- Expanded markets and increased sales mean more profits. Profits mean success for a business. They also mean that a business can make contributions to causes that they believe in.
- Saturated home markets forces the companies to shift to other countries and make more profits.
- Spreading risks between different markets: selling cars in China was easier than in the UK because of the difference of GDP.
- Comparing to the trading conditions in other countries, which is better than their home country, led the expansion of international business.
What considerations must a company have in these areas when undertaking international marketing?
Political differences : Changes of governments can cause instability in some countries and this can increase the risk of doing business. Such as terrorism or threats of civil violence will disable the companies to work fluently.
Economic differences : The difference in GDP rates around the world will be the most difficult thing for the international companies to handle.
Social differences : The role of women and the importance of marriage in society vary substantially too and these an other social factors may have a considerable impact on the products to be sold and the marketing strategies used to sell them.
Legal differences : Some goods, such as guns, can be sold in the USA, but it will be impossible to be sold in other countries because it might be illegal in certain countries.
Cultural differences : Failure to recognize cultual and language differences can have a disastrous effect on a firm's marketing strategy. The use of male and female models in advertisements would not be acceptable in some countries with strong religious traditions.
Differences in business practices : Accounting standards and rules can vary in different parts of the world. The ease of setting up a limited company varies widely- it can take a few days in the UK, yet the formalities and form filling can exceed one year in Sierra Leone.
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