technological environment in international marketing

Corpus ID: 40268620; Technological Environment - International Marketing Strategy Relationship @article{Chirapanda2012TechnologicalE, title={Technological Environment - International Marketing Strategy Relationship}, author={Suthawan Chirapanda}, journal={World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and . The majority of cattle in Switzerland is used for milk production and not meat production. to enter international markets include increasing competition at the There are many reasons why US firms choose to engage in international marketing. Inside, people from around the world peck away at their email, communicating withfriends and acquaintances from more than a hundred countriesfor just ITL 6,000 (about USD 3)per half hour. The technological environment is part of the company'sexternal environmentrelated to developments and changes in technology. At different times in history, technologies have created new businesses like automobiles, railways, telephones, computers, etc. Firstly, on the hardware front: better screens, faster processors, better cameras, etcetera. Casual Fridays and home offices are further blurring the boundaries between work and leisure. Technology is an important dr iving factor in shaping international marketing strategy as well as in driving force towards a more global marketplace, especially techn ology in communication. Technological environment changes very fast. performance for Brazil-based manufacturer" Journal of Global The number 7 is considered bad luck in Kenya, good luck in the Czech Republic, and has magical connotations in Benin. These nations do not usually try to strictly regulate imports or discriminate against foreign-based firms. It plays a pivotal role in the growth and development of the country. Americans seem to be fanatical about time when compared to other cultures. These factors include cultural and social influences, legal issues, demographics, and political conditions, as well as . I visited Germany in High School for a German exchange program and not only learned the language better but got first-hand insight into German etiquette. He also plans to start easyMoney.com, offering discount mortgages online. The study also tends to find out how the advancement in global technology affects entrepreneurial . Intelligence - informed strategy. 3. Technological Environment Technological change can have impact on the decisions taken by international business. The forces of supply and demand set others. 92-102. 120-129; Normandy Madden, OMs Buick Rides Luxury into China, Advertising Age, June 24,1999, p. 16; Carolyn Edy, The Olympics of Marketing, American Demographics, June 1999, p. 47. All cultures have their own unique set of customs and taboos. However, entering international markets poses risks and valid reasons to avoid entering these markets. Use of technology has made business and customers closer in many areas. Dell uses this information to segment its market further and then focuses its attention on the most profitable customers. In India, there are over 200 different dialects, and a similar situation exists in China. Image Courtesy : fabcomlive.com/strategic-marketing-agency//wp-content/uploads/111.jpg. "Relationship between export strategy variables and export 24-50, So it is when we improve the way products are made or services are delivered. When theyare not successful, the multinational firm often buys them out. Under the At different times in history, technologies have created new businesses like automobiles, railways, telephones, computers, etc. People will increasingly place more value on time than money. Societies and businesses have become competitive within themselves. Possible drivers tha t force companies to enter international markets include increasing c ompetition at the domestic market, maturing domestic markets, and lim ited domestic market opportunities. The cultural, political, and technological environments act as determinant factors in entrepreneurial success in global markets. If companies are going to sell their products internationally, they need to think about what their name means in the countries where they want to sell them. The Association of Southeast Asian Nations (ASEAN) is an example of a regional trading block. (9): Michael Selz, More Small Firms Are Turning to Trade Intermediaries, The Wall Street Journal, February 2, 1995, p. B2. The interesting thing is being too early is just as detrimental as being late. In certain countries, a vast majority of Muslims find drinking alcohol as sinful. It meant the birth of a market that was larger than the United States, and the introduction of European Currency Units (Euros) in place of the individual currencies of member nations. International Marketing Review Vol. marketing strategy comprehensiveness", Journal of Marketing Vol. The most common form of restriction of trade is the tariff, a tax placed on imported goods. domestic market, maturing domestic markets, and limited domestic Kidnappings, terrorist threats and other forms of violence targeted against foreign firms or foreigners. People are more willing to indulge in their passions and live the way they want to live. There is no time to while away. pp. Using the drop down menu, you will find links to recent news and business articles. Therefore (IBE) International Business Environment is crucial for a country's economy. Also investigates standardization of the finer aspects of the marketing, This article examines a comprehensive list of environmental conditions that affect the decision to standardize, as well as the relationship of strategy standardization and planning with static, The authors address a key controversy in the marketing literature about the suitability of global standardization. systems and e-mail. International markets offer organizations market expansion and profit opportunities. The likely beef substitute will be lamb,a very popular meat in India. Values affect the goods that a customer buys and the way he buys them. Thousands of kilometers away in London, near Victoria Station, the scene is much the same. You call it an Internet cafe, but its much more. It includes telephones, Abstract Indian manufacturing enterprises (IMEs) are undergoing a phase of transformation. US companies make one-third of their revenues from products marketed abroad, in places such as Asia andLatin America. Marketing, Vol. IMPACT OF NATURAL AND TECHNOLOGICAL ENVIRONMENT ON MARKETING Natural Environment The analysis of the mega environment must also cover aspects like extent of endowment of natural resources in the country, ecology, climate, etc. Their purchasing patterns are also changing. Types