Mkt_575

Economic Factors Economics is a different environmental factor that influences consumers buying attitude, thus forces the magnitude, and foundation of the market overtime. “Economic value is an important frame of reference in communicating with customers and designing a positioning strategy” (Cravens & Piercy 2009). During the economy’s recession period, consumers are less likely to purchase product, decrease travel activities, and avoid using services unless necessary. Most businesses will limit special offers, advertisement, and other avoidable expenses driving the consumer away throughout these occasions. The competition among hardware store in Chula Vista area is generally very challenging however gets even worse during terrible economic period. Home Depot in Chula Vista recognizes these uncontrollable negative environmental factors, will constantly reflect to these issues and formulate changes in marketing strategy accordingly. The company will determine a method to differentiate the company and obtain consumers back in the door. The company will maintain the ethical and social responsibility to existing and future customers with honesty and genuineness. The objective of the company is to achieve a long-term success by instilling trust with the consumers. The process must make the company maintain attractiveness despite of economic position to sustain growth. Obviously, the industries will still going to suffer however by changing the marketing strategy and determine every means to prolong business success. The condition of the economy can have a major impact on East Lake Pkwy Home Depot marketing strategy because of uncontrollable environmental factors. This includes the shifting of resident age-group composition. California Demographics summary stated that there are 243,916 people in Chula Vista 58.2% are Hispanic, 20.4% are White, and 13.8% are Asian. The median household income is $63,779 recorded in 2010. These figures can assist the company in determining strategy. Large population in the area means the company can attract more consumers and a reasonable median household income can support consumer with buying activities. The company has to keep in mind that during the economic downturns consumers may switch to purchasing cheaper brands as oppose to buying premium-brand products. During economic recessions, many companies may need to lower product prices to survive the competition. However, “it is also important to recognize the legal and ethical issues in pricing products when using flexible pricing policies” (Cravens & Piercy 2009). The company will acclimatize to market strategies to account for solutions to the shifting of these forces. Political and Legal Factors There are several numbers of political and legal factors in the marketing arena; these factors influence the success of businesses directly or indirectly. In fact, the majority of these laws are significant to most firms to function appropriately. However, there are different business related regulations available mainly to protect the business world. For example, equal pay simply means employee who are performing similar type of work should receive equal amount of wage, sex discrimination act that directs the employers not to discriminate employees because of gender. The sales of goods act mainly protect the consumers. For example, customers can take legal action to a company that sells a product of poor quality, render unsafe services, and not portraying products for its intended purpose. Although the political and legal problems influence the company’s behavior, the company will have an advantage if the management has clear understanding of these factors and how it can affects the firm. An example of legal factors in business include taxation policies, competition law, environmental protection laws, business ethics, employment laws, social welfare policies, health and safety issues, product safety, and government policies. Because Home Depot is a highly established company, it is essential to conforms to the laws and legislation maintained by the political system of country. “Political interests may defend the status quo or the pressure of existing business operations may block the capacity of managers to take on new ideas” (Cravens & Piercy 2009). Meaning a business possibly may increase growth under one political entity and can decrease development by another political entity. Reference Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill. Hooley, G., Piercy, N. F., & Nicoulau, B. (2008). Marketing strategy and competitive positioning (4th ed.). Upper Saddle River, NJ: Pearson. http://quickfacts.census.gov/qfd/states/06/0613392.html