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INTERNATIONAL MARKETING
Kotler defined marketing as human activity directed at satisfying needs and wants
through exchange process
International marketing is defined as marketing carried on across national
boundaries.
International marketing is basically the entry into international markets.
International marketing is also known as global marketing. It refers to the firm-
level marketing practices across the border including:
Market identifications
Targeting
Entry mode selection
Strategic decisions
In order to compete in international markets.

SCOPE OF INTERNATIONAL MARKETING
International marketing that is also known as global marketing or export
marketing. It has a broader connotation on marketing literature
International marketing is basically the entry into international markets by:
Opening a branch abroad for processing, packaging or even for the manufacturing
purpose
Establishing joint ventures in foreign countries for manufacturing and marketing
Offering consultancy services and undertaking the projects abroad


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INTERNATIONAL V/S DOMESTIC MARKETING
There are some similarities and differences between international and domestic
marketing
Similarities:

1. Satisfying customers:
Both in international market and domestic market success depends on
satisfying the customer by knowing about the needs and wants of customers
or consumer i.e what they actually want and delivering the products and
services according to their needs.

2. Develop a goodwill:
It is necessary and important to build good will both in domestic and in
international markets. For example if a firm is able to develop a good will
of customers or consumers its tasks become simpler than the other firms.

3. Research and development:
Research and development for products development and modification and
variety are important and necessary both for international and domestic
marketing.


DIFFERENCES:
1. Sovereign political entity:
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Each country is a sovereign political entity and goods and services had to
move across national boundaries and as a result they may face number of
restrictions like:
Tariffs and customs duties
Quantitative restrictions
Exchange controls
Local taxes
2. Different legal systems:
Each country has its own legal system and it differs from country to country.
The existence of different legal existence of different legal systems makes
the task of business more difficult as they are not sure that which particular
system will apply to their transactions. Whereas in case of domestic
marketing the buyers are aware of legal systems in their country

3. Cultural differences:
In domestic marketing only one nation is involved and having same
language and culture whereas in case of international marketing many
languages and cultures are involved.

4. Different monetary systems:
In case of international marketing different countries having their own
monetary systems and currency differences are there. The exchange rates
between currencies fluctuate every day. On the other hand in case of
domestic marketing only one currency prevails in the country.

5. Trade restrictions:
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In case of international marketing trade restrictions are there and trade policy
is to be followed whereas in case of domestic marketing on trade restrictions
are there

6. Degree of risk:
In international marketing there is more risk than the domestic marketing
due to following reasons:
Exchange fluctuation
Large volume of transactions
Longer time period
Comparatively less knowledge
Higher values of transactions
Major international marketing decision
1. Looking at environment
2. Deciding whether to go international
3. Deciding which market to enter
4. Deciding how to enter market
5. Deciding on the global marketing program
6. Deciding on global marketing organization





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WHY DO COMPANIES GO INTERNATIONAL?
Companies go international for the variety of reasons:
GROWTH:
For the purpose of growth and expansion of company, for example after
Coca-Cola dominated the U.S market, it expanded their business globally in
1926 to increase their sales profit.
EMPLOYEES:
Companies go international to find alternative sources of labor. Some
companies look for international countries in order to lower their
manufacturing cost, technology assistance in order to maintain a competitive
advantage, for example companies going to china because of cheap labor.
RESOURCES:
Some companies go to international markets in order to locate resources that
are not available in their home market or can be obtained at better prices
internationally.
IDEAS:
Some companies go international to broaden their workforce and to obtain
new ideas. For example IBM activity recruits individuals firm diverse
backgrounds to become innovative
DIVERSIFACTION:
Some companies go international to diversify selling products and services
in multiple countries reduce companys exposure to possible economic and
political instability in a single country.
CURRENCY DIFFERENCES:
Companies go internationally so as to earn more profit.

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STEPS TO AN INTERNATIONAL MARKETING STRATEGY
As technology breaks down geographic and cultural communication barriers, even
small businesses can often tap into the global marketplace. So following are the
steps to an international marketing strategy.
Research
Unless you spend excessive amounts of time in foreign countries or soak up
knowledge like a Jeopardy Champion, youre probably not able to make an
informed decision about a global strategy without doing your homework first. Start
with the low-hanging fruit: talk to your coworkers, peers, family and friends. Find
out what you can about countries and markets with the greatest potential. Read
relevant print and Web publications voraciously like e Marketer, Economist, Wall
Street Journal and Yahoo! for general business and market research. Compile
information about various opportunities and determine which markets have the
greatest overall potential.
Build
Most small to medium-sized businesses do not have the resources on staff to
undertake a global market strategy. Assuming there are sufficient opportunities
abroad, its time to determine how to develop appropriate resources (i.e. in-country
sales and support, logistics and fulfillment). In the build vs. buy decision, many
companies prefer to minimize financial risk by partnering with companies that
have extensive experience within the target market to provide those resources.
While partnering minimizes risk, there are drawbacks, such as lack of direct
management oversight. Those negatives can be alleviated by hiring employees who
have the education, experience and native language skills relevant to your target
market. International students are excellent resources: they are educated,
affordable, multi-lingual and usually have some relevant work experience. The
potential downside is that youll probably have to navigate through a bushel of red
tape in order to secure work visas.
Assess
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As youre formulating partnerships or hiring strategies, its critical to thoroughly
assess current products and services for viability in foreign markets. The
offering(s) must be intuitive and scalable. If the offering is not intuitive, that is,
easily applicable to the target markets (i.e. there is no apparent need) you will fail.
If the offering is not scalable (i.e. it cant be produced and delivered to the target
markets profitably) you will fail. The new team should lead the assessment phase
and outline a strategy to build or leverage existing infrastructure.

