Essay on International Marketing,15 International Marketing Topics: Best Ideas
WebInternational marketing is that the company wants to expand their market enter into other countries. If one company wants to enter international market they should think about WebThus, international marketing has become essential as it allows a business to grow across borders. Franchising, licensing, joint ventures, as well as export and foreign investment WebThis international marketing program uses strategies to accomplish its marketing goals. Within each foreign nation, the firm is likely to find a combination of marketing WebAug 6, · Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, the WebDec 4, · International Marketing In many ways, domestic marketing and international marketing are similar. They are based on the same fundamental ... read more
The entry mode may vary from simple indirect exports through a merchant intermediary to owning overseas operations. As a thumb rule, low-investment entry modes, such as exports, yield lows returns but are less risky and involve much lower exit costs. Small and mid-sized companies with resource constraints often prefer to enter international markets by way of exports. Even for large companies, exports is the preferred mode of entry to test new markets or new products in the existing markets, primarily due to the relatively lower costs of exit and low resource-commitment in test markets it involves.
Contractual entry modes, such as international licensing and franchising, offer rapid market entry opportunity with low-resource commitment by transfer of intellectual property. Licensing is generally used in case of manufacturers, such as pharmaceuticals, computer software, consumer durables, etc. Companies with specific management skills may enter international markets by way of management contracts and turnkey projects. To own overseas operations requires considerable financial, technical, and human resources. Hence, companies enter international markets by wholly owned subsidiaries with long-term perspective only if the market has significant potential both in terms of size and growth.
Although owning overseas operations requires considerably higher level of resource commitment and much greater risk exposure, it offers higher returns and operational control. The company may decide upon the entry mode depending on resource availability and willingness to invest in international marketing operations. Besides, the risk it is willing to take and the control to exert, also play an important role in determining the entry mode. Various tools used in marketing may be classified into the four Ps of marketing: product, price, place, and promotion, widely known as marketing mix.
As a company can modify the four Ps in response to the environmental variables, these are often referred to as controllable factors. A business enterprise has to operate under the constraints of a number of external environmental factors, such as social, economic, political, legal, technological, cultural, etc. These environmental factors are known as uncontrollable elements over which a marketer hardly has any influence, but the marketing challenge is to adapt the controllable elements of the marketing mix, i. Although the fundamentals of marketing remain the same and are universally applicable, the flexibility of marketing decisions is limited by a variety of uncontrollable factors in international markets. This makes decisions for international markets much more complex compared to domestic markets.
International firms have to take crucial decisions either to make use of a standard marketing strategy across countries or adapt it to suit the needs of different country markets. Perceptions and expectations about the products differ to a varied extent across countries which makes decision-making about products much more complex for international markets. A product is anything that can be offered to a market to satisfy a want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
Support services and other augmented components, such as warrantees, guarantees, and after sales service. Ever-growing market competition compels firms to innovate so as to maintain their market share. The pressure to bring out new products is much more intense on firms operating in international markets. The global market leader in safety razors, Gillette, positions its products on functional superiority by adding more number of blades to its razors Exhibit New product launc h:. Depending upon the market and the product attributes, a firm may adapt one of the following strategies Fig. The waterfall approach is generally more suitable for firms that have limited resources and find it difficult to manage multiple markets simultaneously.
In case the size of the target market and its growth potential is not sufficient to commit considerable resources, product launch may be carried out in a phased manner. This strategy had long been followed in international marketing. It took a long time for a number of firms, which are now global, to launch their products in international markets. Firms catering to international markets are increasingly segmenting markets on the basis of the psychographic profiles of their customers. Such market segments extend beyond national borders and need to be approached at the same time. In case of luxury consumer goods wherein the fashion trends rapidly change across international markets, simultaneous product launch is preferred.
