Macro and Micro Factors in International Marketing
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Added on 2019-12-03
Macro and Micro Factors in International Marketing
Added on 2019-12-03
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International Marketing
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Analyzing macro and micro factors of retail market with market recommendations............1TASK 2............................................................................................................................................3Evaluating market potential....................................................................................................3TASK 3............................................................................................................................................5Identifying two recommended markets with justification......................................................5TASK 4............................................................................................................................................6Strategies for Next plc to enter in a recommended market....................................................6TASK 5............................................................................................................................................7Recommended adaptations to marketing mix of Next plc.....................................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONInternational marketing is defined as the application of marketing principles across thecountry. It is based on expanding the business in more than one nation (Hill, 2008). This report isbased on a case scenario of Next plc for international growth of clothing, footwear and homeproducts retailer. This report will analyze the macro and micro factors which would make animpact on the retail market along with highlighting the market recommendations and evaluatingthe market potential for Next plc.TASK 1Analyzing macro and micro factors of retail market with market recommendationsMacro and micro factors are analyzed which make an impact on the retail market.However, macro factors are analyzed by using PESTEL analysis and micro factors are assessedby the help of SWOT analysis. These can be explained like:PESTEL analysis of retail market: PESTEL analysis provides an analysis of six macrofactors which affect the business. In this report, relevant factors within PESTEL model havebeen applied which are as follows:Political: There are broad ranges of political factors which affect the retail market incurrent market environment. An important political decision that affects the retail ininternational market is the tax rate charged by government (Olson, Slater and Hult, 2005).Political factors have ability to affect the bottom line of organization in the form ofcorporation tax. Furthermore, political decisions consider interest rates. These interestrates vary as per the country’s tax policies. This can be notified as a positive factor for theretail firms if interest rates are low. It is because of the reason that it provides retailmarket with an opportunity to borrow large amount of money for capital expansionpurpose at lower interest rate. However, other political issues are related to the foreignexchange rates in countries.Economic: Economic environment factor is critical to have an impact on the retailmarket. An enterprise that uses the value based specialized strategy, which is opposite tocost leader; it can be observed that the organization would run within economicenvironment. It also has the ability to affect the operations of the retail firm majorly(Vargo and Lusch, 2004). With a strictly statistical perspective, it is observed that1
economy is fluctuating in many countries. On the basis of global financial crisis in world,countries are facing GDP growth in negative figures with -1% shortening in economy. Asper the contradict economic pattern, it can help the retail market to improve its averagecost per consumer even if the total number of consumers fall (Bergkvist and Rossiter,2007).Social Culture: However, there are many social and cultural factors that are consideredin the fashion retail market because of increasingly nations with diverse cultures, racesand ethnicity which contributes towards the socio – cultural background to the retailmarket. Social culture not only has the external implications like linked product range tospecific cultural segment, the firms also have to make sure that it deals with the conflictssuch as managing diversity.Technological: Technological factors make a huge impact on the retail market. It isdoubtful that technological developments have been transformed in the businessenvironment, specifically in the retail market (Henseler, Ringle and Sinkovics, 2009).Major developments in technologies are identified in nature such as internet orcommunication based technologies. Technological development such as internet hasprovided an opportunity to the retail market to develop their business through onlineportal in multiple countries. Other technological factors are identified so as to developbetter relations with customers. By the help of these technological factors, retailers cancommunicate with their consumers in an effective way.Environmental: Physical environment is essential for the retail organization for operatingthe business in international market. In the basic terms, physical environment factor isdefined in the context of high intensity natural disaster such as earthquakes, tornado andforest fires (Bradley, 2015). Other than these environment disasters, there are so manyother environment factors which affect the retail market such as floods, poor sales due toheavy rain fall, snow storms, etc.Legal: Not only for retail but for all businesses, legal factor consideration is essential.While establishing a new business, company must confirm all the legal standards whichwill force the retail organization into jurisdiction. There are various legal regulationswhich affect the retail market such as minimum wage legislation and equal opportunitylegislation (Manzella, 2012).2
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