The International Marketing The International Marketing EnvironmentEnvironment

Vladislav KaputaVladislav Kaputa

DIFFERENCES BETWEEN INTERNATIONALAND DOMESTIC MARKETING• Culture: often diverse and multicultural markets• Markets: widespread and sometimes fragmented• Data: difficult to obtain and often expensive• Politics: regimes vary in stability – political risk becomes an important variable• Governments: can be a strong influence in regulating importers and foreign

business ventures• Economies: varying levels of development and varying and sometimes

unstable currencies• Finance: many differing finance systems and regulatory bodies• Stakeholders: commercial, home country and host country• Business: diverse rules, culturally influenced• Control: difficult to control and coordinate across markets.

[Doole, Lowe, 2008]

CONTENT

• Social & Cultural Environment• Legal Environment• Economic Environment• Political Environment• Technological Environment

SOCIAL & CULTURAL ENVIRONMENT• Growth and movement in populations around the world

SOCIAL & CULTURAL ENVIRONMENT• Societal classes

SOCIAL & CULTURAL ENVIRONMENT• Language (the choice of product’s name is critical)• Aesthetics (the differences in attitudes towards colour, shape,

scent, sound)

• Religion (Islam, Hinduism)

• Education (speak in a way which addressee will understand)

LEGAL ENVIRONMENT

• Laws constitute the ‘rules of the game’ for business activity• Different legal systems!• Piracy, Accomplishment of law, Restriction to enter market• Certification, Norms

The legal environment in international marketing has three dimensions:

• Local domestic laws• International law• Domestic laws in the home country

ECONOMIC ENVIRONMENT

• The Big Mac index

ECONOMIC ENVIRONMENT

• The developed countries (EU, NAFTA, Japan)

• The emerging markets (e. g. BRIC)

• Less developed / Developing countries

+ Currency risk

ECONOMIC ENVIRONMENT / THE GLOBAL TRADE ENVIRONMENTThe development of world institutions to faster international

trade• The WTO and GATTThe development of world trading groups• Free Trade Areas• Custom Unions (e. g. Belarus, Russia and Kazakhstan)

• Common Market• Economic Union

POLITICAL ENVIRONMENT

LIBERALISM versus PROTECTIONISM

• Operational restrictions (exchange controls, employment policies)

• Discriminatory restrictions (import quotas, non-tariff barriers, bans, special taxes and tariffs)

• Physical actions – direct government interventions (e. g. confiscations, forced takeover by the government)

TECHNOLOGICAL ENVIRONMENT• IT• Communication Technologies• Internet / www• ...

(Doole, Lowe, 2008)

CONCLUSION

REFERENCES

• DOOLE, I., LOWE, R. 2008. International Marketing Strategy: Analysis, Development & Implementation. 5th ed., London: South-W. Cengage Learning, ISBN978-1-84480-763-5.

• KEEGAN. W. J., GREEN. M. C. Global Marketing (5th Edition). Prentice Hall Publishing.