Importance of International Marketing

Keywords: international marketing essay

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International marketing can be an important aspect of a business's planning process if they desire to go global.

Today, almost every marketing company, large or small, is touched for some reason by global competition- from the America florist that purchases its plants from Dutch nurseries, to the Melbourne clothing retailer that sources its items in Asia, to the American electronics company competing in its home markets with big Japanese competitors, to the Australian consumer goods developer at the forefront with new products for international markets. Kotler P, Dark brown L, Adam S, Burton S, Armstrong G (2007).

Before an organisation makes your choice to travel global and sell its products to a fresh market they need to research their potential markets in conditions of the political and legal environment, the economical structure of the marketplace and who the organisation will market its products to and exactly how it will do that.

This essay targets why international marketing is important and exactly how an organisation can seek out opportunities and eliminate dangers.

Body

Kotler P, et al (2007) areas "Marketing can be an organisational function and a set of procedures for creating, interacting and providing value to customers and then for managing customer romantic relationships in ways that gain the organisation and its stakeholders. "

Managing the consumer romantic relationship as well as the stakeholders requires understanding the various needs and would like of the different parties engaged. The consumers want the very best quality product at the least expensive price however this comes at a cost for the company because there is also a obligation of treatment in managing the partnership with the stakeholders for example the shareholders who wish to make a higher return on the investment.

Businesses attempting to move their products in the global market use International marketing when they gather information about their marketplace. The information accumulated would include specific things like; the demographics of the market, the current political environment, what financial system the country manages under and the culture of the country.

International marketing is vital for businesses to make it through in the global marketplace. Not taking international marketing seriously may lead to the business inability in their overseas market segments. However using the right tools the organisation can avoid this.

Why is International Marketing important?

International marketing is important for businesses attempting to grow in the global market where businesses compete for consumers' last buck. International marketing talks about what it presently does indeed e. g. who they market to, how they do this. Yet, in the global sense, it talks about what it must change to get the new market and what did it keep the same as back home. How many other competition exists in the new market, what laws exists which could affect the firms operations, how can the product adopt the various culture.

Market Opportunity

The business might use a SWOT examination to determine what its current position is on the market place is. The SWOT research looks at the organisations internal and exterior factors and determine what it needs to do to boost the strengths and get rid of the weaknesses and use the opportunities open to decrease any dangers.

Internal

S: Strengths

This includes the firms capacities, for example experience and knowledge on the market place, whether the organisation has any competitive gain, for example the right people doing work for the organisation, the grade of the merchandise and at a price that its competitors can't defeat. Another factor to consider is the brand image, if the brands image is made or not, and whether it is easy to discover.

W: Weaknesses

This can include gaps in the capabilities of the company, for example, too little cash flow, too little knowledge in the certain area or a lack of leadership.

External

O: Opportunities

An opportunity can be that the organisations products or service can fill up a niche in the market place, the new market maybe closer to the businesses supply chain resulting in a lower cost for the product.

T: Threats

The political structure of the marketplace, the legal barriers, changing customer targets.

Economic environment

There are four main types of economical buildings: Market capitalism, centrally designed socialism, centrally designed capitalism, and market socialism.

As defined by Keegan & Green (2005) Market capitalism is an economic system where individuals and businesses allocate resources and creation resources are privately owned. Therefore consumers decide what goods they desire and firms know what and how much to produce; the role of the state is to promote competition and ensure consumer cover.

This is currently the most common economic system about the world. Countries working under Market capitalism will be the easiest to get into, but also have the most competition, which means businesses attempting to move into countries with market capitalism will have to put the time into considering whether the company has any resources of competitive advantage, if it does not, what it can do to have the ability to gain a competitive advantage.

As identified by Keegan & Green (2005) Centrally Planned Socialism is where the state has the broad power to serve the public hobbies as it sees fit. State organizers make 'top down' decisions in what goods and services are produced and in what amounts and therefore consumers spend their money on what's available.

Organisations attempting to move their products and/or services into countries that operate under centrally planned socialism have to have a clear arrange for its entry into the marketplace. You will see less economic flexibility in centrally planned socialist countries because their state makes the decision on who receives resources. This is actually the most difficult market to find yourself in because of the controls put on organisations by the state of hawaii. If an company is attempting to operate in this particular marketplace, it could have to enter into a partnership contract with the government.

Political Risk factors

As stated by Kotabe and Helsen (2008) the political environment in every country is regularly changing. New social pressures can pressure governments to make new laws and regulations or even to enforce old regulations differently. Procedures that recognized international investment may change towards isolationism or nationalism. The environment in each target market should be analysed to determine its level of economic and politics risk and opportunity.

Organisations moving into the global market, it must assess the politics risk, the organisation should be aware of the annals of the political and economic structure of the united states as well as the existing systems which the country runs under.

Political risk is the risk of any change in the politics environment or the government's policy, that could adversely have an effect on a company's capability to operate effectively and profitability. If the politics risk is too much in a country, foreign investment is going to be low.

Some of the politics risks included for international marketing are;

The political framework of the united states; how rapidly will be the government of the country is transformed. This factor relates to the government authorities polices and the amount of bureaucracy involved in the system. Other factors include how common corruption is in the normal daily operations of the business. This will impact the businesses ethical and interpersonal responsibility and may have a poor on its brand image.

