What Are the Factors Affecting International Marketing?
The first question to ask before launching a global marketing strategy is: What are the factors affecting international marketing? These factors can be as simple or as complex as the individual needs of each country. Understanding the culture and the norms of a foreign market is vital to success. Companies often underestimate the cultural differences and business norms of a foreign country. The political and economic climate in a foreign country may change from one day to the next. Foreign governments may even nationalise foreign firms. Moreover, foreign companies need to be aware of various restrictions and limitations on profits and trade. In addition to these, international companies must also adapt to different production and communication systems.
In choosing between different entry modes, a company must consider its ability to commit resources. The amount of money a company is willing to spend on international marketing will depend on the culture of that country. Cultural factors play a crucial role in assessing consumer demands and behaviour patterns. The culture of a country influences the individual perception of the company. For example, a company that has extensive experience in international marketing is likely to feel more comfortable investing in intensive modes of entry.
In addition to these factors, there are many other factors that affect international marketing. Domestic factors can include the economic status of a country. Political stability, the attitude of the government toward international trade, and business ethics are all factors that affect the country’s economy. Furthermore, there are numerous technological and ecological factors that determine the market place. Governmental participation in international marketing can also be an important factor. As a result, it is imperative for companies to understand the nature of international trade.