TEJENDRASINH CHAUHAN

PGDMM

INTERNATIONAL MARKETING ENVIRONMENT

THE MAIN MACRO-ENVIRONMENT FORCES PROFOUNDLY AFFECT THE FORTUNES OF MARKETERS ARE: Economic environment Social and Cultural environment Political and Legal environment Technological environment .

ECONOMIC ENVIRONMENT Level of Industrial growth ´ GDP of the particular nation ´ Income of consumers ´ Whether its Inflation or Deflation ´ Level of employment ´ National income of the nation ´ .

SOCIAL AND CULTURAL ENVIRONMENT Language of the nation ´ Religion ´ Values and attitudes ´ Education ´ The self-reference criterion: cultural prejudice ´ Bribery ´ .

POLITICAL-LEGAL ENVIRONMENT The political environment in a country: ´ Host country political environment ´ Host country sovereignty and security ´ Improvement in living standards of host country citizens ´ Host country political ideology ´ Home country political environment ´ Monetary regulations ´ .

TECHNOLOGICAL ENVIRONMENT Infrastructure of the country ´ Information and communication of the country ´ Transportation facility ´ Research and Development expenditure on technological development of the country ´ .

´ . dismissing the Japanese system of offering bonuses two times a year as impractical. American managers. pay and benefits. American sales methods and promotion strategies. The result was disastrous until the company learnt how to adopt products and marketing style to Japanese culture. Later. The workers disagreed. Similarly.EXAMPLES ´ Procter and Gamble (P&G) stormed into the Japanese market with American products. P and G which entered Japan in 1973 lost money until 1987 but by 1991 Japan became its second largest foreign market. when the company adopted the Japanese methods of recruiting and reward including bonuses and a promotion system based on seniority. in Japan. the situation vastly changed and in 1985 it won the Deming prize for quality control. the American company Texas instruments which started making semiconductors in Japan in 1961 took American approach to hiring. Morale crumbled and the company had trouble recruiting employees.

´ The expansion of economic freedom and property rights. increases in investment. free trade. and exploding technological innovation are some of the forces supporting world economic growth. .IMPACT ON FUTURE ´ There·s a good sign of development of world economy though we can see uncertainty and changes in environments of countries.

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