Global economic interdependence and the effect of trade practices and agreements
Global economic interdependence influences both domestic and global marketing decisions. It however has more influence on global marketing. Different nations can depend on each other for different products. This can result in a form of interdependence between the nations. Marketers in nation A, can therefore increase their marketing strategies in nation B that depends on its specific products and vice versa. (Cinchona, 2005)
There are various trade practices and agreements that affect domestic and global marketing. Trade agreements such as fair trade among nations encourage both domestic and global marketing. This is considering the fact that marketers in the two countries are given equal standing to market their products and services. On the other hand restrictive trade agreements generally hinder global marketing. There are some trade practices that are discriminatory while others are not. (Cateora, 2007)
Discriminatory trade practices may tend to charge international marketers more fees and levies hence discouraging global marketing. Trade practices in a nation can encourage domestic marketing of some products and downplay others like harmful products such as cigarettes and beer.
Demographics and physical infrastructure
Demographics and physical infrastructure are factors that also affect global and domestic marketing. Demographics entail distribution of people in areas. They may be densely of sparsely populated. Marketing is highly carried out in densely populated areas rather than sparsely populated areas. International Companies tend to intensify marketing in highly populated nations. Physical infrastructure such as roads, communication network among others make marketing to be cheaper and easier. Regions with essential physical infrastructure easily encourage domestic marketing and vice versa. Global marketing is highly carried out in developed nations since the physical infrastructure is well developed therein.
Influence of cultural differences
Cultural difference is also a factor that highly affects marketing strategies. A textile Company that manufactures mini skirts can never market in an Islamic area because of the Islamic dressing culture. An international Company that makes pork sausages cannot market in Islamic nation because the culture therein stipulates that natives should not take pork. (Cinchona, 2005)
Importance of social responsibility and ethics versus legal obligations
Social responsibility is important in as far as marketing is concerned. This is generally where marketers show concern for the public or the community where they market products and services. Marketing ethics refer to the moral aspects of marketing. These are based on values such as transparency, autonomy, honesty and privacy. They are equally important in the marketing profession. Every nation has laws and regulations that marketers have to adhere to. These are very essential and failure to adhere to them leads tough measures from relevant government offices. While all the three aspects are equally essential, legal obligations can be ranked first in the order of importance. It is quite essential to note that in some nations, legal obligations may cover social responsibility aspects and marketing ethics. (Cinchona, 2005)
Effect of political systems
Political systems and the international relations greatly affect marketing. Political systems can create a peaceful environment in a nation such that domestic and global marketing is encouraged. When the political system is stable, domestic and global marketing is easily carried out and vice versa. Strict government policies on taxes can hinder global marketing. In case the political system is involved in various trade agreements such as NAFTA and EU, this can encourage global marketing. Good international relations affect global marketing positively.
Foreign Corrupt Practices Act of 1977, local, national and international legislation
Foreign Corrupt Practices Act of 1977 affects domestic marketing positively. This is considering the fact that FCPA prohibits corruption hence marketers dont have to give bribes to market in any area of the nation. Local, national and international legislation also affects marketing. Legislation in local home market can encourage or hinder domestic marketing. Specific regulations in an industry can sometimes make domestic marketing to be quite challenging. National legislations concerning marketing such as fees and levies for marketing that are exorbitant can hinder marketing ventures.
International regulations such as no extra levies on international marketers definitely enhance global marketing. Some international regulations regulate all international advertisements and can charge exorbitant prices for these adverts. Such regulations are carried out to encourage domestic marketing so to avoid unhealthy competition from external Companies. Some of these regulations are also put in place to protect consumers from harmful products. (Lee and Carter, 2005)
Technology
Technology is an essential factor that can hinder or enhance both domestic and global marketing. Up to date technology such as e-marketing facilities, information technology, innovations and inventions encourage both global and domestic marketing. When technology in a nation allows cheap manufacturing of products and services, domestic and global marketing is highly carried out therein. (Cateora, 2007)
Conclusion
In conclusion, marketing remains to be an imperative venture that allows consumers to know the products available in the market. Domestic and global marketing are however affected by various micro and macro factors. These factors include the political systems in a nation, trade practices and agreements among nations. Factors such as ethics are quite essential and affect marketing. Legal aspects highly affect global and domestic marketing and always have to be adhered to. When a nation has up to date technology, there is increased domestic and global marketing. Local and national legislation.
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