Guidance for International Marketing in Global Organization
Company cannot simplify stay domestic and expect to maintain their markets. Despite the many challenges in the international arena (shifting borders, unstable governments, foreign-exchange problems, corruption, and technological pirating). Company selling in global industries need to internationalize their operations.
In deciding to go abroad, a company needs to define its international marketing objectives and policies. The company must determine whether to market in a few countries or many countries. Then it must decide on which types of countries to consider. In general, the candidate countries should be rated on three criteria: market attractiveness, risk, and competitive advantage.
Once a company decides on a particular country, it must determine the best mode of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures and direct investment. Each succeeding strategy involves, more commitment, risk, control, and profit potential. Companies generally begin with indirect exporting, and then proceed through later stages as they gain more experience in the international arena.
In deciding the Global Marketing program, a company must decide how much to adapt its marketing mix (product, promotion, price, and place) to local conditions. At the two ends of the spectrum are standardized and adapted marketing mixes, with many steps in between. At the product level, firms can pursue a strategy of straight extension, product adaptation, or product invention.
At the promotion level, firms may choose communication adaption or dual adaption. At the price level, firms may encounter price escalation and gray markets, and it may be very difficult to set standard prices.
At the distribution level, firms need to take a whole-channel view of the challenge of distributing its products to the final users. In crating all elements of the marketing mix, firms must be aware of the cultural, social, political, technological, environmental, and legal limitations they face in other countries.
Depending on the level of international involvement, companies manage their international marketing activity in three ways: through exports departments, international divisions, or a global organisation. Most firm start with an export department and graduate to an international division. A few become global companies in which the top management plans and organize on a global basis.
A global industry is an industry in which the strategic positions of competitors in major geographic or national markets are fundamentally affected by their overall global positions.
Global firms is a firm that operates in more than one countries and captures r & d, production, logistical, Marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
Questions to Ask to Succeed in Global Marketing
- How will our idea/good/service fit into the international market?
- What adjustments will we have to make?
- What threats will we face from global competition?
- How can we turn these threats into opportunities?
- What strategic alternatives will work in global markets?
- Deciding whether to go abroad
- Deciding which markets to enter
- Deciding how to enter the market
- Deciding on the marketing program
- Deciding on the marketing organization
- Deciding whether to go abroad
- Foreign market present higher profit opportunities
- Needs large customer base to achieve economies of scale
- Want to reduce dependence on any one market Want of counter attack the competitors (those who are MNCs) in home Markets
- Learn other languages
- Deal with volatile currencies
- Face political and legal uncertainties Redesign their product to suit different
- Customer expectations
- Foreign exchange problems
- Foreign government entry requirements /unstable gov.
- Tariff barrier
- Technological pirating
- High cost of product
- Communication adaptation