In the United States and other Christian nations, Christmas time is a major sales period. The governments can restrict the import of luxurious items from outside the countries. In international business an enterprises must ensure that it fully abides by the local laws and other regulations. Account Disable 12. Exports have become an inevitable part of any economy. The geographical environment helps the marketers to concentrate their marketing efforts to the potential countries so that all other marketing efforts could be utilized fruitfully. 3. (c) International standards – The government can enforce certain international standards in the foreign business. It considered the competition factor as an important variable in this regard. 2. International marketing environment consists of global forces, such as economic, social, cultural, legal, and geographical and ecological forces, that affect international marketing … 6. Therefore the nature of the competition will also be different in all these categories. This enables him to compete at international level. A number of factors constitute the international environment: social, cultural, political, legal, competitive, economic, and technology. It plays an important role in the international business. So improvements in technology is one of the reason for increasing exports. Developing economies or third world countries. The following picture presents an alarming scene of world population: “If the world were a village of 1000 people, it would consist of 520 women and 480 men, 330 children and 60 people over age 65, 10 college graduates and 335 illiterate adults. So they look for the new markets and decide to export. The idea of an internal customer, however, is a more modern one. The people of different societies perceive differently for the same object. Organizations hav… Marketers must change style as per the requirements of the market. The local contents boost the economy in two ways- (i) By encouraging demand for the domestic products (ii) By investing in local production facilities by the company can boost the local economy. International Marketing environment refers to the controllable and uncontrollable forces that influence upon the marketing decision making of a firm globally. Multinational companies may gain more in less developed companies by using international technology instead of the most advanced equipment. Therefore the multinational companies are to cop up accordingly in that system. In the absence of mutual interests, political pressures can lead to political decisions, resulting in laws and proclamations that affect business.”. The companies will be compensated in case of such losses which are caused due to political risks. A useful tool for quickly auditing the internal environment is known as the Five Ms which are Men, Money, Machinery, Materials and Markets. There may be different methodology of imparting education. In some countries two party system is prevailing, i.e. They can be defined as the actors in the firm’s immediate environment which directly influence the firm’s decisions and operations. The most of the multinational companies do have little control over the changes in international politics. The economic system of a country is another indicator to determine the macro-economic environment of a country. However, in many expropriations there has been payment, and it is often equitable. Wal-Mart trades mainly in the United States but also in international markets. (iii) Multinational Investment Guarantee Agency: It was established in year 1988, with the objective to create an attractive investment climate to its member states. These unions are working and forcing the government on the basis of their strength. It is difficult to survive for those companies, which fails to see changes as an opportunity in the international business. Exports are relatively more profitable in comparison to the domestic sales. Related Articles: Differences between External and Internal Source of Recruitment Difference between Internal and External Sources of Recruitment All these have to be considered while entering in the international market. Technological changes have also great importance because of its direct impact on product obsolescence issue. The business firms tend to complain about the bureaucracy of United States for its functioning. The ability of a firm to do international business depends on a number of internal factors like the mission and objectives of the firm; the organisational and management structure and nature; internal relationship between employees, shareholders and Board of Directors, etc. the long run period. It includes the study of population, national income, economic advancement of a country and the study of consumption patterns etc. International marketing mix is prepared in light of this environment. It is helpful to determine the, success or failure of a product. The United States leads the world in research and development spending. The age mix can be further subdivided, for example for marketers, the most populous age groups decide the international marketing environment. The companies can get insurance coverage from number of sources. The changing political environment is uncontrollable in nature. An assessment of the government of the host country and analysis of the attitude of people of the host country is very important in the study of practical environment. The following are the measures in terms of non-tariff barriers to international trade: (a) Participation of the government in the international trade – The government can enforce certain measures through subsidies, procurements and state trading. A defensive approach is always advisable in case the political mood is serious in a country. The government policies tend to change in the short run or in the long run period. (d) Poor communication facilities hinder advertising through the mass media. It depends upon the positive relationships among the nations that how they are prepared to respond to the changes. c. Incipient Demand – It refers to that kind of needs, which are likely to be emerged in future. As such, it is the responsibility of an international firm to have clear grasp of international marketing environment to formulate effective marketing decisions regarding Marketing Mix variables. country influences international marketing, to the great extent. Overseas Private Investment Corporation’s coverage is a positive feature. A country can be classified in two ways, on the basis of cultural influences on communication process. A country can be divided on the basis of one of the following political models. There may be the following categories of a product, which are considered in the analysis of competition: a. and the External factors ( political, legal, social, technological, economic) that surround the business and influence its marketing operations. The following indicators also determine the macro-economic environment of a country: i. These factors affect market conditions. All these factors are company related factors which are fully controllable. ii. Markerting, International Marketing, Environment. For instance, Six Sigma encourages identifying internal customers as a way of creating a more positive work environment. However, salespeople who set definite appointments for sales calls in the Middle East and Latin America will have a lot of time on their hands, as business people from both of these cultures are far less bound by time constraints. The cultural forces dictate the consumption patterns, the living styles and the priorities of needs of an individual and a society as well. Comparing internal and external customers. For example, in the US, the two-wage earner family has led to the development of a more affluent set of consumers. The cultural forces also play major role in this regard. From this first important judgment all else follow. The legal system in the world fall into one of the following. On the flip side, External environment is composed of those factors which are exterior to the firm. It provides a firm with different alternative markets where it can sell its products. Therefore the scanning of geographical environment should be carried out scientifically in the international business. The company related factors refer to such factors as the company objectives, resources, and international orientation. The world population is growing at an alarming rate. Also, the report shall endeavour to provide recommendations for the case study in view of the marketing issues raised. Macro Environment – It involves all forces which affect indirectly