Functions, complex, purpose, phases and tasks of international...

Functions, complex, goal, phases and tasks of international marketing

International marketing functions depend on the company's immersion phase in international marketing and its objectives (Figure 1.1).

Interrelation of the complex, purpose, tasks, phase and functions of international marketing

Fig. 1.1. Interrelation of the complex, purpose, tasks, phase and functions of international marketing

The functions and activities of international marketing relating to functions are presented in Table. 1.1.

Table 1.1

International marketing functions and activities

Function

Activity

International Marketing Research ( International marketing research)

Market research, marketing, consumer properties of goods (services), advertising, motivation

Compiling international marketing programs and plans

Organization of research works on the creation of new samples of goods (services). Adaptation of technical characteristics, prices and maintenance to the needs of the buyer by improving the product (service). Regulation of production management

Sales and Distribution

Sales through the distribution network. Selection of distribution channels. Warehousing. Transportation. Sales forecast

Advertising and sales promotion

Selecting forms of advertising and ways to promote sales

Improving the international marketing system

Improving the organizational structure of management, management methods

One of the most significant functions is the study of international marketing, the purpose of which is a scientific analysis of all factors affecting the marketing of goods (services). The field of research is not limited. However, the research should provide answers to the questions: who, what, when, where, how? And you should not confuse the terms Market research (market research) and Marketing research (marketing research), as well as terms related to international marketing - International market research and International marketing research .

In a general sense, the complex of international marketing is a set of interrelated elements used to meet the needs of some market (or some part of the market), taking into account its external environment.

The term marketing mix ( Marketing mix ) was introduced by Neil Borden, who believed that the ability to correctly mix (mix - mixture) elements - the basis of success. The term marketing mix is the main one in marketing. Since its inception, it has been repeatedly reinterpreted, distorted, supplemented by various formulations. Finally, there was an idea that the marketing complex consists of two groups of elements - external (uncontrolled by the firm) and internal (controlled by the firm).

Uncontrolled elements of the internal market: political system, legal system, economic system, competition. These are the elements of the external environment of the firm, related to the national market. However, their change may affect the international activities of the firm (for example, the introduction of customs tariffs or a state monopoly on foreign economic activity). Uncontrolled elements of the external market: political system, legal system, economic system, competition, cultural environment, geographic factors, technology level, distribution structure.

Elements controlled by the firm: goods (services), their prices and advertising, ways of stimulating sales, ways of promotion to foreign markets, channels for distribution of products (goods, services).

The literature lists various elements of the marketing mix, their number varies from 4 to 16.

Elements of the marketing complex are tightly connected with the environment and must be with it in a stable equilibrium. An incorrectly compiled marketing mix will lead to failure. To properly compose a marketing mix, conduct preliminary serious research.

The purpose of international marketing is the satisfaction of the consumer demand in the external market under economically advantageous conditions for the firm, and it also depends on the phase of immersing the firm in international marketing.

In the economic literature, firms operating on foreign markets are called differently: international, multinational, transnational. These definitions cause a lot of controversy among scientists and businessmen. For us, in this case, it is not the definitions that are important, but the analysis of the firm's actions from the moment of making a decision to enter the foreign market, and therefore, the beginning of immersion in international marketing.

In the literature, the following phases of immersion of a firm into international marketing are considered, which are a reflection of this or that international marketing concept:

- Implicit foreign marketing;

- rare foreign marketing;

- regular foreign marketing;

- dominant foreign marketing;

- Global Marketing.

The first phase - implicit foreign marketing - is characterized by the absence of actions outside national borders, but this does not mean that the goods or services of the firm will not reach a foreign buyer. Goods in addition to firms can be exported abroad by trade companies, foreigners can purchase goods or services by visiting the country of the firm's location.

The second phase - rare foreign marketing - can be caused by the appearance of surplus goods or difficulties in providing services on the national market. Such surpluses appear, for example, with a fall in demand in the domestic market or an increase in labor productivity in the firm, which leads to the production of more goods or services. In this case, the firm pays attention to foreign markets.

One of the reasons for the export of goods and services from the country is insolvent demand in the domestic market. But as soon as demand in the domestic market increases, firms stop doing foreign marketing. Usually, in this case, the organizational structure of the management of the firm does not change.

The third phase - regular foreign marketing - begins with the decision to produce goods or provide services to foreign markets constantly. In this case, the firm finds national or foreign intermediaries, organizes its own divisions to enter foreign markets. At the same time, the dominating strategy is still the satisfaction of demand in the domestic market. In addition, the company invests in foreign marketing (creates branches abroad, develops goods and services in relation to the external market, pricing policy on the foreign market almost equates to the price policy in the domestic market) and becomes dependent on the profits received in foreign markets.

In the fourth phase - the dominant foreign marketing - the firm is fully involved in international economic activity. It sells goods and provides services around the world, but because it has their surpluses on the national market, but because this is the approach of the firm and so it plans international marketing. In this case, firms become international or multinational, depending on foreign revenue.

In the fifth phase - global marketing - the company views the world as a single market, including the national one. The firm is developing a strategy reflecting the commonality of the market needs of many countries in order to maximize revenue using global standardization.

Philip Cateora compares companies that are in different phases of immersion in international marketing. The results of this comparison are presented in Table. 1.2.

Table 1.2

Comparison of companies in different phases of immersion in international marketing

Comparable Element

The dominant foreign marketing phase

Global Marketing Phase

Product Life Cycle

In each country, the goods are at different stages of the life cycle

Global life cycles of goods. All buyers want the most progressive products

Product Design

Designed for a specific market

International standards are used at the design stage

Product Adaptation

Product adaptation is dictated by national characteristics

The goods are adapted to global desires and needs

Market Segmentation

Segments of the market reflect differences. The goods are issued for each segment. There are many individually designed markets. Regional regional differences are recognized

Market segments reflect group similarity. The group is similar to the segments assembled together. Minor standardization of markets

Competition

Competition in the domestic national market

The ability to compete in national markets is influenced by the firm's position in the global marketplace

Production

Standardization is limited by the requirements for the adaptation of goods to national tests

Globally standardized production. Adaptation is done through modular construction

Buyers

Preferences are determined by national characteristics

Global convergence of customer needs and desires

Products

Products differ in the basis of design, characteristics, functions, style, image

Emphasis on the difference in value increase

Rates

The buyer agrees to pay more for the goods made by individual order

The buyer prefers globally standardized goods, if this leads to a price reduction

Promotion

The image of a national product sensitive to national requests

The image of a global commodity sensitive to national similarities and global needs

International Marketing Challenges - getting information about the elements of the marketing mix and interpreting the information received in certain phases of immersion in international marketing.

The tasks of international marketing are much more difficult than the tasks of marketing the domestic market, since the researcher deals with at least two levels of uncertainty of the company's uncontrolled elements instead of one level. Uncertainty is created by uncontrolled elements of the business environment, but each country in which the firm operates adds its own nuances.

thematic pictures

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