MCom 2nd Year International Marketing Environment Study Material Notes
MCom 2nd Year International Marketing Environment Study Material Notes: In this post, we will learn about MCom 2nd Year International Marketing Environment Study Material Notes. In MCom 2nd Year there is one of the most important questions comes from Environment. You will learn about MCom 2nd Year International Marketing Environment Study Material Notes. MCom is a process of development.
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INTERNATIONAL MARKETING ENVIRONMENT
The international marketing environment is a combination of elements and powers, which affect all marketing firms. Every marketing firm has its own international environment and the external environment also affects the firm. In comparison to domestic marketing, the environment of international marketing is more challenging.
The firm can be successful by understanding its external and internal environment and making its market strategy and policy according to the environment. Which firm makes their customer satisfied get more successful than others. It may be possible when a firm is well familiar with the environment of the firm and the interests and fashions of customers.
Hindustan lever limited is a successful foreign company because it did efficient research before making a beauty cream. Ponds and pears are the best examples of the famous product of HL. We can understand the environment of the firm with the help of the following chart:
In the above chart elements of the environment have been pointed out; mainly international marketing environment is divided into two parts first internal environment second environment.
Every international marketing firm has its own internal marketing. Internal marketing is a combination of components that have control over the firm. Internal marketing is management able and controllable. The explanation of different elements is as follows:
1. Leadership. Leadership means a manager who is the owner of the company and has a right over all the matters of the company. Every leader has a responsibility to prepare a cultural leadership that must be better than present Leadership. Vision is the important thing to make a firm successful, but only vision is an important thing to make a firm successful, but only vision is not able to make a company successful. (MCom 2nd Year International Marketing Environment Study Material Notes)
2. Financial Resources. The profitability of a company depends upon the management and the planning of the financial resources. Reliance industry best example of good management of financial resources.
Oil refinery of reliance industries situated in Jamnagar having invest of 20,000. This is the largest oil refinery in Asia.
3. image of Company. It is a saving of marketing: “name is same do a company become famous than more customers want to use the product or company”. So every country wants to establish its brand name.
For example: Every computer has the addition of Intel inside even the new brand of computer became fail again the Intel inside.
4. Capacity Utilisation. Every company working in a field of production has the capacity of a machine. Meant by the capacity of the machine is maximum production. If the management of the company is good then they can use their machines in the best way.
For example: Tata Iron and Steel Co. Ltd, uses its machine capacity of 112 percent.
5. Marketing Mix. Famous scholar Meakarthi has told that there are four Ps in the marketing mix. That firm will be successful in international marketing if it makes its mix optimum. But Robert has told me the four Ps and Cs are important for international marketing. These are:
4 Ps 4 Cs
Product Customers’ needs
Price Cost to the customer
6. Human Resources. In an International firm, human resources play a vital role. If human resources are well-maintained working capacity of the firm and customer satisfaction will be increased. Higher management of a firm does the planning and preparing policies, what is the work culture of a firm, what and hon is the behavior of managers towards workers all those things affect human resources. (MCom 2nd Year International Marketing Environment Study material Notes)
For example: Tata Iron and Steel Company Ltd. (TISCO) is the best example in this reference. This company has not got any strikes since its establishment of this company. So, the result is that the company is going to complete 100 years of establishment.
7. Research and Development. Companies of the developed countries give more importance to research and development. They used 3% of their gross domestic product for research and development. The changes and continuous development are possible when we give proper attention to research and development. Successful companies not only prepare a shape of research of the state the art category. Companies higher management monitors the research and development.
for example: Ford Motor cars, Microprocessor chip of Intel, computer TBM Research and development is the main cause of these inventions. (MCom 2nd Year International Marketing Environment Study Material Notes)
A company working in international marketing has to work external From an external environment businessmen need and want the economic policy of a nation to establish an economic outlook a study of elements is as follows:
1. Study of Deniography. Demography is a study of characteristics of a population that is living within a particular geo granular time limit. The study of demography is a very important tool for particular companies working in international marketing. Characteristics include division of population, division on the basis of sex, rate of the population on to development, division of age class in population, and death rate. (MCom 2nd Year International Marketing Environment Study material Notes)
For example: The study of demography shows that the present population of India is 1.4 million and it will be 2-6 million in 2020.
