Analysis of International Marketing Environment

Unit 3 Chapter 2

Volkswagen etc According to Nathalie Prime: ‡ It consists of identifying and satisfying consumers abroad. Coca Cola.International Marketing ‡ Marketing across National Boundaries ‡ E. ‡ Better than national and international competitors ‡ Under the constraints of each countries· environment .g.

«.CAUTION!!!! ‡ Before beginning international marketing one needs to ‡ Take one of the fundamental steps ‡ Environmental analysis ‡ Or. else results could be ‡ Defamation ‡ Complete sweep out of the company .

Environmental analysis: tools y PEST analysis y SWOT analysis y Five Force Analysis y Influence of tariff and non-tariff barriers .

International PEST analysis ‡ It would consider: ‡ How easy will it be to move from purely domestic to international marketing?? ‡ Nature of competition / likely competition?? ‡ Political Factors ‡ Economic Factors ‡ Socio-cultural Factors ‡ Technological Factors .

Political Factors ‡ Political synergy between your countries and the target?? ‡ What is the influence of communities or unions for trading? ± E. ± communist ± or dictatorial regime? ‡ Monetary regulations. democracy. The European union and its authority over European Laws and Regulations ± Does SAARC has any affect on Indian Law (Business)?? ‡ What kind of international and domestic law will your business encounter? ‡ Nature of politics? ± E.g.g. like : ± Will the target country pay in their currency or accepted currency? .

Economic Factors y What is the level of industrial growth. GDP.? y What about consumer income? y Inflation? y Level of employment? y National income? y Exchange rates? .. etc.

Social Factors ‡ Language: ‡ Meanings?? ‡ Slangs?? ‡ Role of women/family?? ‡ Religion?? ‡ Values and attitudes?? ‡ Demographics?? ‡ Changing cultural standards?? .

Technological Factors y Infrastructure of the country?? y Energy?? y Internet infrastructure/ accessibility?? y Integration of your system with the target country?? .

SWOT ANALYSIS ‡ STRENGTHS ‡ WEAKNESSES ‡ Internal Factors ‡ THREATS ‡ OPPURTUNITIES ‡ External factors .

Strengths y Marketing expertise?? y Innovative product?? y Quality process?? y Cult Brand?? y Any other aspect of the business that adds value to your Product or service?? .

Weaknesses y Lack of marketing expertise y Undifferentiated product y Location of your business y Damaged reputation .

Oppurtunity y Internet Usage??? y Mergers. JV or strategic alliance y Void created by ineffective competitior .

Threats y Competition old/ new?? y Price Wars?? y Superior access to supply chain by the competitor?? y Taxation .

Five Force Analysis y Five important forces which establishes y the competitive intensity y Market attractiveness y Attractive industry y Unattractive Industry NO / MINIMAL COMPETITION HIGH MARKET POTENTIAL Pure competition Low Market Potential What ¶s your say on?? Insurance sector?? Telecom Sector?? DTH Sector?? .

The Five Forces are: y Threats of Substitutes y The threats from new entrants y Intensity of competitive rivalry y Bargaining Power of Customers y Bargaining Power of Suppliers .

Thank you .

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