Environmental Factors
Many factors affect the marketing decisions of an organization. These factors can include trade practices, cultural differences, and the political systems in different countries. Wal-Mart, having expanded their operations to 27 different countries, must keep these factors in mind when making marketing decisions.
Global economic interdependence and trade practices
Global interdependence is mutual dependence at a global level. Wal-Mart maintains a simple and effective marketing strategy which it has managed to replicate globally. The Every Day Low Price (EDLP) is simple and eliminates unnecessary advertising trying to push sales, as Wal-Mart has successfully sold the concept to the customers, that it sells its products at the lowest prices, every day (Dutta, 2009). To provide commodities at low prices, Wal-Mart uses extensive foreign product importation. Its major trading partner is China, to which approximately 60 of its products are imported.
Trade practices are methods of competition, operating policies, or business procedures common to members of a line of business or industry that may be formally adopted sometimes as a rule under government auspices. Wal-Mart has a policy to thoroughly check all regulatory requirements before attempting to import and export merchandise. They also have policies stating that documentation must be complete and accurate and internal controls must be established to ensure compliance with all regulatory requirements, including any record-keeping obligations. Wal-Mart has trade agreements with the Federal Trade Commission and all the countries it trades with.
Importance of demographics and physical infrastructure
Demographic information includes geographic area, age, income, race, gender, and education level. It also includes shopping habits, marital status, number of children and other information about