Factors Affecting International Marketing

MARKETING AND MANAGEMENT
CONCLUSIONSDISCUSSIONS
MATERIALS
REFERENCES
PEOPLE AND PROCESSES
The factors affecting the people and processes with which the people are associated with include location and foreign market environment.
Tan & Sousa (2013) stated that the language and culture could act as barriers for the people to work in the global environment, which might
be difficult to manage the assessment of marketplace needs and preferences properly. The moral and ethical values must be considered by
the people of Marks and Spencer while entering the foreign market to ensure that the local needs of people are considered along with
respond to the changing needs and expectations of the market, furthermore ensure improved business operations and processes’
management with convenience (Tan & Sousa, 2013).
PHYSICAL EVIDENCE
The demographic conditions and market segmentation and targeting are important factors that contribute to the management of physical
evidences with the communication of right messages and information along with the brand image information for gaining a deeper
understanding of the cultural differences that could ensure separation of the consumer markets form one another, furthermore ensure
maintenance of physical evidences according to the foreign market components to sustain within the competitive global marketplace. The
level of income and education level possessed by the people who are going to purchase the products and services are essential for
understanding what they will be purchasing and whether it is feasible enough to meet their criteria and requirements or not (Huang &
Sarigöllü, 2014). The experience of using a product is considered as physical evidences obtained for the products though with the
consideration of knowledge and educational skills that they possess and thus the level of education of the country is important. The
demographics are also considered as important factors affecting the management of physical evidences, because of the needs and
preferences of people according to the age, gender, etc (Buil, De Chernatony & Martinez 2013).
DISTRIBUTION
The distribution of products by Aldi is often affected by the factor related to the decisions made regarding channels’ selection, which
represent that the consumer sand manufacturers should be located in either the manufacturer nation or in the consumer nation for creating a
global presence more easily. The frequency of purchases for the concerned product in the foreign market should be assessed by Aldi along
with the assessment of degree of market acceptance, which should facilitate the selection of distribution channels and help in aggressive
selling of products and services by the intermediaries (Kahiya, 2013). The international marketing policies related to the channel decisions
are followed by the employees of Aldi for understanding whether the delivery, promotions and advertising activities, pricing of products and
post sales’ services could be managed successfully or not.
The location of the market, i.e., the customers spread over a wide geographical area is important to be considered for influencing the
distribution channels, furthermore strengthen the client base by reaching to more targeted audiences and accomplishing the international
marketing goals and objectives too.
The international marketing mix enabled combining the various elements of marketing mix and how these were affected by
various factors such as market size, cost structure, international trade policies, social media involvement and engaging with
clients through extensive channels of distribution too. These factors should be considered for ensuring that the international
marketing goals are met are successful global business management is possible with ease and effectiveness.
PRODUCT
The language and cultural differences often affect the acceptability and adaptability of products in the different market segments, which
can also affect the decisions related to pricing. The fluctuations in exchange rate have also affected the ability of foreign investors to
provide investments, which might create an impact on the way the products and services are marketed in the foreign markets and allow
Tesco to manage its business in India and China too. As stated by Morschett, Schramm-Klein & Zentes (2015), considering the foreign
culture and assessing the needs and preferences of customers in the marketplace should help in gaining better acceptance of products
in the marketplace and ensure successful global business management (Morschett, Schramm-Klein & Zentes, 2015). For example,
Tesco has maintained proper quality and considered the pricing factors, which has facilitated the marketing of products and services
across the marketplace to ensure high level of customer satisfaction along with higher sales and revenue generation too.
PRICE
One of the major factors that can affect the global pricing decisions is the price elasticity of demand and fluctuations in exchange rates,
which can create an impact on the prices set for the products and services marketed internationally by the businesses. For example, the
pricing has played an important role in impacting the buying behaviours of consumers of Amazon and process of decision making,
which are critical to the success of international marketing and for the achievement of success in global business management. The
cost of production is considered by Amazon including the fixed costs and variable costs to identify the costs incurred for rent, salaries,
advertising, etc (Papadopoulos & Heslop, 2014). The price elasticity of demand would enable changing the price of products according
to the demands in the market, based on which, the pricing should be done.
COMMUNICATION
The communication of messages and information related to the penetration of business and its products in the foreign markets is
influenced by proper advertising and use of extensive marketing channels. It should allow for sending the right messages and
information about the products in the foreign market to the clients and make them informed about those, which could further facilitate
the process of communication largely. According to Paliwoda & Thomas (2013), the development of distribution channels should not
only improve the communication process efficiency, but would also ensure reaching the clients in foreign markets with much ease and
effectiveness (Paliwoda & Thomas, 2013). The social media marketing should also improve the communication process and manage
greater brand exposure for delivering the right messages and information about the products to the clients.
Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher Education.
Buil, I., De Chernatony, L., & Martinez, E. (2013). Examining the role of advertising and sales promotions in brand equity creation.
Journal of Business Research, 66(1), 115-122.
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand equity, and the marketing mix. In
Fashion Branding and Consumer Behaviors (pp. 113-132). Springer, New York, NY.
Kahiya, E. T. (2013). Export barriers and path to internationalization: A comparison of conventional enterprises and international
new ventures. Journal of International Entrepreneurship, 11(1), 3-29.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international management (pp. 978-3658078836). Springer.
Paliwoda, S., & Thomas, M. (2013). International marketing. Routledge.
Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing. Routledge.
Tan, Q., & Sousa, C. M. (2013). International marketing standardization. Management international review, 53(5), 711-739.
INTRODUCTION
The concept of international marketing represents making effective decisions for the marketing mix according to the
potential markets and market conditions that are outside the local market. This can also be helpful for the
coordination of marketing strategies and ensure delivering the right goods and services in the global marketplace
with much ease and efficiency. A business nerds to market its products and services internationally for managing
trade activities across borders and increase the customer base, furthermore create good scopes and opportunities’
to generate higher revenue along with overcoming of barriers that are experienced during the management of local
or domestic marketing (Baker, 2014).
There are various cultural factors, economic factors, political and legal factors that have affected the international
marketing and created an impact on the product, price, communication, people, price, physical evidences and the
decisions regarding distribution of products and services.
https://businessjargons.com/international-
marketing.html
Figure: Environmental impact (Baker 2014)
Figure: factors affecting pricing strategies (Huang & Sarigöllü 2014)
Figure: Distribution channels (Buil, De Chernatony& Martinez)
Figure: Process of IMC (Morschett, Schramm-Klein & Zentes)