Unit 3 Chapter 2

Analysis of International Marketing Environment

International Marketing• Marketing across National Boundaries

• E.g. Coca Cola, Volkswagen etc

According to Nathalie Prime:• It consists of identifying and satisfying

consumers abroad; • Better than national and international

competitors• Under the constraints of each countries’

environment

….CAUTION!!!!• Before beginning international marketing

one needs to • Take one of the fundamental steps

• Environmental analysis

• Or, else results could be • Defamation• Complete sweep out of the company

Environmental analysis: toolsPEST analysis

SWOT analysis

Five Force Analysis

Influence of tariff and non-tariff barriers

International PEST analysis• It would consider:

• How easy will it be to move from purely domestic to international marketing??

• Nature of competition / likely competition??

• Political Factors• Economic Factors• Socio-cultural Factors• Technological Factors

Political Factors

• Political synergy between your countries and the target??

• What is the influence of communities or unions for trading?– E.g. The European union and its authority over

European Laws and Regulations– Does SAARC has any affect on Indian Law (Business)??

• What kind of international and domestic law will your business encounter?

• Nature of politics?– E.g. democracy, – communist – or dictatorial regime?

• Monetary regulations, like :– Will the target country pay in their currency or

accepted currency?

Economic FactorsWhat is the level of industrial growth, GDP, etc..?

What about consumer income?

Inflation?

Level of employment?

National income?

Exchange rates?

Social Factors• Language:• Meanings??• Slangs??• Role of women/family??• Religion??• Values and attitudes??• Demographics??• Changing cultural standards??

Technological FactorsInfrastructure of the country??Energy??Internet infrastructure/ accessibility??Integration of your system with the target

country??

SWOT ANALYSIS• STRENGTHS • WEAKNESSES• Internal Factors

• THREATS • OPPURTUNITIES• External factors

Strengths Marketing expertise??Innovative product??Quality process??Cult Brand??Any other aspect of the business that adds

value to your Product or service??

WeaknessesLack of marketing expertiseUndifferentiated productLocation of your businessDamaged reputation

OppurtunityInternet Usage???Mergers, JV or strategic allianceVoid created by ineffective competitior

ThreatsCompetition old/ new??

Price Wars??

Superior access to supply chain by the competitor??

Taxation

Five Force AnalysisFive important forces which establishes the competitive intensity Market attractiveness

Attractive industry NO / MINIMAL COMPETITION

HIGH MARKET POTENTIAL

Unattractive Industry Pure competition Low Market Potential

What ‘s your say on??Insurance sector??Telecom Sector??DTH Sector??

The Five Forces are:Threats of Substitutes

The threats from new entrants

Intensity of competitive rivalry

Bargaining Power of Customers

Bargaining Power of Suppliers

Thank you