Breaking through the Barriers:
The International Marketing Environment
The world is getting smaller as markets get larger by converging and countries consolidate to large market regions. As the markets of the world grow and change, it is necessary for companies to branch out into international markets in order to remain competitive and prosper their business. But the abundance of opportunity in the prospect of a new market carries with it the differences and challenges of its international marketing environment. Firms must realize these dissimilarities, appreciate them and progress through the obstacles they create. Once determining the existent benefit to approaching an international division, a company must assess the internal and external changes necessary to successfully make an initiative into that market.
There are many questions to pose to the current marketing structure in order to find the best fit to integrating the potential new market into the overall business plan. These queries can be fundamentally broken down into the areas of the political, economic, social and technological marketing environments within the international market, also known as the PEST environment . The influences of the PEST environment can be very rigorous to those firms operating in multiple countries, and therefore subject to the essential differences amongst those countries as they pertain to business and marketing practices.
According to Wilkinson et al, the factors of the political marketing environment “consist of the laws, regulations and governmental policies that facilitate or hinder marketing.” The political differences in the international markets are significant when compared to the domestic marketing environment. This is especially evident when considering the business’ heavy ties free-market system and entrepreneurship and how this is affected in entering some of the largest new markets. Specifically, China poses a paradox to the quest for new...