like: Find a reliable collection of Management Notes, Ebooks, Projects, Presentations, Video Tutorials and lot more, compiled from a variety of books, case studies, guidance from management teachers and of course the internet to make your management studies a joyride. The marketing strategy is decided according to the most populous factor. A company’s marketing environment consists of all the factors and forces outside marketing that affect management’s ability to develop and maintain successful transactions with its target customers – Kotler and Armstrong. It emerges in that situation when the customers become aware of it. For example the purchasing power of the consumers of two nations may be different. It may be by converting a Private Ltd. Company into Public Ltd. Company or by converting a foreign company into a local company. To assess the potential of international marketing environment, the study of political risks is very important. The import restrictions are generally imposed as to protect domestic trade industries. The economic advancement of a country can be characterized as under: i. The following are some factors which are responsible for the political instability: The social unrest is a major cause for the political unrest. The international problem of Sri Lanka and Nepal can be an example of such types of the disputes. A successful marketer always looks into the close connection between custom and customers. Thus, there are mainly two components of international marketing environment: Internal environment refers to the firm related factors. marketing environment consists internal and external forces. (c) Maintenance standards vary from one nation to the next. The socio-culture environment is always subjective. In other words, a firm is surrounded by internal and external force which have a great effect on firm’s ability to maintain lasting relations with target customers. It is important for a marketer to recognize how the perceptions about foreign cultures can be distorted by the effects of self-reference criterion. The administrative setup of a nation largely depends upon the ruling culture of government and experience to govern the state. It is the will and attitude of the government, which tends to change from time to time. These factors are uncontrollable or we can say that these are beyond the control of a company. The knowledge of economic environment helps an international marketer to understand which market to select for reaping lasting benefits. There are, however, some governments that openly oppose free trade. It is evident that geographical mobility always changes the habits of the consumers. It should be changed from place to place and time to time. All the activities relating to production and distribution are centrally control by the government of that country. It leads to better communication, new ideas, improved technology etc. The multinational companies mostly do have all the required features to dominate over the single industry business or small national competitors. International Marketing environment refers to the controllable and uncontrollable forces that influence upon the marketing decision making of a firm globally. The world’s nation are the major suppliers of raw materials to the U.S. market. The global international market orientation is the third step in promoting international marketing; this approach is characterized by internal and external market as a single market. Market potential in the home country. marketing environment forces. Therefore it is important for the multinational companies to assess and evaluate carefully the various changes in the government policies and the frequency of these changes. The macro environment is less controllable. The comprehensive policy is advised to be taken which should include coverage for kidnapping, terrorism and creeping expropriation etc. It may be because of policies of the new government. The domestic marketing environment consist of factors like growth prospects including the competition, government policies etc. Thus it can be said that. Instead, they must understand how the external environment is changing and the impact of that change on the target market. Such types of governments are governing in the People Republic of China, North Korea, Vietnam and Yugoslavia etc. The foreign firms have their own interest in doing business in a particular country. It may be a mountain range, a river, an ocean etc. Marketing is something most dental and orthodontic practices didn’t have to worry about 20 years ago. Some other incentives can also be obtained generally in the developing countries such as waiving of import duties on raw materials and other industrial equipments necessary for the further production of the goods and other tax concessions can also be granted in that locality where the business enterprises has been located. Punctuality and deadlines are routine business practices in the US. As the degree of economic development increases, so does the sophistication of the marketing effort focused on the countries. In this way they earn goodwill in the society also. Most nations encourage free trade by inviting firms to invest and to conduct business there, while encouraging domestic firms to engage in overseas business. It is impossible to eliminate the total political risks but these can be minimized up to certain extent. Such types of the restrictions are imposed on the finished product of the company. The age groups of a particular zone, educational qualification, household system, sex, marital status and background etc. In domestic market some legal restriction on the expansion of the firm may be imposed by government. Such situation can create an unwelcome atmosphere for the multinational companies. An individual’s values arise from his/her moral or religious beliefs and are learned through experiences. (h) Various countries around the world have implemented different trade and investment regulations. Language problems become even more serious once the people of a country speak several languages. The culture is a pattern of different values, customs, norms and beliefs, which is shared socially. The company enters in the market by introducing its new innovations. The study of demographic factors is of vital importance for marketers. It is very important for a marketer to be acquainted with the language of that particular country in which he is interested in doing business. Political environment is an important ingredient in the international business. It includes geographical factors, demographical factors, economic forces, socio-cultural forces, political forces and legal forces in the international marketing. Governments set some exchange rates independently of the forces of supply and demand. Impact of Micro Economic Environment on Marketing Strategy: The micro economic view point of a firm focuses on the firm’s ability to compete in a particular product and market in the international business. Micro Environment – It refers to the company’s internal and immediate environmental. International marketing environment is a set of controllable (internal) and uncontrollable (external) forces or factors that affect international marketing. The demographic patterns are considered highly reliable in the short run as well as medium period of time. However, the Japanese do not. It can be considered as a concept which encompasses different values, different customs and different norms. Dependent societies seek products that satisfy basic needs-food, clothing, housing, medical care, and education. When a nation is politically unstable, multinational firms can still conduct business profitably. By doing this the local supply of the product is encouraged. Wal-Mart’s micro environment would be very much focused on immediate local issues. They should take any kind of decision about foreign business only after reaching until certain concrete conclusions. Instead of this the company from other country start joint venture with that company. The key factor in determining demand. It should be clear in the mind of a businessman that socio cultural forces play a vital role in deciding the international marketing mix. It is important for the firm to make opportunity analysis to determine whether it is worthwhile to take entry into foreign market or not. Micro Environment – It involves all forces which directly affect the organisation. But now in most it is not desirable both socially as well as clinically. The analysis of the opportunities concentrates on two sets of criteria, i.e. iii. 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