IT software, such as Microsoft products are launched across the world simultaneously as there is no time lag between markets. Growing competitive pressure in international markets and the decreasing market gap has encouraged simultaneous product launch. When consumers think of a product or service, they only compare the basic attributes and features and compare it with those of competitors whereas branding ads an emotional dimension to the product-consumer relationship and create a bond between them. A brand is defined by the American Marketing Association as a name, term, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
Thus, a brand identifies a seller or maker under trademark law; the seller is granted exclusive rights to use the brand name in perpetuity. Brand name differs from other assets such as patents and copyrights, which have expiration dates. Low-income countries often sell unbranded generic products that fetch relatively much lower prices and are generally targeted to the lower end of the market. Price competitiveness is the major competitive advantage for generic products and commodities, making such products highly prone to market competition. Besides, brands facilitate coping with market competition and increasing the life of the product. In present times when the mobility of the consumers, including trans-national travel, is rapidly growing, brands serve as an effective tool in international marketing since the image of the brand crosses national boundaries.
Brands contribute to forge an emotional relationship with the consumers and facilitate their buying decisions by enhancing their confidence while purchasing their favourite brand. With the increased competitive intensity in the markets, even basic commodities, such as rice, tea, edible oils, salt, and petroleum are branded widely. A global brand should have a minimum level of geographical spread and turnover in various markets worldwide. However, in the fields of information and communication technology, a lot of leapfrogging has taken place; for instance, a number of Indian IT companies with little domestic presence aim at global markets.
Developing a global brand requires enormous resources and enduring commitment. Therefore, most brands that have global reach emanate from high-income countries. Among the top hundred global brands, the US is home to the highest at 52 brands, followed by 10 from Germany, nine from France, eight from Japan, six from the UK, four from Switzerland, three from South Korea, two from Italy, and one each from Sweden, Spain, Finland, and Bermuda. Interestingly, no brand either from India or China falls in the top The price is the sum of values exchanged from the customer for the product or service.
Price is generally referred to in terms of amount of money but it may also include other tangible and intangible items of utility. Pricing decisions in international markets are extremely significant for developing and least developed countries mainly due to the following reasons:. As the market share of developing countries is relatively lower and these countries are marginal suppliers in most product categories; therefore, they have little bargaining power to negotiate. This compels them to often sell their products in international markets at prices below the total cost of production. Since the majority of products from developing and least developed countries are sold in the international markets as commodities with marginal value addition, there is limited scope for realizing optimal prices.
In view of the fiercely competitive markets and complex pricing strategies adopted by multinational marketers, formulation of appropriate pricing strategies with innovation becomes a pre-condition for success in international markets. Costs are widely used by firms to determine prices in international markets, especially in the initial stages. The price quoted by the exporter on the basis of cost calculations may either be too low vis-a-vis competitors that allow importers to earn huge margins. The price quoted by the exporters may be too high to make their goods uncompetitive resulting in the outright rejection of the offer.
It is the most common pricing approach used by exporters in the initial stages of their internationalization. It includes adding a mark-up on the total cost to determine price. Useful for firms that are mainly dependent upon international markets and have very low or negligible sales in domestic markets. It often overlooks the prevailing price structure in international markets, which may either make the product uncompetitive or deprive the firm from charging higher prices. As competitors often use price-cutting strategies to penetrate or gain share in international markets, the full cost pricing approach fails to withstand the price competition.
In view of the huge size of international markets compared to domestic market, exports are considered to be outlets to dispose of surplus production that a firm finds difficult to sell in the domestic market. As the intensity of competition in international markets is much higher than the domestic market, competitive pricing becomes a pre-condition for success. Therefore, a large number of firms adopt the marginal costing approach for pricing decisions in international markets. Marginal cost is the cost of producing and selling one more unit. It sets the lower limit to which a firm can reduce its price without affecting its overall profitability.
Under the marginal cost approach, the firm realizes its fixed cost from domestic markets and uses variable costing approach for international markets Fig. In cases where foreign markets are used to dispose off the surplus production, marginal cost-based pricing provides an alternate marketing outlet. As products from developing countries seldom compete on brand image or unique value, marginal costing is used as a tool to penetrate into international markets. Selling on marginal cost-based pricing provides some contribution that the firm would forego in case it decides not to export at marginal cost-based price. Nevertheless, major limitations associated with marginal cost-based pricing approach are:. In case the firm is selling most of its output in international markets, it cannot use marginal cost-based pricing as the fixed cost is also to be recovered.
Pricing based on marginal cost may be charged as dumping in overseas markets and is liable to anti-dumping action subject to the investigations. Such pricing tends to trigger price wars in overseas markets and lead to price undercutting among the suppliers. Use of marginal cost-based price with little information on prevailing market prices leads to unrealistic low-price quotations. It is a popular myth that costs alone determine the price. In fact, it is the interaction of a variety of factors, such as costs, competitive intensity, demand structure, consumer behaviour, etc. However, costs serve as useful indicators of the profitability of a firm.
