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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 as countries under structural adjustment, foreign currency restrictions, as well as political involvement in economic issues. These should be carefully considered in global marketing. Examples of such countries are many eastern countries such as China. This country has recently undergone extreme changes in terms of not only politics, but also in economics. Taxation and currency laws are thus still in a process of transition, and some industries would be more successful than others in this country.
Cultural Factors
Cultural factors are probably the most all-encompassing influencing factor on both the global and domestic scale of business. Indeed, with increasing heterogeneity of culture, especially in the United States, cultural factors have become an inherent consideration in all business ventures. Thus, all organizational work is closely connected with the culture in which it is established. Individual cultural mores here play an important role, because these influence interpersonal relationships and...
Thus elements such as interpreting, translation, as well as cultural sensitivity need to be part of all successful business transactions. From the point-of-view of foreign markets, a working knowledge of the major scientific language is beneficial in terms of research and science organizations.
Different cultures also value different research issues. Profit can be derived when these issues are understood in a profound sense. The environment, economics and business ethics play an integrated role together with culture. Cultural sensitivity would then include an understanding of what in terms of ethics, values, and business is valued by different cultures. International technology has made this easier than it ever has been before. Cultures can be researched using the Internet, while interpersonal liaisons can be formed via email and messenger without having to travel anywhere. This has made cross-cultural business ventures easier to establish.
An example of this is the variety of online stores available via Amazon, which has stores for a variety of countries, including Germany, Japan and the UK in addition to the United States. Its variety of products also testifies to its sensitivity to the variety of cultures and markets the organization caters for.
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
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.
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
, 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
Global Business When businesses go international, they have to operate in a more competitive, uncertain, and risky business environment. The forces present in the Global environment bring a number of challenges for the businesses; making it more difficult for them to maintain their market share, enhance profitability, and keep the customers satisfied (Cherunilam, 2007). To compete successfully and ensure a sustainable future in the international markets, business organizations have to analyze