REI Marketing Environment Worksheet Essay

1. Consumer incomes- As consumer incomes compound the ability to sell non-essential goods is headly bear on. REI sells non-essential goods. If consumer incomes are rising they will turn out discretionary income and REI should benefit. If Consumer incomes are smooth or decreasing REI will see a negative electric shock on sales. 2. Inflation- Inflation is a measure of the decrease in the nurse of specie. This means that if inflation is increasing it will take more(prenominal) money to purchase the same product. Again with REI they sell non-essential products and would be negatively presumeed by inflation. Inflation has not been a problem but it is predicted to be in the future so REI must factor this into their sales and trade strategy.Global EconomyHow does the current worldwide economy affect REI sell operations?1. Since REI is not a worldwide commwholey they are slight affected by the global economy. They are not immune even so as the global downturn affects the U. S. economy as a whole. This in turn does get a secondary effect on REI. 2. Since the global economy directly affects the U.S. economy any downturn in the global economy is going to have a negative impact on the U.S. economy therefore having a secondary effect on REI. This would have the same effect as mentioned in the U.S. economy in fate one.Legal and Regulatory EnvironmentWhat types of legal and regulatory forces affect REI in the U.S.?1.Federal, state and local regulations and agencys affect REI as well(p) as e very(prenominal) other vexation. The Federal Trade Commission regulates contest to avoid unfair practices. The Consumer Protection Agency helps protect thehealth and guard of consumers. Since REI has many private label products they must make sure that they are safe to avoid lawsuits and huge fines. 2. Since REI is a consumer Cooperative they too have some other regulations that g all overn how they manage their business. This does give them some impose advantages over the competition but may be a single out when it comes to retained earnings and investments.Socio-Cultural ForcesWhat types of social and culture trends affect REI?1. REI has built its business on cultural trends. They are very environmentally friendly and very involved in supererogatory causes that relate to their business. They market to a special group of consumers that have equal believes and are ordain to purchase products to stay that believe. This is an example of Relationship Marketing and REI has been very successful with this strategy. 2. REI, according to their website hosted over 750 volunteer events to help the local community and environment. REI started in Seattle which is a holy market for this type of approach. This market is very socially driven and willing to support companies that also have similar believes with the environment. This also may be a limiting factor when looking at future process for REI. Especially is the economy takes a further downturn .Technological ForcesWhat type of engineering science changes affect REI?1. Changes in manufacturing techniques can have a huge impact. If similar products that REI sells become cheaper from a competitor due to technology advancements it has a direct impact on REI. They will either have to advance with the technology, change suppliers and/or manufacturing, or reduce price and margin to compete. Either track this is a threat to REI. 2. Another example of how technology can affect REI is simply in customer information. Who their customers are, the purchasing habits, personal information, disposable income etc A company that is tied into this data and uses it as a guide to their marketing strategy will have an advantageover a company that does not. As a consumer coop REI has the ability to have a more complete data base than a non coop.Competitive forces are also a part of the marketing environment, and we will review those in this units second assignment.