International Marketing Environment in Australia - Essay Example

International Marketing Student Name: Student No: Course: Faculty: University: Lecturer: Date of Submission: Executive summary This research contains a written assessment which aims at developing a detailed understanding and reflection on an international marketing environment in Australia. The research further analyses the market entry modes, international marketing plans, and international marketing mix strategies. The report also addresses the seven forces affecting international marketing environment, and the key points behind the forces. The forces are financial, economic, cultural, legal, political and technological. The current challenges that Australia is facing are also discussed, alongside the main marketing opportunities existing in Australia. The market of Australia is broad, both locally and internationally, and is measured under different parameters such as the purchasing power, market demand for different goods and services, disposable income, the main industries, the sectorial export-import values, and the contribution of the industry and other sectors towards the overall GDP. What is more, the report will explore, based on different analysis and findings, the current, potential and critical opportunities available for international marketers. Globalization, among other factors, continues to shape world trades. The Australian economy is very strong, and its legal and political systems are aware of it and appreciate it in one way or the other. Table of Contents Executive summary 2 2.1 Financial and Economic Environment 5 2.2. Political Environments & Legal environments 6 2.3. Social and Cultural Environment 6 2.4. Technological Environment 7 4.1.Social Media 9 4.2.Other International Media 9 1.0. Introduction Australia has been working effortless to bring its economy back to track. Most stakeholders want to tackle the broader issue of productivity and for the first time this year, there is some exuberance in the entire Australian economy. To investors, this confidence is important. In fact, lack of confidence makes firms to be uncertain of the future and the risk averse as pertains to decision making. The stock market is getting higher than in the earlier years because the real agents are getting on high. The state treasuries are currently reaping the benefits of stamp duty, as well as enhanced superannuation saving which are reassuring workers to think about their retirements. The dollar is down by about 8 percent lower than its earlier higher levels. The treasurer has started to assert its influence over some government fortunes As witnessed in most parts of the world, globalization is continually changing the trading landscape. Therefore, through continuous analysis, the international marketing environment will be understood in detail. Consequently, key decision makers will be able to come up with more decisions. Further, market research will significantly contribute more confidence to investors. Most successful companies are those that invest well their time and money in research. Generally, the market of Australia is becoming comparatively strong because its economy is stable despite the challenges. Its income per head has ranked the country at number 13 in the world. More research reveals continued growth in the subsequent years if the same effort is to remain in force. 2.0. International marketing environment in Australia Several environmental forces that are playing a major role in Australia’s international market environment include the political, legal, social, cultural, financial and technological factors. The businesses across the world are becoming more and more competitive. Therefore, the only company that will emerge top has to ensure that its unit cost is as low as possible. The mining industry is not misfiring badly as many had thought. Therefore, the economy will not lag. Recent government data showed that firms are planning to invest over US$152 billion by the year ending 30th June this year (Australian Government, 2013). The total investment rose by 3.6 percent during the third quarter, a figure that is more than in the second quarter (Austrade, 2013). The gains out of investment are broadly based. The assumption which rose up that mining investment was fading underpinned RBA (Reserve Bank of Australia). RBA relies more on collaboration with businesses rather than government data. By the end of October, most companies had committed over 63 energy and mining projects totaling over 240 billion Australian dollars. The mega companies are working hard to re-retain consumers so that they keep on shopping for the entire year, instead of waiting for some promotional sales at some time of the year. 2.1 Financial and Economic Environment Australia has had a trend in its market to tend towards bigger strategic deals. For example, the Toll Holdings managed to successfully takeover Patrick Corporation, among others such as Arrow Pharmaceuticals and Sigma Pharmaceutical Group in an agreed merger. Some of these strategic deals favored the economic and financial growth. Further, the latest reports show that most Australian companies are reporting high earnings (Kotabe, 2008). Some of the companies that have excess to cash and healthy balance sheets are now making attempts to improve and secure their positions by way of seeking opportunities which will ultimately add value both internally and externally. The entire market is struggling for economic growth. According to Leonidou et. All (1998), the economic environment over the last 12 years has appeared to facilitate financing of debts, and even private equity firms have emerged as main contributors in some of the domestic transactions. Some of the success of private equity is repackaged by acquisition of assets. This phenomenon is driven by the market. Tariff barriers between US and Australia have been eliminated in Australia and this has greatly improved the trade relations between the two countries since 2005. This was due to the work of AUSFTA (Australia and United States Free Tree Agreement). US have benefitted a lot from the AUSFTA agreements. Loueter, Ouwerkerk, & Bakker (1991) argue that Australian’s economy has also enjoyed 22 years whose growth has remained uninterrupted. It has ranked top five in the world. Further, the Australian economy has benefitted a lot from its proper management in terms of the monetary and fiscal policy, thus surviving the numerous globalization effects. Australia’s diverse and robust economy is one of the economies that have constantly ranked best in the world top 5 resilient economies, right from 2008. It has strong trade ties with Europe, Americas, and Asia. By 2018, its Gross Domestic Product (GDP) is expected to outperform every main advanced economy. In terms of energy export, Australia ranks the third largest. This was according to Key World Energy Statistics (2012). Further, more than 80 percent of its economy is serviced oriented. 2.2. Political Environments & Legal environments The political environment of Australia recognizes the significance of globalization. The system of government of Australia is very democratic and liberal. It is based on freedom of association and speech, the rule of law and tolerance. Australia has developed a good international reputation with both developed and developing countries. The country has had an in-depth review of its regulations and international relation policies. 