Therefore, a market-based pricing approach is generally preferred to a cost based pricing. As developing countries are marginal suppliers of goods in most markets, they hardly have market shares large enough to influence prices in international markets. Hence, the exporters in developing countries are generally price followers rather than price setters. Besides, the products offered by them are seldom so unique to enable them to dictate prices. Under such market situations, the pricing decisions by price followers from developing countries involve assessment of prevailing prices in international markets and working out prices based on top down calculations. A large number of exporters in the initial stages of their business use cost-based pricing which is hardly the best way to determine price in international markets.
However, the cost is often the key determinant of the profitability of a firm in selling the product. Firms located in different countries do have significant variations in their costs of production and marketing but the price in international markets is determined by market forces. Therefore, the profitability among international firms varies widely, depending upon their costing. In general, the ex-works cost is only about 20 per cent to 30 per cent of the price the consumer pays for the product; any savings in cost of production is likely to have a multiplier effect on the final price paid by the consumer.
Competition is much higher in international markets compared to the domestic market. Besides, the competitive intensity and its nature vary widely across countries. In a large number of markets, the competition is from international firms while the local firms or local subsidiaries of multinationals offer major competition in some markets. Competition in local markets is the most intense in Germany with a score of 6. Purchasing power of customers varies very widely among countries. Gross domestic product GDP per capita, Serves as a broad indicator for purchasing power. A firm operating in international markets should take into consideration the ability of buyers to pay while making pricing decisions.
A company has leverage to provide additional product features and charge relatively higher prices in countries with high purchasing power. The rise in purchasing power of customers leads to increased demand for additional product features. Buyers from countries with high income are more demanding and knowledgeable and the buying decision is primarily based on superior performance attributes whereas the buyers from low-income countries have been reported to make choices based on the lowest price. A firm operating in international markets has to keep a constant vigil on fluctuations of exchange rates while making pricing decisions. The currency of price quotation has to be decided by watching its movements over a period. As a general rule, firms prefer to quote prices in strong currencies for exports and weaker currencies for imports.
Ensuring smooth flow of goods from the place of the manufacturer to the ultimate customer is critical to success in international markets. For making the goods available from the producer or manufacturer in one country to an overseas customer, a number of market intermediaries are involved for physical transfer of goods. Besides, the firm receives the payments through a channel of such intermediaries. Channels of distribution play a crucial role in making the product or services reach the end consumer. Realizing payment that flows from the ultimate customer through market intermediaries to the producer or manufacturer. Managing distribution channels in international markets is much more complex than domestic market due to a number of factors:.
The distribution system in international markets varies significantly from one country to another. Therefore international managers have to develop a thorough understanding of the distribution channels in target markets. For instance, prior to Perestroika, the marketing channels in the erstwhile USSR were controlled by the government. The Foreign Trade Organization FTO , the enormous government body, was involved in bulk imports and distribution through a government-controlled distribution network. However, after the disintegration of USSR, it was found that private distribution channels were largely non-existent in CIS markets and the international firms were required to create their own distribution networks.
Firms are more familiar with the system of marketing channels in their home market; therefore, selection of distribution channels in overseas markets often is a complex decision. Collecting information about distribution channels in overseas markets requires greater resources, both managerial and financial. Since a firm commits substantial resources for its overseas marketing operations, the long-term commitment of channel members is an important but difficult-to- assess aspect in channel design. International distribution channels may broadly be divided into two categories: direct and indirect channels.
In indirect channels, a firm deals with only a home-based intermediary and does not come in direct contact with the overseas-based market intermediary as shown in Fig. Over recent years, the advent of e-channels have revolutionized international marketing channels, overcoming the barriers of distance, speed, and transportation cost, thereby opening up enormous marketing opportunities, especially in the service sectors, even for developing countries, such as India. A firm now has the option to make its products available in the international market through either of the e-channels or a combination thereof. The retailer buys the goods from wholesalers or distributors and sells it to the ultimate customers in the international markets.
