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Geographical Impact on Business Decisions: A Comprehensive Analysis

Explore how geography influences marketing decisions for global brands like Starbucks, Krispy Kreme, Frito Lay, and Xbox. Learn about the vital role of geographic factors in determining optimal locations, distribution channels, product formulation, and more.

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Geographical Impact on Business Decisions: A Comprehensive Analysis

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  1. What is Geography? • Study of the earth’s • surface, • climate, • continents, • countries, • peoples, • industries and • resources

  2. Geography influences… • Customs • Products • Industries • Needs and methods of satisfying needs

  3. Geography impacts… • Country’s attractiveness to do business • Marketing • Location of manufacturing, distribution centers, retailers • Shipping / distribution • Feasibility of Importing parts, materials, goods • Practicality of Distribution within country, to neighboring countries • Methods, costs • Availability of local suppliers • Impact on product design, maintenance

  4. Geographic Factors Influencing Country Attractiveness • Location Continent, Hemisphere • Boundaries • Capital (population), Largest cities (population) • Area Total • Area Land • Coast Line • Average Daily Temperature • Annual Rainfall

  5. Population • Population Growth rate, live births, birth rate • Distribution of • Age • Gender • Urban vs. rural • Geographical areas • Ethnic groups

  6. Transportation and Communication Modes of surface transport, usage rates Ports Communication systems, types, availability, usage rate

  7. Assessing Geography for Doing Business in…

  8. Which Marketing Decisions Will Be Affected by Geography for Starbuck’s, Krispy Kreme? (Sample) • Where to locate? Urban or rural? Which Cities? • Which part of the city? Central? Suburb? • Should products be reformulated for climate, altitude? E.g. icing on donuts, baking temperatures • Should hot or cold beverages be added, featured depending on climate?

  9. Which Marketing Decisions Will Be Affected by Geography for Frito Lay Potato Chips? (Sample) • Is climate, terrain suitable for growing potatoes? Any potato diseases? Farmland available? • Should products be reformulated for climate, altitude? E.g. baking temperatures • Are there sources for vegetable oil? • Will products be distributed nationwide or only major cities? Which cities? • Are roads adequate for distribution?

  10. Which Marketing Decisions Will Be Affected by Geography for XBox? (Sample) • What is the age distribution of population? How many in target market (12 – 35)? • Are ports available to ship in product? • Will products be distributed nationwide or only major cities? Which cities?

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