Modify
Once the offering is fine-tuned and ready for market, your sales collateral must be
modified. Even if the global partner or new team has native speaking skills, there
are reasons to hire professional translation and localization services (e.g. Via
Language) to that ensure all cultural nuances are dealt with appropriately. The goal
is to ensure that your sales documentation demonstrates that you feel your target
markets pain and that you are able to offer a relevant solution.
Partner
While your core business and marketing team may already be in place, there are a
variety of reasons to explore additional partnerships. Companies specializing in
marketing, logistics and customer service are excellent additions to the growing
team. Partners within the target market may have relationships with your potential
customers that can be leveraged for business development. For instance, weve
partnered with a homeland security and business consultancy, Eminent Logic, to
help penetrate into the Middle Eastern markets. In return, we introduce them to
local companies we know that can further their business objectives.
Network
Alternative business development strategies include attending, sponsoring, and
participating in industry networking events and conferences. Look into joining
industry associations that have a footprint in your target markets, or that are native
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to the target market. Web-based networking groups (e.g. LinkedIn) can also help
expand your network.
Market
Now that youve built out your infrastructure, trained and deployed a team, and
modified your offering and marketing collateral, youre ready to turn on the fire
hose. Two of the most effective forms of outreach are search engine and email
marketing. Internet access is everywhere, which means everyone has access to
search engines and email. The best way to build a house list of potential customers
in your target market is to optimize your international Web site for search engines
and offer visitors an incentive to provide their email address. Once youve got their
permission to contact them regularly, build a relationship and convert site visitors
and email subscribers into customers.
Travel
Over time, cold leads will become hot, and those hot leads will want face-to-face
meetings. Its decision time: are you ready to invest in a global travel expense
account? If so, be prepared to reel in the business, as most of the world works on a
handshake and face time is critical. Turn your business trips into tax-deductible
vacations and see the world while youre at it.
Review
On a quarterly basis, its very helpful to take a close look at your progress. Assess
the effectiveness of your process, strategies and tactics and determine if youre on
the right track. If not, look for ways to fine-tune by breaking down the entire
process. If youve seen success thus far, understand what is working well for you
and decide whether or not you want to scale further. When that is the case, just
start over at the research phase and begin searching for your next market
opportunity.


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Global Marketing Strategies:
A global marketing strategy that totally globalizes all marketing activities is not
always achievable or desirable (differentiated globalization). In the early phases of
development, global marketing strategies were assumed to be of one type only,
offering the same marketing strategy across the globe. As marketers gained more
experience, many other types of global marketing strategies became apparent.
Some of those were much less complicated and exposed a smaller aspect of a
marketing strategy to globalization. A more common approach is for a company to
globalize its product strategy (product lines, product designs and brand names) and
localize distribution and marketing communication.
I ntegrated Global Marketing Strategy:
When a company pursues an integrated
global marketing strategy, most elements
of the marketing strategy have been
globalized. Globalization includes not only
the product but also the communications
strategy, pricing and distribution as well as
such strategic elements as segmentation
and positioning. Such a strategy may be
advisable for companies that face
completely globalized customers along the lines. It also assumes that the way a
given industry works is highly similar everywhere, thus allowing a company to
unfold its strategy along similar paths in country by country. One company that fits
the description of an integrated global marketing strategy to a large degree is Coca
Cola. That company has achieved a coherent, consistent and integrated global
marketing strategy that covers almost all elements of its marketing program from
segmentation to positioning, branding, distribution, bottling, advertising and more.
Reality tells us that completely integrated global marketing strategies will continue
to be the exception. However, there are many other types of partially globalized
marketing strategies; each may be tailored to specific industry and competitive
circumstances.
Global Product Category Strategy:
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Possibly the least integrated type of global marketing strategy is the global product
category strategy. Leverage is gained from competing in the same category country
after country and may come in the form of product technology or development
costs. Selecting the form of global product category implies that the company
while staying within that category will consider targeting different segments in
each category or varying the product, advertising and branding according to local
market requirements. Companies competing in the multi-domestic mode are
frequently applying the global category strategy and leveraging knowledge across
markets without pursuing standardization. That strategy works best if there are
significant differences across markets and when few segments are present in
market after market. Several traditional multinational players who had for decades
pursued a multi-domestic marketing approach tailoring marketing strategies to
local market conditions and assigning management to local management teams-
have been moving toward the global category strategy.
Among them are Nestle, Unilever and Procter&Gamble,
three large international consumer goods companies
doing business in food and household goods.
Global Segment Strategy:
A company that decides to target the same segment in
many countries is following a global segment strategy.
The company may develop an understanding of its customer base and leverage that
experience around the world. In both consumer and industrial industries significant
knowledge is accumulated when a company gains in-depth understanding of a
niche or segment. A pure global segment strategy will even allow for different
products, brands or advertising although some standardization is expected. The
choices may consist of competing always in the upper or middle segment of a
given consumer market or for a particular technical application in an industrial
segment. Segment strategies are relatively new to global marketing.


