Factors Affecting International Marketing Flashcards
Factors that contribute to international marketing
- Emerging regional economic and political integration.
- Enhancement in technology.
- Improvements in transportation and telecommunication.
- World economic growth.
- Transition to market economies.
- Converging consumer needs
PESTEL Analysis
Political Factors
Environmental Factors
Legal Factors
Economic Factors
Social Factors
Technological Factors
It’s such as changes in tax rates, policies and actions of government, political stability of a
country, and foreign trade regulations among others affect international marketing.
Political Factors
Relate to the economic system of the country where a company operates.
Economic Factors
*concern people
*it’s such as customs, lifestyles, and values, differ from country to country, which further
directly impact international marketing.
Social Factors/ Sociocultural
*refer to advancement in technology.
*It is technologies that have created new businesses like telephones, automobiles, railways,
television, movie production, and computers at different times in history.
Technological factors
*Adjunct to the political factor
*Laws and ordinances of all countries engaged in international marketing affect the activity.
* Consumer protection and trade regulations and restrictions are just some of the legal barriers
that companies must be aware of in their international marketing efforts.
Legal Factor
The weather, climate change, temperature, and the like affect business firms and the demand
patterns of various goods and services.
Environmental Factor
It refers to all the essential systems and facilities needed for the smooth flow of a country’s day-to-day activities enhancing the people’s standard of living, including basic facilities like roads, water supply, power and energy, transportation, telecommunication and so on.
Infrastructure Factor
Porter’s five forces
- Threat of new entrants
*Threat of substitutes
*Bargaining power of suppliers
*Bargaining power of customers
*Competitive Rivalry
Distribution channels are the links between sellers and buyers in both
domestic and international marketing.
Structure of distribution
*an important factor of international marketing.
*the study of the physical features and environment of the earth and its atmosphere, including the impact of human activity on these factors and vice versa.
Geography
