The successful manager constructs a marketing programmer designed for optimal adjustment to the uncertainty of the business climate. The inner circle represents the area under the control of the marketing manager.
- The marketing manager blends price, product, promotion and channels-of distribution activities to capitalize on anticipated demand.
- The controllable elements can be altered in the long run and, usually, in the short run, to adjust to changing market conditions or corporate objectives.
- The outer circles surrounding the market controllable represent the levels of uncertainty that are created by the domestic and foreign environments.
- The marketer can blend a marketing mix from the controllable elements but the uncontrollable must be actively adapted and handled.
- That effort, the adaptation of the marketing mix to the uncontrollable, determines the ultimate outcome of the marketing enterprise.
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- The second circle, (domestic uncontrollable environment) includes home country elements egg, governments imposed restrictions on trade
- On other hand, positive effects occur when there are changes in foreign policy and countries are given favored treatment.
- The domestic economic climate has far-reaching effects on a company's competitive position in foreign markets.
- The capacity to invest in plants and facilities either in domestic or foreign markets is to a large extent a function of domestic economic vitality. ) Capital tends to flow towards optimum use; but, capital must be generated before it can have mobility.
- If internal economic conditions deteriorate, restrictions against foreign investment ND purchasing may be imposed to strengthen the domestic economy.
- The effects of the domestic environment are the constraints imposed by the International Marketing Task Model
A significant source of uncertainty is the number of uncontrollable elements in the foreign country.
Some of these factors are as under:
- Positive example - China moved from a communist legal system in which all business was done with the State, to a commercial legal system.
- Negative example - Indian Government, gave Coca Cola the choice of either revealing its secret formula or paving the country.
The local economic forces in the foreign country may have strong influence on the currency value and repatriation.
The nature of competition may vary from country to country and will have different responses, depending on deep rooted cultural factors to competition in terms of price, distribution, advertising and sales promotion.
Level of Technology:
Vast differences exist between developed and underdeveloped countries. Technical expertise may not be available at a level necessary for product support and for maintenance.
Structure of Distribution:
Channels of distribution vary from country to country and there could even be state controls on distribution in some countries.
Geography and infrastructure:
The transportation and physical distribution depends on these factors and this will also be different indifferent countries.
Each country's culture is different and this could affect all the marketing variables like product design, brand name logo, advertising campaigns, sales promotions, pricing policies, price negotiations, distribution networks and strategies, etc.
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