¶ … economic factor is probably the first to be considered when making a domestic or international marketing decision. In terms of the international marketing decisions, the economic factor will determine the initial export decision. Indeed, the economic factor practically summarizes everything in terms of the financial and economic health of the country in which the marketing decision will be applied, but with a direct impact on social or demographical factors as well. I am referring here to the population's income, for example, which will help determine whether some of the more expensive products of a product portfolio will have a chance of being commercialized in a certain country.
In this sense, the domestic marketing decision may possible be in two different situations. First of all, if the product is commercialized in a country with a similar economic condition, it is likely that the marketing decisions will bear a high rate of similitude. Indeed, a product commercialized in Great Britain will probably have a similar marketing strategy in the U.S. As well, at least from the economic point-of-view, given the similar development level in the two countries. On the other hand, if a product is commercialized in Great Britain (domestic market) at a high price, it is less likely it will be commercialized in Africa as well (international market), as the economic conditions do not permit it.
Besides the export decision, the advertising component is also affected by the economic factor on the international market the company wants to use for its products. First of all, you need to be aware of the impact your campaign will have. If you are selling a product that is not necessarily too expensive, but use an advertising campaign which will be judged as extremely...
Global and Domestic Marketing In the question, I pick three factors social, cultural, and technological factors and see their effects on global and domestic marketing. Social Factors: In both domestic market and global market, a customer's buying behavior is influenced by social factors. The role of social factors becomes especially important to impress others and identify with the groups to which the customer belongs. Social factors interact to influence the purchase decision through
The costs of research to establish such viability should also be calculated before considering expansion to foreign markets. When initially globalizing then, it is perhaps wiser to expand to markets that are culturally and economically closer to the domestic market, with expansion to markets that are further removed considered only when the domestic clientele is sufficiently representative of the foreign market. Other economic factors influencing global marketing decisions include issues such
You need a stable foothold and insight into the dynamics of the marketplace from which to be able to peer effectively into the future.... Marketing research can provide real value by helping to provide the radar that will alert the enterprise to perils -- and opportunities -- ahead" (Duboff & Spaeth 2000, pp. 3-13). Proponents of market research maintain that these activities help to ensure that companies remain consumer-orientated.
Global Business Marketing Why do you think Toyota had waited so long to move much of its manufacturing for European sales to Europe? One possible reason why Toyota was so hesitant is because: the euro was a new currency that had been trading for only two years. This was problematic for the company, as they could not make decisions about production, due to the fact that the euro was untested against the
, 2003). Notwithstanding these similarities in the marketing function, there are some important differences that must also be considered. For example, even enormous countries in geographic and population terms that have relatively homogeneous populations may require more straightforward domestic marketing techniques and small city-states will require more elaborate international marketing techniques. For example, as Rao (2000) points out, "Given its strong tourism base and an open economy, Singapore has modern international
Global and Domestic Marketing Decisions Of course, it's tempting to think of business decisions as occurring in a perfect economic bubble -- wouldn't it be nice to simply prepare a strategic SWOT (strengths, weaknesses, opportunities, and threats) analysis based on one's industry alone? Alas -- or fortunately, depending on one's perspective, however, no company exists within such a comfortable bubble in today's business environment. (SWOT Analysis, 2004) Today, companies must keep
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