How often we see the Chinese version of the product or a toy in the market. We cannot ignore the fact of the continuously increasing competition and the existing internal rivals. This is because the internal business is omnipresent. In fact, if we start counting on the tips the company which is solely domestic would leave us wondering.
Globalisation is a reality and is in dominance in overseas business. You should not be surprised if a company performs better in overseas business than the domestic market.
International marketing in simple terms refers to the overseas business activity of the goods and services. The difference from the conventional domestic marketing is that the marketing activity is carried in multiple countries. The foreign environment is different and is a challenge to the business. There lies a problem of shaping the marketing mix which are the product, price, place, promotion
The expansion of the market is to widen and expand the market size. This involves different segments of consumers. This is a stage when the existing business is in the domestic market has started to see saturation in years to come. A follow-up reason for increasing the market size needs a strategy.
One of them is Ansoff Matrix strategy which states that there are four key strategies for market expansion. This can be weighed on two axis namely products and markets. The strategy can be for market penetration, new product development, market development and diversification.
In market penetration, the company wants to enter and make a presence in the existing market with the current product.
This involves reaching out to masses and more no of customers than conventional practice. The company wish to make the presence of the product in the market and offer lucrative offerings for being noticed in the market.
When the company wish to find new target markets for the existing product, it is termed as market development. This is not indifferent to international marketing. When the company wish to come up with a new product in the existing market, it is termed as new product development strategy. Eventually, if the company tries to find the new market for a new product offering, it is termed as a diversification strategy.
In the international market, the company try to gain the response from the locals by a different marketing strategy and the product offering strategy. This is done to cater to different markets internationally.
The global marketing refers to expanding business operations overseas and scaling up in business operations. This can be done by exploiting the opportunity in international markets by taking advantage of the similarities, differences of the international market conditions.
One important factor to consider for international business to respect the culture and develop a tolerance and respect for carrying out business efficiently. At the organisation level, the earlier the company adopts the culture, the better it is for the company in the long run.
At an employee level respecting the behaviour and the culture of the work employees in other countries determines the efficiency at work. Both of the aspects working together would evaluate the organisation effectiveness in the international market.
To answer this question, we should take note that all the companies in a country are in some of the other way affected by the global events. We have witnessed global events in the past that affected the business across the world. The stock market crash of 1929 gives rise to the great depression. It is not only affected the companies in the US but was a major setback for the organisations across the world. Changing political environment also affects the business.
For instance, Donald trump coming into the power affected the growth and the conditions of its company in India. This is because its companies have major operations in the US. Globalisation gives the advantage of developing international influence but at the same time pose a challenge in front of the business to compete with the international forces dominating an existing in the market.
In such conditions, the organisation needs backing in the form of human capital resource and political or legal environment.
It also matters of the fact that the company deciding to expand its operation in the international boundaries may not perform to the expectations and may end up terminating its business operations. This would account for bad debt. At the same time, if you take a look at the other side of the coin, the company may come out with flying colours leveraging the international markets heading to a new chapter in the expansion.
Developing International Marketing Strategies, planning and organising for international marketing
Planning involves answering the fundamental questions of where the organisation is, and what would it like to be in the future. To achieve this the the company must have a concrete roadmap that should be developed at the country level and the corporation level. At the country level, the plan is similar to a domestic marketing plan. This involves identifying the strengths weaknesses opportunities and threats faced by the organisation. The international or the corporation plan is complicated.
It involves pondering over various facts such as knowing the markets, affair knowledge of the product affair knowledge of the product which is being offered, and understanding the marketing systems in international boundaries. Controlling international marketing or corporation plan is slightly a difficult task as compared to domestic marketing. Let us now see what the issues faced in the marketing plan in overseas business are. Every company has to have an answer to get through this hurdle.
It involves two approaches namely standardised approach which takes care of agenda such as developing marketing mix name the product, price, place and promotion. This is followed by finding the right distribution channels for the compliance.
The next approaches multi-domestic approach. It is based on the assumption that the markets are highly dynamic and the market conditions are heterogeneous. This demands a case by case basis decision of marketing mix which are price, product, place and promotion. It does not advocate the theory of standardization.
To summarise marketing planning consist of the decisions involved in
Let us now see the advantages of international marketing