International Marketing - Major Factors


Factors involved in international marketing environment are broadly classified into three categories as stated in the figure given below. This environment regulates organizational activities in such a way that it becomes favorable for the entrepreneurs to identify the threats and opportunities lying ahead.

Three Level IM

The three factors that have a major impact in the marketing environment are given below −

Global factors

The global factors that are outside of the control of individual organizations, but that can affect the way that businesses operate can be considered as the global factors affecting the international marketing environment. These factors include cultural and social influences, legal issues, demographics, and political conditions, as well as changes in the natural environment and technology.

Some major organizations involved in this level of international marketing are the UNO, World Bank, and the WTO.

Domestic factors

Factors related to the personal affairs or internal affairs of a country that affect the economy of the country participating in the international marketing are considered as domestic factors. These include the political scenario and the approach by the government and its attitude towards international trade, business ethics, availability and quality of infrastructure, raw-materials, and other technological and ecological factors.

The level of participation by governmental bodies at the central and state level in a country is one of the major factors that the fate of marketing environment.

Organizational factors

The internal factors that influence the decision-making process in a company are considered as organizational factors.

These include the events, factors, people, systems, structures and conditions inside the organization that are generally under the control of the company. The internal environment influences the organizational activities, and also the attitudes and behavior of employees. Changes in the leadership style inside the organization can also have a profound impact on the organization.

Marketing environment is changing rapidly. Every factor, right from the domestic level, organizational level, to the global level is interrelated.

Geographic Description of Market

Geographical analysis is when a business divides its market on the basis of geography. There are several ways that a market can be geographically divided. Here, an organization decides the marketing strategies or approaches that would make international marketing possible in a specific geographic market on the basis of the climate, lifestyle, location, and language of that region. Geographic markets differ in size depending on location.

There are three major ways to divide a market on the basis of Geography −

  • Population density
  • Climate
  • Language

Each of these components can further be sub divided. For example, a regional geographic market can be subdivided as nations, metropolitan areas, rural areas, suburban areas, urban areas, or on regional basis with respect to size, population density, etc.

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