CONCLUSION As technology gets more and more advanced and the world continues to become smaller and smaller because of it; those companies that market their product or service effectively internationally will take advantage of the huge growth potential that international markets now offer them.
This is why so many companies choose to partner with other companies that are based out of the country whose market they are trying to get into. Supply and Demand Of course supply and demand will play a major role in trying to market your products anywhere in the world.
Normally, you would not go for a walk in the rain without an umbrella, because you understand the environment and you know when it rains you can get wet. A manager can identify environmental factors of specific interest rather than having to deal with a more abstract dimension of the general environment.
Currency risks There are always risks when doing business in the currency of a foreign country that you are marketing your product or services to. Licensing and Permits There is a chance that the only way you can do business in a foreign country is to give out an expensive permit or license of another business in that country to manufacture and sell your product for you.
Your company is probably not going to want to market laptops to senior citizens in a third world country where there is very little internet and where a large percentage of the citizens over 60 are computer illiterate.
It indicates the product, services, and standards of conduct that the society is likely to value and appreciate. A good business-government relationship is essential to the economy and most importantly for the business. These types of financial realities will greatly impact your marketing strategy.
In many Middle Eastern countries women are not allowed to wear makeup, so if your business is cosmetic sales, then that would be a big marketing factor.
If you have your money tied up in a foreign currency and economic events fall just right, your company could stand to lose millions. When you want to market a product to a foreign country you need to first determine whether it is an individualistic society free-thinking culture or a collective society the peer group has the most influence on buying decisions.
The organization has no control over how the external environment elements will shape up. When these types of events happen, they can wipe out your entire customer base in a country or halt their purchasing power for extended periods of time, drastically impacting your business.
You must be aware of laws like this if part of your product marketing strategy includes manufacturing or distributing your wares in a foreign target market country.
A restaurant that makes its own sauces and dressings can provide unique flavors. A clothes store that makes and sells its own line of dresses offers customers an added value and a strong brand.
But ill-management of the workforce could lead to a catastrophic situation for the company. There have been some embarrassing mistakes in international advertising that most likely did not help companies sell their product.
Technological Dimension It denotes to the methods available for converting resources into products or services.
Quantity The volume of product that your company needs will influence your decision of whether to make or buy it. Economic Dimension The economic dimension of an organization is the overall status if the economic system in which the organization operates.
Strategic Partners They are the organization and individuals with whom the organization is to an agreement or understanding for the benefit of the organization.
However, if your company does not specialize in this type of product, then a specialty vendor may be able to do a better job. As such, a high debt load is usually not appropriate.
International Dimension Virtually every organization is affected by the international dimension. The external environment can be subdivided into 2 layers: Your marketing department needs to be aware of these things.
In the current world economy, the competition and competitors in all respects have increased tremendously. What Is International Marketing? In an organization, every action of the management body is influenced by the environment.
Convenience When your company is operating in high gear meeting ongoing demand, it can be more convenient to make products than to buy them.
Business laws of a country set the dos and don ts of an organization. Gerber used the same packaging with the cute little baby on it they had used in America for packaging its baby food in Africa; they did not realize that with the high illiteracy rate in Africa that it was common for food packaging to display a picture of the contents inside.
Some would call it the coordination of marketing strategies by a company that are necessary to sell goods or services in a foreign marketplace. The important economic factors for business are inflation, interest rates, and unemployment.
If you manufacture a product that does not hold up well when constantly subjected to periods of high heat, you might want to consider that carefully before marketing your heat sensitive product internationally to such places as Saudi Arabia.
Regional Values Many times a country to which you would like to sell a product has extreme regional differences that must be accounted for when marketing. What factors would you evaluate if you were an investor?
Political and Legal Factors A. Socio-cultural dimension Customs, mores, values and demographic characteristics of the society in which the organization operates are what made up the socio-cultural dimension of the general environment.INTERNATIONAL ENTRY AND COUNTRY ANALYSIS 1.
Motives for Going International it is important to consider how the business environment affects a company’s internationalization decision. A number of specific factors, including access to markets and Figure 1: Factors Affecting the Decision to Go International Overarching Factors Primary.
The primary external influence on a firm's decision to go international is _____.
foreign demand for a particular product or service A company that starts exporting its products or services within two years of its establishment is called a(n) _____. In this article, we cover the topic of international marketing and explore 1) an introduction to international marketing, 2) factors to consider for international marketing and 3) a conclusion.
INTRODUCTION TO INTERNATIONAL MARKETING Jet travel opened up the world to many people, and the expansion of the World Wide Web took that one step further. Factors Influencing Foreign Investment Decisions Now that you understand the basic economic reasons why companies choose to invest in foreign markets, and what forms that investment may take, it is important to understand the other factors that influence where and why companies decide to invest overseas.
it is important to understand the. The most crucial decision that an MNC has to make when entering a foreign market is the choice of the most optimal mode of entry as it will have a bearing on the company’s success.
A firm must assess a number of internal and external factors while. Organizational environment denotes internal and external environmental factors influencing organizational activates and decision making.
These strategic partners in some way influence the organization’s activities in various ways. They have the right to .Download