This paper will outlines and discusses the major factors of marketing which are to be considered by the companies while advertising their product or services. International marketing is referred as a marketing process through which product and services are sold to customers.
To sustain in the competitive environment, the international marketing factors are used for identifying and analyzing the challenges and opportunity in the market as well as the demand of customers for a particular product (Czinkota & Ronkainen, 2013).
Thus, the factors which are to be considered are a political factor, economic factor, cultural factor, demographic factor. Further, this essay will also highlight the importance of all factor in marketing the products and services to a global level as well as help in understanding their requirement for the companies.
However, this study will help in understanding the need of factors to be considered by companies in international marketing when they advertise their product in other countries.
At a global marketing level, companies treat the whole economy market as their home market where there is a unique set of markets for which market study is conducted for promoting the products & services.
International marketing is a business activity that helps to direct the flow of company’s product and services to customers in more than one country for satisfying customer need and generating large profit (La Ferle, et al., 2013).
International marketing is an emerging scenario for the companies in order to develop their business as well as to increase their sale by advertising their products to a customer at a global level. For international marketing, companies are required to consider the following factors such as political, economic, demographic and cultural factors.
These all factors have their specific importance in analyzing the external environment as well as help the companies in determining the requirement of it while advertising its product and services in the market to attract customers.
The Economic factor is a factor which reflects the actual economic condition of the economy to the companies which are targeting and marketing their products and services at a global context.
In every country, a market is different as there are some countries that are known as developed countries and some are developing countries. This specific change of developed and developing countries creates a huge impact on the economic environment of the countries.
In addition, Cavusgil, et al., (2014) explained that for studying economic environment of countries then companies required to focus on certain areas such as standards of living, exchange rates, per capita income, distribution of wealth and much more.
In contrast to it, Schniederjans, et al., (2015) depicted that analyzing the economic environments of different countries will not help the companies to a large extent as economic conditions are highly dependent on the external environment factor which affects the customer decision as well as affects the company’s performance.
Moreover, Pieters, et al., (2002) elaborated that companies should be aware of a different meaning of middle class in developed and developing countries. For instance, in India, there are large numbers of middle-class people who prefers to purchase the products and services which satisfy their family needs, but in the US, there is also middle-class people or family, but they don’t focus on satisfying family needs as they focus on satisfying their own needs first.
On the other hand, Smith, et al., (2007) illustrated that economic factor helps companies in understanding the external environment in which standards of living and economic infrastructure reflects the overall condition of the country through which company can easily determine and understand the actual need and requirement of their products and services in that economy.
In oppose of it, Gilpin (2016) explained that to develop their business in an international competitive market then the company should consider the currency stability and exchange rate system under which financial transaction will take place.
In general, the company should identify the flexibility in exchange rates as well as stability in currency which will transact during the purchase and sale of product and services from one country to another.
The factors to be considered include cultural factor in which country and customer cultures are identified and studied in order to understand the requirement of customers according to their culture and values.
According to De Mooij (2013), the cultural factor is a factor that helps in understanding and analyzing the different countries cultures in respect of language, taste & preferences, consumer habits, values and norms, lifestyles and moral standards and so on.
These are some things which are considered while marketing the products and services in different countries. In general, it is very much clear that every country has its cultural values and beliefs according to which people consumes products and services (Okazaki & Taylor, 2013).
For example, in India, cultural values and beliefs are different in comparison to other countries cultural. The culture of India can be defined as a culture of unity, long-term relation, family oriented and many more where as in other countries like UK and USA, unity is there, but there is individualism i.e., countries are individual oriented.
In India, customer purchases the product for a family but in UK and USA, customer purchases for satisfying its own needs and desire.
In addition, cultural environment also includes lifestyle of customers which changes with the emerging change in the market trend. Lifestyle is an essential part that reflects the changes in the culture of two different nations.
At the same time, Gregory & Munch (1997) stated that every individual has different choices and preferences which highly depend on their norms and language and moral standards which state their culture related to individualism and collectivism oriented.
Taylor & Johnson (2002) argued that it is difficult for the companies to understand the culture of the countries as there are developed and developing countries which have different norms and standards are set. However, every nation has its cultural value under which it is observed that language, taste & preferences are different in the international market.
So in order to understand cultural environment of an international market, companies need to consider and focus on this external factor which will help companies in making the promotional and international marketing decisions.
For advertising the products and services, this factor will help the company in taking decision according to different nation culture like in India, a company will advertise its product & services by considering collectivist (family) oriented.
In a similar manner, Fall Diallo, et al., (2013) stated that demographic factor is another essential factor that helps in studying the demographic environment of the countries with the help of which company can identify the difference in size of a population, employment rate, education level and so on.
While analyzing the demographic environment, there is a huge benefit of understanding and identifying the requirement of the family needs of the customer on the basis of a size of a population, occupation, education and much more (Schloderer, et al., 2014).
For instance, in the UK, the size of a population is not high as compared to India. In India, the size of population and households are high which means that there will be high demand for particular product and services.
Harris & Attour (2003) added his view point by stating that for companies, it is important to do research and collect information about the size of a population, education, income in order to determine the actual demand of the product and services.
With the help of political factor, a company can understand in advance the different countries rules and regulation, policies and procedure as well. According to Baylis, et al., (2017), every country has their government which means that there are different rules and government policies of each country which develops laws and regulation in order to make their economy condition stable.
For companies, it is essential to focus on the political environment where they are targeting the customers by marketing their products and services internationally. While advertising the products and services in different countries globally, companies must consider government laws and required to take permission for advertising their product in the international market at a large scale.
In oppose of this, Piercy (2014) stated that political and demographic factor are less considered by the companies when they sale their product and services in the international market as they only focus on understanding economic and culture of the economy as a whole.
From the above-stated discussion, it can be determined that international marketing plays an essential role in targeting a large number of a customer at a global extent. This study helps in understanding that companies are required to consider all factors, i.e., economic, political, cultural and demographic factors.
These all factors are crucial parts for understanding and analyzing the external environment effectively and in an efficient manner. Moreover, companies need to considered and analysis the environment with the help of these factors in order to increase sale for their products and services as well as to market their products in a global competitive market.
From this study, it is observed that for companies, it is important to consider all four factors in order to grow in an international competitive market in best efficient manner.
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