A company that is in the field of making beauty products or cosmetics should know the division on the basis of sex.
2. Geographical Condition. Every country has its own geography. Geography is a god’s gift to any country which can not control geographical conditions. The world can be divided into many parts on a geographical basis. It affects the food and clothing and way of living of the particular geographical area. The conditions of one country can be different.
For example: India has many geographical conditions. Here is the coolest area in Siachin and the desert of Thar also. The mountain area of Himachal Pradesh and Uttrakhand and many states having plains, and large sea banks are also in India.
3. Economic Factors. The economic environment can be divided into two parts:
(i) Macro Ecoromic, (ii) Micro Economic.
Macroeconomics discusses the economic policy of a country and the microeconomic environment focuses on the firm’s ability to compete in a market. (MCom 2nd Year International Marketing Environment Study Material Notes)
(i) Macro Economic Environment. A macroeconomic environment is focused on the country’s sources of livelihood and allocation of those resources. The world’s macroeconomics is not the same. The nature of the population must be considered by taking useful information. Because consumption capacity depends upon the total population. In other words, per capita income depends on the population.
Country Population Per capita GNP
U.S 2709 9million) 29340 ($)
India 980 (million) 430 ($)
(ii) Micro Economic Environnent. The environment encircling a particular product or market is the microeconomic environment. If the microeconomic environment is good then a company can successfully enter a specific market.
The macro-economic environment relates to competition. An Indian company may face competition when entering the international market from three sources : (i) Local Businesses, (ii) Other Indian Corporations, and (iii) Foreign Companies.
For Example: If Ford Motor Co. was considering entering the German market, it would compete against General Motors, Volkasurgan, and Honda Motors of Japan. (MCom 2nd Year International Marketing Environment Material Study Notes)
To take entry into international marketing the knowledge of the type of product (Competitive, improved, breakthrough) and type of demand (latent, incipient, existing) is very useful.
4. Political Environment. Political factors affect the external environment. If the political condition of a country is not stable and uncertain the foreign marketer cannot enter international marketing even if the nation is rich. Political conditions do not remain unchanged political conditions can change after an international marketer has started or made a commitment.
The political situations of both home and host countries are considered in marketing decisions.
Governments all over the world help the competitiveness of their domestic companies through monetary and fiscal measures.
5. Legal Factors. Legal factors ve separate importance in the international market. A corporation not only has to think laws of the home country but also must be responsive to the host country. A clear distinction must be made between agencies and distributorship. Every country must make its laws clear toward other countries because if countries do not do this, those countries will overcome the complexity of legal systems. (MCom 2nd Year International Marketing Environment Study Material Notes)
6. Technology. Technology highly affects the quality of products and completeness of work. Developed nations pay their proper attention to technology. Technology makes a product better. New technology makes new markets and destroys the present market. A nation will succeed if he apt latest technology.
7. Competition. International marketing competition is different from domestic marketing. In international marketing, a company faces competition from the home country company and from other nations company.
For example: Coca-cola (cold drink) have to compete not only with its home country brand Pepsi but it has to compete with other nations’ brands. (MCom 2nd Year International Marketing Environment Study Material Notes)
In this cut-throat competition that company will be stable whose product will be better than others. Companies have to be conscious to face competition effectively. (MCom 2nd Year International Marketing Environment Study Material Notes)
8. Social-Cultural. The socio-customs and traditions are different. Sociovalues and customs change with the times. But cultural values do not change time-to-time. In other words, these changes are made after a long-time.
A big part of India is vegetarian. Mec-Donald understood this very well and the company did arrangements for vegetarian and non-vegetarian separately. (MCom 2nd Year International Marketing Environment Study Material Notes)
International companies should have to do their business activities in a country that is near to socio and cultural values.
9. Consumer Behaviour. Consumer behavior is also a factor that affects the external environment. Consumer behavior is variable. The consumer’s choice, education, fashion, interest, income, etc., affect directly consumer behaviour. Customers are liking the products of American and European companies. (MCom 2nd Year International Marketing Environment Study Material Notes)