Domestic Global Marketing: Bath and Body Works

Domestic Global Marketing: Bath and Body Works

Domestic Global Marketing Bath and Body

External factors are considered to be environmental factors as they make an impact on the business externally. Environmental factors can play a significant role in influencing business and thus, can make an impact on marketing strategies and decisions of the business. The organization selected is Bath and Body Works.

Domestic Global Marketing: Bath and Body Works

In order to remain in competition and to improve organizational and business performance, to increase profitability and to win and retain customers, it is essential to operate in domestic as well as international markets. Organizations working at a global and domestic level are influenced by factors, which can make an impact on their productivity, organizational and business operations. These factors can be classified into two categories: internal and external factors. The former are the factors that are found internally within the business and can be easily be managed and controlled and the latter are the factors, which the organization cannot control. External factors are considered to be environmental factors as they make an impact on the business externally. Environmental factors can play a significant role in influencing business and thus, can make an impact on marketing strategies and decisions of the business. The organization selected is Bed and Bath Works.

Global Economic Interdependence and Trade Practices and Agreements

Global economic independence plays a significant role influencing the business and the costs associated with it. For example, high cost of raw materials would increase production costs. In the same manner, economical labor would help in reducing production costs. In terms of costs, Bed and Bath concentrates on ensuring that its production cost is low and it offers innovative products to its customers at the right price (Paliwoda&Ryans, 2011). Marketing is dependent on the global economy and thus, fewer sales can be product of global recession. In the same manner, trade agreements also influence the marketing strategy of the organization.

Importance of Demographics and Physical Infrastructure

Demographics and Physical infrastructure play a significant role in influencing domestic as well as international marketing. Demographics represent gender, culture, perception and attitude of the consumers. Demographics also include cultural diversity (Paliwoda&Ryans, 2011). Physical infrastructure is used to determine how much the country is developed in terms of physical infrastructure (Paliwoda & Ryans, 2011). Bath and Body Works understands the significance of consumer perceptions and the significance of physical infrastructure. Bath and Bed Works is an American company, which first launched its retail outlet in Canada and then, it had entered the Middle Eastern Market. Based on the consumer perception and cultural diversity, Middle Eastern Industry is competitive and consumers demand for innovative perfumes, lotions, bath accessories and personal care items (Everything2 Website, 2013). Furthermore, on basis of Physical infrastructure, Middle East offers lucrative opportunities for businesses and foreign investors. Identifying the growth and development in Middle East, Bed and Bath Works opened its first retail outlet in Kuwait. Other outlets were opened in Saudi Arabia, Bahrain and UAE.

Influence of Cultural Difference

Cultural differences play a significant role in influencing business operations and functions and therefore, it is essential that the products are innovated and distributed in accordance to the trends of that culture (Paliwoda & Ryans, 2011). For this purpose, Bed and Bath Works had introduced exotic fragrances and personal care items for Arab consumers in Middle East.

Social Responsibility and Ethics vs. Legal Obligations

A business organization must operate on basis of ethics and must practice the principles of social responsibility. For instance, helping built communities and donating food supplies to countries, where there is shortage of food. Furthermore, protecting the environment and natural flora and fauna and using recycled products, can assist in creating a strong brand image of the company. Based on research conducted in 2011, it was found out that Bed and Bath had introduced the concept of energy and water efficiency project on their main building in order to practice the principles of CSR. Furthermore, it concentrates on implementing energy efficient program in its retail outlets and to train its staff to promote the concept. Furthermore, the organization also complies with the legal requirements of countries, where it has opened its retail outlet.

Political Systems and Influence of International Relations

Politics and international relationships of any country, plays a significant impact on business organizations. Political systems if unstable can have a negative impact on the marketing strategy of Bed and Bath Works (Paliwoda & Ryans, 2011). For instance, in Bahrain, the sectarian riots erupted in 2011 had a negative influence on business and thus, the company experience lost.

Influence of Foreign Corrupt Practices Act of 1977 and other Legislations

Bed and Bath Works has to comply with the Foreign Corrupt Practices Act of 1977 and national and international legislations in order to avoid unethical practices in order to maintain a good corporate image. For this purpose, it is essential that the organization concentrates on complying with the Act and engaged in business dealings that are based on ethics and does not violate national and international legislations.

Impact of Technology

Technology plays a significant role in developing new product. Bed and Bath Works concentrates on designing innovative products in order to meet the needs and requirements of the consumers (Paliwoda & Ryans, 2011). Constant research and development aims at making new fragrances and new products in order to cater the needs and requirements of the domestic as well as international markets. This had helped the organization to create a strong brand and corporate image.