analysis of international marketing environment
TRANSCRIPT
Unit 3 Chapter 2
Analysis of International Marketing Environment
International Marketing• Marketing across National Boundaries
• E.g. Coca Cola, Volkswagen etc
According to Nathalie Prime:• It consists of identifying and satisfying
consumers abroad; • Better than national and international
competitors• Under the constraints of each countries’
environment
….CAUTION!!!!• Before beginning international marketing
one needs to • Take one of the fundamental steps
• Environmental analysis
• Or, else results could be • Defamation• Complete sweep out of the company
Environmental analysis: toolsPEST analysis
SWOT analysis
Five Force Analysis
Influence of tariff and non-tariff barriers
International PEST analysis• It would consider:
• How easy will it be to move from purely domestic to international marketing??
• Nature of competition / likely competition??
• Political Factors• Economic Factors• Socio-cultural Factors• Technological Factors
Political Factors
• Political synergy between your countries and the target??
• What is the influence of communities or unions for trading?– E.g. The European union and its authority over
European Laws and Regulations– Does SAARC has any affect on Indian Law (Business)??
• What kind of international and domestic law will your business encounter?
• Nature of politics?– E.g. democracy, – communist – or dictatorial regime?
• Monetary regulations, like :– Will the target country pay in their currency or
accepted currency?
Economic FactorsWhat is the level of industrial growth, GDP, etc..?
What about consumer income?
Inflation?
Level of employment?
National income?
Exchange rates?
Social Factors• Language:• Meanings??• Slangs??• Role of women/family??• Religion??• Values and attitudes??• Demographics??• Changing cultural standards??
Technological FactorsInfrastructure of the country??Energy??Internet infrastructure/ accessibility??Integration of your system with the target
country??
SWOT ANALYSIS• STRENGTHS • WEAKNESSES• Internal Factors
• THREATS • OPPURTUNITIES• External factors
Strengths Marketing expertise??Innovative product??Quality process??Cult Brand??Any other aspect of the business that adds
value to your Product or service??
WeaknessesLack of marketing expertiseUndifferentiated productLocation of your businessDamaged reputation
OppurtunityInternet Usage???Mergers, JV or strategic allianceVoid created by ineffective competitior
ThreatsCompetition old/ new??
Price Wars??
Superior access to supply chain by the competitor??
Taxation
Five Force AnalysisFive important forces which establishes the competitive intensity Market attractiveness
Attractive industry NO / MINIMAL COMPETITION
HIGH MARKET POTENTIAL
Unattractive Industry Pure competition Low Market Potential
What ‘s your say on??Insurance sector??Telecom Sector??DTH Sector??
The Five Forces are:Threats of Substitutes
The threats from new entrants
Intensity of competitive rivalry
Bargaining Power of Customers
Bargaining Power of Suppliers
Thank you