2.1) The macro environmental factors that need to be considered when looking at each country are Social & Cultural Environment, Legal environment, Economic environment, Political environments and Technological environment. The two macro environmental factors I have chosen that would have an impact when doing business in Nigeria are;
Political Environment is defined as the government and its institutions, the public and private stakeholders who do business and interact with the different systems. For a business to have a positive impact, the favourable political conditions should be good and stable. However, if there is a change in government it would often result in a change in policy.
Economic Environment refer to all the external economic factors of the macro and micro environment. Macro environment includes unemployment, income, inflation, exchange rate and tax rate. Micro environment includes the size of the market, demand for the product or service, competitors and distribution systems. These factors can influence buying behaviour of consumers and businesses which will influence the performance of the organisation. These economic factors can’t be controlled by the organisation, but they can evaluate these in identify possible opportunities, threats and if the currently strategy needs to be change.
2.2) Nigeria is strategical allocated to service the Africa market and easy access to the rest of the world which is attractive to business looking at entering the Nigerian Market. The political and economic environment will impact the business entering Nigeria in the following way;
President Muhammadu Buhari was elected in March 2015. His version for Nigeria was one that would attract investors and to achieve this, he believes in 3 pillars which are; 1) creating peace and security, 2) fighting corruption and 3) diversifying to economy.
Through the new investment policies Nigeria has created an investment programmes which includes policies that welcome investors and provide assistance with legal and institutional support.
President Muhammadu Buhari’s administration is committed to improving investment environments which will allow for doing business in Nigeria easier across borders.
Due to the crash of commodity prices in Africa and the global changes in trade, Nigeria had to adopt however this created an opportunity to diversify the economy, foreign exchange between different countries and to improve on government revenue.
With the improvements on infrastructures, telecommunication, good network of roads and transportation for distribution and many natural resources has made Nigeria an attractive economy for foreign investment.
Nigeria is known as a country that has cheap work force, dynamic, well-educated and these are some of the factors that will influence the behaviour of consumers towards a firm’s products or services.
2.3) When entering a new market, the organisation needs to understand how the country does business with other investors and factors that would affect the organisation business operations like culture, rules and regulations. Would I consider opening a new business in Nigeria? Yes, and these are some of the reasons why;
Nigeria is strategical allocated to service the Africa market, easy access to the rest of the world, large market, number of natural resources and cheap work force that is dynamic and well educated.
Nigeria supports invest programmes through welcoming policies, legal and institutional support. The new administration is committing to improving invest climates and improving the ease of doing business, trading across borders. The administration has set up a committee to provide conducive climate for investment in the country.
With governments involvement to improve on power, telecommunication, good road networks, transportation, the amount of agriculture with a large natural resources and telecommunication systems makes it very attractive to invest in the country.
Organisations who have entered Nigeria have been assisted by (NIPC) to ensure the arrival of investors settle with ease, ensuring their children are accommodated in schools and the organisations have had the highest return on investment in the world
2381251426210003.1) When collecting primary data, the researcher needs to remember each country has different cultures, communication methods and values. Primary research is data that has not been collected previously for other research projects. As the data is not already available and cannot be compared to previous projects there are several problems a researcher will encounter when collecting primary research. These are;
When doing research, it is not possible to collect data from all the individuals the organisation will target for their product or service. Sampling allows the organisation to gather data from a select number of respondents within the target market. If demographic data is not available and accurate it can prevent the research team from selecting the correct sample.
The cultural differences are one factor that a researcher would need to consider when doing research in a country. The willingness to response to the researcher’s questions will depending on the cultural hierarchy as the product or service might be used by the wife but the head of the household is the husband as he is the provider. This means if the research is about washing powered, he would speak to the husband and not his wife, who uses the product.
Most African countries are known for the low levels education and lack of language and comprehension can lead to barriers of miscommunication, misunderstanding and incorrect translations from one language to another. These barriers can affect the responses provided and incorrect data being collected. If the population is not able to read, advertising using newspaper, magazines or brochures would not be effective.
Marketer of the local country entering the international market needs to remember the different between the cultures and how this will have an impact on the marketing strategy used. The local firm will need to determine if the marketing strategy should be standardised or adapt to the international market. When making this decision, marketers need to do multicultural research to understand the different cultures of each country.
When explaining the product or service attributes, concept and opinions the target market needs to be able to recognise the product or service value in using it. The ability to communicate opinions is critical as the target market will not purchase a product or service they do not understand how to use and how it will add value therefore will purchase from a competitor.
3.2) As mentioned in 3.1 there are a few problems that will affect the collection of primary data. As a marketer needing to conduct primary research in Nigeria, below are some solutions on how to overcome these problems.
In selecting the sample of the population to be used for the data collection, the researcher would need to understand how many households live in urban, rural areas and how many of them use electricity as a source of power.
There are different buying power hierarchy within the culture and the researcher would need understand that Nigeria culture and who in the household would decide on which products or services are purchased even through they might not be the individual using the product or service.
The 3 major languages in Nigeria are Hausa, Igbo and Yoruba. The organisation can employ a researcher or guide from Nigeria who speaks the languages and group the questionnaires according to the different languages.
Culture is important to a country and the research must understand the culture of Nigeria, so they do not offend the respondent or impression that the researcher culture is superior.
The researcher needs to be able to clearly communicate the benefits of using a product or service. If the respondent is not able to understand how to use or the benefits of the product or service, they will move onto a competitor’s product or service.
4.1) An organisation looking to expand their operations into international markets will need to understand the different marketing orientations before deciding to enter the international market. The three marketing orientations which need to be considered are;
Domestic market extension orientation is described as a local organisation is wanting to expand the local product or service into the international market. The local market takes priority and any sales generated by the expansion is seen as the profitable extension of the local market. Proudly South African products available in the international market.
Multi-domestic market orientation is when the organisation recognises the international market is different to the local market and would require for a different marketing mix for each country. McDonald’s in India has been adjusted to the Indian culture and customs.
Global marketing orientation refers to an organisation applying their marketing strategy to globe and offering a product or service which is at a reasonable price to the market. Coca Cola is an example of an organisation that have applied this orientation and they targeted different market segments that have the similar demands
4.2) As an award-winning wine producer in South Africa, the international marketing orientation we would select Domestic market extension orientation for the following reasons;
South African is filled of rich history, culture and wineries using unique techniques to produce quality wine with personality of our beautiful country. As there are a number of South African’s living abroad, having the Proudly South African logo will allow our wine to stand out for the international marketing and remind South African’s of the uniqueness of local wine.
We a member of the Proudly South African group and the logo will enable us to enter the homes of South African aboard and share the uniqueness with friends or colleagues.
This platform will allow us to marketing campaign’s which will encourage purchasing with other members and form relationships international. We have forms relationships with South African wine exporters who will be able to assist in different distributions into supermarkets, wine bars, hotels and restaurants.
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