International Maketing

1. How important are PLESTE factors in terms of international marketing
The PLESTE (Political, Legal, Economic, Social/Cultural, Technological and Environmental) factors determine the success or failure of any company when moving into international market either through Joint venture, acquisition, partnership or any other. It also determines how well the company can easily localise its products and services and gain market or cost leadership position.
Political factors refer to government policy and the stability of the political system in the host country. Investor will obviously be scared of investing in a country such as Somalia because of the prevalence of war.
Economic environment has a major impact on the strategic decisions to be taken to operate in any country as the profitability of the business depends highly on the interest rates, taxation rates, inflation and the exchange rates. Before the investment is done, it is crucial to observe these economical factors. For instance the lower interest rates encourage an investment which helps the company to increase the D/E rate by borrowing from the host company for low prices. On the other hand a strong currency which goes hand in hand with the low interest rates may have negative effects on exporting because of the high prices in terms of foreign currency.
Legal environment in which companies operate affects behaviour of the firm. The legislation like competition, health and safety and employment law influence the new systems and procedures to be developed for operating in the host market.
Social/Cultural factor play a deciding role in the companies’ product ranges sold in a particular country. The social environment including the cultural norms, the demography and population which helps to determine its product ranges. Product differentiation and localization becomes crucial if the host country and the companies’ original country are culturally far away from each other. Cultural distance includes religious beliefs, race, social norms, and language all of the differences which the company has to analyse in depth to foresee the market demand for the company products.
Technological advances have shaped the way the consumers select and buy products, the way they make their payments and their expectations presales and post sales. Technology has not only created new products but also streamlined the traditional processes which changed the way business is done. Companies profited from the cost reductions, quality improvements and product innovation. For instance developing country like Nigeria now has instance access to the latest version of Windows operating systems and product such as iphone 4 is also marketer round the world because the internet is now a marketing tools through which customers can view available range of products offering.
Environmental Factors like weather and climate change and the changes in the consumers’ attitudes towards these factors can have impact on many industries. Firms have to consider the increasing environmental awareness in the societies. Especially the consumer groups which are called “LOHAS” which comprises the Lifestyle of Health and Sustainability desire to protect the environment.

2. Assess the impact of international marketing activities on the societies of emerging and less developed countries, not just today but also tomorrow.
International marketing is important because the world has become globalised - it is becoming increasingly impossible for any country to practice economic isolation. Nigeria in particular, because of the relatively developing economy reform, is reliant upon trade with international companies. This has contributed positively to the economy development of Nigeria. Moreover, Nigeria's multi-cultural society also reinforces an appreciation of the opportunities and the subtle complexities of doing business in overseas markets.
The opportunities and challenges encountered today by international marketers are greater and more diverse than ever before. New consumers are appearing in emerging markets in Africa and other Asian countries as well as some parts of Latin America. Some of these emerging markets have relatively little purchasing power today but hold the promise of being huge markets in the future. A good example is the availability of cheaper laptops specifically made for developing countries, this will help reposition the developing countries access to global market and also be profitable to the company.
International marketing will bring about many opportunities and challenges as consumers' tastes become more sophisticated and complex, and as increases in purchasing power provide them with the means of satisfying new demands.
In conclusion as the societies of the emerging and the less developed countries have the opportunity to reach the products as the same time with the other developed countries, the markets becomes flattens for all of the players. This will give the emerging and the less developed countries finally the chance to show their real potential and take their deserved place in the world.