The International Marketing Environment Vladislav Kaputa

DIFFERENCES BETWEEN INTERNATIONAL AND DOMESTIC MARKETING Culture: often diverse and multicultural markets Markets: widespread and sometimes fragmented Data: difficult to obtain and often expensive Politics: regimes vary in stability – political risk becomes an important variable Governments: can be a strong influence in regulating importers and foreign business ventures Economies: varying levels of development and varying and sometimes unstable currencies Finance: many differing finance systems and regulatory bodies Stakeholders: commercial, home country and host country Business: diverse rules, culturally influenced Control: difficult to control and coordinate across markets. [Doole, Lowe, 2008]

C ONTENT Social & Cultural Environment Legal Environment Economic Environment Political Environment Technological Environment

S OCIAL & C ULTURAL E NVIRONMENT Growth and movement in populations around the world

S OCIAL & C ULTURAL E NVIRONMENT Societal classes

S OCIAL & C ULTURAL E NVIRONMENT Language (the choice of product’s name is critical) Aesthetics (the differences in attitudes towards colour, shape, scent, sound) Religion (Islam, Hinduism) Education (speak in a way which addressee will understand)

L EGAL E NVIRONMENT Laws constitute the ‘rules of the game’ for business activity Different legal systems! Piracy, Accomplishment of law, Restriction to enter market Certification, Norms The legal environment in international marketing has three dimensions: Local domestic laws International law Domestic laws in the home country

E CONOMIC E NVIRONMENT The Big Mac index

E CONOMIC E NVIRONMENT The developed countries (EU, NAFTA, Japan) The emerging markets (e. g. BRIC) Less developed / Developing countries + Currency risk

E CONOMIC E NVIRONMENT / T HE G LOBAL T RADE E NVIRONMENT The development of world institutions to faster international trade The WTO and GATT The development of world trading groups Free Trade Areas Custom Unions (e. g. Belarus, Russia and Kazakhstan) Common Market Economic Union

P OLITICAL E NVIRONMENT LIBERALISM versus PROTECTIONISM Operational restrictions (exchange controls, employment policies) Discriminatory restrictions (import quotas, non-tariff barriers, bans, special taxes and tariffs) Physical actions – direct government interventions (e. g. confiscations, forced takeover by the government)

T ECHNOLOGICAL E NVIRONMENT IT Communication Technologies Internet /

(Doole, Lowe, 2008) C ONCLUSION

R EFERENCES DOOLE, I., LOWE, R International Marketing Strategy: Analysis, Development & Implementation. 5th ed., London: South-W. Cengage Learning, ISBN KEEGAN. W. J., GREEN. M. C. Global Marketing (5th Edition). Prentice Hall Publishing.