What is International Marketing Environment?
The marketing environment comprises both favourable and unfavourable forces that affect a company’s operations. A firm’s ability to respond to these factors determines its degree of success. The international marketing environment encompasses both domestic and global forces. Domestic and global factors, however, affect a company’s decision-making process. For example, political and legal aspects of a country’s economy and society are important factors. Organizational factors, on the other hand, influence a company’s decision-making process.
The international marketing environment varies according to geography, economic factors, and culture. The French and German consumers eat packaged pasta more than Americans. Children in Italy like to sandwich chocolate bars between slices of bread. Tanzanian women will not give their children eggs because they fear they will make them bald or impotent. Business executives in South America tend to be closer to one another, whereas Americans typically sit back and talk business with one another.
The internal environment includes the company’s management and finances. These departments have a direct impact on international marketing decisions. Research and development may influence how a product is marketed, and the finance department is responsible for approving the financial side of a marketing plan. It may be difficult for a company to adapt to the different cultures in a foreign country. Therefore, marketers should study their local environment before focusing on international marketing.
In addition to changing cultural norms, political systems, and governmental laws, the international marketing environment affects a company’s ability to compete in global markets. While it is impossible to predict how these elements will influence international marketing, there is little doubt that they play a role in determining success and failure. There are several factors that impact a company’s success and profitability. But, as with any international environment, there are also many factors that can be controlled.