International Marketing Political, Economic Factors - 1650 Words

International Marketing: Political, Economic, Technological Factors (Essay Sample) Content: International MarketingNameInstitutionAbstract In the last half of the twentieth century, the countries established barriers to the international trade. Because of the barriers, the firms began to pursue the global strategies to gain the competitive advantage against the competitors. Most of the companies nowadays are eyeing the global marketplace that will assist them in improving the competitiveness, expanding their markets. Additionally, the overseas market may reduce the companys operative budget. Nowadays, there is a considerable controversy of the appropriate strategy that should be used in ensuring that the company succeeds in the international market. Companies that want to enter in the international market should consider both internal and the external forces before arriving to the appropriate international marketing strategy. This paper is divided into three parts. The first part of this paper will explain the PESTLE analysis that the firms should consider before venturing in the international markets. The second deals with the international marketing strategies that the companies can choose from. Some of the international marketing entry strategies discussed includes franchise, distributors, and mergers among others. The latter part of the paper will conclude the paper and give recommendations. Table of Contents TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc437602836"
Abstract  PAGEREF _Toc437602836 \h
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International Marketing  PAGEREF _Toc437602837 \h
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Introduction  PAGEREF _Toc437602838 \h
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PESTLE Analysis  PAGEREF _Toc437602839 \h
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Political Factors  PAGEREF _Toc437602840 \h
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Economic Factors  PAGEREF _Toc437602841 \h
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Social Factors  PAGEREF _Toc437602842 \h
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Techn ological Factors  PAGEREF _Toc437602843 \h
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Legal Factors  PAGEREF _Toc437602844 \h
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Environmental Factors  PAGEREF _Toc437602845 \h
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International Market Entry Strategies  PAGEREF _Toc437602846 \h
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Distributor  PAGEREF _Toc437602847 \h
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Local Office  PAGEREF _Toc437602848 \h
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Alliances  PAGEREF _Toc437602849 \h
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Acquisition  PAGEREF _Toc437602850 \h
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Franchising  PAGEREF _Toc437602851 \h
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Conclusions and Recommendations  PAGEREF _Toc437602852 \h
9International MarketingIntroductionThe international marketing is a term that is largely used in business nowadays. According to Doole Lowe (2008), the international marketing refers to the compan y using their marketing mix across their national boundaries. The international marketing involves the firms manufacturing and distributing their products and services around the world. Other companies opt to sign the distribution agreements with foreign agents where the foreign takes the market products, distributes and conducts the market development. The foreign agent is also responsible for pricing. Also, some companies come up with an integrated network that they use for manufacturing plants in the global platform. Success in the international marketing requires the business managers to be competent in the international business environment. Many companies are engaging in the international marketing to enhance their competitiveness and to increase their market share. Studies that were conducted by Doole Lowe (2008) indicate that the company should have a well researched international marketing plan that will ensure international business success. For many companies, dealing w ith the international market has been a challenge that they have to conquer on a daily basis. For the companies to strategically position themselves for global competitiveness, the companies are using the mergers, acquisitions, licensing, and alliances.PESTLE AnalysisThere are various factors that the company should consider before venturing into the international markets. Some of these factors include political, social, environmental, technological, legal and economic. An international marketing manager requires vast knowledge of the complexities and the implications that the company has to deal with internationally. Political FactorsThe political factors largely affect how the company conducts its business on the international platform. The political factors in the international market refer to the extent in which the government influences the success of a certain business (Doole Lowe, 2008). In most cases, the government controls the economy that affects the business operations . Some of the political factors that largely affect the business include the tax laws and trade restrictions that largely impact the business directly and indirectly. When a company wants to venture into a country that has a political stability, they have higher chances of succeeding and getting major profits. Political factors affect how the companys foreign market operates.Economic FactorsSome factors that include the interest rates, exchange rates influence the way the businesses is conducted. When the country is economically stable, the company has a larger likelihood of success than in a poor country. A good example is a way the international marketing and business is largely influenced by the changing exchange rates.Social FactorsThe social factors have to do with the culture, norms, values and other demographic factors that the society operates in. In a foreign market, understanding the countrys culture is very imperative. Ethics, media among other factors come under the soci al factors, and the business has to observe them to ensure business success in the international market.Technological FactorsNowadays, various companies are using technology in doing their business. The country that is technologically developed is a good country for companies to invest in. Production, distribution, and communication are largely affected by technology.Legal FactorsThe legal factors include the way the business is directly connected to the countrys rules and regulations. Some of the laws that largely affect the success of the business include the antitrust laws, consumer laws and the health and safety law. A business that has intentions of entering in countries that have these laws should be prepared on how to deal with these factors.Environmental FactorsThese are factors that directly affect the business environment that include the weather, climate, environmental laws among other factors (Doole Lowe, 2008). Some businesses, for example, farming and tourism are larg ely affected by the environmental factors. The climate in businesses like farming and tourism affects the way the businesses operate and the profits.The companies that want to engage in the international marketing should consider the above PESTLE factors. Also, the issue of ethics is gaining more popularity nowadays since it largely affects the success of marketing in the international platform. The ethics in marketing can be defined as the values and morals that govern business actions and individuals. Some of the ethical considerations include corporate social responsibility, charities among others. Its worth noting that some actions in the marketing may be legal but unethical, and companies should ensure that all their marketing processes are ethical to gain the customers loyalty.International Market Entry StrategiesEntering new and foreign markets can be a challenging task that businesses have to deal with. In most cases, the business enters into the new markets with high hopes but may face the challenges of no sales, lack of the marketing infrastructure, and little knowledge on the market among other challenges. The companies that succeed in international marketing have a laid down plan that assists them in handling the issues. There are a couple of strategies that are used by the businesses in entering the foreign markets. The choice on the best strategy depends on the products being produce, the market and the county involved (Doole Lowe, 2008). Despite that a good choice on the market strategies is crucial, all the marketing entry strategies have their risks and benefits that affect their productivity. The strategies include;DistributorThis is the most common method that is used by many businesses. In this case, the businesses look for experienced partners in the new market and use them for distribution. This strategy a largely worked since the local distributors has the local contacts. Additionally, these distributors are familiar with the local cond itions and the regulations that are required. Even though this method has worked for many companies, it has a drawback in that the business may lack the control of the products operations sinc...