Significant Factors of International Marketing June, 2014 | Page 3
be considered when forming the marketing strategy as people differ in their attitudes and
behaviors towards work, home, success, food, clothing, honesty etc.
Legal environment- Factors that fall under legal environment are trade barriers such as
tariffs and quotas, import regulations, employment laws, trade protection and patents.
These may vary from country to country as there are different legal policies and
restrictions of trading.
Political environment- It involves factors such as political stability, dominant ideologies
and system of the government. This is the most central aspect of international marketing,
as it can be very dominant in shaping other factors.
Developing Foreign Markets
Foreign markets can be developed in several ways such as exporting products and services from
the host country, entering into joint ventures, licensing patents, trademark rights, franchising and
creating subsidiary in foreign market. An organization can use one or more of the above
arrangements at any time during its efforts to develop foreign markets. Each method has its own
distinctive rewards and shortcoming.
Small businesses are however discouraged from relying on the global marketing strategy. Small
business are considered weak and financially unstable where as multinationals can afford to
promote their products in foreign markets on different occasions. Market research is a prerequisite for any business before entering into the global arena. However, a single mistake in the
international market can cripple companies’ image.
Reference
http://www.researchomatic.com/International-Marketing-151709.html
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