Legal, Social, Cultural and Demographic Features of International Market SS3 Marketing Lesson Note

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

• List and explain the features of the international market.

INSTRUCTIONAL TECHNIQUES: 

• Identification, 
• explanation, 
• questions and answers, 
• demonstration, 
• videos from source

INSTRUCTIONAL MATERIALS: 

• Videos, 
• loud speaker, 
• textbook, 
• pictures

NOTE

FACTORS THAT AFFECT INTERNATIONAL MARKETING

• Social Factors:

The social factors of a nation determine the value system of the society, which in turn affect the International Marketing mix. Social factors are culture, caste, customs, languages, life style, standard of living, climate and marketing infrastructure etc. The demand for goods and services is affected by all these factors.

There is a lot of change in quality of life style of the people. They are willing to purchase many consumer durables like T.V., Fridge, Computer etc., even when they cannot afford to buy it. It became possible because of availability of hire purchase system or installment basis.

• Cultural factors

Cultural factors also influence every aspect of International Marketing. International marketing decisions are based on recognition of needs and wants of the customers. The cultural factors help to understand the behaviour patterns and lifestyle of the societies culture, in which the individual has grown up. Thus an individual’s perception is groomed and influenced by cultural factors.

• Economic Factors:

The economic factors are the most significant determinants of International Marketing. They also affect the survival of a business organization and its success.

The economic factors can be studied under following categories:

• Exim Policy of the Country
• Commercial Policy
• Financial system
• Monetary system
• Currency restrictions
• Inflation/ Deflation.

The decision regarding international marketing mix is taken by keeping in mind the above stated economic factors which determine the economic environment of a country. Therefore, before going for export business or before going for any decision regarding international marketing mix, it is necessary to examine the economic factors that determines the economic environment of a country.

• Competition:

Competition is an important determinant of international marketing mix. The business firm has to face competition in his home market as well as in the international market. The international marketing mix is decided by keeping in mind the strategies of the competitors for the product, price, place and promotion.

• Legal Environment:

International Marketing decisions are influenced by legal environment pertaining to competition, price setting, taxation, law etc. The legal system of a particular country should be studied well before doing business with that country.

EVALUATION:    

• List and explain the factors that affect international marketing

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively