Marketing challenges in emerging markets

Marketing challenges代写 The environment in the global marketing pose challenges to the international organizations in matters marketing.



The environment in the global marketing pose challenges to the international organizations in matters marketing. Compared to the domestic marketing, international marketing is difficult because of uncertainties and problems especially the emerging markets. The international markets are more dynamic thus full of uncertainties compared to domestic market. The various aspects impacting on the market mainly include cultural diversities, economic, and political factors. These create barriers in the emerging markets. Other factors are geographical constraints and threats of terror attacks in emerging market.

The report seeks to present the international challenges impacting on the marketing in the emerging markets, particularly the impact of political and economic factors. The main focus for the purpose of this report as an ideal international organization was Toyota Inc. Toyota is a multi-national corporation dealing with manufacturing of auto-mobiles with operations in various countries in the world. The entry into the global market for this company was not smooth and transition to the international market required careful and rational steps.

Literature Review

Economic environment  Marketing challenges代写

Economic environment includes the nature of the economic system, the economic policies of the government, rate of inflation, interest rate and business cycle (Bensoussan & Fleisher, 2008). Companies need to, before entering a new market, be informed of the country’s economic policies and which market is developing. According to this information, a company decides if they can compete with other companies in the market and gain profit in this market. Indeed, if they want to receive a maximum of benefits, they should know about the market situation and make it ready for their product (Doole & Lowe, 2004).

 International marketers are required to have a good estimation regarding the economic developments (Kotler et. al., 2008). Indeed, this point of view is important at a regional level which regards regional trade integration, at a country level, a market level and also at a world level which regards the world trading infrastructure and the trade agreements development (Doole & Lowe, 2004).

There are two economic factors that reflects a country´s attractiveness as a market, these are; the country´s industrial structure, which shapes the products and service needs, and the income distribution (Kotler et al., 2008).

 There are four types of industrial structure that need to be considered.  Marketing challenges代写

The first one is the Subsistence economies where the vast majority is engaged in simple agriculture. They consume most of their output and offer few market opportunities. The second type is Rawmaterial-exporting economies, these types of economics are very productive in one or more natural resources, but are penurious in other ways. These markets are beneficial for products such as, large equipment, tools and trucks. However, if there is a wealthy upper class and a lot of foreign residents. The market can be beneficial for luxury goods (Kotler et al., 2008).

The third type is the industrializing economies where the manufacturing stands for 10 to 20 per cent of the country´s economy. It is typical for industrialization economies to create a new rich class and growing but small middle class, who both demand new imported products. The final type is industrial economic. This economic type is regarding large exporters of manufactured goods and investments. They export to other types of economies for raw materials and semi-finished goods. This is a rich market due to their large middle class and the various manufacturing activities (Kotler et al., 2008).

Political environment  Marketing challenges代写

A set of formal institution that constitutes a government is a political system (Cavusgil, Knight & Riesenberger, 2012). Establishing stability, based on rules and protections from external threats are provided by the political system. Indeed the allocation of valued resources is governed by the political system (Cavusgil, Knight & Riesenberger, 2012). Each country has a unique political system which evolved within a particular historical, cultural and economic context (Cavusgil, Knight & Riesenberger, 2012). The political system is dynamic and continually changing. A political system is evolving in response to constituents’ (people and companies which support the political system) demands and the evolution of the international and national environment (Cavusgil, Knight & Riesenberger, 2012).

Marketing challenges代写
Marketing challenges代写

Companies´ operation and decision making can be affected by a political environment which involves international/national political factors (Doole & Lowe, 2004). The political organization, such as political parties, public opinion and ideology of the group in power, could affect the political environment (Bensoussan & Fleisher, 2008). In the international market, politics play an important role for companies when making decisions in order to invest in the market and also having the knowledge about how to develop the market (Doole & Lowe, 2004).