The retailers serve the important function of carrying inventories, displaying products at sales outlets, providing points of purchase PoP promotions, and extending credits. Retailers do provide market feedback to the firm that is highly significant in reviewing its marketing decisions. The retailing system varies widely among various countries. Organized retailing is gaining significance across the world and has therefore emerged as a powerful marketing channel. The global trend indicates a decline in the number of retail outlets but an increase in their average size with the increase in per capita income of a country. As the size of retail outlets increases, the emphasis shifts to market expansion and efficient management of international logistics.
The large retailers expand their operations in international markets and evolve supply chain systems in an internationally integrated manner so as to achieve efficiency. The legal framework also varies significantly across countries. In countries such as Japan, France, Italy, and Belgium the legal framework serves as deterrent to the establishment of new large-scale retailers. Interestingly, out of the top 10 retailers, six are from the US and four from Europe. Kroger and Target Corp. The Global Retail Development Index GRDI developed by A. Kearney facilitates international retailers to identify the most promising markets for strategic investments.
The GRDI is computed based on the weighted average of country risk, market attractiveness, market saturation, and time pressure. India remains the hottest investment destination for global retailers as it ranks at the top of the index followed by Russia, China, and Vietnam, as indicated in Fig. Wal-Mart, Carrefour, and Tesco established a presence in India. However, this does not extend to multi-brand retailers, such as Wal-Mart, Tesco, and Carrefour, forcing these major companies to operate through a franchise or cash-and-carry wholesale model. This made Wal-Mart join hands with Indian telecom giant Bharti Enterprises that will own retail shops under the Wal-Mart franchise, and Wal-Mart will operate the logistics, procurement, and storage activities.
Carrefour is engaged in talks with the India-based Wadia group and Britannia to negotiate an agreement that would establish its presence in the market. Raheja Corp. The control of local companies over international distribution and marketing is the highest in Iceland and Switzerland with a score of 5. This has also been referred to as promotion, the fourth P of the marketing mix. Firms attempt to convey a set of messages to the target customers through some channel in order to create a favourable response for their market offerings and regularly receive market feedback. While marketing across countries, a firm has to communicate to the customers and the channel intermediaries located in overseas markets that considerably differ in terms of the characteristics of their marketing environments.
The differences in cultural environment, economic development of the market, regulatory framework, the language, and media availability make the task of communications in international markets much more complex compared to domestic markets. The marketing communication mix involves advertising, direct marketing, personal selling, sales promotion, public relations, and trade fairs and exhibitions. Advertising is a paid form of mass communication through newspapers, magazines, radio, television, or any other mass media by an identified sponsor. Besides, advertising is a non-personal form of communication. It includes rebates and price discounts, catalogues and brochures, samples, coupons, and gifts.
As a part of the image-building exercise, a firm invests in building public relations. It may include sponsorship of sports and cultural events, press releases, and even lobbying at government levels. Direct marketing is also an effective marketing communication tool wherein the firm has direct interaction with customers. As the firms from low-income countries have limited financial and other resources to invest in marketing communication, participation in international trade fairs and other modes of two-way communications are often considered more cost effective and feasible for most firms. Any paid form of non-personal communication by an identified sponsor is termed as advertising. It can be for a product, service, an idea, or organization.
Non-personal communication uses a mass media, such as newspapers, magazines, TV, or radio to transmit the message to a large number of individuals, often at the same time. Advertising is the most widely used form of promotion, especially for mass marketing. An international marketing firm may either use a standardized advertising strategy or customize it, depending upon the needs of the target markets. Firms have to carefully scrutinize the decision to use standardized ads as these may face socio-legal implications when used in the context of another country. The adaptation of advertising may be either due to mandatory reasons or voluntarily due to competitive market response. Adopting a standardized advertising strategy is gaining wider acceptance due to a large number of factors:.
The preferences and lifestyles of consumers are increasingly becoming homogeneous, enabling psychographic segmentation of markets that can be targeted through a uniform message. Consumer behaviour is becoming increasingly similar in urban centres across the world. City-dwellers exhibit increasing similarity in their working patterns, shopping, travelling, and lifestyles across the countries. Sharp increase in international travel among customers favours standardized advertising strategy. International reach of media, such as television programmes, magazines, and certain newspapers have also encouraged standardized advertisements. For instance, programmes on channels, such as BBC, CNN, ESPN, Discovery, Zee TV, Star Plus, etc.
