Page 80 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 4: Export Marketing – Going Global

markets. This may require slight changes in existing products or major modifications or entirely Notes
new products. Although specific decision-making will come at a later stage, a broad decision on
products and markets is required at the very beginning itself.

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Caution Care needs to be exercised here, as the company must make a critical assessment
of its capabilities, internal resources and assets as well as that of its mission and objectives.
The company has to be flexible enough to respond to the challenges posed by new and
unknown markets by adjusting its product portfolio and marketing style as required.
The following factors should be the focal point of this scanning:
Demographic/Physical Environment

1. Population size, growth, density
2. Urban and rural distribution
3. Climate and weather variations
4. Shipping distance

5. Product-significant demographics
6. Physical distribution and communication network
7. Natural resources.
Political Environment

1. System of government
2. Political stability and continuity
3. Ideological orientation
4. Government involvement in business

5. Attitudes toward foreign business (trade restrictions, tariffs, non-tariff barriers, and bilateral
trade agreements)
6. National economic and developmental priorities.

Economic Environment
1. Overall level of development
2. GNP, industrial sector
3. Role of foreign trade in the economy
4. Currency: Inflation rate, availability, controls, and stability of exchange rate

5. Balance of payments
6. Per capita income and distribution
7. Disposable income and expenditure patterns.

Social/Cultural Environment
1. Literacy rate, educational level
2. Existence of middle class

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