International Market Challenges
When compared to domestic Marketing, International Marketing has its own set of challenges in international business. Marketers are generally unaware of the foreign environment and therefore have to deep dive into the market where they plan to venture.
one way to look at this challenge is the technique called PESTO, which means the Political, Economic, Socio-cultural, Technological and Other trends. The challenges can be:
Socio-Cultural Diversity Challenge
The cultural diversity economic considerations in terms of development and purchasing power and the political regulatory climate. why it’s a challenge so what is culture? According to Gertz Hofstede says that “culture is the collective programming of the mind that distinguishes the numbers of one category of people from those of another.” In another way it’s a way of living, which is transmitted from one generation to another and is often shown through societal organizations and the way people live. It can have both physical and non-physical attributes. Physical attribute i.e. clothing and non-physical attribute i.e. religion, attitudes, beliefs and values
Culture could be really easy to understand but there’s some kind of integration that’s got to go on between the values, the customs, the symbols and the language that can give a clear road map or a signpost in terms of sort of the pitfalls and direction for the company.
Unfortunately, in international business, personal and professional values and customs are not universal, which is a major challenge. One possible example of this could be the US is the only country in the world that has the Foreign Corrupt Practices Act of 1977 that prohibits employees from doing certain things in the international marketplace that other countries may be able to do. Another important aspect is communication, it is more than just words, it’s also context verbal and nonverbal.