The same advertisement is used with no change in theme, copy, or illustration except for translation. plenty of international marketing principles and knew that international environments are quite different from countries to countries. Each market you enter is different, and what works in one country or region will not work in another. As technology creates leaps in communication and transportation, the world continues to feel smaller and smaller. It is not that hard for companies and consumers to conduct business in almost any country around the world thanks to advances in international trade, and. According to the American Marketing Association AMA "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Mission of an international researcher is sorely wide and it is important to determine the most productive and influential tasks. Marketing research exercise involves systematic enquiry. Thus, it requires a careful planning of the orderly investigation process. in generation ,faster communication high end technology ,improved transport system are making international market more approachable. When businesses looking for global position then hunger give them brand awareness and cost effectiveness. The main process of international marketing is start from the domestic marketing to international marketing and after that try to reach global marketing. Global marketing always refers to the globalization. When its about identical product standardization is important.
Midterm Report Individual Assignment Patrick Marco International Marketing - LMIB2 3rd November Professor David James Marketing is one of the most fundamental aspects in any business success. In fact it is what you say and the way you say it whilst trying to explain how a certain product or service is, giving your target audience reason why to use or purchase it. Marketing can be a bunch of things, whether promotion, an ad, a brochure or a press release. It can simply be a Facebook. be launched within the Chinese market, as it is close to become the largest luxury market in the world.
In order to make this project as successful as possible, this essay will be divided into two parts. On the one hand, we will be analysing the marketing environment of the Chinese market by identifying major market opportunities. Also, the selection of a suitable target market for. Essay Topics Writing. Home Page Research International Marketing Essay examples. International Marketing Essay examples Decent Essays. Open Document. Thus, international marketing is very important. Aside from political and legal differences, there are economic, technological, social family, religion, education, health Each 1 billion in trade deficit yields a loss of 25, jobs. free trade. as leisure. Some Ways To Operate In Foreign Markets 1 Exporting - A company sells what it produces to foreign markets via export merchants e.
Get Access. Good Essays. International Marketing Words 14 Pages. International Marketing. Read More. Decent Essays. International Marketing Words 8 Pages.
Read this essay to learn about International Marketing. After reading this essay you will learn about: 1. Introduction to International Marketing 2. Framework of International Marketing 3. Market Identification, Segmentation, and Targeting 4. Entry Mode Decisions 5. International Marketing Mix Decisions 6. Product Decisions 7. Pricing Decisions 8. Distribution Channels 9. Communication Decisions and Other Details. Consequent to the global economic integration, a firm operating in the domestic market can no longer rely upon its home market because the home market is now an export market for everybody else.
Earlier, it was believed that in order to compete in international markets, a firm needed to be competitive in the domestic market. But in view of the liberal economic policies, a business enterprise needs to compete with international firms in the domestic market too. Thus, in order to even remain domestically competitive, a firm needs to be internationally competitive. As a strategic response to the globalization of markets, business enterprises need to adopt a proactive approach and learn to transform emerging marketing threats and challenges into viable business opportunities. Thus, the significance of developing a thorough understanding of international marketing has become inevitable for managers not only for operating in international markets, but also as a pre-condition for success in operating domestically.
Conversely, under the marketing concept, the target market is the starting point in the marketing approach with the focus on customer needs. Profit maximization under marketing is achieved through customer satisfaction by way of integrated marketing efforts. Marketing scholar Theodore Levitt explains this distinction thus selling focuses on the needs of the seller while marketing on the needs of the buyer. However, as per the legendary management guru Peter Drucker, there would always be the need for some selling. Achieving customer- satisfaction has been given the utmost significance in the concept of marketing because procuring a new customer costs far more estimated to be five times than retaining the existing.
It is likely to cost 16 times as much to bring the new customer to the same level of profitability as the lost customer. With manifold increase in competitive intensity in the present marketing era, the focus is shifting fast to marketing orientation. In simple terms, international marketing is defined as marketing carried out across national boundaries. Global marketing is the process of focusing resources and objectives of an organization on global marketing opportunities and needs. The thrust of international marketing consists of locating and satisfying global customer needs in a manner more efficient than competitors, both domestic and international, and coordinating marketing activities within the constraints of the global environment.