of Technology Technological environment is self reinforcing. It is self-reinforcing. Leonidou "Standardization versus adaptation In the present scenario, utmost dependence on equipment, technological factors can have more effect on business operation and success globally than ever before. April 24, 2000, pp. Amine, L.S. Most women are not leaving important marketplace decisions to others. Furthermore, according to a study by Swiss Info, Switzerlands meat prices are also 142% more expensive than the global average, ouch! Cavusgil, and S. Zou "Marketing strategy- performance World Academy of Science, Engineering and Technology. Entering an international market is similar to doing so in a domestic market, in that a firm seeks to gain adifferential advantage by investing resources in that market. considered that no single strategy can be effective in all contexts. For example, in Egypt, the countrys national color ofgreen is considered unacceptable for packaging, because religious leaders once wore it. market penetration, including sales (by volume and value), market share by product category; SteliosHaij-Joannu, a Greek shipping tycoon and Internet entrepreneur, has created Easy Everything,which he claims are the worlds largest Internet cafes. Technology is an important dr iving factor in shaping international marketing strategy as well as in driving force towards a more global marketplace, especially techn ology in communication. Just over the Ponte Vechio, the oldbridge joining the Uffizi art gallery with Pallazo Pitti, there is a small storefront with 20 personalcomputers. distribution, including strength in supply chain, number of outlets; It is being discovered that cost is more prominent in decisions made by women, whereas quality is relatively more important to men. Changing economic policies and global outlook have brought both opportunities as well as thought points, . xiv CHAPTER ONE, This study addresses a long-standing debate in the literature regarding the appropriateness and performance consequences of marketing strategy standardization vs. adaptation. The phenomenon of working women has had greater effect on marketing strategies and initiatives of companies than any other social change. Language problems become even more serious once the people of a country speak several languages. towards a more global marketplace, especially technology in Strategic fit is employed to investigate export marketing 98-101 Michael Krauss, Europe Forges Ahead with Web Innovations, Marketing News, August 14, 2000, p. 8; (23): Suzanne Bedlake, Birth of a Global Brand, Ad Age International, March 1997, p. 126; Rainer Hengst, Plotting Your Global Strategy. Direct Marketing, August 2000, pp. Open Access. A free trade agreement within ASEAN member nation allows for the free exchange of trade, service, labor and capital. Punctuality and deadlines are routine business practices in the US. (b) developing a site for multiple currencies Content Guidelines 2. Technological change generally refers to the advancements in the production and manufacturing process of different goods and services. Journal of Management. Verbal and Statistical Correspondence". 1 Conceptual framework of technological environment -, By clicking accept or continuing to use the site, you agree to the terms outlined in our, Technological Environment - International Marketing Strategy Relationship. [15] G. Nakos, K.D. standardization on performance," Journal of Marketing Vol 56, pp. In the past decade, technology has grown exponentially and has affected our everyday way of life and impacted almost every industry, including international business. Technology is an important driving factor in Michael Plogell and Felix Hofer, No-nos in Europe, Promo, April 2000, pp. The social environment includes factors like lifestyle and consumer trends. Examples of objectives might be: financial performance, including return on investment and profitability; Life experience is an important factor in womens independence in long-term planning and decision making. Vol. Lifestyle is a mode of living, i.e., it is the way people decide to live their lives. Lisa Einet, the design director at Kellog, stated that the change of design was to modernize the snack and more strongly appeal to its current consumer. international marketing strategy by firms from a developing country-, 12 (2), pp. International Marketing AT BANZON 4 58 (1), pp. Technological change can involve: - New process of production: new ways of doing things which rises productivity of factor inputs, as with use of robotics in car assembly techniques which has dramatically raised output per assembly . Choosing an Appropriate Transport Service and Cargo Insurance . Providing the right amount of tools that are having a technological advantage is helpful in increasing the productivity factors. It includes telephones, Abstract Indian manufacturing enterprises (IMEs) are undergoing a phase of transformation. In anticipation of its restaurant openings, McDonalds conducted extensive marketresearch, site selection studies, and developed a relationship with Indias largest chicken supplier. As a result,business negotiations may take years. Today, fewer customers say that expensive cars, designer clothes and pleasure trips are necessary components of a happy life. When they are successful, their own nations economy receives a good boost. pricing Disclaimer 9. To cope in such an environment, people have become inquisitive, discriminating and demanding. The aim of the paper. 24 (3), pp. Market environment and business environment are marketing terms that refer to factors and forces that affect a firm's ability to build and maintain successful customer relationships.The business environment has been defined as "the totality of physical and social factors that are taken directly into consideration in the decision-making behaviour of individuals in the organisation." 