Discuss about the Review Global Market Environment for Assess International.
Global market environment refers to the factors and forces which can either be within or outside an organization that affects the set marketing strategies either positively or negatively as well as building and maintain good and long lasting customer relationships, especially the relationship with the targeted customers. Assess international trade patterns and identify their likely importance for the business. According to Ratten (2017)
International trade pattern involves the exchange of goods and services both locally and across countries all over the world. The world trade pattern has led to the growth of global market which in turn leads to development of the countries involved. This trade patterns have been identified to be very important for countries involved in international business. First, international trade led to increased growth of the global economy which has been witnessed since the Second World War. Secondly, international trade has resulted in emergence of more developed countries like India and China. In addition, the trade pattern has also resulted in the rising of the regional trading blocs around the world. Lastly, the pattern has led to rise in the number of communist countries that participates in trade.
Market factors are the forces that influence the buyers and sellers interest to buy a certain product based on its price or quantity. It also determines the demand and supply of goods and services available in the market. Various international business and E-commerce market factors include;
Demographic factors. This factor is based on the population of the market. The organization in this case should first identify the target group of its customers and identify or research on their preferences so that they get the type, quality and quantity of products the customers will need.
Geographic factors. This involves the location of the target market. Sellers who sell the products within their locality experience less geographic barriers since the only drive to their customer’s location, for those customers who are in other countries, sellers will have to do their business online that is electronic business.
Competitors. Every business must have a competitor. The companies therefore need to research and know who their competitors are, what they sale, how they carry out their advertisements and how they maintain a high quality business operating environment. All this information can be fully obtained from the social media sites, which helps a company understand how to outshine its competitors both in international business and electronic business.
Free trade international and how they easily get in to trade successfully.
Free trade is mostly carried out in countries that have no tariff barriers and its government does not have restrictions on imports and exports for these particular countries. Example of international markets that operates under free trade is European market and North America. However, getting in to free trade business is not easy especially for the less developed countries. Countries that have succeeded to enter free trade are the ones which are wealthier and have big companies that want to expand its business and sell its products internationally.
Policies and agreements and their impact on international marketing opportunities.
International trade is regulated and governed by various trade policies which controls and governs every economic transactions carried out across the borders. The policies include;
Liberization policy. The agreement made under this policy is to ensure less interference by state to foreign trade and ensures free market force.
Protectionism policy. This is the policy which protects the local traders from foreign competitors.
However,liberization policies posters a positive impact to international marketing since it promotes global marketing which leads to economic growth of the particular country. Protectionism on the other hand has a negative impact to international marketing since it does not allow opportunities to international trading.
International marketing is the most promising market in the current business world. This is because it offers new opportunities for many countries to interact and new business ideas can also be learnt easily. In addition, international marketing also provides opportunity for undeveloped countries to develop and companies to expand its business.
International business and E-commerce market factors are the forces that influence the buyers and sellers interest to buy a certain product based on its price or quantity. It also determines the demand and supply of goods and services available in the market. Various international business and E-commerce market factors include; Demographic factors which is based on the population of the market. Geographic factors that involves the location of the target market and the competitors as it is basically known that every business must have a competitor.
Economic, political, social and cultural factors affecting global market on international marketing opportunities
Economic factor is the most important element in the pestle analysis. It helps identify and analyse customers purchase and consuming behaviour according to Kotzian (2016).
Whereby some customers make their purchase demission according to price and not quality which sometimes is influence by their economic situation. A certain target group of customers might prefer purchasing products from abroad if the local prices are high, such decision ends up bringing down the economic growth of the particular country. On the other side customers might prefer purchasing their products locally if it’s sold at a cheaper price than imported ones, this eventually results to less opportunities for international marketing thus affecting the growth of global marketing.
This factor influence trade both in terms of taxation and political stability. A country that faces political violence and other political instability often, chase away most foreign investors and in the long run leaving the country underdeveloped which is a different with countries that do not face political instability issues. In addition, a country that has lower taxation rate also attracts more investors.
The demographic factor, culture, lifestyle and believes of communities in different countries also influence international marketing. Some social-culture behaviours discourage investors while the better ones attract them.
Well developed countries attract more foreign investors because such countries have fully embraced use of technology. This makes business operations in such countries advanced and more efficient therefore attracting more investors leading to growth of international marketing.
International market trends and developments and how they identify market needs relative to the business
Major three international market trends have resulted in the gradual growth of international market. They include; technology, growing middle class and demographics. Rapid change in technology has led efficient global marketing due to improved communication all over the world and improved and advanced transportation. Growth of the economy has also improved living standards of the middle class by creating more job opportunities; this in turn leads to expanding of international marketing as the middle class will also start purchasing goods abroad.
Emerging new business and E-commerce markets includes Russia which is the leading online market; its growth is driven by Alibaba B2C market place. Turkey is also progressively emerging and it’s being urbanized rapidly. Lastly, Brazil is also a leading E- commerce market in Latin America due to its large population and more internet users.
Task 3: Identify risk factors for international marketing opportunities
Opportunities in international marketing is faced with the following risk factors; political strive, natural calamities or disaster and economic crisis.
Task 4: Investigate international business and electronic commerce marketing opportunities
International business and e- commerce marketing opportunities is determined by the following; the laws and regulation governing the target area, the type of goods and services frequently demanded by target customers, the demographic, political stability and the social- cultural practises of the particular area.
4.1 International marketing opportunities and their likely fit with the goals and capabilities of the organization.
Availability of products for certain target groups offer marketing opportunities. If the goal of an organization is to reach more customers, then it should look at the product that it’s highly demanded by target customers.
4.2 Impact of the opportunities on customer base and current business.
Product availability provides current business an opportunity to meet customer needs and also satisfies customers need.
Improved infrastructures make operations of current business efficient and also make it easy in the access to products by customers.
Unrestricted laws and regulation of foreign trading in certain countries also attracts new international business investors.
Marketing opportunity financial viability according to risks, benefits, cost and opportunities.
Product availability as a marketing opportunity offers a great benefit to the buyer since they will get products they need, it’s also beneficial to companies because it will enable organizations to meet its customers demand. The unrestricted laws however might cause risk of failure of local market and improved infrastructures results in cost reduction due to efficient means of communication and transportation at a cheaper cost.
Probability of potential competitors and return on investment
Return on investment for international business sometimes might be less than expected. The potential competitors in this case should be identified and ways of outshining them determined for organization to attain high return on investment.
Viability and contribution of marketing opportunities to business.
Unrestricted laws are the best marketing opportunity which contributes to rapid growth of global business due to its attraction to many investors.
Product availability also provides a great opportunity for expansion of businesses.
References
Kotzian, P. (2016). External Drivers, Internal Agents. On the Role of Environmental Factors and Agents for the Integration of Business Reporting. SSRN Electronic Journal.
Ratten, V. (2017). Gender Entrepreneurship and Global Marketing. Journal of Global Marketing. 30(3), pp.114-121.
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