Once a firm decides to enter international markets, it needs to set objectives as to what it intends to achieve out of its international marketing operations. The next important challenge is to identify marketing opportunities, evaluate and select the most appropriate one so as to meet its objectives. In view of the external environmental factors, the key decisions related to the marketing mix, i. Taking such decisions is much more complex in the international context owing to greater complexity of external factors which are beyond the control of the business enterprise. Once these decisions are implemented and the firm begins international marketing operations, the performance, primarily in terms of sales, profits, or market share needs to be reviewed and remedial measures taken, if required.
The firm further consolidates its international marketing operations from a long-term perspective and becomes an established player in global markets. Once a firm decides to enter international markets, it needs to set objectives, as to what it aspires to achieve, both in the short as well as the long term. The objectives vary widely from one business enterprise to another and even for a company from one market to another. An empirical evaluation of the above is to be carried out so as to decide upon one or a combination of objectives to be achieved from international marketing operations. A firm has to identify countries, which offer relatively higher opportunities to market its products.
A company may either use a reactive or a pro-active approach to identify markets. International trade statistics from various secondary data sources published by international organizations, such as the WTO, UNCTAD, World Bank, ITC, etc. One can also compute market share for the entire world trade, region, or a specific country. A cross-country comparison of unit-value realization is also possible that provides a gross estimate of prevailing price realization in different countries. A cross-country comparison of market size and its growth rate are the key indicators that determine market potential for targeting the market. By normalizing the domestic market size on a scale of , the US has the largest domestic market 7.
Values of exports of goods and services imply the foreign market size of a country. Normalized on scale, China 7. Dividing the markets into homogenous sub-groups is referred to as market segmentation. For a market segment to be effective, it must be measurable, substantial, accessible, differentiable, and actionable. International markets may be segmented on the basis of geography; demographical factors, such as income, age, gender, etc. Preliminary screening of international markets may be carried out on the basis of market size, accessibility in terms of both tariff and non-tariff barriers, and profitability of the market.
Besides, specific tools and techniques, May also be used for empirical evaluation and market selection. The entry mode may vary from simple indirect exports through a merchant intermediary to owning overseas operations. As a thumb rule, low-investment entry modes, such as exports, yield lows returns but are less risky and involve much lower exit costs. Small and mid-sized companies with resource constraints often prefer to enter international markets by way of exports. Even for large companies, exports is the preferred mode of entry to test new markets or new products in the existing markets, primarily due to the relatively lower costs of exit and low resource-commitment in test markets it involves.
Contractual entry modes, such as international licensing and franchising, offer rapid market entry opportunity with low-resource commitment by transfer of intellectual property. Licensing is generally used in case of manufacturers, such as pharmaceuticals, computer software, consumer durables, etc. Companies with specific management skills may enter international markets by way of management contracts and turnkey projects. To own overseas operations requires considerable financial, technical, and human resources. Hence, companies enter international markets by wholly owned subsidiaries with long-term perspective only if the market has significant potential both in terms of size and growth. Although owning overseas operations requires considerably higher level of resource commitment and much greater risk exposure, it offers higher returns and operational control.
The company may decide upon the entry mode depending on resource availability and willingness to invest in international marketing operations. Besides, the risk it is willing to take and the control to exert, also play an important role in determining the entry mode. Various tools used in marketing may be classified into the four Ps of marketing: product, price, place, and promotion, widely known as marketing mix. As a company can modify the four Ps in response to the environmental variables, these are often referred to as controllable factors. A business enterprise has to operate under the constraints of a number of external environmental factors, such as social, economic, political, legal, technological, cultural, etc.
These environmental factors are known as uncontrollable elements over which a marketer hardly has any influence, but the marketing challenge is to adapt the controllable elements of the marketing mix, i. Although the fundamentals of marketing remain the same and are universally applicable, the flexibility of marketing decisions is limited by a variety of uncontrollable factors in international markets. This makes decisions for international markets much more complex compared to domestic markets. International firms have to take crucial decisions either to make use of a standard marketing strategy across countries or adapt it to suit the needs of different country markets.