2. International marketing environment consists of global forces, such as economic, social, cultural, legal, and . In simple technological environment definition, it is the state of technological advancement and evolution that affects a country, mostly their economy. However, few studies have examined its antecedents and the conditions under which it influences, Examines empirically the standardization of international marketing strategy from the perspective of Colombian exporting firms. Poor communication facilities hinder advertising through the mass media. Even when on holidays or on leisure trips, people want everything to be planned meticulously, so that they can recuperate in a planned manner. The political risks in international markets are as follows; 1. Some other companies have used the power of Internet to create virtual design teams. International Marketing Environment These factors are largely uncontrollable, although marketers can influence some of them. Not surprisingly, US companies with a strong business tradition in a foreign country may support tariffs todiscourage entry by other US competitors. Rate this term +1 -1 Search Browse A-Z A number of cultural differences can cause marketers problems in attempting to market their products overseas. Vol 27 (9), pp. d. the economic environment 4. Fig 1 - PESTLE Analysis. The increasing computing and processing capabilities of personal computers is enhancing the efficiency and effectiveness of businesses. Report a Violation, 3 Main Drawbacks of the Marketing Concept | Business Marketing. relationship: an investigation of the empirical link in export market Email and Social Media is being used for answering queries related to products and services with customers. In France, wine is served with most meals, but in America, milk, tea, water, and soft drinks are popular. Economies which are well off should concentrate more on basic research because they can remain ahead of other economies only by creating new businesses through inventing new technologies by basic research. The laws were designed to prevent large producers from flooding markets. It should be ready to relinquish services now as other economies are becoming more proficient at providing services. Consider how the following examples could be used in development of international marketing programs: In Russia, it is acceptable for men to greet each other with a kiss, but this custom is not acceptable in theUS. It's similar to promoting. Select one major headline in the Asia, Europe, and The Americas sections. Inventories will be low and currency will be converted rapidly. Failure to consider cultural differences is one of the primary reasons for marketing failures overseas. International Environment Reduce business costs Most Internet cafes are about the coffee with computers on theside. marketing communications Having identified stakeholder expectations, carried out a detailed situation analysis, and made an evaluation ofthe capabilities of the company, the overall marketing goals can be set. 1] Pull of Technological Change. the-road approach that companies implement to overseas markets. The exchange rate of a particular nations currency represents the value of that currency in relation to that ofanother country. Briefly, at Japanese companieslike Nippon Electric Company (NEC), Nissan, Sharp, and Toyota, a team charged with bringing a product idea tomarket estimates the price at which the product is most likely to appeal to the market. strategy adaptation under certain environmental conditions, which in It has been found that these virtual teams are able to design better products because the best people can be put on these teams without constraints of location and lot of interpersonal conflicts of real teams are avoided in virtual teams. export performance, Journal of Global Marketing Vol. Innovation pose risk for already established businesses. Here are several examples of foreignbusiness behavior that differ from US business behavior: In France, wholesalers do not like to promote products. This task is not as easy as it sounds as various features of a culture can create an illusion of similarity. New technologies can be used very effectively to counter inflation and recession. It is important for marketers to learn about thesecustoms and taboos so that they will know what is acceptable and what is not for their marketing programs. While the differences between our cultural background in the United States and those of foreign nations may seem small, marketers who ignore these differences risk failure in implementing marketing programs. Customs unions maintain common tariffs and rates for nonmember countries. A firm has five basic foreign market entry options, the selection of which depends largely on the degree of control that the firms wishes to maintain over its marketing program. Switzerland does not produce much of its own meat, this is exacerbated by the fact that they also have very high standards for meat as well. 23- Technological factors affecting France. However, universal implementation of these standards is scheduled for 2020. The Interactive Journal provides extensive information about world business. In making the decision to customize or standardize, there is a wide range of possibilities for adapting a firms product, price, promotion, and distribution strategies. Status of Technological Environment or Technology in India :-. While the concept of exchange rates appears relatively simple, these rates fluctuate widely and often, thus creating high risks for exporters and importers. With new technologies such as multilingual processing programs, it would be possible to target potential customers anywhere in Europe, in any language, and in the same marketing campaign. One invention in a place leads to a series . New inventions relating to marketing like BPO for selling online in international market. A scarcity of time means that people will decrease the amount of time spent doing things they do not like doing. Factors affecting business environment RENNIFER. Here you will find a 867-890, 2006. Technology is an important dr iving factor in shaping international marketing strategy as well as in driving force towards a more global marketplace, especially techn ology in communication. Most American firms have discovered that many opportunities exist in international marketing, as evidenced by the vast amount of goods exported by US-based firms. (g) recruiting and retaining people in markets that prohibit or curtail stock options and other economic incentives (22). the 1980s: a dynamic model," Journal of International Business Today, a person can be a teacher and also a gourmet, fitness enthusiast and so many other things. Socioeconomic mobility refers to the upward or downward movement of people from one social class or economic level to another. For example, in Canada, labels must be in both English and French. (20): Nell Chowdury, Dell Cracks China, Fortune, June 21,1999, pp. 68-69. (1): Isobel Doole, Robin Lowe, and Chris Phillips, International Marketing Strategy, International Thompson Business Press: London, 1999, pp. Business owners who stay ahead of the curve might even find new heights of marketing success. The impact of the technological environment on companies Technology is now used throughout all over the world that supports people's lives more easily and efficient to access. Technology changes marketing: Integration - know your client.

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