Analysis of International Marketing Environment Unit 3 Chapter 2
International Marketing• Marketing across National Boundaries• E.g. Coca Cola, Volkswagen etcAccording to Nathalie Prime:• It consists of identifying and satisfying consumers abroad;• Better than national and international competitors• Under the constraint of each countries’ environment
….CAUTION!!!!• Before beginning international marketing one needs to• Take one of the fundamental steps• Environmental analysisOr, else results could be• Defamation• Complete sweep out of the company
Environmental analysis: tools PEST 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• What kind of international and domestic law will your business encounter?• Nature of politics? – E.g. democracy,• Monetary regulations, like : – Will the target country pay in their currency or accepted currency?
Economic Factors What 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 Factors Infrastructure of the country?? Energy?? Internet infrastructure/ accessibility?? Integration of your system with the target country??
Strengths Marketing expertise?? Innovative product?? Quality process?? Cult Brand?? Any other aspect of the business that adds value to your Product or service??
Weaknesses Lack of marketing expertise Undifferentiated product Location of your business Damaged reputation
Opportunity Internet Usage??? strategic Void created by ineffective competitior
Threats Competition old/ new?? Price Wars?? Superior access to supply chain by the competitor?? Taxation
The Five Forces are: Threats of Substitutes The threats from new entrants Intensity of competitive rivalry Bargaining Power of Customers Bargaining Power of Suppliers
•Democracy is an egalitarian form of government in which all thecitizens of a nation together determine public policy, the laws and theactions of their state, requiring that all citizens (meeting certainqualifications) have an equal opportunity to express their opinion. Inpractice.•Gross domestic product (GDP) is the market value of allofficially recognized final goods and services produced within acountry in a given period.•Cult Brands: are the brands that dare to be different and celebratethat difference, and therefore possess the power of the loyalist. forex. Apple, Volkswagen, Harley Davidson, Star trek and Benetton.