4 Factors Affecting International Marketing
When evaluating the advantages and disadvantages of international marketing, it is helpful to consider the economic factors that will determine whether an organization is able to survive and grow. These factors include the level of government involvement, the availability of raw materials, and other technological and ecological factors. Domestic factors also affect the marketing environment. These include the political and legal climate, as well as the level of participation of governmental bodies. The study also considers organizational factors, which influence decision-making.
Market size plays a major role in determining the entry mode for a company. Large markets justify high investments and a long-term commitment, but they are often more difficult to penetrate than emerging countries. Large established markets have reached saturation points for consumer goods and are shrinking, which means that the growth rate is decreasing. Companies that are already well-established in international marketing may be more comfortable with intensive entry modes.
Political environment is also a factor in determining the international marketing mix. Politics greatly affect business operations. Changes in the political environment can affect the rules and regulations governing the business. Regardless of size, international business requires careful planning and analysis. Companies can benefit from international trade by promoting competition and efficiency. International business decisions also depend on the legal environment, so it is essential to take the time to analyze this aspect before launching an international marketing strategy.