The International Marketing Factors

Marketing styles are dynamic and do vary from one production to another, one region to another, from one organization to another as well as in individuals. In this regard, market assessment is necessary if an organization wants to make a mark in any market for its product or services. The tactics of marketing can highly be dictated by prior perceptions concerning particular line of production or the type of goods and services to be marketed, and so, in order to have a market competitive advantage, it is proper to streamline marketing and use high persuasiveness in marketing. This applies to attempts to sell some western components and ideas to native Asian population like those in India.

Although firms marketing abroad face many of the same challenges as firms marketing domestically, international environments present added uncertainties which must be accurately interpreted. Indeed, there are a host of factors that need to be researched and evaluated when preparing an international marketing strategy. Key aspects of any potential foreign market include: demographic and physical environment; political environment; economic environment; social and cultural environment; and legal environment.

In reality it is not difficult to start international marketing. Today, communication with your markets is only an internet connection away. So all forms of web marketing are popular places to start no matter which country you are targeting. Simply because it is cheap and easy. This does not mean you should exclude other marketing methods. And how should you choose which marketing methods to use for your international markets?

Demographic and Physical Environment. Elements that needs to be assessed that fit under this category include population size, growth, and distribution; climate factors that could impact on business; shipping distances; time zones; and natural resources (or lack thereof).

Economic Environment. The totality of economic factors, such as employment, income, inflation, interest rates, productivity, and wealth, that influence the buying behavior of consumers and institutions. Factors in this area include disposable income and expenditure patterns; per capita income and distribution; currency stability; inflation; level of acceptance of foreign businesses in economy; Gross National Product (GNP); industrial and technological development; available channels of distribution; and general economic growth. Obviously, the greater a nation’s wealth, the more likely it will be that a new product or service can be introduced successfully. Conversely, a market in which economic circumstances provide only a tiny minority of citizens with the resources to buy televisions may not be an ideal one for a television-based marketing campaign.

Social and Cultural Environment . This category encompasses a wide range of considerations, many of which can—if misunderstood or unanticipated—significantly undermine a business’s marketing efforts. These include literacy rates; general education levels; language; religion; ethics; social values; and social organization. “The ability of a country’s people to read and write has a direct influence on the development of the economy—and on marketing strategy planning,” observed McCarthy and Perreault. “The degree of literacy affects the way information is delivered—which in marketing means online pharmacy no prescription promotion.”Attitudes based on religious beliefs or cultural norms often shape marketing choices in fundamental ways as well.

Legal Environment . This includes limitations on trade through tariffs or quotas; documentation and import regulations; various investment, tax, and employment laws; patent and trademark protection; and preferential treaties. These factors range from huge treaties (North American Free Trade Agreement-NAFTA, General Agreement on Tariffs and Trade-GATT) that profoundly shape the international transactions of many nations to trade barriers erected by a single country.

Political Environment . The political environment is the state, government and its institutions and legislations and the public and private stakeholders who operate and interact with or influence that system. Factors here include system of government in targeted market; political stability; dominant ideology; and national economic priorities. This aspect of an international market is often the single most important one, for it can be so influential in shaping other factors. For example, a government that is distrustful of foreigners or intent on maintaining domestic control of an industry or industries might erect legal barriers designed to severely curtail the business opportunities of foreign firms.

A marketing strategy can be the driving force for a company if it utilizes the concepts and components well. Some of the mentioned components include product distribution/supply chain management, promotional tactics, effective pricing strategies and carrying out of a market research. A market research always comes first before all other strategies to determine the possibility of excelling in the new market. Such methods can apply in selling Ovens of the White Appliances company in the Indian market, which is studied to be skeptical of anything coming from the western world. International Marketing is based on some theoretical frameworks such as the economic development concepts, the International Product life cycle framework and the Investment theories.

August 1, 2013iavalanche Comments Off on The International Marketing Factors
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