2.3. Social and Cultural Environment Australia is endowed with numerous cultures, traditions and languages (Madsen, 1989). However, all the people in Australia are encouraged to learn English which is not only an international language but also a very important unifying element for the entire society. Since English is widely spoken across the world, this fosters international trade. The country has in the last cases, ranked best in some world sports. This is crucial in terms of marketing the country internationally. 2.4. Technological Environment The track record of Australia shows a strong effort and commitment towards world-class innovations, and quality research institutions (Ogunmokun, 2004). Its advanced innovation frameworks, business and government investments in development and research, protection of intellectual property that has led to world-class outcomes. Further, it has created more opportunities for investors to come in and start commercializing in innovation and research. The research institutions of the country are top and offer supportive services to the private sector. The country’s highly skilled and talented workforce offers the necessary resources for investors to discover their full potential. Prasad et.al (2001) argue that some of the top technological innovation credentials for Australia include the fact that it is home of top class universities and research centers in the world, high-speed WIFI, first world class cervical vaccine for cancer, and Australia’s agency for national science which was ranked among the world top institutions in terms of science (Annetter, 2005). Therefore, Australia has enough technological support which is propelling its international marketing. Without technology, most marketing strategies are likely to collapse. Also, what attracts investors is the available technology. It offers both opportunity and support for running the various businesses. 3.0. Current challenges for international marketers The main challenges for international marketers include: Language and Culture Most countries speak different languages. Therefore, an international marketer requires having different interpreters and translators who will assist in marketing across different cultures and languages. Creation of awareness & driving of traffic It is important to get more information about the audience, and get more interested in the product or service. Most international marketers are faced with the challenge of not having enough volume of knowledge and what channels to follow (Rajendra, 2008). The only solution to this is developing more awareness on different channels. Effective targeting An international marketer must know the targets, and ensure that the value and message being provided is relevant to the audience. The character of the customer should be identified appropriately. In overcoming this challenge, marketers must go the extra mile of identifying the needs, the segments by demographics, and come up with some behavior-based profiles (Robert, & Sonny, 2003). Once the market persona has been identified, information can be provided to the target closely. Using media technology to target more revenue and customers The social media has become a valuable technology for business marketing. The challenge here is converting the social media engagement into dollars. (Shaoming & Huifen, 2011). The presence of the social media alone is not enough. The science of engaging, targeting, and nurturing the audience with some social presence is crucial. Therefore, international marketers should be able to recognize the influencers, and other segment groups who have similar social interests and activity. Keeping up with strategies and marketing trends Marketers go through several transformations. Marketing has shifted from the print media to online media. The social media has brought about new marketing tools, thus demanding more learning to keep updated. However, social media provides a two way form of communication. Fortunately the solution to this challenge understands your audience, how to provide some value to the audience and what the tools to use are. Most international marketers are exploring the new technologies with an option of improving their marketing techniques. Proving and increasing return on investment There are several advanced analytical tools available for international marketers. Currently, doing marketing is not enough. The marketer should understand and measure the value of every effort in terms of customers, leads, and revenue (William, 1994). Marketers are constantly working to prove that their return on investment is sufficient to warrant them time, money and effort. Effective marketers will strive to tie very customer to the dollar earned back by the marketing initiative. 4.0. Opportunities for international marketers 4.1. Social Media The social media has advanced internationally and can be used in reaching oversees customers 4.2. Other International Media International mass media is everywhere both on Internet and worldwide TV channels. The media can be used as a marketing opportunity, thus minimizing the expenditure. 5.0. Conclusion The economy of Australia has advanced and is still developing to higher limits. The financial, legal, political, and social landscape are very strong as compared to other nations. However, the country’s international marketing strategy has improved in the overseas marketing operations in countries such as US. In the near future, the Australia market is expected to boom. Besides, the use of different marketing tools has enabled Australia access the international market. More needs to be done in order to be at bar with the other completive markets such as the US. Marketers’ challenges such as language barriers, awareness creation, effective targeting, and use of emerging media technologies, and keeping up with market trends can always be overcome in the long run if markets work on their management systems in marketing. Thus, this article is resourceful in educating readers on how to improve on international marketing in Australia. The forces are several, cutting across finance, legal, political and social environments. References Annetter, VB 2005, The Australian Art World: Aesthetics in a Global Market, Allen & Unwin, Crows Nest. Australian Bureau of Statistics (ABS), 2013, ‘Population Clock’, viewed 28 November 2013, http://www.abs.gov.au/AUSSTATS/abs@.nsf/Web+Pages/Population+Clock?opendocument#from-banner=LN Australian Government 2013, ‘The Outlook for Australia to 2025’, viewed 01 December 2013, http://asiancentury.dpmc.gov.au/sites/default/files/fact-sheets/4.-The-Outlook-for-Australia-to-2025.pdf Austrade, 2013, ‘Why Australia’, viewed 28 November 2013, http://www.austrade.ogv.au/Invest/Why-Australia/Growth Kotabe, P 2008, International Marketing: An Asia Pacific Focus, Wiley India Pvt Ltd, New Delhi. Leonidou, LC, Katsikeas, CS & Piercy, NF 1998, Identifying Managerial Influence on Exporting: Past Research and Future Directions. Journal of International Marketing, 74—102. Loueter, PJ, Ouwerkerk, C & Bakker, BA 1991, An enquiry into successful exporting. European Journal of Marketing, 55-57. Madsen, TK 1989, Successful Export Marketing Management: Some Empirical Evidence. 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