Environment consists of forces. Environment is made of such controllable and uncontrollable forces. It is the environment that determines favourable or unfavourable conditions, and hence, provides either opportunities or threats and challenges.

International marketing environment covers all the relevant global forces influencing international marketing decisions. These forces may be internal such as resource ability and management attitudesmay be domestic such as government policy toward international business and facilitiesand global such as overall international business environment of relevant part of the world.

However, discussion of global forces is more relevant as they are major considerations in international marketing. International marketing environment is a set of controllable internal and uncontrollable external forces or factors that affect international marketing. International marketing mix is prepared in light of this environment. International marketing environment consists of global forces, such as economic, social, cultural, legal, and geographical and ecological forces, that affect international marketing decisions.

International marketing environment for any marketer consists of internal, domestic, and global marketing forces affecting international marketing mix. Factors or forces involved in the international marketing environment can be classified into three categories as stated in the figure 1.

Manager dealing with international marketing has to design his marketing mix and marketing mix strategies in accordance with these forces. He has to keep in mind the present them and expected impacts of such forces while taking international marketing decisions.

The environment determines the degree of favourableness for any marketer for international marketing; determines level of opportunities and threats. Such factors are related to the world economy. Broader picture of global phenomenon affects every decisions of international marketing. Domestic factors are related to the economy of the nation.

Factors to Consider For International Marketing

Overall economic, social and cultural, demographic, political and legal, and other domestic aspects constitute domestic environment for international marketing.

This environment affects international marketing mix in several ways. These are internal and controllable factors. They are related to internal situation of the company dealing with international trade.

International marketer needs to use, adjust, and organize these factors to satisfy needs and wants of the international target markets. Stages of Retail Trade 6 Stages. International Marketing: Its Features and Need.The cultural environment consists of the influence of religious, family, educational, and social systems in the marketing system. Marketers who intend to market their products overseas may be very sensitive to foreign cultures.

While the differences between our cultural background in the United States and those of foreign nations may seem small, marketers who ignore these differences risk failure in implementing marketing programs. Failure to consider cultural differences is one of the primary reasons for marketing failures overseas. Table 6 provides some illustrations of cultural difference around the world. This task is not as easy as it sounds as various features of a culture can create an illusion of similarity.

Even a common language does not guarantee similarity of interpretation. A number of cultural differences can cause marketers problems in attempting to market their products overseas. These include: a language, b color, c customs and taboos, d values, e aesthetics, f time, g business norms, h religion, and i social structures.

Each is discussed in the following sections. The importance of language differences cannot be overemphasized, as there are almost 3, languages in the world.

Language differences cause many problems for marketers in designing advertising campaigns and product labels. Language problems become even more serious once the people of a country speak several languages. For example, in Canada, labels must be in both English and French. In India, there are over different dialects, and a similar situation exists in China. Chevrolet created a car called the Chevy Nova. If companies are going to sell their products internationally, they need to think about what their name means in the countries where they want to sell them.

Colors also have different meanings in different cultures. The U. S is the only currency that uses the same color green for all of its money. Other countries use different colors for different values of currency but the U.

S uses the same color for all denominations. All cultures have their own unique set of customs and taboos. In Ireland, the evening meal is called tea, not dinner.

impact of political environment on international marketing

In Asia, when a person bows to you, bow your head forward equal or lower than theirs. The number 7 is considered bad luck in Kenya, good luck in the Czech Republic, and has magical connotations in Benin. Pepsodent toothpaste was unsuccessful in Southeast Asia because it promised white teeth to a culture where black or yellow teeth are symbols of prestige.

In Quebec, a canned fish manufacturer tried to promote a product by showing a woman dressed in shorts, golfing with her husband, and planning to serve canned fish for dinner. These activities violated cultural norms. It found out that Germans have little respect for American coffee. In Cantonese, the Philip Morris name sounded the same as a phrase meaning no luck.

In Hong Kong, Korea, and Taiwan, triangular shapes have a negative connotation. Red is a positive color in Denmark, but represents witchcraft and death in many African countries. Americans usually smile as they shake hands.

impact of political environment on international marketing

You might be misinterpreted as making fun. Offering gifts when you visit a home is expected in Japan, but in the Soviet Union it may be considered a bribe.There are many external environment factors affect business negatively and positively.

Business managers must address these factors and make decisions that minimize the impact of external environment. Political factors and environment of a country impacts any business organization and can also introduce a risk factor can cause the business to suffer losses or compromise over its profit stream. Political environment can change because of the policies and actions of the prevailing government at every level, federal to local level.