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Global Marketing Mix Element Strategies:
These strategies pursue globalization along individual
marketing mix elements such as pricing, distribution,
place, promotion, communications or product. They
are partially globalized strategies that allow a
company that customize other aspects of its marketing
strategy. Although various types of strategies may
apply, the most important ones are global product
strategies, global advertising strategies and global
branding strategies. Typically companies globalize
those marketing mix elements that are subject to
particularly strong global logic forces. A company facing strong global purchasing
logic may globalize its account management practices or its pricing strategy.
Another firm facing strong global information logic will find it important to
globalize its communications strategy.
Global Product Strategy:
Pursuing a global product strategy implies that a company has largely globalized
its product offering. Although the product may not need to be completely
standardized worldwide, key aspects or modules may in fact be globalized.
Global product strategies require that product use conditions, expected features and
required product functions be largely identical so that few
variations or changes are needed. Companies pursuing a
global product strategy are interested in leveraging the fact
that all investments for producing and developing a given
product have already been made. Global strategies will
yield more volume, which will make the original
investment easier to justify.
Global Branding Strategies:
Global branding strategies consist of using the same brand name or logo
worldwide. Companies want to leverage the creation of such brand names across
many markets, because the launching of new brands requires a considerable
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marketing investment. Global branding strategies tend to be advisable if the target
customers travel across country borders and will be exposed to products elsewhere.
Global branding strategies also become important if target customers are exposed
to advertising worldwide. This is often the case for industrial marketing customers
who may read industry and trade journals from other countries. Increasingly,
global branding has become important also for consumer products where cross-
border advertising through international TV channels has become common. Even
in some markets such as Eastern Europe, many consumers had become aware of
brands offered in Western Europe before the liberalization of the economies in the
early 1990s. Global branding allows a company to take advantage of such existing
goodwill. Companies pursuing global branding strategies may include luxury
product marketers who typically face a large fixed investment for the worldwide
promotion of a product.
Global Advertising Strategy:
Globalized advertising is generally associated with the use of
the same brand name across the world. However, a company
may want to use different brand names partly for historic
purposes. Many global firms have made acquisitions in other
countries resulting in a number of local brands. These local
brands have their own distinctive market and a company may
find it counterproductive to change those names.
Instead, the company may want to leverage a certain theme or advertising approach
that may have been developed as a result of some global customer research.
Global advertising themes are most advisable when a firm may market to
customers seeking similar benefits across the world. Once the purchasing reason
has been determined as similar, a common theme may be created to address it.
Composite Global Marketing Strategy:
The above descriptions of the various global marketing models give the distinct
impression that companies might be using one or the other generic strategy
exclusively. Reality shows, however, that few companies consistently adhere to
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only one single strategy. More often companies adopt several generic global
strategies and run them in parallel. A company might for one part of its business
follow a global brand strategy while at the same time running local brands in other
parts. Many firms are a mixture of different approaches, thus the term composite.
Competitive Global Marketing Strategies:
Two types of approaches emerge as of particular interest to us. First, there are a
number of heated global marketing duels in which two firms compete with each
other across the entire global chessboard. The second, game pits a global company
versus a local company- a situation frequently faced in many markets.
One of the longest running battles in global competition is the fight for market
dominance between Coca Cola and PepsiCo, the world`s largest soft drink
companies.
Global firms are able to leverage their
experience and market position in one
market for the benefit of another.
Consequently, the global firm is often a
more potent competitor for a local company.
Although global firms have superior
resources, they often become inflexible after
several successful market entries and tend to stay with standard approaches when
flexibility is called for. In general, the global firms` strongest local competitors are
those who watch global firms carefully and learn from their moves in other
countries. With some global firms requiring several years before a product is
introduced in all markets, local competitors in some markets can take advantage of
such advance notice by building defenses or launching a preemptive attack on the
same segment.
As it is mentioned above that different companies use the blend of these strategies
so following are the examples.
Nike
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Nike has positioned it as a global premium brand which is selling designed and
expensive products for customers who cannot compromise with quality. The
company is using an international marketing strategy with no local incorporation
and it is evident from the same logo of the company and the same advertising
slogan for all international ads. The slogan of the company is "Just do it".

The pricing strategy of the company is also premium and the company is charging
premium prices all over the world. Nike products are same and are distributed all
over the world under the same brand name and without any incorporation of local
features. For its promotion company is using extensive advertising in print,
television and other media. The same international ads are broadcast in all of the
counties where Nike supplies its products.

Today Nike is the number one brand of celebrity, athletes, professional teams and
customers.
Honda
It has Standardizes certain core elements and localizes some marketing mix
elements.
Example : Honda Accor
Same brand and positioning in Europe and in the USA
But the product is not the same everywhere
- In Europe, Accor sales are low, and cars are imported from Japan
- In the US, sales are higher and a special product is manufactured for
the US market
Automatic gearbox
Slightly different style
Different motors
Different interior design and equipment
Since 1986, Honda has developed a new brand, Acura, on the high-end, in the US
& Japan, with specific models and a dedicated retail network.
Coca Cola
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Coca Cola marketing is coherent worldwide and some elements are global
Brand
Colours
Symbols
Same major sales channels
Some advertising campaigns
Sponsoring of major sport events
- Olympic Games since 1928
- Football World Cup

Foreign market entry modes
A mode of entering into international markets is the channel which your
organization employs to gain entry to a new international market. With rare
exceptions, products just dont emerge in foreign markets overnight a firm has to
build up a market over time. Several strategies, which differ in aggressiveness,
risk, and the amount of control that the firm is able to maintain. The decision how
enter in the foreign markets can have a significant impact on results. Expansion in
foreign markets can achieve through following mechanism:
Exporting
Licensing
Joint venture
Direct investment
Franchising
Turnkey projects
Piggybacking

