Significant Factors of International Marketing June, 2014 | Page 2
International Marketing
International marketing is recognizing that people across the globe have different needs and
wants. It’s a situation where organizations direct their products and services towards consumers
in other countries. However, the core marketing concept remains the same globally. The
environment within which the marketing plan is implemented can be radically different from one
country to another. Marketing costs such as advertising and distribution is likely to differ in the
regions where firm selects to market its good and services. Therefore, the key to successful
international marketing is the ability to adapt, coordinate and manage in an unfamiliar foreign
environment.
There are various reasons why businesses choose to explore foreign markets. In some cases, they
respond to customers by taking spontaneous orders in those markets. Other reasons could be to
diversify corporate holdings and to take advantage of domestic or international political and
economic changes. Similarly, companies can simply opt for tapping into new and emerging
markets
The objective of international marketing is certainly to make money. When companies opt for
marketing internationally they focus on two important factors. Firstly, the goods that they are
marketing are normally patented and expected to have high earning potential in foreign markets.
Secondly, the company is fully committed to set up an international presence and is eager to
comprehensively learn about particular countries culture, values and tradition, through a course
of market research.
International Marketing Factors
Although many firms face similar challenges when marketing their products domestically,
international marketing adds uncertainties which need to be properly interpreted. In reality there
are several factors that need to be researched and assessed when designing an international
marketing strategy. Important features of any prospective foreign market include:
Demographic and physical environment – The essentials which are required to be
assessed under this category are population size and growth, weather condition that could
impact business, shipment cost, time zones and allocation of natural resources.
Economic environment- Factors under economic environment includes disposable
income, currency stability, exchange rate fluctuation, inflation, per capita income, Gross
National Product, level of recognition of foreign business in the economy and general
economic growth.
Social and cultural environment- These would include literacy rate, ethics, religion,
social values and language barriers. The ability of a country’s population to read and
write directly affects the economy’s progress. Religious beliefs and cultural values must
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