It is very important that a business should plan for the variability in the policies and regulations of the government to maintain a stable business environment. Political factors are government regulations that influence business operation positively and negatively. These factors may be current and impending legislation, political stability and changes, freedom of speech, protection and discrimination laws are factors affecting business operation and activities.

Political factors can impact a business by making the market environment more or less friendly for that business. Typically, governments have a great deal of power over businesses and many times, there is not much that businesses can do about it. Political factors can impact businesses in various ways.

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These external environmental factors can add in a risk factor which can lead to a major loss in business. These factors can change the entire results and hence, companies should be able to deal with both local as well as international political outcomes. In addition to this, political factors not only have a direct impact but, it also impacts other factors as well which can have a significant effect on the business and its operating environment. There are certain factors that create inter-linkages in several ways like:.

With a change in administration policies, there arise political factors that can change the entire business scenario. These changes can be economic, legal or social and can include the following factors:.

Conducting a macro environment analysis, a good example of how political factors have affected a business can be associated with Nike. Nike is a globally recognized athletic apparel, footwear, sports accessories and equipment. Nike has been very fortunate as the government of the United States have formulated such policies that will foster the growth of businesses. The company is enjoying stable currency and low-interest rate conditions along with very competitive tax arrangements that help the company in advancing growth.

US government has taken initiatives with respect to transparency in the global value chain and Nike has greatly benefited from this. However, Nike is facing hard times in its outsourced manufacturers in other regions like Indonesia, Thailand and Vietnam where there is an increase in political unrest.International trade is the exchange of goods and services between countries which gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events and its beginnings date as far back as the Roman Empire.

After World War II there was a divide between the Eastern and Western countries that had major implications on international trade What is meant by the term marketing environment?

The competition can come from local companies to others looking to also expand into worldwide markets. This is why it is so important for a company to analyze this new market and familiarize themselves Evaluate international marketing opportunities Unit Descriptor This unit describes the performance outcomes, skills and knowledge required to evaluate the international environmentto identify market factors and risks, and to assess the viability of international marketing opportunities.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement. Review the global market environment 1. The study of marketing must continue in understanding the marketing opportunities. We will discover that marketing is not enclosed Assessing the political environment is an important part in any business decision.

Laws and regulations passed by either local, regional and central government bodies can affect foreign firms' operations. Also, firms are comfortable assessing the political climates in their home countries. However, assessing the political climates in other countries is still problematic. Classification and description of political risks When doing international business, the manager may face several types of financial Political and Legal Environment Blockbuster has had many challenges when it comes to the law.

The Political Environment Concept in Marketing

Netflix has always felt Blockbuster has tried to steal many of its ideas. Netflix runs its operations where customers will setup an account, pick the movies they want to watch, and setup a payment plan Sanders. Since the dawn of Netflix, millions have joined and have enjoyed the benefits of not having to drive to the store to rent movies. Blockbuster has known that Netflix was a rival from the The main factors making up these wider macro-environmental forces fall into four groups.

After populist socialist president, Hugo Chavez took the office of Venezuela, he took many actions to Sign Up. Sign In. Sign Up Sign In. Political And Legal Environment Of International Marketing government in international trade, the various levels of economic integration, and the impact on international marketing.

Evaluate International Marketing Evaluate international marketing opportunities Unit Descriptor This unit describes the performance outcomes, skills and knowledge required to evaluate the international environmentto identify market factors and risks, and to assess the viability of international marketing opportunities.

Political Risks in International Marketing Assessing the political environment is an important part in any business decision. Political Environments Q1.Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy.

A government control's and restricts a company's activities by encouraging and offering support or by discouraging and banning or restricting its activities depending on the government.

Here steps in international law. International law recognizes the right of nations to grant or withhold permission to do business within its political boundaries and control its citizens when it comes to conducting business. Thus, political environment of countries is a critical concern for the international marketer and he should examine the salient features of political features of global markets they plan to enter.

It is extension of national laws beyond a country's borders that much of the conflict in international business arises. Nations can and do abridge specific aspects of their sovereign rights in order to coexist with other countries.

Has Bibliography 7 Pages Words. More on political environment in international marketing All Rights Reserved. Paper Details. Filter Topics.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.

Jet travel opened up the world to many people, and the expansion of the World Wide Web took that one step further. Borders seem to be more symbolic now than they are barriers to trade like they were years ago. As this whole new frontier opened up, businesses realized there was a brand new opportunity out there for them to generate even more income. All this has led to the birth and growth of international marketing. Some would call it the coordination of marketing strategies by a company that are necessary to sell goods or services in a foreign marketplace.

