Question

Criticality discuss the factors that determine the choiceof market entry mode. Answer in two pages length. (20 marks for the answer)

Answer 1

Factors involved in marketing environment are broadly classified into three categories .

1. Global Factors
2. Domestic factors
3. Organizational Factors

This environment regulates organizational activities in such a way that it becomes favorable for the entrepreneurs to identify the threats and opportunities lying ahead. The three factors that have a major impact in the marketing environment

Global factors

The global factors that are outside of the control of individual organizations wihch are out of the reach of concent but that can affect the way that businesses operate and it can be considered as the global factors affecting the international marketing environment. These factors include social influences and cultural, demographics, legal issues and political conditions as well as changes in the natural environment and technology.

Some major organizations involved in this level of international marketing are the UNO, World Bank, and the WTO.

Domestic factors

Personal affairs or internal affairs factors related to country that affect the economy of the country participating in the international marketing are considered as domestic factors. Including the political scenario and the approach by the government and its attitude towards organizational, availability , international trade, business ethics and quality of infrastructure, ecological factors., raw-materials, and other technological factors.

Major factors are considered with the level of participation by governmental bodies at the central and state level in a country is one of factors that affect the fate of marketing environment.

Organizational factors

Internal factors that influence in decision-making process in a company are considered as organizational factors.

These include the events, factors, people, systems, structures and conditions inside the organization that are generally under the legal control of the company. Changes in the leadership style inside the organization can also have a profound impact on the organization.The internal environment influences the organizational activities and also the attitudes and behavior of employees.

Marketing environment is changing rapidly. Every factor, right from the domestic level, organizational level, to the global level is interrelated.