For a company interested in marketing a product such as a theme park, this means considering the demographics of the target country and the environment which creates extra income and time to permit citizens to visit the theme park in question.
Once the company has analyzed the characteristics of the market and determined that the product in question is a viable candidate for entry, it must consider the marketing institutions that are in place in the target market. These vary widely from one country to another, but are critical in whether an imported product is successful. These institutions include the distribution system within the country, the communication media available for promoting the product, and marketing services that are available (advertising agencies, research companies and similar service organizations).
In some countries, recognizing that a poor distribution system exists enables companies to make decisions regarding whether to manufacture products abroad and import them into the country, or to manufacture products locally in order to avoid the poor infrastructure. This is particularly important for a company such as Disney which relies on local producers for food and for the many props and costumes as well as manufactured products which are used in theme parks.
Understanding the types of media available and the types of advertising available means that the company can not only form a promotional strategy, but can also begin to determine the costs associated with providing the necessary marketing support for the product. The availability of marketing services in the country makes it known to the American company how much internal information will be readily available; this information is important because it gives the American company critical advantages that it would not have if it did not have indigenous information.
The American company must also learn all that it can about the industry conditions ...