Impact of Culture and Other Macro Factors on the Marketing of Products Essay

Impact of Culture and Other Macro Factors on the Marketing of Products as Well as Insight into Market Attractiveness and Entry - Essay Example International marketing can be defined as application of marketing principles outside the domestic market which include similar functions like conception, promotion and distribution of products and services in order to satisfy market demands as well as organisational objectives (Papavassiliou and Stathakopoulos 1997). Generally, international marketing is confused with terms like global marketing and export but these terms are different. (Appendix 6) Market Segment Analysis Market segment analysis provides a comprehensive analysis of the children’s market. Segmentation of the market is the process through which market can be defined and accordingly subdivided into various segments whose needs, wants and demands are similar in nature (Ernst & Young's 2011 Russia attractiveness survey 2011). It is very useful in international marketing because it directs the way for designing the marketing mix according to the expectations of the target market. There are few companies which are big enough to fulfil the varying demands of the entire market. However, most of the companies prefer market segmentation into several segments and opt for the one or more than that whose demand it can easily fulfil (Retail and FMCG sector in Russia 2011). In relation to today’s children, it can be said that they have their own lifestyle which is largely affected by their surroundings, background and education. Children’s segment itself forms a huge market for books, video-games, garments, accessories and even for magazines (World of toys 2011). And, Russia is witnessing growth in all these sections (Mintel 2012). In every country of the world, this segment is rapidly growing. This segment is important because it not only affect children but also their parents, schools and day care centres because they are the ones who either buy for them or provide them with money to buy. Three or four decades ago, no-one could consider children as a customer but now the market scenari o has entirely changed and children form a big consumer market (Levitt 1983). There is variety of products and services are available for which children are segmented as huge market potential. Both retailers and wholesalers view them as viable market hence involved in child-focused advertising (Donthu, N., 1998; Belluz 2010). In today’s rapid changing business scenario, children are forming most lucrative market as they are three markets in one. Firstly, they have their own needs and desire and purchasing power too through their pocket money. Secondly, they influence, persuade or ask their parents to buy for them which are another form of market and thirdly, in future they themselves emerge as consumers hence marketers cultivate them. Size of children’s market is growing because of the rising world population (Anon 2010; Usunier and Lee 2009). Macro-environment analysis The target market for the magazine is children. Magazine is entertainment in the form of reading and children from the age of 6 develop good reading skills hence the age group of 6 to 14 will be mainly targeted. Large size of market increases the potential of Russian children’s market for the international marketer (Solomon et al. 2009; Sloman 2007). In addition to this, the political environment of the country is stable and under the presidential-ship of Putin the country has transited from communist state to market economy. Though, Russia is not considered as free economy for doing business yet its position is continuously