Jun 14, · International Marketing. When a firm decides to operate across national boundaries, there arises the need to apply its marketing principles to the target country, for business success. This is called International marketing. As suggested by Doole and Lowe (), “ At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries Marketing Principles Of International Marketing. Words | 6 Pages. 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 International Marketing Essay examples. Words2 Pages. INTERNATIONAL MARKETING. 92% of the world’s consumers live outside the U.S. Thus, 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 political and legal differences, there are economic, technological, social (family, religion,
International Marketing Essay | Bartleby
Read this essay to learn about International International marketing essay. After reading this essay you will learn about: 1. Introduction to International Marketing 2. Framework of International Marketing 3, international marketing essay. Market Identification, Segmentation, and Targeting 4. Entry Mode Decisions 5. International Marketing Mix Decisions 6, international marketing essay. 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, international marketing essay.
But in view of the liberal economic policies, a business enterprise needs to compete with international firms in the domestic market too. International marketing essay, 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 international marketing essay operating in international international marketing essay, 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 international marketing essay far more estimated to be five times than retaining the existing, international marketing essay.
It is likely to cost 16 times as much to bring the new customer to the same level of profitability as the lost customer, international marketing essay. 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, international marketing essay. 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, international marketing essay, 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 international marketing essay 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 international marketing essay 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, international marketing essay, region, or a specific country, international marketing essay.
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 international marketing essay scale ofthe 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, international marketing essay. 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 international marketing essay 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, international marketing essay, technical, and human resources, international marketing essay. 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 international marketing essay 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, international marketing essay, legal, technological, cultural, etc. These environmental factors are international marketing essay 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, international marketing essay.
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, international marketing essay. 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 international marketing essay 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 international marketing essay as patents and copyrights, which have expiration dates. Low-income countries often sell unbranded generic international marketing essay 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, international marketing essay, 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, international marketing essay.
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, international marketing essay, edible oils, international marketing essay, salt, and petroleum are branded widely. A global brand should have a minimum level of geographical spread and turnover in various markets worldwide.
International marketing essay, 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.
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International Marketing Essay examples. Words2 Pages. INTERNATIONAL MARKETING. 92% of the world’s consumers live outside the U.S. Thus, 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 political and legal differences, there are economic, technological, social (family, religion, Jun 14, · International Marketing. When a firm decides to operate across national boundaries, there arises the need to apply its marketing principles to the target country, for business success. This is called International marketing. As suggested by Doole and Lowe (), “ At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries Marketing Principles Of International Marketing. Words | 6 Pages. 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
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