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Impact of political risks in international marketing: the case of West Africa

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par Samuel Yapi ANDOH
University of Northern Washington, USA - MBA, International Marketing 2007
  

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1.3.1. Cultural environment

The ways people appreciate manufactured items, express their specific needs, and purchase, are deeply rooted in their culture. Culture itself is a collection of values, beliefs, behaviors, customs, and attitudes that distinguish and define a society. It is often said that culture is learned, shared and transmitted from one generation to the next. Nevertheless, in the context of international marketing, it seems not appropriate to learn a culture, we have to live it. That is why Stephen Kobin [3] classified business travel and assignment overseas as the top two factors considered critical and important for culture knowledge. However, at least the factual knowledge of culture can be learned and the interpretive one be acquired through experience.

International marketer needs both knowledges to master language, religion, values and attitudes, manners and customs, aesthetics, technology, education and social institutions, which all determine a given culture.

In business context, two schools of thought exist. One assumes that business should prevail upon culture factors in marketing approach. The other proposes that companies must tailor business approach to individual culture. Also, for efficient managerial purpose, any international marketer should consider any cultural aspects of a given society if this is the only way to succeed there.

In the case of Sub-Saharan Africa in general, and West Africa in particular, cultural similarities (religion, language, tradition patterns, high illiteracy...) are greater between countries. This psychological distance factor could guide the manager willing to trade within West African countries.

1.3.2. Economic environment

International marketing activities are favored by appropriate economic environment. The secure economic environment could be judged by the international marketer through some market's characteristics such as population, income, consumption pattern, infrastructures, geography and attitudes towards foreign investments.

The population growth rate serves for estimation and active population is the main source of labor a company may need. Markets require not only people but also purchasing power, which is a function of income, prices, savings, and credit availability. The share of income spent on products will provide an indication of the market development level as well as an approximation about how much money left for other purchases. So, information on the percentage of households in a market that own a particulars product, allow a further evaluation of market potential. The successful economic environment involves the presence of basic economic infrastructures. They consist of transportation (roads, railways, highways, and airports) the so-called linear development, energy (water supply, electricity, oil, gas), and communications systems (television, media, telephone, internet...).

Regional economic groupings are powerful factors an international marketer should never neglect. In fact, economic integration in world markets transactions poses unique opportunities and challenges for corporate international marketing systems. Removing barriers between member markets and erecting new ones for non members will call for adjustments in past strategies to fully exploit the new situations.

In West Africa, there are also several economic grouping, but the most important are ECOWAS (Economic Community of West African States), and UEMOA (Union economique et Monetaire Ouest Africaine) we will further describe in the second part of the thesis.

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