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Mattel, Inc. Term Paper

Marketing General Economic Environment

Mattel Incorporated's general economic environment in the United States is favorable, since the income distribution among U.S. consumers of Mattel Inc. products are relatively higher compared to other regions where Mattel Inc. is internationally located. For example, Asian consumers purchase relatively less number of Mattel products because of the high costs of these products when they are marketed and sold internationally. Income is also affected in the current social and political states of countries wherein Mattel Inc. sells its products. Because Asian countries tend to have more social and political instability, there is also financial instability as a result. Thus, because of financial instability, income is lower, thereby resulting to lesser consumption of toy products, which is not considered a priority among Asian households and consumers. Therefore, there are higher economic returns for Mattel Inc. For its European, North, and Central America regions compared to Asia-Pacific and South-American regions.

Political and Legal Environment

The political and legal environment of Mattel Inc. is highly dependent on domestic and international policies that will be implemented or imposed upon the company's trade activities within and outside the country. A change in exchange rates or international policies about quotas or manufacturing policies can affect Mattel Inc.'s economic activities internationally. Politically, Mattel is potentially affected with the domestic issues that happened in the United States as a result of the World Trade Center bombing last...

This historical event is significant in Mattel Inc.'s operations since there had been an economic downturn when the bombing happened. However, the positive change in the U.S. economy resulted to a better economic disposition, which happened in the aftermath of the WTC bombing. Similarly, Mattel Inc.'s international activities are also affected by political strikes that happen in Asian countries, but are booming in China, wherein labor manpower and manufacturing companies for Mattel are increasing and prospering with its recent entrance to the international market.
Social and Cultural Environment

The social and cultural environment of Mattel Inc. is significant for the progress and success of the company in marketing its products. Mattel's products target the children as its market, with the parents as consumers. Its products are also divided into three main categories: for Girls, Boys, and Infant and Pre-School. This diversity is important for the parent consumers because this will help them buy toys and other Mattel products that are suitable for their children's age and gender. Mattel's cultural environment is very satisfactory, because it promotes cultural and racial diversity, as is evident in the different 'versions' of Barbie dolls that Mattel manufactured such as the Puerto Rican and African-American Barbie dolls (Prentice-Hall 2003). Thus, there is sensitivity and consideration in Mattel's treatment of the social and cultural environments of various nations that Mattel sells its products to.

Technological Environment

Mattel is extending its services in…

Sources used in this document:
References

Marketing Spotlight -- Mattel." 2003. Prentice-Hall Inc. Web site. 13 April 2003 http://wps.prenhall.com/bp_kotler_mm_11/0,162066-,00.html.

Mattel Implements Microsoft Technologies to Make Barbie.com Child's Play." 6 December 2001. Microsoft Inc. Web site. 13 April 2003 http://www.microsoft.com/resources/casestudies/CaseStudy.asp?CaseStudyID=12282.

Young, R. 2003. "Economies of Scale." Biz/ed Web site. 13 April 2003 http://www.bized.ac.uk/stafsup/options/notes/econ204.htm.
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