Exporting:
Exporting is that the market entry strategy chosen by most small companies. The
reason for this is quite straightforward. Direct exporting is the most basic entry into
international markets. Exporting represents the least commitment on the part of the
firm entering a foreign Market. Exporting to a foreign market is a strategy many
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companies follow for at least some of their markets. Since many countries do not
offer a large enough opportunity to justify local production, exporting allows a
company to centrally manufacture its products for several markets and therefore to
obtain economies of scale. A firm has two basic options for carrying out its export
operations. The form of exporting can be directly under the firm`s control or
indirect and outside the firm`s control. Exporting is a relatively low risk strategy in
which few investments are made in the new country. A drawback is that, because
the firm makes few if any marketing investments in the new country, market share
may be below potential.
Advantages:
Avoids the often substantial cost of establishing manufacturing
May help firm achieve experience curve & location economies
Disadvantages:
Not appropriate if lower cost manufacturing locations
High transport costs can make exporting uneconomical especially bulk
products
Tariff barriers can make exporting uneconomical
Licensing:
Licensing, as a market entry strategy, is best used by those companies that have a
component of intellectual property in their product. It can be used by any type of
company depending on what they are wanting to license. Licensing is similar to
contract manufacturing, as the foreign licensee receives specifications for
producing products locally, but the licensor generally receives set fee or royalty
rather than finished products. Licensing may offer the foreign firm access to
brands, trademarks, trade secrets or patents associated with products manufactured.
Under licensing, a company assigns the right to a patent (which protects a product,
technology or process) or a trademark (which protects a product name) to another
company for a fee or royalty.

Advantages:

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Receive royalties for granting the rights to intangible property to licensee for
specified period
Allows firm to participate where there are barriers to investment
Primarily used by manufacturing firm

Disadvantages:

Does not give firm tight control over manufacturing, marketing & strategy to
realize experience curve
Does not allow firm to coordinate strategic moves across countries by using
profits earned in one country for competitive attacks in another
Firms can lose control over the competitive advantage of their technological
know-how.


Franchising:
Franchising is a special form of licensing in which the franchiser makes a total
marketing program available including the brand name, logo, products and method
of operation.
Franchising is becoming a more popular market entry strategy given the world
wide branding of various products as a result of the internet. International franchise
agreements are the same as domestic ones with the obvious exception that they
must meet the commercial laws of the country you are franchising too. Franchising
is not a strongly recommended market entry strategy if you do not have solid brand
recognition in your own country or your product is culturally biased.


Advantages:

Involves longer term commitment than licensing.
Primarily used by service firms (McDonalds)
Franchiser sells intangible property (trademark) & insists franchisee agrees
to abide by strict business rules
Firm relieved of many costs & risks of opening new market

Disadvantages:

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No manufacturing so no location economies & experience curve
May inhibit the ability to take profits out of one country to support
competitive attacks in another
Risk of worldwide reputation if no quality control

Joint venture:
Joint ventures can be defined as "an enterprise in which two or more investors
share ownership and control over property rights and operation".Joint ventures are
a more extensive form of participation than either exporting or licensing. In
Zimbabwe, an Olivine industry has a joint venture agreement with HJ Heinz in
food processing.
Advantages:
Sharing of risk and ability to combine the local in-depth knowledge with a
foreign partner with know-how in technology or process
Joint financial strength
Disadvantages:
Partners do not have full control of management
Disagreement on third party markets to serve
Partners may have different views on expected benefits.
Piggybacking:
Piggybacking is an interesting development. The method means that organizations
with little exporting skill may use the services of one that has. Another form is the
consolidation of orders by a number of companies in order to take advantage of
bulk buying. Normally these would be geographically adjacent or able to be
served, say, on an air route. The fertilizer manufacturers of Zimbabwe, for
example, could piggyback with the South Africans who both import potassium
from outside their respective countries.

Turnkey Projects:
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A product and service which can be implemented or utilized with no additional
work required by buyer. The contactors agree to handle every detail of the project
for a foreign client, including the training of operating personnel.
Advantages:
A way of earning great economic returns from the know-how & exporting
process technology
This strategy is useful where FDI is limited by host government

Disadvantages:

Firm has no long term interest in the country
Can take minority equity interest in company
Firm may inadvertently create a competitor If firms process technology is a
source of competitive advantage, then selling technology is also selling
competitive advantage to potential competitors.
Emerging Markets

These are the countries which have a rapidly expanding society as well industries.
Which make them profitable to invest money in their economy? An emerging
market economy (EME) is defined as an economy with low to middle per capita
income. Such countries constitute approximately 80% of the global population, and
represent about 20% of the world's economies. The term was coined in 1981 by
Antoine W. Van Agtmael of the International Finance Corporation of the World
Bank.
Although the term "emerging market" is loosely defined, countries that fall into
this category, varying from very big to very small, are usually considered emerging
because of their developments and reforms. Hence, even though China is deemed
one of the world's economic powerhouses, it is lumped into the category alongside
much smaller economies with a great deal less resources, like Tunisia. Both China
and Tunisia belong to this category because both have embarked on economic
development and reform programs, and have begun to open up their markets and
"emerge" onto the global scene. EMEs are considered to be fast-growing
economies.
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These are the example of the emerging market with content to 2010 research. They
are China, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, South
Africa and Israel, Czech Republic, Hungary, Greece, Portugal, Turkey, Argentina,
Brazil, Chile, Mexico, Venezuela. Russia, Ukraine, The Baltics.
Although Pakistan is not in this let but in my option Pakistan is one of the
emerging nations. We can see that Mexico is the recent year has 50000 deaths with
fighting drug cartel. One key characteristic of the EME is an increase in both local
and foreign investment (portfolio and direct). A growth in investment in a country
often indicates that the country has been able to build confidence in the local
economy. Moreover, foreign investment is a signal that the world has begun to take
notice of the emerging market, and when international capital flows are directed
toward an EME, the injection of foreign currency into the local economy adds
volume to the country's stock market and long-term investment to the
infrastructure.
Because their markets are in transition and hence not stable, emerging markets
offer an opportunity to investors who are looking to add some risk to their
portfolios. The possibility for some economies to fall back into a not-completely-
resolved civil war or a revolution sparking a change in government could result in
a return to nationalization, expropriation and the collapse of the capital market.
Because the risk of an EME investment is higher than an investment in a
developed market, panic, speculation and knee-jerk reactions are also more
common - the 1997 Asian crisis, during which international portfolio flows into
these countries actually began to reverse themselves, is a good example of how
EMEs can be high-risk investment opportunities
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Euro-recession is pulling down growth.
Emerging Market growth is slowing too, but solidly >0.
The US is doing better.
Rate of growth of real GDP (%),
Projections for 2012 & 2013
World Economic Outlook, IMF, April 2012


