Role of International Marketing
Introduction In common practice, international marketing as a business parameter makes use of techniques that are in practice in home country of a firm.
These are techniques that have practically given a positive feedback to their application. We cannot propose to rival the fact that these techniques are more often than not subject to metamorphosis with respect to the needs of the new market potential. Any marketer would be at a legitimate favor to employ new technique after doing a well dug in research (Joshi, 2005). In common business procedure, the following stages are what the marketing team would go through to finally bring home the positive market response (Fox & Kotler, 1995, pg 5-25). Declining to approve the market viability can also be an option.
This would depend on the situation. First and foremost, the time cannot get an accord of universal application. Process of market identification has to take place. This is a very crucial process in business. It may sometimes prove a risk if a careful approach does not transpire. The marketer is therefore in the helm of responsibility to ensure that the prospect is indeed workable.
Market identification takes certain variables into consideration. These may include needs of consumers in that new area. Culture and tradition of a people is another parameter that must get a definition to aid in mature and valid market identification. Another factor that must ring in the mind of the marketer is the availability of that particular product. This will of course come after determining that it can be accepted by the subjects.
Yet another pregnant point of consideration is the government policy of that potential country (Olds, 2009). Government policy dictates whether a product can get access into the country. In government policy, there is also the issue of taxation rates. Security cannot be an entity to overlook in the new market field upon the identification stage. The ease with which to make a product available in a new market fields is also a factor that must be put to question. Labor and transport must not be left out in that case.
Good transport system in a country will mean quick supply cycle. Bad transport systems will dissonance the supply cycle. Availability of adequate and appropriate labor must also be put to test before all is set to roll on stage. The second procedure in international marketing is the selection of entry mode. It is an audible fact that market vary with time and place. The entry approach used in one area at certain Entry mode must undergo test before the right one receives the clean sheet of qualification.
The right entry mode must be put to work lest all hell breaks loose. Next is marketing mix. This takes place when the product has found its way into the market and has shown a potential of appeal to the consumers. In marketing mix, the four Ps are in application. These include branding of the product. The right branding must appeal to consumers.
At the end of the day the marketing strategy must be able to convince the buyer that what he or she is buying is worth the price. The price is then placed. The price must realize profit from the production cost. It should be affordable to the consumers. The price may also be subject to how well the product advertisement takes place and the quality instilled to it. Finally, there must be good strategic decisions that will enable the product to compete in international market.
Marketers must swallow and digest a fact that there must be opposition to the goods they are selling. Every product in the market wants to sell. In such a case, survival will be a guarantee to the fittest. The best fighter takes the day. In marketing, there must be a comprehensive market research. A thorough research would guarantee a safe landing when a product projects its roots into a market.
A marketer must approach his prospects with an open mind. This helps him to prepare his firm for the best strategies. He should be able to identify all the positivity’s and negativities. He should analyze them deeply so as to be able to use them to turn around business I the new field. Nothing should go untested.
No blind eye approach or guesswork should be anywhere around the marketing plot. This poses a risk to an investment attempt and kills the investor morale to carry on wit5h his sweet investment dream. The marketer should know what works best for the consumer. There right guidance must be in place to aid in selecting for the consumer the best from the stock. Market comparison must be in the list f test areas.
Dynamics of markets cannot be overemphasized. He should follow closely the market trend so as to fit in within the right dimension in the quest to conquer enough ground. Work done and left half baked might bring a total mess. A marketer should bring to his or her comprehension the loopholes that need to be filled from past experiences. They should be in a position to gain credit from the weak points of their competitors.
The points of crevices left by their competitors should be their stepping stone into the horizon of business success. A reference failure at home should catapult them into making it better elsewhere by making the necessary corrections to their past mistakes. A mistake cannot culminate itself into higher levels of prospective achievements. Indeed the market should receive an open visionary look into its future and the positive contributions it must help a firm to realize at the end of the day. Scope of international marketing The scope of International marketing essentially includes exporting of goods and services in foreign markets.
The exporter performs various, activities, other than exporting the goods and services. These activities are: (I) Establishing a branch In foreign market for processing, packaging or assembling the goods according to the needs of the markets. Sometimes completes manufacturing is carried out by the branch through direct Investments (II) Joint ventures and collaborations: International marketing includes joint ventures and collaboration in foreign countries with some foreign firms for manufacturing and/or marketing the product. Under these arrangements, the company works in collaboration with the foreign firm In order to exploit the foreign markets. (III) Licensing Arrangements: The company, under the system, establishes licensing arrangements with the foreign term whereby foreign’ enterprises granted the right to use the exporting company’s know-how, via, patents, process or trademarks according to the terms, of arrangement with or without financial Investment. (IV) Consultancy services: Offering consultancy services are also covered In International marketing scope.