A very good reason why companies need to consider international marketing is to get a piece of the over 10 trillion dollars of goods and services that are traded across borders each year.

For the company that markets itself properly on an international level, this can lead to a huge boost in revenue. Not only do businesses have a great opportunity to grow their revenue if they market themselves internationally, but they will also run into a lot of obstacles that are not typically encountered in domestic marketing.

International marketing is very different from domestic marketing. There are a whole host of issues when marketing internationally that a business does not normally have to deal with when marketing in their own country. The following are some key things to consider when making any international marketing decision. Language, more specifically translation, needs to be paid very close attention to when doing international marketing.

There have been some embarrassing mistakes in international advertising that most likely did not help companies sell their product. 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.

These types of language problems are funny to an outsider but can spell financial disaster for your international business if you are not careful. Many times a country to which you would like to sell a product has extreme regional differences that must be accounted for when marketing.

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A perfect example of this is Canada; they have large French speaking populations around Montreal and Quebec that are culturally much different than the English speaking communities found throughout the rest of the country. Culture and personality combine to shape consumer behavior in every particular region of the world or country. 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.

You also have to consider other societal and psychological factors that influence buying decisions in the country you are targeting to sell your goods or services to. Age and other demographics play a key role in international marketing just as they do in domestic marketing; companies have to pay very close attention to them. 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.

This illustrates the importance of understanding age and other demographics on a potential country that you might sell your goods or services to since they are both reliable and used in making marketing decisions. When you are marketing your product or service internationally you must also take into consideration class structure because it varies widely from country to country. Most countries have an upper, middle and lower class, but the numbers of people in these classes can be significantly different from country to country.

Of course supply and demand will play a major role in trying to market your products anywhere in the world.

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These days a company has to take a deeper look at potential markets than ever before because just about anything will sell if you market it the right way and in the right place. Considering how you will get paid for the products and services you market and sell internationally is important too. In the more prosperous countries it is taken for granted that you can buy goods internationally and pay for them with such things as credit cards, debit cards, online payment processors and cash transfer businesses, but that is clearly not the case everywhere in the world.

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These types of financial realities will greatly impact your marketing strategy. There are laws in some countries that will greatly affect your ability to do business in them or prohibit it altogether. 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. 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.

Governments do these things as a way of making sure a larger percentage of income from sales stays in the home country. Taxes can and do impact your ability to make a profit selling goods and services in a foreign country and will shape your international marketing strategy because of that. High tax rates on goods sold, like those in the USA, can make it hard for a business to stay on the right side of that fine line between profit and loss.

When you market your products for sale in a foreign country, you may be subject to pay certain fees for the right to do that. These fees can be a one-time deal or recurring, and they can also be quite high in some circumstances if they involve what might be considered luxury items.

Tariffs have long been used to balance trade between countries and to protect national companies from losing business to foreign competitors.Please join StudyMode to read the full document. Product Tesla is a new company. It only has three vehicle models. Based on information that Tesla has a few competitors and it starts make a profit in the first quarter of People who buy its products are innovators and early adopters.

The target market is the consumer who wants to take a risk in order to experience new design and technology to experience. Model X has not been released yet, therefore it can expand the scale of potential customers. In FebruaryTesla revealed an early prototype of the Model X.

With this style of door people can easily step in, install baby seats and park their car. They design this kind of door not only for the fabulous appearance, but also for the functions. When this new design is showed in Model X prototype, it truly impresses new customers. In the beginning ofModel X has been introduced to the public in the American Auto The ways that some marketing activities are performed have changed as businesses have turned to e-commerce.

The Internet provides opportunities for an organization to enhance its business in a cost-effective and practical manner. That is, the Internet can be used to conduct marketing research, reach new markets, serve customers better, distribute products faster, solve customer problems, and communicate more efficiently with business partners.

The benefit of Internet marketing includes the improved flow of information, new products and customer services, improved availability, improved market transparency.

To design and implement a successful e- marketing program, a number of theories, applications, and technologies must be carefully analyzed and understood.

The Political Environment Concept in Marketing

In this article the investigator is going to considerer the best Internet marketing ways for the success of business. The main objective of this article is nothing but understanding the impact of Internet on different marketing areas such as product development and service provision, promotion, It also involves promoting such products and services within the marketplace.

Marketing is integral to the success of a business, large or small, with its primary focus on quality, consumer value and customer satisfaction. A strategy commonly utilised is the " Marketing Mix ".

impact of political environment on international marketing

This tool is made up of four variables known as the "Four P's" of marketing. The marketing mix blends these variables together to produce the results it wants to achieve in its specific target market.