Most worrisome: Turkey.Turkey can probably not sustain the rapid economic
growth
and very high trade deficits of recent years. Vulnerable to world oil price. China
could land hard as its real-estate bubble deflates and the countrys banks are forced
to work off bad loans.High GDP growth rates in Latin America over the same
period could reverse, particularly if global commodity prices fall Esp. if the
cause is that the Chinese economy begins to falter.

Issues in International Marketing Efforts

Being first is no longer a great issue, for most agreeable international markets
have been initiated by most forms of international expansion interests, whether
heavy production, oil interests or McDonalds franchises and company-owned
locations. The rules still apply, however, as evidenced by results of some that have
equaled the required action of one heavy equipment manufacturer, The danger,
however, is moving into foreign markets without thorough analysis. This can result
in costly withdrawals, as when Caterpillar Inc. recently was forced to close a
factory in Scotland. Careful study of foreign markets is an urgent prerequisite to
entry.Potential markets need to be screened in at least five areas before any
decision is made to expand into one or more of them. Those areas are:
Demand
Competition
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Economic environment
Legal environment
Cultural environment
Demand:
It may be the most basic of all criteria, but others are no less important. If demand
ishigh but the legal structure is such that no profit of any kind can be made, then
obviously there is littlepoint in entering the specific market. If all other factors are
favorable yet there is no demand, however,it really makes little difference how
receptive the government or even the people may be.
Some needs and desires are obvious; others are less so. In some cases, demand can
only beassessed in terms of the marketers abilities to create demand for products
that have not before beenavailable within the region or nation. An example is that
of McDonalds in China. Though many of theChinese are open to anything
Western, the company was required to determine whether operationscould remain
profitable after the novelty of the American hamburger had diminished. The
product trulyis totally foreign in terms of approach, content and packaging, and
could have proven to be little morethan a curiosity factor if the company was not
able to create continuing demand.
Consumer demand also is of little import if per capita income is not of a level that
would allowthem to take advantage of the new availability of the product. Some
evaluations are based on per capitaconsumption statistics, but such an assumption
could be faulty and yield erroneous results if existingsuppliers have already filled
that demand. Past consumption statistics also are of little use when theproduct
previously has not been available. A better, although imperfect, measure of
demand may beliterature which describes living conditions in foreign countries.
Marketers should watch for evidenceof demand now and in the future as the
economies and technologies of foreign nations become moremature. Tracking of
Internet sites and usage patterns can yield valuable information of otherpotential
markets into which entry may be advantageous.

Competition:
Of course competition is an important assessment to make in evaluating potential
international markets. If consumption habits have been favorable, then it is obvious
that the product has been available and that others already are well established. If
there is no competition that is well established, then it can be assumed that either
demand was not as high as evaluation would indicate or that the competition had
internal problems that prevented it from taking full advantage of the opportunities
before it. Such determinations must be made in order to arrive at a valid
assessment of the current condition of the market.
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The presence of competitors is no reason to avoid entering the market, but their
activity can give the new entrant valuable information it will need in order to
directly compete with those already in operation in the locale. If there are more
competitors than there is obvious demand, then it follows that success will be
difficult to attain. But if there are only a few competitors and a large demand,
fortunes could be vastly different for the new entrant. It is when competition and
demand are more balanced that the decision becomes more intuitive and requires
further investigation into aspects of market conditions. Those assessments should
include numbers of competitors currently active, their sizes, the anticipated size of
the market, products currently available and products relative levels of quality and
price. Customer service also should be considered, as that single factor alone can
provide the incentive for consumers to abandon one competitor in favor of another
when most other qualities are relatively equal.

Economic Environment:
The historic, current and anticipated economic condition of the potential market for
entry is of importance for all products, but is of more consequence for some than
for others. Per capita income is important in determining actual or projected
demand for specific products, but other factors also must be assessed. Evaluating
the per capita portion of gross domestic product (GDP) will not be a sufficient
indicator of the likelihood of success if inflation is rampant or interest rates are
prohibitively high.
Exchange rates can be of issue, particularly if the product will be imported into the
country rather than being produced there for sale within its borders.
Assessment of these indicators also must be made with the product in mind as well.
The current state of Brazils currency crisis is such that regulators are attempting to
bring it under control and have instituted punitive interest rates as part of their first
aid and rehabilitative packages. Though interest rates may not affect the sale of
hamburgers at all, an automaker expecting to sell cars on credit in such an interest
rate environment very likely would have no business at all.

Legal Environment:
All other factors could indicate positive results yet any project can fail without
fully examining the laws of operation and taxation that exist within any potential
market. Among the major legal issues that bear investigation are barriers to entry,
restrictions on profit repatriation, tax laws, trade restrictions, price controls, and ad
restrictions.
China is now greatly more open to foreign direct investment but requires in many
instances new entrants to locate in areas that lack the infrastructure support
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necessary for the operation of the business. While the government actively works
to develop telecommunications within the country in more outlying areas, it is
requiring large businesses such as IBM to furnish their own power lines and paved
roads to support their business operations. Success of competitors in one area of
the country is no indication that the government will agree to allow new entrants
into the same region for direct competition. The attendant requirements of new
entrants may be prohibitive when all other indicators would present a positive view
of the locale.
Other issues becoming increasingly important are those of environmental impact
on the local area. As example, Costa Rica is warmly open to any business that will
treat its pristine countryside with the same respect as do the people of the country.
Any potential for pollution or other environmental damage carries stiff penalties.
The atmosphere in China is far different. The government sets highly stringent
rules for business but itself wantonly places dams, reservoirs, roads and other
structures without regard for environmental impact and with impunity. Such an
atmosphere of double standard can be doubly threatening for any business later
locating in the region.