The export company offers consultancy services by undertaking turnkey projects In foreign countries. For this purpose, the exporting company sends its consultants and experts to foreign countries that guide and direct the manufacturing activities on the spot.(V) Technical and Managerial know-how: The scope of International ‘marketing also. Includes the technical and managerial know-how provided by’ the exporting company to the Importing company. .The technicians and managerial personnel of the exporting company guide and train the technicians and managers.
of the importing company Roles of international marketing 1.Business Development/ Business Expansion When we talk about the roles of international marketing, the first thing I would think is business. Marketing is a parameter within the business concept. Business men do not only have a primary purpose of maximizing growth but also they seek to expand and increase the size of their business, some seek to be socially responsible to the community in genera and also to provide employment. Business growth as a primary objective of a business can be achieved through international marketing. When we have better marketing, then we better business at the end of the day for business to grow, then it must have viably appreciated products the market.
A good product sells itself and earns enough money to cater for its production costs and also an extra amount that can be channeled back into the business so as to aid the production of more goods or even for production of a new line of products. When I think international marketing, I assume that local market has been exhausted to an extent that a business prospects just has to spread its wings when the wings outsize the local stretch, then is breaks local borders. This way an industry stretches its products to countries which are beyond its local proximity. How else would we notice growth if all is confined within a locality of production. Talk of the immense growth that companies like Coca-Cola have experienced. You would find Coca-Cola in many countries yet its original identity is confined to one.
This is an example of unrivaled growth. The better sale in one countrry means higher and better possibility that it can stretch to other countries in their marketing bracket. I think that a measure of how successful a business growth is goes by the area that it covers, flowing from its center of origin. When a company ventures into new places to explore business possibilities, then growth is manifesting (Scott, 1999). Business growth decentralizes the operation point. This enables production to take place in more that one place at the same time.
The production is then doubled, tripled….. And the succession continues. A firm grows, employs more people, and puts up new infrastructure and boost the profile of business entities. This way a company becomes better than when it only concentrates in one area.
Increase in market radius is therefore a brilliant means of developing business. It becomes better than before, and keeps climbing the ladder of business success every passing day. 2. Creation of employment International marketing is one of the platforms used by governments, individuals and companies to create employment for their citizens, families and associates in the modern world which experiences hundreds of dynamics in marketing both at home and abroad. The unemployment rate in most countries runs into double figures, this type of marketing offers a perfect solution to solve this problem. International marketing opens up new opportunities to engage individuals who act as representatives of a given company or a given country in international markets.
International marketing may also open up new opportunities for new entrepreneurs to venture and produce goods for exports through proper marketing research at international levels hence providing them with self employment.The international market touches on all sectors of production, both in goods and services. Poverty has been one of the economic problems for decades as a large percentage of many citizens are living below the poverty line. The developing countries are the most affected as far as unemployment is concerned and the dependency ratio is usually very high. Through international marketing the government is able to ensure that the countries resources both natural human and manmade resources have been fully exploited so as to meet the requirements and needs of both local and foreign consumption.
The government also hires a large number of personnel as its agents so as to try and reduce the dependency ratio on the working population through international marketing. Hundreds of multinational companies are today employing hundreds of people both online and in the field, all this is done to boost their market, products and services and to widen their market base. This increases the incomes of people hence improving their living standards. This ensures high profits and thus more jobs (Kotler & Keller, 2012, pp. 31–34). 3.
International relations International relations look at the relationships between countries, which maybe in terms of public policies, foreign laws, peace and understanding between countries and their diplomatic relationships. International marketing sometimes involves governments of various countries where they come together into trading agreements and they form trading blocks by removing all the trade barriers and restrictions between the countries so that they can benefit from each other. These relations between such governments determine the extent and future of this kind of marketing. The marketing may further involve sensitive national information, security details and other issues that may bring governments and multinational organizations together. This makes the involved parties share a common ground, platform, ideologies and philosophies for their interests, which ensures there is free flow of goods and services from country to country without any trading restrictions. In this manner, the international trade relations are strengthened leading to creation of tariffs and trade lines along the globe.
This creates a good diplomatic relationship, peaceful legal and political environment between countries as they are inter dependent on each other and for goods and services, production of strategic commodities and even technology. This ensures that incase of any disputes between the countries they are solved in a diplomatic way so avoid unnecessary quarrels between the trading countries due to their good understanding of each other which is as a result of the mutual benefits they derive from trading with each other hence leading to a peaceful way of conflict resolution incase where conflicts arise instead of fighting since both countries would lose a lot.