International Marketing Strategies And Approaches

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Question :

Discuss the arena of international marketing and the effective strategies and approaches to deal in grey market situations.

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Answer :

International Marketing strategy


With the ramified economic changes, each and every organization needs to implement effective marketing strategy to win over the competitors in market. However, with the changes in economic, company needs to integrate online and offline marketing strategies to compete with the rivals in grey market. The Marketing planning is a systematized way of future planning.  It is done to manage the external factors, uncontrollable factors that can effect on firm’s strength, objectives, weakness and the goals to attain the desired result. The international market planning has been considered a long term planning and the goals have been incorporated as a whole. The Global marketing has not been considered as the revolutionary shift but it is considered as an evolutionary process. In this report it will be discussed about international market strategies and the approaches used to determine the market. The causes and effects of the grey market will be discussed and also the solution will been provided.  It will be analyzed the cost that is vary from country to country. The competition and other factors should been taken into consideration. 

Concept of International Marketing

The theoretical concepts pertaining to the components of the marketing programme is based on the marketing research, budget, and marketing strategies and online and offline marketing tools used by company to market the products and services offered in market. Competitive analysis is the one of the theoretical concept of the marketing program which company uses to analysis its position in the market and evaluate the rival’s offering in industry. For instance, group making, strategic planning and marketing positioning are the some of the theoretical concept of the marketing program. It is important for an organization before entering into the market to focus on collection of activities that has been undertaken by the company. It not only strengthen the business process but also increase the overall return on capital employed. It is analyzed that in order to strengthen the international marketing, company needs to analyze the market which is required to study the prospective, values, belief and choice of actions of buyers. The international marketing which have been considered needs to be analyzed on the basis of the price of the offered products, goods supplied in market and client’s choice of actions. The distribution of products and marketing channels are imperative factors for the international market planning. It is considered that organization must do planning to information about the product that has been going to be launched. The company must consider that what are the services will be provided to the customers after the sales.  However, it could be inferred that if company wants to compete in the market then proper pricing strategies and product offering offers need to be analyzed by company. Nonetheless, price skimming strategy is one of the best example for the international marketing of company (Watson et. Al. 2018).

Causes and effects of grey market 

The grey market has been considered legal but unintentional by the trader or the manufacturer of the product. In this the manufacturer sold their product through their authorized agents outside their terms and conditions of the agreement.  The main cause of the grey market is because of the combination of the aforementioned conditions. In many cases, the grey market has been considered in the hands of the retailers through the semi legal ways that generates the legitimate interest from the appropriate authorities. It is analyzed that due to the increased international trade and the increase in the number of global and multinational organizations around the world, large number of distribution channels have been created and also the equal number of organizations has been created by the companies to compete with the rivals in international market. However, the main cause and effect of the grey market would be on the product demand and price of the offered products by the companies. Ideally, grey market eliminate the competition in market and allow clients to get products and services at unmatched price (Gui, Tang, & Yin, 2018). The main cause of the grey market would be on the pricing of the offered products in the international market. It is analyzed that if company wants to mitigate these negative impact of the grey market then it could create core competency in product differentiation and cost leadership strategy to win over the rivals in case of the grey market. 

The effects of the grey market affects the stability of the market such as pricing stability, demand and supply of the products offered in market and it also creates a conflicts between the distributors and manufactures on the pricing on the direct sales. It is analyzed that if the prices and margins has been erode than the manufacturer finds it’s harder in maintain the support of dealer and sale services.  It is analyzed that market of sales services is the biggest source of income for the industry and it is also considered as better income than the sales. However, it is only for the companies for which, grey market has triggered the unbundling of the product sales from the service income that can cause an eventual drain on the products revenue stream.  The grey market can create dissatisfaction among the customers and therefore it can be said that the caveat emptor is a right attitude who buys the goods from the grey market. Many manufactures find it difficult for the customers and that has been ultimately laid down the manufacturers to the doorsteps (Leonidou, & Skarmeas, 2017). The cause and effect of the grey market on the international business organization is very wide and in order to manage these issue, brand owners focus on developing core competency in product differentiation and cost leadership strategy. 