Cultural Environment:
The culture is significant because it has a major impact on behavior and on the
actions of government officials, business executives, foreign employees, financial
institution officials, and the public.
Marketers should be alert for major influences, such as the impact of religion,
language, attitudes toward work, material values, literacy, the family, and
education. In other words, there is little need to expect any success in attempting
to market video games in a country where the primary economic activity is
subsistence farming and televisions and computers (or even electricity) may be
rare.
Nuances of language must be carefully monitored. While marketing in native
language and dialect is always desirable, it must be done correctly. One airline
flying between Florida and several
South American countries attempted to urge its customers to surround themselves
with the luxury afforded by the airlines leather seats and attentive staff, but
achieved only the message not that passenger should fly in luxury, but that they
should fly naked. Similarly, there are vast differences, between English as used in
the US, Great Britain, Australia and Singapore. The same words exist in all, but
many have very different meanings as they are locally used.
There are other cultural factors as well, and they must be given careful study.
McDonalds met with great success in most of the European countries it entered,
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but results in France not only were disappointing but threatened the ability of the
first McDonalds there to remain in operation. The French have drunk wine with
their meals for centuries, and the people rebelled against McDonalds insistence
that they substitute either a cola or a shake. They refused. Of the 109 countries in
which McDonalds has presence, France remains the only one in which it is
possible to buy any form of alcohol at the same location as a Big Mac.

