Ethical and environmental considerations - OCRInternational business competition- e-commerce

The marketing mix refers to product, price, place and promotion. When they are trying to compete on an international scale, businesses have to adapt their marketing mix. This is because different countries have different beliefs, income levels, and levels of demand for each type of product. These differences affect each element of the marketing mix.

Changes that a business might need to consider include:

• product - styles, fashion trends, sizing, cultural beliefs (eg colours that are considered lucky in one country may be associated with danger in another), dietary requirements, eg some places may require halal or kosher foods and infrastructure, eg right- or left-hand-drive cars and different types of electrical plug.
• price - may be affected by tariffs and trading blocs, income levels and disposable income, tax, exchange rates and level of demand
• place - access to the internet in certain countries, purchasing preferences in some countries (e-commerce may not yet be popular) and distribution links in certain countries
• promotion - cultural and social differences, language and translations

How businesses compete internationally – the use of the internet and e-commerce

E-commerce is any business transaction that takes place using the internet.

Using the internet and e-commerce is becoming essential for businesses that want to expand, such as small businesses. This is because the internet and e-commerce provide easy ways for businesses to gain access to a much wider range of potential customers.

For example, a small clothes shop in Manchester could decide to set up a website and start selling clothes through e-commerce. The owner might also decide to create websites in different languages, to allow overseas customers to understand the information and purchase the shop’s clothes.

Advantages of e-commerce for a growing business include:

• open 24/7
• cheap to operate compared to physical stores
• gives access to a huge range of potential customers
• easy to sell to overseas customers
• provides access to cost-effective promotional methods, such as social media and email advertisements