The international Marketing Philosophy

Per Mutter and Wind Douglas have analyzed the organization approach towards various opportunities that comes in the global international market and how the cause and effects of grey market can been managed (Xia, Govindan, & Zhu, 2015). The below given are several philosophy which could be used by companies to compete in global international market. 

  • Ethnocentric Approach- In this approach, the organization starts developing their products according to the requirements of the local customers. In this approach the requirements of the customers has been analyzed and then according to that they make their products. The approach is varied from different to different countries and also the price has been managed. The approach helps them to identify the competition in the market and the pricing of the related products available in the market. Thus, it can be said that the companies have different approach in different countries (Tiago, et al. 2016).
  • Polycentric Approach- This approach states that every market is different and it shall been addressed individually and differently. The market shall been researched in accordance with firm product, in accordance with their plans and adaptations. The price for each market should been considered differently and the strategy should also been different for each market. The companies like Ford Motors and Toyota has used this approach for their market. The approach have the focus that it must been suitable to the needs of the local (Ryan, 2017).
  • Regiocentric Approach- In this approach the market has been segmented in accordance with the regional similarities. The approach analyses the political situation of the market suits the company. The economic capability of the market either the customers is capable to buy the product.  The social condition of the market is also an important factor in accordance with this approach. Thus this approach helps the company to analyses the market needs and to know whether the company will be managed in the market (Baert, et al. 2016).
  • Geocentric Approach- It is the approach that has been mainly used by the brands like McDonald’s and Pizza Hut. They manufacture the homogenous product and identifiable services and products. It gives the efficiency to the companies for worldwide operations (Bouzon, Govindan, & Rodriguez, 2018). This will not only strengthen the overall market competency of company but also helps them to compete them in market. 


It is analyzed that if company wants to stop the grey market then they can adopt the measures like use of software that can set up code the product for the particular order which got shipped out. The company can also check the print ads for locating the unauthorized dealers and eventually the customers will buy the products from the other grey outlets and mail order houses. The company can also focus on removing the dealers who has been doing business with the grey marketers and temporary freeze has been made on the agreements with the newly made distributors (Cao, Jiang, & He, 2018). The advancement in the technologies and system process in the value chain activities not only strengthen the overall outcomes but also set up automation in the business process of organization. It also helps in setting up automation in the process also increase the overall output in effective manner. 

It will give the loud signals to those who breach the terms and condition of the agreement. This will help company to mitigate the possible issues and problems in the agreement.  These are the signals often comes in the form of complaint.  In certain cases, when the dealer is the full time service dealers, the manufacturer of the product would listen to these complaints and for that the distributors has helped in the development of the market.  The company can do one pricing policy that can helps in elimination of an important source called arbitrage and it allows the supplier to reassert the measures of controlling the channels.  However, pricing skimming policy is mostly preferred by company in this case. The different prices in different market give more fuel to the grey market (Mohammadi, Alavimoghadam, & Fatemi, 2016).  Therefore, the company should stop this differentiation. The distributors can sell the product on the low profits and later they will get the strength that can help in elimination of the grey market. Some measure can be cost effective for the companies to eliminate the grey market and to prevent from the conflicts among the distributors and the companies (Luo, & Bu, 2018).


It has been concluded that the strategies for the international market should been depend on the various factors. There are various concepts of international market strategies that states the organization require the companies to do in the market. Companies are using global marketing strategies to compete with the rivals. However, product differentiation and cost leadership are the two main core competency of the company which could be used by company to compete with the rivals in global market company. The grey market has various causes and its effects have been very dangerous for the organization. Therefore, proper pricing strategy could be used by company to eliminate these grey market issues. Therefore, various philosophies of marketing strategies have also been discussed and cause and effect of the company could also be analyzed to evaluate these issues. The solution of the problem of the grey market is to use the global market strategies which could be used by company to eliminate these issues.  Now in the end, it could be inferred that in order to manage the possible challenges and issues of the grey market, company could use international marketing strategies san philosophy in market.