(1) Provide some observations on the PEST-C variables as they relate to global marketing.
Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.
Canadian marketers must be sensitive to, and accommodate, several differences surrounding global marketing. By observing the PEST-C variables, international businesses are able to make smarter choices in their global marketing decisions. PEST-C is a common acronym for political (law), economic, societal, technological, and cultural (attributes that must be thoroughly understood and analyzed in order to succeed in the international marketplace).
First, P stands for Political. Political issues must be understood because different countries have various political views. Some are under theocratic law, or common law. These differences must be realized to be successful internationally. SMEs must be aware of how the host country’s business laws and regulations that may affect their marketing operations (i.e. regulatory, business, banking, and accounting practices). Most countries will have laws and regulations relating to workplace safety, consumer protection, environmental standards, food and drug standards, advertising restrictions, piracy and counterfeit goods laws, etc. SMEs must exercise care to determine that they’re obeying the laws of the host jurisdiction to be successful in the international marketplace.
Second, E stands for Economic. If it is not understood how an economy works, a company will not be able to do business there. There are various economy types, and if you do not operate in a way that citizens are used to, international business will not work (i.e. economic growth rates, investment values, and exchange rates). Purchasing power parity varies throughout the global marketplace. Developed countries’ products often have many attributes that are neither required nor affordable for foreign consumers in developing nations. Marketers must think carefully about the appropriateness of the goods they’re intending to offer in host countries
Third, S stands for Societal. A society can be individualist or group orientated. Companies must understand how people feel about each...