The economic environment affects the organization in many ways. This is more important in the case of international marketing as the economy of the targeting country as well as international economy affects the company’s profits. The economic environment affects the consumer trends and the distribution channel. It is essential for every organization to have an international strategy for dealing with economic factors.
Products and Economy
Only after careful study of the economic conditions should be the products marketed. Otherwise, one product successful at a place will be a failure in other countries. Every product need to adaptable to the local market in the country in which it is being sold.
Price and Economy
The price for which a product is being sold in an economy varies upon the economy of the targeting location. A competitive price at the home country may not be feasible in the foreign country. In some rare cases, a products being manufactured on large scale can compete with local products and this should be watched while marketing products internationally.
Marketing Channels and Economy
While marketing a product it is advisable to check whether the product can be marketed in partnership with a local marketing channel for better economical aspects. And in some cases creating a marketing channel where competition is less will be good as far as economic aspects are concerned.