An example of how the political situation can change rapidly and also have a negative impact on organisations is Cuba. Beneath the Batista dictatorship foreign investment, mainly from the United States of America flowed in, eventually attaining around 2 billion us dollars. However communist revolutionaries commanded by Fidel Castro seized Havana and overthrew Batista in 1959, and proceeded to nationalise much of the assets owned by foreign investors.

Market segmentation

Markets contain buyers, and clients differ in a single or more ways. They could change in their desires, resources, location, buying behaviour and buying routines. Because customers have unique needs and wants, each buyer is potentially another market.

Organisations have to choose parts of the market that they want to target rather than contending for the entire market; this is exactly what market segmentation is, breaking the market into different groups of people, predicated on their needs and wants, as well as why is them need it something. This all allows the organisation to determine who their products are targeted at.

Demographic segmentation

This involves dividing the market into groups predicated on each demographic variable, for example, this, gender, family size, family life-cycle, income, profession, education, faith and nationality of people who choose the businesses products.

For example China's population is 300 times much larger of New Zealand's. Therefore the company must break these groups of the buyer of the merchandise.

Behavioural segmentation

Behaviour segmentation targets if people buy and use a product, as well as how often and what quantity consumers use or take in. Researching this information about the new market, the business enterprise could find opportunities such as there is a niche on the market that consumers look for in something. Behavioural segmentation is about the benefits people look for in a product.

Psychographic segmentation

Psychographic segmentation consists of grouping people in terms of their attitudes, value, and lifestyles. This information is usually obtained through research and questionnaires and other types of studies.

Marketing Mix

Product

Introducing your product in the international market comes with a whole new marketing mix research. When opening an organisations product to a fresh market the organisation has to evaluate what the merchandise is, what it means and how the organisation is going to market this product. If there already are similar products in this market, how is the business enterprise heading to different the product from its competition?

The brand image of the product may be a way to obtain competitive benefit to the company. Whether the product is locally made or manufactured in a different country, is all area of the brand image. This takes on out in the notion that if something is made in Asia, it could not be of the same quality as it would be if it was manufactured in New Zealand.

Going into a new market, the company has to take into account the faith and the culture of the united states. For example providing NZ pork in Indonesia; Indonesia is the most significant Muslim country on earth. How does an company market the product?

Through the marketplace segmentation, the company can breakdown different groups of men and women for the reason that country for example how many non-Muslims reside in that country, which can help the organisation market its product. The organisation must also work out how it can do that without upsetting the primary religion of the country.

Price

Selling the product at the right price that best suits the product. Going to a fresh market the organisation may have to change its pricing ways of match the country. This all will depend on several factors, such as how much competition there is in the market, if the product the company is selling is in a minimal income area, which could have the result of many people not having the ability to afford to buy the product if it's very costly.

Promotion

When an company is promoting their product and/or service in the international marketplace, it must consider factor such as, what the organisation does presently to market its product/service and exactly how or if they can transform this form of advertising to reach a brand new target market. The type of promotion that the company used domestically might not work the same in the foreign marketplace anticipated to different demographics, culture etc.

When Fisher & Paykel launched its products in China before this year, they launched it at the largest kitchen appliance show in China, understanding that there will be a lot of visitors and potential buyers of their products as of this show.

Placement

Placement is the distribution of an organisations product and is an essential requirement of entering a foreign market. To be able to sell their products an company really needs an effective distribution network, and establishing one can be considered a very expensive and frustrating job. A proven way to gain a circulation network is to acquire wholely an existing business that provides a competing product.

Conclusion

International Marketing is very important to businesses that are thinking of going global or curently have. How the organisation reached its marketplace domestically might not exactly work the same in the new software industry. There are different tools that the firms may use to find opportunities, and also many strategies to use in the new industry which will enhance the chances of a return on the time and money the organisation invested in its new marketplace

Before stepping into the new market the company may perform research to find out which countries provides the best return for the organisation, this is done by analysing the country's financial system and the amount of politics risk present.

An organisation may use a SWOT evaluation to check out its current interior and external environment. A SWOT analysis will outline the organisations talents, whether it includes any competitive advantages in case so how can they utilize this to their gain. The SWOT research also illustrates the organisations weakness and any opportunities threats that may arise for the company.

The organisation might use market segmentation as another tool to analyse who its marketplace is through demographic, psychographic and behavioural segmentation, as well as who might use their product/service, when they could use the product/service, how the product could be used and why and exactly how it can reach all of its target market.

Another tool that the organisation could use is a marketing mixture analysis, this analyses what its products are, what charges strategy it'll use within the new market, how the organisation can promote the merchandise, whether it'll keep carefully the same campaign method as it does domestically or promote it in different ways and exactly how will they get the merchandise to the consumers.

International marketing is more than simply providing your products in a new marketplace, it is approximately building romantic relationships with the consumers, for the organisation to get this done it must understand what the needs and wishes of their consumers are, with price will they pay to understand this.

Reference

Keegan, W. J. , & Green, M. C. (2005). Global Marketing. (4TH ed. ). Top Saddle River, N, J: Prentice Hall. p. 151, 154, 155, 228, 235, 237, 49

Kotabem M. , & Helsen, K. (2008). Global Marketing Management. (4TH ed. ). Hoboken, N, J: John Wiley & Sons, Inc.

Kotler, P, Dark brown, L, Adam, S, Burton, S, Armstrong G. (2007). (7TH ed. ). Frenchs Forest, NSW; Pearson Education Australia. p. 25, 7

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