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International Marketing International marketing is recognizing that people across the globe have different needs and wants. It’s a situation where organizations direct their products and services towards consumers in other countries. However, the core marketing concept remains the same globally. The environment within which the marketing plan is implemented can be radically different from one country to another. Marketing costs such as advertising and distribution is likely to differ in the regions where firm selects to market its good and services. Therefore, the key to successful international marketing is the ability to adapt, coordinate and manage in an unfamiliar foreign environment. There are various reasons why businesses choose to explore foreign markets. In some cases, they respond to customers by taking spontaneous orders in those markets. Other reasons could be to diversify corporate holdings and to take advantage of domestic or international political and economic changes. Similarly, companies can simply opt for tapping into new and emerging markets The objective of international marketing is certainly to make money. When companies opt for marketing internationally they focus on two important factors. Firstly, the goods that they are marketing are normally patented and expected to have high earning potential in foreign markets. Secondly, the company is fully committed to set up an international presence and is eager to comprehensively learn about particular countries culture, values and tradition, through a course of market research.
International Marketing Factors Although many firms face similar challenges when marketing their products domestically, international marketing adds uncertainties which need to be properly interpreted. In reality there are several factors that need to be researched and assessed when designing an international marketing strategy. Important features of any prospective foreign market include:
Demographic and physical environment – The essentials which are required to be assessed under this category are population size and growth, weather condition that could impact business, shipment cost, time zones and allocation of natural resources. Economic environment- Factors under economic environment includes disposable income, currency stability, exchange rate fluctuation, inflation, per capita income, Gross National Product, level of recognition of foreign business in the economy and general economic growth. Social and cultural environment- These would include literacy rate, ethics, religion, social values and language barriers. The ability of a country’s population to read and write directly affects the economy’s progress. Religious beliefs and cultural values must
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be considered when forming the marketing strategy as people differ in their attitudes and behaviors towards work, home, success, food, clothing, honesty etc. Legal environment- Factors that fall under legal environment are trade barriers such as tariffs and quotas, import regulations, employment laws, trade protection and patents. These may vary from country to country as there are different legal policies and restrictions of trading. Political environment- It involves factors such as political stability, dominant ideologies and system of the government. This is the most central aspect of international marketing, as it can be very dominant in shaping other factors.
Developing Foreign Markets Foreign markets can be developed in several ways such as exporting products and services from the host country, entering into joint ventures, licensing patents, trademark rights, franchising and creating subsidiary in foreign market. An organization can use one or more of the above arrangements at any time during its efforts to develop foreign markets. Each method has its own distinctive rewards and shortcoming. Small businesses are however discouraged from relying on the global marketing strategy. Small business are considered weak and financially unstable where as multinationals can afford to promote their products in foreign markets on different occasions. Market research is a prerequisite for any business before entering into the global arena. However, a single mistake in the international market can cripple companies’ image.
Reference http://www.researchomatic.com/International-Marketing-151709.html
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