Special Problems in International Marketing
(1) Political and Legal Differences: The political and legal environment of foreign markets is different. The complexity generally increases as the number of countries in which a company does business increases. The political and legal environment is not the same in all provinces of many home markets. For example, the political and legal environment is not exactly the same in all the states of India.
(2) Cultural differences: Cultural differences pose one of the most difficult problems in international marketing. It is essential to understand cultural differences to formulate successful marketing strategies. However, many domestic markets, are also not free from cultural diversity.
(3) Currency unit differences: The currency unit differs from nation to nation. This may sometimes cause problems of currency convertibility, besides the problems of exchange rate fluctuations. There may be differences also in the monetary system and regulations.
(4) Language differences: An international marketer often faces problems due to language differences. Even when the same language is used in different countries, the same words or terms may have different meanings. However, the language problem is not something peculiar to international marketing. For example, the multiple languages in India.
(5) Marketing Infrastructure Differences: The availability and nature of marketing facilities available in different countries may differ widely. For example, an advertising medium very effective in one market may not be available, or may be underdeveloped, in another market.
(6) High Costs of Distance: When the markets are far removed by distance, the transport cost becomes high and the time required for the delivery tends to become longer. Distance tends to increase certain other costs also.