The paper "Saudi Arabia’ s Economic and Cultural Environment" is a good example of a marketing assignment. Tariffs/ barriers / Subsidies – These are the common factors that determine the cost of international trade. These elements usually play an important role in deciding the product to enter into a country and other conditions that direct the business. Governments utilise these elements in protecting local industries. Competition and globalisation – the more the competitors means that the marketing mix strategy should be engaging and appealing to the audience. The aim of such a model is to attract consumers from other brands to the current brands. E-commerce – It has played an important role because it is easier for an individual in Australia to purchase a product from the United States of America.
This has contributed to the determination of marketing mix that does not factor the cost of transportation and logistics because the consumer is responsible for such costs. Economic structure e. g. agriculture-based, industry-based, service-based – the type of industry also determines the impact of the marketing mix. Some products are taxed more compared to other products from another industry. Using the attached assignment as the context for answer describes 3 specific examples of how did it adapt its marketing mix to Saudi Arabia’ s economic environment Tariffs/barriers – there are no barriers in operating apparel business since the market is liberated.
Therefore, there is no increase in costs that are associated with additional governmental costs. E-commerce – this is an important component since it is easier to access and engage the consumers on clothing offerings. It is a cheaper and penetrating method in which products can be supplied and also the consumers can purchase the product. Competition – numerous companies with larger resources have entered the market and are becoming the major players.
Therefore, the product offering should be unique in terms of quality and also on the price to ensure it appeals to more consumers. Q 2 Using specific examples identify and discuss the elements of the international cultural environment that are likely to impact on a firm's marketing mix. Social institutions/conventions – the family and social environment determine the way consumers relates to a product or service. Some products may be appreciated by some consumers because of cultural attachment.
For example in Saudi Arabia, co-education is not encouraged because of cultural directives. Therefore, a person starting an educational facility should understand this component before determining the type of school to be established. Relations with the universe – e.g. religion - in some countries, religion plays an important role and it determines how some things are embraced. For example, alcohol is not acceptable in the United Emirates and may impact immensely to a company that wants to start selling alcohol in the United Emirates. Language – Language is a major factor in international trade and determines the cost of the marketing mix components.
For example, it is easier to employ a marketing mix strategy in environments that utilise English as a first language rather than introducing an English based product to an Arabic country. For example, selling a product in the United Kingdom has a minimal difference in selling a similar product to the United States because both countries communicate using English. Cultural knowledge – Understanding the benefit of a given product or service is important and the marketing mix strategy can easily be understood by the targeted audience.
An informed culture can easily appropriate a given product or service rather than a culture that is not informed. This means that information is important and therefore a firm should maximise on information dispensation so that consumers can appreciate the product. Cognitive styles – this brings into consideration the determination of whether a product has risk perception or its involvement to the society. Products and services that are perceived to be risky attract consumers based on cognitive knowledge and beliefs. Using the attached assignment as the context for answer describes 3 specific examples of how did it adapt its marketing mix to Saudi Arabia’ s cultural environment Occupation – different clothes are worn based on numerous factors and one such factor is the occupation.
The type of work determines the type of job and task that should be completed. Therefore, the shirt is appropriate for office work and hence its marketing mix should consider this factor. Social change – the society has witnessed numerous changes because of economic, social and cultural factors.
For example, tourism has resulted in the introduction of clothing that is suitable to these consumers and therefore increases of specific apparel. Climate – The climate determines the colour of clothing and also the material. The most appropriate colour is bright colours especially white because of religious background and religious clothing. Moreover, the colour addresses environmental and climate situations.