Key Factors to Consider in International Marketing
Abstract
International marketing demands a multinational to comprehend the factors affecting the success or failure of a business in detail. Although many factors are affecting international marketing, market research enables a firm to make the best decision when choosing an ideal foreign market. This report assesses some factors affecting international marketing.
Key Factors to Consider in International Marketing
Introduction
International marketing differs significantly from domestic marketing because of the diverse and complex issues in the 21s century, when technological advancement has made the world a global village. The host of issues being considered in international marketing are different from those in the mother country. This report evaluates factors that a firm ought to consider when engaging in international marketing.
Key Factors to Consider in International Marketing
Among the factors that a firm needs to consider when engaging in international marketinghttps://sharksavewriters.com/customer-relations/ include cultural, economic, political and legal, and intangible factors (Charles & Anderson, 2016). The cultural factors include language, taste, regional values, age and democratic factors, and consumption habits. These are critical factors that determine how the marketing strategy will be implemented in the foreign market. The business will have to invest in the research in the market to understand these factors to determine the feasibility of the market. For instance, some firms, such as McDonald’s, had to reconsider the taste of the Indian market since most of its population are vegetarians.
The economic factors to be assessed include the per capita income, class structure, demand and supply, and banking and financial issues (Eteokleous, Leonidou, & Katsikeas, 2016). These factors are credible when determining the target market, the mode of payment for transactions, the pricing strategy, and the anticipated market for the product or service. To engage in international marketing, a corporation evaluates the economic factors to determine the chances of success or failure in the market along with the strategies to be embraced.
The political and legal factors in international marketing revolve around the legal framework, licensing process, taxation, tariffs, currency stability, political stability, and other legal fees required for the business to operate in the market (Agwu & Onwuegbuzie, 2018). These factors are essential in assessing whether the market is open or closed to multinationals, with firms preferring the former where free competition exists in the market. The developed economies allow the market forces to control their markets since their firms are likely to enjoy economies of scale and efficiency in their operation; therefore, they are not threatened by the entry of foreign firms into their markets. The other political risks to be considered include investment, operational, quotas, and discriminatory restrictions.
Lastly, a firm needs to consider non-tangible firms, such as technology, partnerships, and environmental factors, which have become concerns in all economies. For example, presently, technological applications such as social media has become an integral part of the market that cannot be assumed. Digital marketing through social media has many advantages that international marketers can embrace (Sheth, 2020).
Conclusion
Briefly, international marketing demands massive investment in research on global marketing. Among the factors that ought to be studied include political, economic, non-tangible, and cultural factors. These factors are essential in determining the viability of a market because international marketing differs from domestic marketing. One limitation of the research is limited time to research on the subject.
References
Agwu, M. E., & Onwuegbuzie, H. N. (2018). Effects of international marketing environments on entrepreneurship development. Journal of Innovation and Entrepreneurship, 7(1), 12.
Charles, G., & Anderson, W. (2016). International Marketing: Theory and Practice From Developing Countries. Cambridge: Cambridge Scholars Publishing.
Eteokleous, P. P., Leonidou, L. C., & Katsikeas, C. S. (2016). Corporate social responsibility in international marketing: review, assessment, and future research. International Marketing Review, 33(4), 580-624.
Sheth, J. N. (2020). Borderless Media: Rethinking International Marketing. Journal of International Marketing, 28(1), 3–12. https://doi.org/10.1177/1069031X19897044
Survey
- What are firms engaging in international marketing?
- What are the primary factors that limit entry into the international market?
- Why are come countries preferred by international markets at the expense of others?
- What are the factors that market an economy a preferred market for multinationals?
- Are developed economies preferred at the expense of developing economies by multinationals?
- How does technology influence international marketing?
- Which political factors influence international marketing?
- Which cultural factors influence global marketing?
- What are the economic factors affecting international marketing?
- How can the factors limiting international marketing be addressed?