Some countries are complaisant to foreign companies whilst others are not.  Marketing challenges代写

The government’s bureaucracy is one of the main factors that should be taken in consideration by companies. (Kotler et. al., 2008) The government’s view of business and freedom, which means, how companies can operate, is completely affected by politics (Czinkota & Ronkainen, 2007; Cavusgil, Knight & Riesenberger, 2012). Unstable political regimes can create a different kind of risk for companies which they never have to face in the domestic market. The country risk can have had influenced all the companies equally or subset.

The new government, initiative, developed by interest of the group and shifting values in political parties, can raise the country risk (Cavusgil, Knight & Riesenberger, 2012). A government’s tendency to change rules and regulations could influence the international strategy and provide both challenges and opportunities for companies (Doole & Lowe, 2004).

Economic impacts  Marketing challenges代写

1.Tariff Barriers:

Tariff barriers indicate taxes and duties imposed on imports. Marketers of guest countries find it difficult to earn adequate profits while selling products in the host countries. Sometimes, to prevent foreign products and/or promote domestic products, strategically tariff policies are formulated that restricts international marketing activities. Frequent change in tariff rates and variable tariff rates for various categories of products create uncertainty for traders to trade internationally. Antidumping duties levied on imports and defensive strategies create difficulty for exporters.

2.Administrative Policies:

Bureaucratic rules or administrative procedures – both in guest countries and host countries – make international (export and/or import) marketing harder. Some countries have too lengthy formalities that exporters and importers have to clear. Unjust dealings to get the formalities/ matters cleared create many problems to some international players. International marketers have to accustom with legal formalities of several courtiers where they wants to operate.

3.Considerable Diversities:  Marketing challenges代写

Different countries have their own unique civilization and culture. They pose special problems for international marketers. Global customers exhibit considerable cultural and social diversities in term of needs, preferences, habits, languages, expectations, buying capacities, buying and consumption patterns, and so forth. Social and personal characteristics of customers of different nationalities are real challenges to understand and incorporate. Compared to local and domestic markets, it is more difficult to understand behaviour of customers of other countries.

In the same way, as against domestic markets, to design and modify marketing mix over time for international markets seem more difficult. Market segmentation, product design, pricing, and distribution need more information and efforts. Promoting products in international markets is a formidable task. Message preparation and execution in suitable media in international markets is not easy game to play.

Marketing challenges代写
Marketing challenges代写

Language and religious diversities are the real challenge for international business players. There are 6000 languages in the world. China (20%) is the largest in term of native speakers, followed by English (6%), and followed by Hindi (5%). Yet English is recognized as global business language.

English speaking countries can contribute the largest share (40%) in global business. Religious diversities seem difficult to cope with as they determine needs and wants of people. At present Christianity is the largest in the world (1.7 billion), followed by Islam (1.0 billion), followed by Hinduism (750 millions), and followed by Buddhism (350 millions).

4.Political Instability or Environment:  Marketing challenges代写

Different political systems (democracy or dictatorship), different economics systems (market economy, command economy, and mixed economy), and political instability are some of real challenges that international markers have to face. Political atmosphere in different courtiers offer opportunities or pose challenges to international marketers.

Governments in different nations have their priorities, philosophies, and approaches to the international trades. They may adopt restrictive (protectionist) or liberal approach to international business operations. Especially, political approaches of dominant nations have more influence in international marketing activities.

Long-term trend of global political environment is unpredictable and uncertain. Economic policies of different nations (industrial policies, fiscal policies, agricultural policies, export-import policies, etc.,) do have direct impact on international trade. Drastic change in these policies creates endless difficulties to international traders. While dealing with international markets, international political and legal environment needs a special attention.

5.Variations in Exchange Rates:  Marketing challenges代写

Every nation has its currency that is to be exchanged with currencies of other nations. Currencies are traded every day and rates are subject to change. Indian Rupee, European Dollar, US Dollar, Japanese Yen, etc., are appreciated or discounted at national and international markets against other currencies. In case of extraordinary and unexpected moves (ups and downs) in currency/exchange rates between two courtiers create serious settlement problems.


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