Keys to internationalisation
Keys to internationalisation > International marketing > The role of the environment
Before taking any steps towards a foreign market it is crucial to have a perfect understanding of the environment in which you will be operating. When it comes to developing an international marketing strategy, factors such as language, local tastes, customs, the country's level of development, etc., will have a major impact on the end result.
byGalicia recommends that you spare no effort in analysing and researching the market you are targeting. Anything you can find out in advance will help you to make decisions and avoid risks. Don't forget that internationalisation processes entail greater costs and uncertainties. You have to have detailed knowledge of the country where you will be establishing yourself, assess and quantify the obstacles you expect to come up against, and analyse whether the market is right for you.
How do you do it? Don't worry. byGalicia will help you. We make all our resources available to you so that you can find the information you need. The Internet is an enormous source of information where you can find thousands of resources. We pick out those that are most relevant for you. Navigate the site.
The economic, competitive, and technological environment
Without knowing the country's per-capita income or its citizens' average expenditure on products like ours, without knowing how income is distributed, where the majority of the population is located, or whether the country's level of technological development allows its citizens to purchase very advanced products, it will be difficult to know whether our products have a place in the market.
It is also necessary to perform an exhaustive analysis of the competition. You must know which competitors are established in the country, the market share they represent, how long they have been established, and the image they have earned for themselves.
All of this information will enable you to know what your positioning will be with respect to the competition, but also to develop your own price policy suited to the environment in which you will be operating. Carrying out international strategic planning without taking the environment into account will most likely lead to errors in terms of price positioning, positioning relative to the competition, or the technological complexity of the products.
The political and legal environment
Customs duties and other taxes, technical regulations and health codes, restrictions and facilities for establishing foreign partnerships, etc., are factors that may affect access to a market.
- A country's legislation may determine the form of entry. Some countries require a local partner in order to participate in public bidding, for example.
- Standards for packaging and labelling may require modifications to the presentation of your products.
- Restrictions on certain phytosanitary substances or components of certain foods may require modifications to the product's characteristics.
- Obtaining the necessary technical certifications will require some financial and technological effort.
- Antidumping measures often restrict access to markets.
The social and cultural environment
Despite the great homogenisation that has accompanied globalisation in myriad social and cultural aspects, there are still enormous differences between countries both in terms of business practices and consumer preferences. The social and cultural environment will affect you primarily on two levels:
- Approach to business
Business is not done the same way in every culture, nor does a statement have the same value or a gesture the same meaning. In order to do business in a country you must study how it is done there and adapt to local customs. Respecting the customs of future partners can help you open the door to a successful business relationship.
- Local culture
In order for a marketing strategy to be successful, it must always be respectful of local culture. Avoid negative connotations in aspects to do with language, shapes, and colours used for your product. You must study consumer behaviour and adapt communication policy to the general education level of the citizenry. Failure to take the social and cultural environment into account can lead to gross failures in marketing policy.
Navigate byGalicia
- Start with an introduction to internationalisation. Step by step you will see all the aspects that are involved in the internationalisation process.
- In Preparing the Company you'll see everything you should take into account before expanding abroad.
- In Keys to Internationalisation you'll find detailed information on each of the important aspects of developing an international strategy.
- In Marketing Information Systems for International Markets you will learn how to focus your research on foreign markets.
- In Analysis and Selection of Markets you'll find a guide to the key factors you should analyse in order to make a decision.
- And don't forget to take a look at our forums and see all the links we've gathered for you.
