions based on the environment in which the business operates. For global and local marketing, the example of Mazda can be used since it is certainly a global company and has established itself across the world as a player in the automobile industry (Baki et. al, 2004).

However, the position it enjoys has to be maintained with effective marketing and strategy which continually places the company in a good position with regard to its customers (Harbour, 2001).TechnologyFor Mazda, the most important factor in the current environment is technology since it directly impacts all aspects of the automobile industry. Technology can help a car go faster, be more fuel efficient, reduce the cost of production and even help the company sell more cars (Baki et. al, 2004).

Since fuel prices are on the rise and the limited nature of natural resources will continually push the prices higher, being more fuel efficient is a key selling point for Mazda if they are able to get their message across to the customers (RBSC, 2006).Legal and Political FactorsSimilarly, political and legal factors can also influence the marketing strategy of Mazda in the future as more governments push for cleaner running cars and more curbs on how much pollution can be created by an automobile (Baki et. al, 2004).

Mazda may have to push hybrid cars or cars powered by alternative fuels such as hydrogen to the public. This would certainly change the marketing strategy of the company since instead of focusing on styling, comfort, or even the performance of the car, the company would have to focus on the technical aspects of the new engine and convince buyers that it is as good as (if not better than) conventional engines in all respects (Harbour, 2001).Marketing and TechnologyTechnology also impacts Mazda’s marketing decisions in terms of how the message is to be delivered to the customer.

For instance, Mazda participated in web based stories for some of their cars and used the process of viral marketing for the launch of a new car model. In both cases, the internet was used as a means for marketing and the technology was cutting edge since the company needed to have a fresh approach to traditional marketing (Mazda, 2005).Social Responsibility In terms of social responsibility, the principles which are applicable to Mazda can easily be applied to the rest of the automobile industry since many of the cars produced by them are objects of desire and satisfy the very important need for individual transport (Baki et. al, 2004).

Therefore, honesty and clarity have to be the cornerstone of any marketing plans made by Mazda. Essentially, if Mazda, or any other company for that matter, lies to its customers or puts them in any sort of doubt as to the services, offers or the specifications of their product, customers can lose faith in the company and the company itself would be driven out of business by the competition.In more serious cases, a company which does not uphold its social and ethical responsibilities for marketing can be sued for damages by the public or by named individuals who can seek retribution for damages done to them.

Therefore there is a business cost which must be kept in mind while making marketing plans or running an advertisement campaign which makes promises to buyers that may be difficult to uphold. Ethics and legal requirements for marketing must be followed particularly when the company works across cultural and national barriers where translating a campaign or a marketing message is difficult. Clearly, the modern marketing and business environments are not easy to deal with since there are many issues that marketing and business professionals have to be aware of.

However, with continued study and improvements in our understanding about how technology, social factors, legal implications and political directives are to impact the process of marketing, we can come to a better understanding of the whole process. This should not only be useful for the companies who engage in global marketing but also be beneficial for individuals who seek to purchase products from companies such as Mazda.Works CitedBaki, M. et. al. 2004, Automotive Industry Analysis - GM, DaimlerChrysler, Toyota, Ford, Honda.

AcademicMind.com, [Online] Available at: http://www.academicmind.com/scholarlypapers/business/management/2004-11-000aaa-automotive-industry-analysis.html Harbour, R. 2001. Small-Car profit strategies. Automotive Industries, vol. 181. no. 1, pp 13-15Mazda. 2005, ‘Mazda dealers in gear for small business and fleet success’, Mazda.co.uk, [Online] Available at: http://www.mazda.co.uk/CorporateSales/FleetPress/Articles/fleet_06-May-2005RBSC (Roland Berger Strategy Consultants). 2006, Six Key Purchasing Trends in the Global Automotive Industry.

RolandBerger.com [Online] Available at: http://www.rolandberger.com/expertise/en/html/publications/2006-01-11-Six_key_purchasing_trends.html