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MCOM 2nd Year International Marketing Environment Study Notes

MCOM 2nd Year International Marketing Environment Study Notes


International marketing environment is a combination of elements and powers, which affect all the marketing firm. Every marketing firm have their own international environment and external environment also affect the firm. In the comparison of domestic marketing the environment of international marketing is more challenging.

MCOM 2nd Year International Marketing Environment Study Notes
MCOM 2nd Year International Marketing Environment Study Notes

The firm can successful by understand is external and internal environment and make their market startgy and policy according to environment. Which firm make their customer satisfied get more successful than others. It may be ossible when frm is well familiar with the environment of firm and interest and fashions of customer Hindustan lever limited is a successful foreign company because it did efficient researches before making a beauty cream. Pond’s and pears are the est example of faous product of HL. We can nderstand the environment of firm with the help of following chart:

In te above chart elements of environment have pointed out;manily international marketing environment is divided in two parts first internal environment secod environment.


Every international marketing firm have his own internal marketing. Internal marketing is a combination of components which have control over firm. Internal marketing is anageent able an controllable. The elanation of different elements are s follows

1.Leadership. Leadership means a manager who is owner of the company r who have a right over al the matters of company.Every leadership has a responsibility to prepare a fulture leadership which must be better than present Leadership. Vision is important thing to make  firm successful, but only vision is a important thing to make a firm successful, but only viion is not able to ake a company successful.

2. Financial Resources. Profitability of a company depends upon a. agement and planning of the financial resources. Reliance industrie 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 of Asia.

3. image of Company. It is saving of marketing: “name 18 same do a company become famous than more customers want to use the productor ompany. So every country want to establish her brand name. 

For example : Every computer have the ad of Intel inside even the ne brand of computer became fail again the Intel insise.

4. Capacity Utilisation. Every company working in a field of production have the the capacity of machine. Meant by capacity of machine is maxinm production. If the management of company is good than they can use their machines in a best way.

For example : Tata Iron and Steel Co. Ltd, uses his faachine capacity in to 112 per cent.

5. Marketing Mix. Famous scholar Meakarthi has told that there are fou P’s in marketing mix. That firm will be successful in a international marketing if it makes his mix optimum. But Robert has told four Ps and Cs are importan for international marketing. These are : 

4 Ps                            4 Cs 

Product                       Customers’ needs 

Price                            Cost to the customer 

Place                           Convenience 

Promotion                   Communication 

6. Human Resources. In International firm human resources plays a vital role. If human resources are well maintained working capacity of firm and customer satisfaction will be increased. Higher management of a firm do the planning and prepare policies, what is the work culture of a firm, what and hon is the behaviour of managers towards workers all those thirgs affect human resources.

For example: Tata Iron and Steel Company Ltd. (TISCO) is a best example in this reference. This company have not got any strike since the 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 developed country give more importance to research and development. They used 3% of their gros domestic product for research and development. The changes and continuous development is possible when we give proper attention towards research ano development. Successful companies not only prepare a shape of research of state of the art category. Companies higher management monitors the research ant development.

for eramole : Ford Motor cars, Micro processor chip of Intel, computer TBM Research and development is the main cause of these inventions.


A company working in international marketing have to work in external From a external environment business mans need and want the

economic policy of a nation establish economic outlook a study of elements are as follows:

1 Study of Deniography. Demography is a study of characteristics of a population which is living in a particular geogranicular time limit. The study of demography is a very important tool for for a particulart companies werking in international marketing. Characteristics includes divisia population, division on the basis of sex, rate of population on ti development, division of age class in population, death rate.

For example: The study of demography shows that present population of India is 1.4 million and it will be 2-6 million in 2020.

The company which is in the fieid of making beauty products or cosmetics should know the division on the basis of sex

2. Geographical Condition. Every country have his own geography. Geography is a god’s gift to any country which can not control geographical conditions. World can be divided in many parts on geographical basis. It affect the food and clothing and way of living of the particular geographical area. The conditions of a one country can be different.

For example: India have many geographical conditions. Here is the coolest area in Shiyachin and the desert of Thar also. The mountain area of Himachal Pradesh and Uttrakhand and many states having plains, large sea banks are also in India.

3. Economic Factors. Economic environment can be divided in two parts: 

(i) Macro Ecoromic, (ii) Micro Economic.

Macro economic discusses about the economic policy of a country and micro economic environment focuses on the firm’s ability to complete with in a market.

(i) Macro Economic Environment. A macro economic environment is focused on the country’s sources of livelihood and allocation of those resources. All world’s macro economics are not same. Nature of population must be considered by taking useful information. Because consuming capacity depends upon total population. In other words, per capita income depend on population

Country                     Population               Per capita GNP

U.S                              2709 9million)              29340 ($)

India                            980 (million)                430 ($)

(ii) Micro Economic Environnent. Environment encircling a particular product or market is micro economic environment. If micro economic environment is good than a company can successfully enter a specific market.

The micro econoniic environment relates to competition. An Indian conpany may face competition when entering into international market from three sources : (1) Local Business, (ii) Other indian Corporations, and (iii) Foreign Companies.

For Example : If Ford Motor Co. was considering to enter the German market, it would compete against General Motors, Volkasurgan and Honda Motors of Japan.

To take entry in international marketing the knowledge of type of product (Competitive, improved, break through) and type of demand (latent, ineipient, existing) is very useful.

4. Political Environment. Political factors affect the external environment. If the political conditior of a country is not stable and uncertain the foreign marketer cannot enter in the international marketing even the nation is rich. Political conditions does 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.

Government all over the world help competitiveness of their domestic companies through monetary and fiscal measures.

5. Legal Factors. Legal factors’ ve separate importance in international market. A corporation not only has to think laws of 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 towards other countries because if countries do not do this, those countries will overcome complexity of legal systerns.

6. Technology. Technology highly affect the quality of product and completeness of work. Developed nations pay their proper attention towards technology. Technology makes a product better. New technology makes new market and destroy 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 face the competition from home country company and from other nations company.

For example : Coca-cola (cold drink) have to compete not only with home country brand Pepsi but it has to compete with other nations brands.

In this cut-throat competition that company will be stable whose product will better than others. The companies have to conscious to face competition effectively.

8. Social Cultural. The socio-customs and traditions are different. Sociovalues and customs change with the times. But cultural values does not change time-to-time. In other words, these changes are made after a long-time.

The big part of India is vegetarian. Mec-Donald understood this very well and the company did arrangements for vegetarian and non-vegetarian separately.

International companies should have to do their business activities in a country which is near to socio and cultural values.

9. Consumer Behaviour. Consumer behaviour is also a factor which affects the external environment. Consumer behaviour is variable. The consumer’s choice, education, fashion, interest, income etc., affect directly consumer behaviour. Customer are liking the products of American and Europear. company.

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