Bookmark and Share

 

 

 
 

 

 

Learnmarketing

Home | Lessons | Theory | BTEC | Mobile Edition | Video Channel | Glossary | Marketing Quizzes | Contact LearnMarketing | Useful links | Resources | Marketing PowerPoints | Blog |

For Marketing Learners Globally

 

INTERNATIONAL MARKETING ENVIRONMENT

Introduction

There are a number of steps that need to be taken before you decide to enter international markets. The first step involves an analysis of the international marketing environment through a PEST/STEP analysis. Let's briefly look at some factors that make up a PEST analysis:

Political Factors

Consider:

  • The political stability of the nation. Is it a democracy, communist, or dictatorial regime?
  • Monetary regulations. Will the seller be paid in a currency that they value or will payments only be accepted in the host nation currency?

Economical Factors

Consider:

  • Consumer wealth and expenditure within the country.
  • National interests and inflation rate.
  • Are quotas imposed on your product.
  • Are there import tariffs imposed.
  • Does the government offer subsidies to national players that make it difficult for you to compete?

 

Social Factors

Consider

  • Language. Will language be a barrier to communication for you? Does your host nation speak your national language? What is the meaning of your brand name in your host country’s language?
  • Customs: what customs do you have to be aware of within the country? This is important. You need to make sure you do not offend while communicating your message.
  • Social factors: What are the role of women and family within society?
  • Religion: How does religion affect behaviour?
  • Values: what are the values and attitudes of individuals within the market?

Technological

Consider:

  • The technological infrastructure of the market.
  • Do all homes have access to energy (electricity)
  • Is there an Internet infrastructure. Does this infrastructure support broadband or dial up?
  • Will your systems easily integrate with your host country's?

Next Page | Back

 

Studying Business Management Visit www.learnmanagement2.com