The two most important economic factors that affect international marketing are:
1. The industrial structure of a country
2. The income distribution of a country.
The product and service needs of a country are shaped by the country’s industrial structure. There are 4 main types of industrial structures. They are as follows:
1. Subsistence economies: People consume what they grow and such an economy offers very few market opportunities.
2. Raw material exporting economies: Economies wealthy in one or more than one natural resources but poor otherwise. Such countries are excellent markets for large equipment etc and for luxury goods if a wealthy upper class is present.
3. Industrializing economies: Manufacturing accounts for 10-20% of the country’s economy. These countries are a good market for raw textile materials, heavy machinery, steel etc. A new affluent class and a small middle class are usually created by the on going industrialization, both of which require new types of imported foreign goods.
4. Industrial economies: Services and manufactured goods are the chief exports of industrial economies.. A large middle class usually exists making industrial economies an ideal market for all sorts of goods....
Low, medium and high income households may exist in industrialized economies whereas a subsistence economy may exist of mostly very low income households. However, developing or even poor economies may be attractive markets for all kinds of goods. The best example in this case is China. Even though China has only 0.2 millionaires per 1000 residents it trails only the US, Germany and the UK in the total number of millionaires because of its large population. (Kotler, 2008) The cultural elements that affect international marketing include: The different ways in which potential customers in different countries use and think about certain goods e.g. an average Frenchman uses twice as many grooming aids and cosmetics as his wife (Kotler, 2008). Cultural norms and regulations of each country e.g. Nike inadvertently offended Arabs and Muslims when it released shoes with a stylized “Air” logo which resembled Allah in Arabic script (National Geographic, 1999). Business norms and behaviors also play a very important role in international trade. Question 3: The political risks in international marketing involve: 1. Negative attitude of host government towards foreign firms. For e.g. Currency restrictions, import quotas etc might be imposed on the foreign to make life difficult for them. 2. Monetary regulations. Buyer’s government might impose restrictions on removal of a currency from the country leaving the seller no option but to receive payment in the blocked currency and getting their profits stuck. 3. Political instability is another risk associated with international trade. A major example of this phenomenon is the Dell Brazil case. Dell chose the Brazilian state of Rio Grande Do Sul as the site for its
Governments play a crucial role in the international trade arena and can impact the viability of a business in many ways. Governments can facilitate a business by relaxing taxes and providing infrastructure etc or they can hinder a firm’s efforts to enter a market by imposing law designed to favor domestic firms…
It will also try to assess and understand the influences of products on the consumers’ behavior and how it takes place with reference to market decisions they undertake. The reader should understand the different consumer behaviors that are usually portrayed at the market place that make buyers opt for certain goods and not others.
Starbucks uses advertising agencies such as Fallon for the creative work and it has transferred its media account to Manning Gottlieb Media from Starcom Motive. For example, in 2001, it spent two-thirds of advertising money on the press and the other portion went to posters (Media Business, 2001).
One of these considerations is the product’s target market and segment (Lamb, Hair and McDaniel, 2009). One of the measures of a company’s success is dependent on how well its services and/or products are received in the market. This reception depends on how well the market knows and trusts the products and services that are on offer.
The constitution sets down the limits and extent of powers while on the other hand it also distributes these powers (Big Tent Democrat, 2011). Introduction The commerce clause is entrenched in the United States Constitution under Article 1; Section 8 Clause 3 of the constitution, which states that the congress among several other powers conferred upon it by the constitution, will have the power to regulate commerce within foreign nations, and among other states and also regarding the Indian tribes.
Development of this aircraft began in the 1970s, and delivery started in the 80s, however the aircraft is still very much an asset for various defence forces across the world. It is an undeniable fact that the utility of a product determines the ease in marketing it.
According to the research findings, it can, therefore, be said that advertisement used by Starbucks and Jamaican Blue Mountain coffee brands include the internet and the press. Since the launch of Starbucks back in 1982, it has used the US mail order catalog and music CDs to make it popular among the people.
Today, awareness has empowered people to take pragmatic collective decision. Their interests are logical and comprehensive when they repose their trust in governments to fulfill physiological aspect of their lives. For welfare states to prosper governments try to come up
In this research paper, the role of marketing manager is presented for introducing a product in a foreign market which already exists in the United States. The product chosen for this paper is dishwasher which is a common
10 pages (2500 words)Research Paper
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