Recommendation
On paper, global marketing is undoubtedly a great concept. The idea of leveraging
a marketing strategy across multiple markets seems to be nothing but beneficial. It
saves effort and resources, and ensures a high degree of consistency between all in-
market branding and activities.
Stop the swinging pendulum:
Marketing departments, particularly those in larger companies, seem to follow
similar pendulum movements. Sometimes central teams are set up to oversee all
territories; at other times these same teams are fragmented into regional or local
components, each focusing on their specific market(s).
Yet, there are ways to stabilize the pendulum in a happier middle position.
Global marketing can indeed work;drive synergies and economies of scale whilst
preserving specific local needs and cultural considerations.
However, as with most marketing approaches, the key to success is a balanced
approach. Not all marketing activities can or should be driven from the center.
Here are some tips for a balanced and successful global marketing approach
Clarify what is driven globally and what is managed locally:
A global marketing approach does not mean the absence of local, market-specific
plans and initiatives. These should, in fact, be complementary.
Global marketing will typically set the framework and parameters within which
local marketing operates, whilst giving in-market teams the freedom to control
local success levers.
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Some areas of marketing that lend themselves to being led at a global or
central level include branding and brand guidelines, strategic marketing planning
and budgeting (with autonomy given to markets within their allocated budget),
large-scale marketing campaigns, social media strategy and guidelines, research
strategy, and global PR.
Other areas best managed locally include local outreach initiatives and more
tactical campaigns, local social media channels and PR initiatives, local
partnerships and events, etc. Markets need to have some control over the local
channels that contribute to driving their success.
In practice, it might be useful to divide your markets in tiers.
A tiered market will help you identify territories that might drive the highest
potential returns. It also allows top tier markets to access bigger budgets, giving
them autonomy; for example, research into local users behaviors to inform
product development.
Global and local areas of ownership may differ from company to company.
However, it is critical you define the areas clearly to avoid friction and
inefficiencies. Take the time to do this upfront dont wait until issues start
arising.
Understand local market needs and develop a collaborative approach:
Too often, operating globally is seen as an excuse to avoid spending time
understanding local cultures, customer needs and behaviors, as well as successful
and less successful marketing approaches.
And yet, it is obvious that a US-based customer is likely to be very different from a
customer located in India or SEA. Their lives, cultures, and needs are different, so
it makes sense they will interact very differently
with your products or services.
For a global model to work, global teams need to
develop an understanding of local markets and
establish a close relationship with local
marketing teams.
Gone are the days when global campaigns and
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strategies were applied in a blanket fashion across all international territories it
simply doesnt work.
Globally defined initiatives and plans need to factor in a degree of flexibility to
cater for cultural differences. A community meet-up, social media competition, or
treasure-hunt based campaign might resonate well with some markets, and not at
all with others. Celebrity endorsement or participation will only work with well,
actual celebrities. And an Indian celebrity is unlikely to be known in France or
Japan. Privacy laws can be very different from country to country too.
So, if you are in a global marketing role:
Research the markets and take the time to get to know the international
teams you will be working with.
Trust them to be the experts on local customs and users.
And leverage their knowledge to make your global plans and campaigns a
success.
Develop and socialize a global marketing plan early (seek feedback):
So, you have established key relationships, researched local markets, and defined
global marketing plans which you think accommodate local needs where required.
Thats a great start, but dont wait for the campaign to begin to validate your
assumptions. Socialize these plans with your international teams as soon as
possible, seek their feedback and ensure that there are no legal issues to prevent
your plans from working in certain markets.
A proactive approach will give you time to adjust and revise your plans in the
event of a problem. It will also allow you to get buy-in from your local colleagues.
And, after all, a huge part of the success will rest on their shoulders during
execution.
Manage campaigns like an army operation plan ruthlessly:
As the time for your campaign to kick-off approaches, there are a few key elements
to consider helping it succeed; starting with outstanding project planning.
Appoint a global campaign manager with responsibility for all
communication and coordination around the campaign. Make sure his/her
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overall accountability is understood by all. Failing to do this will result in
cross-communication, misunderstandings and missed deliverables.
Plan ruthlessly make sure deadlines, responsibilities and deliverables are
clear to everyone involved. Plan your campaigns official launch at a time
and date that works for all the countries in the campaign. And, at every step
of the way, get all parties to confirm when deliverables have been completed
so you can stay on top of the project at a global level.
Consider time-zones your timelines must reflect these so all relevant
materials are ready concurrently across all markets. And dont forget to
factor in time for translation, localization, reviews and iterations.
Communicate plans, deliverables and expectations across different
channels and multiple times. Touch base with in-country teams regularly to
provide support and advice and to stay on top of the campaign as it unfolds.
Make sure you track and adjust in real time:
Running a campaign in multiple markets means you will have to be particularly
disciplined about tracking results. The campaign manager is a good person to
coordinate this.
Here are a few suggestions:
Define key metrics and goals at the start of the campaign at both global and
market level (clicks, click-through rate%, conversion rate, average customer
spend, etc.)
Get buy-in from in-market teams on these targets. Share these metrics
early and share them all. Seeing how each market contributes to the overall
success of the campaign might help drive a bit of healthy competition!
Keep a centralized shared template where market metrics are updated
every week/day/any other relevant frequency
Review metrics weekly with the team, preferably on a call or video call,
and take actions to address under-performance. These discussions should be
active and vibrant, allowing all local teams to chip in and contribute. This is
also a good opportunity to leverage best practice across markets.
Consolidate and share insight:
Once your campaign comes to an end, make sure you consolidate the insight
gained and organize debrief.
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It is important results are both shared upward and reviewed with in-market teams.
Discuss what worked, what didnt; which markets the campaign was most
successful in and why. Learnings will be invaluable in planning future activity.
Over-communicate:
Effective communication is important at all times, not only when running
campaigns.
Being in a global marketing role inevitably means you will be working with
colleagues around the globe; most of whom will be sitting thousands of miles away
from you. In these circumstances its easy to feel disconnected. And, if you are
disconnected, so is your strategy, plans and activities.
A critical element that makes global marketing work is the relationship you
establish with in-market teams. An open communication channel is vital in
developing trust and nurturing these relationships. Regular (video) calls are a great
way to keep the teams up-to-date with the latest global plans and changes, as well
as to learn about the latest competitive developments in-market, or to discuss new
campaign ideas.
Time-zones will make this a challenge, but it can work, and it will pay off.
Creating cohesion in the team will go a long way in driving your joined success.
Reap the benefits of operating globally:
Yes, global marketing requires some effort to work, but it does have a number of
benefits.
Most obviously, it ensures your marketing strategy is applied consistently (but
smartly) across territories and it allows you to operate more efficiently through
economies of scale.
Beyond this, one of the biggest benefits of operating globally with a local presence
is the opportunity it provides to develop a deeper understanding of the markets in
which your company operates and their potential. It enables you to priorities and
optimizes your efforts and budgets effectively.
And last but not least, it gives you as many territories to test and learn from. For
each campaign or activity you run, you will gather feedback and suggestions from
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a range of markets. This is invaluable insight you can leverage by developing a
repository of best practice and ideas which will help drive your long term success.
Tools of International Marketing
Tools of international marketing are that the means and ways by which you can
market your product in any international market. It basically tells about the
methods to the marketers by which they can market their product in the market and
here are some methods of marketing your product in international markets. Before
marketing your product in other markets there are some factors which you have to
consider so that your way of marketing can be more effective.So before using any
of these tools you should have a defined business plan before launching your
product and also your every employee should be a vital member of your
international team. You should also have your own website so that marketing on
internet could be done easily. Plan about your product or services and also keep in
mind something about the expansion and also about the budget that how much you
can afford in order to market your product. All such documentation should be done
before start working on the ways of marketing.
Some of the international marketing tools are explained below. First of all you
should keep certain things in mind when you are launching your product in
different cultures like the personalities, wealth, habits, language and also age. By
knowing all these things you would be more able to do marketing in different
cultures.
Media Choices for International Marketing:
Marketing communications in international markets needs to be conducted with
care. This portion will consider some of the key issues that you need to take into
account when promoting products or services in overseas markets. There will be
influences upon your media choice, cultural issues to be considered, as well as the
media choices themselves - personal selling, advertising, and others.
Influences upon International Media Choice:
There are a number of factors that will impact upon choice and availability of
media such as:
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The nature and level of competition for channels in your target market.
Whether or not there is a rich variety of media in your target market.
The level of economic development in your target market (for example, in
remote regions of Africa there would be no mains electricity on which to
run TVs or radios).
The availability of other local resources to assist you with your campaign
will also need to be investigated (for example, sales people or local
advertising expertise).
Local laws may not allow specific content or references to be made in
adverts (for example, it is not acceptable to show naked legs in adverts
displayed in Muslim countries).
And of course a lot depends upon the purpose of the international campaign
in the first place. What are your international marketing communications
objectives?
Cultural Issues and International Marketing Communications:
There are a whole range of cultural issues that international marketers need to
consider when communicating with target audiences in different cultures.
Language will always be a challenge. One cannot use a single language for an
international campaign. For example, there are between six and twelve main
regional variations of the Chinese languages, with the most popular being
Mandarin (c 850 Million), followed by Wu (c. 90 million), Min (c. 70 million) and
Cantonese (c. 70 million). India has 22 languages including Assamese, Bengali,
Bodo, Dogri, Gujarati, Hindi, Punjabi, and Tamil to name but a few. Of course
language choice could affect branding choices, and the names of products and
services. Hidden messages and humor would be especially tricky to convey.
Famous examples include the Vauxhall Corsa, which was called the Nova in the
United Kingdom - of course No Va! Would not be an acceptable name in Spanish.
A similar problem was left unaddressed by Toyota, with their MR2 in France.
Design, symbolism and aesthetics sometimes do not transcend international
boundaries. For example Japanese aesthetics sometimes focus upon taste and
beauty. Also look at Japanese cars from the front - they have a smiling face.
The manner in which people present themselves in terms of dress and appearance
changes from culture to culture. For example in Maori culture, dress plays a central
role with everyday clothing differing greatly from ceremonial costume. Whereas in
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Western business-culture the standard 'uniform' tends to be a conservative collar
and tie.
Other factors that need to be considered in relation to international marketing
communications (Promotion) include:
The work ethic of employees and customers to be targeted by media.
Levels of literacy and the availability of education for the national population.
The similarity or diversity of beliefs, religion, morality and values in the target
nation.
The similarity or diversity of beliefs, religion, morality and values in the target
nation.
The family and the roles of those within it are factors to take into account.
Personal Selling in International Marketing:
Personal selling has a number of pros and cons:
It is beneficial where wages tend to be low, since staffing costs will be
comparatively low.
Where there are many languages, you'll need trained sales personnel that can
convey your message in specific tongues.
The sales force will need to be supported. Commercial administration staff
will have to take care of sales enquiries, send out product literature and
samples, and make quotations - often online.
You'll need to invest time and effort in recruiting, motivating, organizing
and training a local sales force. Recruits will need to know about products
and markets, language and culture, the location of target segments, customer
buyer behavior - and that's just the beginning.
There is a dilemma as to whether to place expatriate employees into your
international target market, or to recruit locally. Local is best!
Where business etiquette varies from culture to culture, you'll need to train
your people in what to expect - or recruit salesmen from the local market.
Advertising in International Marketing:
Advertising has a number of pros and cons:
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When considering press advertising try to anticipate the levels of literacy
within the nation in question. Where literacy levels are lower, perhaps you
could use a more visual campaign.
Which language(s) is the press written in?
What is the split between regional and national press in your target market?
What types of television channels are available? Are they HDD, digital,
analogue, satellite, cable, via the telephone, via a broadband or ADSL
connection?
Which TV channels do our target segments watch?
Is there space on the suitable TV channels when we want it, or at a price that
we can afford?
Where visual communication is paramount, are there suitable poster
locations?
What is the behavior of the target population in relation to cinema? For
example, Cinema is tremendously popular in India.
Radio has similar issues as TV and press. Which stations do your target
groups listen to - news, sports or music? Is there space available with the
most suitable stations?

