Analysis of International Marketing Environment, the competitive conditions, legal and financial influences. A presentation of International Marketing Management.

1. ANALYSIS OF INTERNATIONAL MARKETING
ENVIRONMENT - GEOGRAPHICAL
CONDITIONS; COMPETITIVE CONDITIONS;
LEGAL AND FINANCIAL INFLUENCES
Presented By
Manas Pandey
25
Manas Pandey
MBA-IB
Marketing
25

2. Foreign Markets
• Foreign markets exist outside of your home nation’s political borders.
• Global markets introduce increased populations that can be targeted for higher
sales and profits.
Developed markets
Industrialized nations, such as the United States,
Germany and Japan, represent mature markets, with
relatively stable political regimes and commercial
environments.
Emerging markets
These are identified by their higher profit potential and
heightened risk levels. For example, Nigeria is an
emerging market where portions of its abundant oil
reserves are often shut out from the global economy
because of rebel warfare.

3. Geographical Conditions
Transportation to the country or market
•MNCs have a growing need to transport
systems and logistics functions capable to
offer a better connectivity between branches.
•It pushes the receiving countries to provide
the necessary resources and tools helping
these firms to manage more efficiently their
supply chains

4. Hong Kong
• In first place for ground and port transport is Hong Kong.
• Has high scores in every indicator.
• Hong Kong, too, scored well for air transport infrastructure (in fifth place), and in 11th
place in the overall tourism ranking.
• It’s both an easy place to travel and a generally attractive destination.
Singapore
• Singapore’s scores are excellent, ranking in second place for ground and port transport.
• It ranks second for quality of roads, paved road density and quality of port infrastructure
too.
• They are also in first place for quality of air transport infrastructure, meaning it’s an easy
country to get to, as well as around.

5. Legal restrictions on travel
•Tariff Barriers
•A barrier to trade between certain countries or geographical
areas which takes the form of abnormally high taxes.
•These taxes are levied by a government
on imports or occasionally exports.
•This is done for purposes of protection, support of
the balance of payments, or the raising of revenue.

6. Malaysia
• Ranked 25th in the index, is the regional champion in developing Asia.
• The runner-up within the Association of Southeast Asian Nations behind Singapore, an
advanced economy.
• The country with the fewest trade barriers worldwide.
• Malaysia offers good transport infrastructure, and its border administration is
improving. Fees for exporting a container are among the lowest in the world.
United States
• Recently, President Trump announced he would impose a 25 percent tariff on steel
imports and a 10 percent tariff on aluminum.
• He did it to add U.S. manufacturing jobs.
• But the tariff will raise costs for steel users, like automakers.
• They'll pass that onto consumers.

7. Competitive Conditions in Foreign Market
• The competition in the foreign market place is not easy for the firms.
• Firms in the market place usually face two types of pressures;
 Pressures from Cost Reduction
 Pressures from Local Responsiveness

8. 1. Pressures from Cost Reduction
• One type of pressure is the one firms receive due to pressures for cost
reductions.
• In response to this companies try to lower the costs of their value
production.
• Ways a firm may do this could include mass producing standardized
products in a location where it is most optimal to do so.
• Realizing economies of scale and location and/or outsourcing certain
functions of the job to foreign suppliers that cost less so as to reduce costs.

9. Reliance Jio’s Entry
• Jio’s entry in September 2016 triggered a massive slide in data prices
across service providers.
• The prices fell from an average of Rs 250 per Gigabyte (GB) in 2014 to Rs
19 now.
• It is less than 8% of what customers use to pay earlier for mobile Internet.

10. 2. Pressures from Local Responsiveness
• The second pressure they face is that from local
responsiveness.
• Such pressures arise from varying differences in
traditional practices, infrastructure and customer's
preferences and tastes.
• To respond to this, firms need to differentiate their
products in each country to take into account all these
factors.

11. 7-Eleven
• It is a Japanese-owned American international chain of convenience stores,
headquartered in Irving, Texas.
• It tailors the product selection, payment methods, and marketing to the
values and regulations in each country where it operates.

12. Legal Influences in Foreign Markets
• There are three main kinds of legal systems:
1. Civil Law
2. Common Law
3. Religious Law
• Most countries actually have a combination of
these systems, creating hybrid legal systems.

13. Civil Law
• It is based on a detailed set of laws that constitute a code
and focus on how the law is applied to the facts.
• It’s the most widespread legal system in the world.
Common Law
• It is based on traditions and precedence.
• In common law systems, judges interpret the law and judicial
rulings can set precedent.

14. Religious Law
• It is also known as theocratic law and is based on
religious guidelines.
• The most commonly known example of religious
law is Islamic law, also known as Sharia.
• Islamic law governs a number of Islamic nations
and communities around the world and is the
most widely accepted religious law system.

15. Financial Influences in Foreign Markets
• There have been enormous changes in global financial markets over the past 30
years.
• Due to globalization of the world’s financial markets, it is no longer necessary for
many large Australian businesses to use only domestic financial institutions for the
raising of finance.
• Developments in communications technology have enabled the phenomenon of
global financial transactions.
• Global financial speculators may now easily make transactions spread across the
globe.
• Deregulation of Australia’s financial system has resulted in a more flexible,
market-oriented approach across the financial sector.
• A substantial number of new banking products have emerged, aimed at the
business sector.