The Scope of International Marketing - Importance in The Global Arena
The Scope of International Marketing - Importance in The Global Arena
The Scope of International Marketing - Importance in The Global Arena
All the activities associated with a business like – development, production, and
marketing, especially in case of high-tech products, involves people from
around the world to work together. Moreover, companies as a part of employee
interactions enable people from all countries to meet face-to-face for both
recreation and commerce. All this interaction leads to not just the mutual gain
associated with business relationships but also personal relationships and
mutual understanding. The latter are the foundation of global peace and
prosperity and widen the scope of International Marketing. e.g. Mobile Phone
Companies deploy different functions of their business in different parts of the
world – say manufacturing in China, R & D in London and sales teams across
the globe. In order to work as a team and drive a single agenda, the teams
interact with each other frequently and occasionally meet for important
agendas.
Global brands rake in significant portion of their revenues from outside their
parent country. Below is the example of few US-based companies and how they
widened the scope of International Marketing.
Factors Affecting the Scope of International Marketing
Of all the events and trends affecting global business today, four stand out as
the most dynamic, the ones that will influence the shape of international
business:
1. The rapid growth of the World Trade Organization and regional free
trade areas such as the North American Free Trade Area and the
European Union.
2. The trend toward the acceptance of the free market system among
developing countries in Latin America, Asia, and eastern Europe.
3. The burgeoning impact of the Internet, mobile phones, and other
global media on the dissolution of national borders.
4. The mandate to manage the resources and global environment
properly for the generations to come.
Imports
This is the easiest form of International Marketing a company can get into –
Importing from one country and selling in the domestic market. This is possible
only in a scenario where there is demand in the domestic market for the
imported goods or services. Companies also localise the imported product
depending on the needs of the market.
Exports
Joint Venturing
Two brands can come together and enter a potential market. The investments,
profit or losses are pre decided in terms of both value and time period. At time
it is beneficial for companies to enter into a JV for raise the scope of
international marketing as a result of barrier to new entrants in foreign
markets. A local partner can prove to be immensely useful for doing business
not only operationally but also from a domestic understanding of the market
dynamics.
Relatively a higher level of engagement in the foreign soils, companies can own
a fully owned manufacturing in a country. The company can use this facility to
sell products within the country or export to nearby nations. Owning a fully
owned manufacturing helps companies control quality.
Marketing is
defined as the set of activities which are undertaken by the companies to
provide satisfaction to the customers through value addition and making good
relations with them, to increase their brand value. It identifies and converts
needs into products and services, so as to satisfy their wants. There are two
types of marketing namely, domestic and international marketing. Domestic
marketing is when commercialization of goods and services are limited to
the home country only.
Research Required but not to a very Deep research of the market is required because of
high level. less knowledge about the foreign markets.
countries want or need exactly matches the wants and needs of American consumers. It
can be a long and expensive process to gain the trust of consumers who have used
their own local companies' products for years or even generations. International
marketing also has potential for miscommunication due to variations in language and
culture.
A key to success in business is offering products and services for which customers have
a compelling need. The customer has a problem that needs to be solved, and the
product or service provides the solution in such an effective way that its benefits are not
foreign country is not easy. Not having lived in their culture experiencing their day-to-
day lives, American marketing executives can err by assuming that what people in
other countries want or need exactly matches the wants and needs of American
consumers.
Due to the Internet, movies and other forms of entertainment, American culture and the
corporate symbols of that culture – brand names – are well known across the globe. This
does not mean the American companies' products will be popular when introduced in
other countries. Being aware of a brand name isn't the same as preferring it. It can be a
long and expensive process to gain the trust of consumers who have used their own
local companies' products for years or even generations. The American companies can
be perceived as attempting to take over the position long held by local companies,
causing resentment.
through the media, including print media such as magazines. Humor is often used in
commercial messages to get the consumer to pay attention. But what is considered
message from one language to another. It requires a deep understanding of the culture,
customs, morals and even religious views that predominate in that country. What
Business executives from different countries can encounter several barriers to effective
business deal is seriously considered. Executives from other countries may place a
higher value on things such as facial expression instead of just the words that are being
said.
Even with technologies such as video conferencing, executives in other countries may
this can mean a significant investment in travel costs and having key executives out of
the office for extended periods. Time zone differences can make it difficult to coordinate
projects where collaboration is required. Executives on the West Coast of the U.S. are
just getting to work in the morning when their European counterparts are winding down
American firms often establish relationships with distributors located in the countries
whose markets they are seeking to enter. They hire sales reps based in those countries.
They may engage local marketing and public relations firms to assist them. Because the
American firm might have no prior experience in that country, finding people who are