Perceptions and expectations about the products differ to a varied extent across countries which makes decision-making about products much more complex for international markets. A product is anything that can be offered to a market to satisfy a want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. Support services and other augmented components, such as warrantees, guarantees, and after sales service. Ever-growing market competition compels firms to innovate so as to maintain their market share.
The pressure to bring out new products is much more intense on firms operating in international markets. The global market leader in safety razors, Gillette, positions its products on functional superiority by adding more number of blades to its razors Exhibit New product launc h:. Depending upon the market and the product attributes, a firm may adapt one of the following strategies Fig. The waterfall approach is generally more suitable for firms that have limited resources and find it difficult to manage multiple markets simultaneously. In case the size of the target market and its growth potential is not sufficient to commit considerable resources, product launch may be carried out in a phased manner.
This strategy had long been followed in international marketing. It took a long time for a number of firms, which are now global, to launch their products in international markets. Firms catering to international markets are increasingly segmenting markets on the basis of the psychographic profiles of their customers. Such market segments extend beyond national borders and need to be approached at the same time. In case of luxury consumer goods wherein the fashion trends rapidly change across international markets, simultaneous product launch is preferred. IT software, such as Microsoft products are launched across the world simultaneously as there is no time lag between markets.
Growing competitive pressure in international markets and the decreasing market gap has encouraged simultaneous product launch. When consumers think of a product or service, they only compare the basic attributes and features and compare it with those of competitors whereas branding ads an emotional dimension to the product-consumer relationship and create a bond between them. A brand is defined by the American Marketing Association as a name, term, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
Thus, a brand identifies a seller or maker under trademark law; the seller is granted exclusive rights to use the brand name in perpetuity. Brand name differs from other assets such as patents and copyrights, which have expiration dates. Low-income countries often sell unbranded generic products that fetch relatively much lower prices and are generally targeted to the lower end of the market. Price competitiveness is the major competitive advantage for generic products and commodities, making such products highly prone to market competition.
Besides, brands facilitate coping with market competition and increasing the life of the product. In present times when the mobility of the consumers, including trans-national travel, is rapidly growing, brands serve as an effective tool in international marketing since the image of the brand crosses national boundaries. Brands contribute to forge an emotional relationship with the consumers and facilitate their buying decisions by enhancing their confidence while purchasing their favourite brand. With the increased competitive intensity in the markets, even basic commodities, such as rice, tea, edible oils, salt, and petroleum are branded widely.
A global brand should have a minimum level of geographical spread and turnover in various markets worldwide. However, in the fields of information and communication technology, a lot of leapfrogging has taken place; for instance, a number of Indian IT companies with little domestic presence aim at global markets.
International Marketing Essays (Examples),International Marketing
WebAug 6, · Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, the WebInternational marketing reflects a company that sells its products or services internationally, and the term implies that the company might alter its approach depending WebDec 4, · International Marketing In many ways, domestic marketing and international marketing are similar. They are based on the same fundamental WebThus, international marketing is very important. When selling to foreign markets, one must realize that there are major differences between other countries & the U.S. Aside from WebInternational marketing is that the company wants to expand their market enter into other countries. If one company wants to enter international market they should think about WebThus, international marketing has become essential as it allows a business to grow across borders. Franchising, licensing, joint ventures, as well as export and foreign investment ... read more
This report will outline some of the blunders of the past and how international marketers can avoid these sorts of blunders in the future. The most important factor which is more likely to affect the profits remitted from the joint venture is considered to be the tax policy which both the US and Chinese regulatory bodies implement. In other words, the modern day economic society has managed to support and concretize its efforts in the direction of regional economic development. The foreign company often seeks to balance developing a consistent global brand with appealing to local tastes and leveraging the partner's local market knowledge to create more effective marketing strategies. It seems as if the tourism in Malaysia is heaving influenced by many factors including disease, environmental problems and terrorism. As such, fitness is a very contentious issue plaguing many of the developed nations worldwide.
Ethical Challenges in International Marketing Words: To make sure that your international marketing paper is the best it could be, check the tips in this section. Interpretation of the results and giving them to the management of organization. Objectives are derived from market research to formulate the problem. In markets where the product function and need satisfied remain the same, international marketing essay, but the conditions of product use differ and also the consumers do not necessarily possess the ability to pay for the product, it requires product invention and developing new marketing communication. Thus, international international marketing essay is very important.
No comments:
Post a Comment