A Key Challenge for International Marketers Is to Develop a Good Understanding of the International Business Environment. Identify the Key Environmental Actors That Are of Importance to the Success of International

International Business Environment There are numerous environmental factors that a company must consider when operating outside its domestic market which have a significant impact on international marketing decisions and are imperative for success. The key environmental factors are outlined below: Doole and Lowe (2004) stated the key problem faced by international marketers is dealing successfully with the multi-dimensionality and complexities of the international environment. By understanding the environment, companies can implement a successful marketing strategy enabling them to make relevant decisions regarding entry modes and the marketing mix. {draw:frame} Adapted from Bennett and Blythe, 2002 The Political/Regulatory Environment It’s a government’s duty to protect the home market from competition; therefore, international companies must understand that host country governments my limit marketing certain products and activities to protect domestic industry i.e. nationalism. According to Hollensen (2007, pg 198) “Managers must continually monitor the (host country) government, its policies and it stability to determine the potential change that could aversely affect operations of the company.” As these were necessary requirements for entry, adaptation was essential; yet some firms still insist on entering using a standardisation strategy and do not succeed. This will be highlighted later. The Economic Environment Disparities in economic development will directly affect the entry mode and marketing mix of a company in the IBE. Interest, exchange and inflation rates will impact both the demand and supply of a product. For example, high inflation rates may result in a demand for cheaper imported goods, therefore a company hoping to enter an international market will benefit by offering lower prices via exporting. The Technological Environment Technology can be seen as a major driving force in international marketing and the

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