LEGAL & CULTURAL ENVIRONMENT IN INTERNATIONAL MARKETING

Presented by:1. Amol Khadse(13) 2. Chetan Jadhav(117) 3. Mohan Rathod 4. Rakesh Bagade

LEGAL ENVIRONMENT
2 major legal systems: 1. Common law systems: Relies heavily on precedents & conventions. Laws are traditioned oriented. Eg. USA, Great Britain, India,Canada 2. Statute law system: As the name implies the main rules of law are embodied in legislative codes. Every circumstance is clearly spelled out to indicate what is legal & what is not. Eg. Japan, Continental Europian Countries.

MULTIPLICITY OF LEGAL ENVIRONMENT

Domestic, foreign,& international. Some products can not be legally imported into most countries. Eg. Illicit drugs, espionage equipments. Many products have to be modified to conform to local laws. The modifications can be quite technical from an engineering standpoint or packaging changes. A companys production strategy can also be affected by legal environment. There are no international law per say that prescribes acceptable & legal behavior of international business enterprises. There are only national laws often in conflict with one another.

LEGAL FORM OF ORGANIZATION

Public limited company Private limited company Sole proprietorship Partnership Corporation CORPORATION : most common for international trade Limited liability associated with the corporate form. Relatively permanant structure. Ability to raise money by selling securities.

INTELLECTUAL PROPERTY
Individuals & firms have freedom to own & control the rights to intellectual property.
1) 2) 3)

PATENT: Protects an invention of scientific or technological

nature.

TRADEMARK: Refers to know how(methods, plans) used

to distinguish product from other similar goods.

COPYRIGHT: Offers protection against unauthorised

copying by others to an author or artist for his literary, musical,dramatic,artistic work. Now extended to computer software as well.

4)

MASK WORK: New type of intellectual property

protected by Semiconductor Chip Protection Act of 1984.

 Counterfeiting:

Practice of unauthorised and illegal copying of product. It is a serious business problem. In addition to direct monetary loss ,company faces indiret losses as well.
Gray

market: Exits when an unintended channel of

distribution performs activities simslar to the planned channel.

In international context grey market product is one imported by an unauthorised party.

CULTURAL ENVIRONMENT
Culture is a set of traditional beliefs & values that are transmitted and shared in given society. Culture means many things to many people because the concept encompasses norms,values,customs,arts and more CHARACTERISTICS OF CULTURE: 1) Perspective 2) Socially shared 3) Facilitates communication 4) Subjective 5) Learned 6) Enduring 7) Cumulative 8) Dynamic

INFLUENCE OF CULTURE ON:

1)

2)
3)

Consumption Thinking process Communication process

VERBAL COMMUNICATION

Language is a significant part of culture & communication is impossible without it. Marketers should attempt to understand how consumers process linguistic information. A marketer must be careful even when same language is used in two or more markets such as Great Britain & US. Language differences often necessitates marketing strategy modification & also product to be adjusted to some extent.

NON-VERBAL COMMUNICATION
People do not always communicate through the spoken or written words. Knowingly or not people communicate in nonverbal manner also Some body language phrases are universal but other vary in meaning across culture line. Eg Japanese view prolonged eye contact as Rude whereas Americans instead feel that avoidance of eye contact is impolite.

VARIOUS FORM OF NONVERBAL COMMUNICATION

1)

2)
3) 4) 5) 6) 7) 8)

Language of Time Language of space Language of agreement Language of friendship Language of negotiation Language of religion Language of color Language of gifts

THANK YOU....