Essay Sample on Environmental Forces in Marketing

Introduction

There are a number of forces which affect a company's marketing activities, but the Company has no control over. These external forces include political activities, competitive forces, regulatory policies, social and cultural influences, as well as economic activity (Lau, 2016). Companies may have internal policies that promote marketing but face a challenge from one or more the external forces that they have no control over.

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Trump Orders General Motors to Make Ventilators

Article Summary

The coronavirus pandemic has economic effects that the companies have no control over. Many companies are affected globally to the extent that they cannot continue with normal marketing operations. The companies are playing their part in providing the equipment needed by health workers as well as the citizens in fighting the novel coronavirus. The President of the United States, Donald Trump, asked General Motors to stop wasting time and state making ventilators. The Defense Production Act protects the order. The legislation was enacted in 1950 and gave the president power to direct companies to produce goods that are critically needed. General Motors have plans of building a critical care unit and also confirmed that they would produce the ventilators as ordered by the president. Trump felt that the Company was taking so long to produce the ventilators and also had reduced the number of ventilators that it had planned to supply from 40,000 to 6,0000 (Michael &Wayland, 2020). General Motors, however, explained that they were waiting for regulatory approval to start the production of the ventilators. The president, however, says that the negotiations have been productive, but the issue requires urgency and the normal contracting process takes time. He, therefore, wants the Company to start the production of the ventilators to save the American lives.

General Motors and Ventec Life Systems also require upfront to start producing the ventilators. This is because they need to purchase the necessary tools needed in production. The deal is worth billions of dollars and the government together with the companies, need to work together. The companies aim to produce approximately 10,000 ventilators per month. Ventec and General Motors have identified the suppliers for approximately 700 parts that will be used in the production of VOCSN ventilators. General is also planning on making surgical masks in Warren. The production is expected to commence next week and targets to produce approximately 50,000 masks each day. With time the Company plans to increase the production to approximately 100,000 surgical masks per day (Michael &Wayland, 2020).

How this Article Relates to our Course

The article relates to the environmental forces of marketing and the general marketing subject. Companies sometimes face environmental challenges they have no control of. The external forces include the political factor as well as the economic. Sometimes a company may be compelled by the government to take some duties which are not normally in their scope. This is done through presidential orders and legislations such as that given by Donald Trump to General Motors, compelling them to start production of the lifesaving ventilators (Michael &Wayland, 2020). Companies market intending to create brand recognition, during this time when the World is facing a pandemic, this is not a priority for companies, especially those which do not provide essential products and services. At this time, marketing means such as advertising may not be prioritized as the companies may not realize profits to sustain their basic operations. However, some companies such as General Motors are helping the government in fighting the pandemic by agreeing to produce the ventilators as well as the surgical masks that will be used in saving the lives of Americans.

The content of the presidential order indicated in the article relates to environmental forces in marketing. This is a regulatory action that the company does not have control over as it is an external force. The concept of the Defense Production Act gives a president the power to compel the companies to produce essential goods during an emergency (Congressional Research Service, 2020). In such a case, the company has to negotiate the deal with the government to facilitate the production of goods required. Both the government and the company work together because although it is an order, the company needs the necessary tools and resources to start the production. Also, the pandemic is an external force that affects the marketing of the company. During the crisis, companies cut down marketing costs due to reduced sales caused by the strain in the economy. The company focuses on helping in fighting the crisis as they need the customers as they are the main stakeholders in the business.

Conclusion

In conclusion, environmental forces of marketing include competitive rivalry, social, cultural differences, political activities as well as economic activities. During an emergency, the president is given the power to order companies to produce essential services. The Defense Production Act protects such order. President Donald Trump has exercised this power by ordering General Motors to produce the ventilators, which will help in saving lives.

References

Congressional Research Service. (2020). The Defense Production Act of 1950: History, Authorities, and Considerations for Congress. Retrieved 28 March 2020, from https://fas.org/sgp/crs/natsec/R43767.pdf

Lau, G. T. (2016). Marketing Environment'. Strategic Marketing Management in Asia: Case Studies and Lessons across Industries, 15-57.

Michael Wayland, C. (2020). Trump orders General Motors to make ventilators under the Defense Production Act. Retrieved March 28 2020, from https://www.cnbc.com/2020/03/27/trump-orders-general-motors-to-make-ventilators-under-defense-production-act.html