Other Media Choices in International Marketing:
Other potential media would include:
Web-based marketing using your own domestic site, or one developed
specifically for the target market. Chinese websites are very different to
Western sites. They are very busy and every single space is filled with
images and text. Affiliate or pay-per-click advertising may be available.
International tradeshows, trade missions, sponsorship (for example
international sporting events), Public Relations (for example oil companies)
and a variety of other international marketing communications are available
to the international marketer.
Marketing Through Internet:
Over the last few years the popularity of the Internet has grown at an unbelievable
rate as it changed its overall purpose from defense to commercial applications. The
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Internet consists of thousands of computer networks interconnected on a global
scale. Those net-works may offer services that people use to communicate with
one another or to nd and retrieve information all around the world. Ways of
marketing through internet are given below.
Email
It is an electronic mailbox where one can send and receive messages; can reduce
mailing costs, increase delivering speed, improve customer relations, and do much
more.
Mailing List
Mailing lists are a great tool for communicating to members or potential customers
by e-mail. A mailing list is a group of people with a common interest such as
membership in a credit union, who receive e-mail messages by subscribing to the
list. The goal here is to provide members with the ability to receive new
information directly and automatically.
News Group
Usenet newsgroups are an application on the Internet where individuals post
messages for public view and which can be used to do market research or to
promote a business. Usenet, which started in the 1980s, is a huge conferencing or
bulletin board messaging system with over 13,000 different newsgroups today,
organized by topic. One must be careful about how to use newsgroups because
there are some highly sensitive and sophisticated users on the Internet who can
bring an on-line business to a crashing halt if one provokes them with unwanted e-
mail (i.e. SPAM).
World Wide Web
One of the hottest concepts for on-line marketing is the WWW. It offers companies
an easy, inexpensive, fast, and technologically sophisticated tool for advertising
goods and services, taking and placing orders, promoting their philosophy and
policy, and communicating with their customers all over the world. In the Web
environment, a company can deliver a full presentation with sound, pictures and
video to millions of potential consumers. A Web site is much more enticing and
informative than e-mail messages, but it can be much more difficult to plan and
implement.
Cyber Mall
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Even shopping malls have gone on-line. Thesevirtual marketplaces consist of
individualWeb sites linked under a general site the cybermall, which is run
much like the mall in a neighborhood. Basically, there are two types of cybermalls:
a) vertical, which consists of cyber-stores selling the same type of product (for
example, some malls have sites that sell only arts-and-crafts products), and b)
horizontal, where the bookstore might be next to the jewelry store.
Press Releases
Though this is an old method marketing method, it is high effective even today in
the online world. Even on the Internet, companies willing to market their product
use press release as a tool. Apparently, what they do is write a few hundred words
press release and post it on online press release agencies.
These agencies, in turn, publish the press release for free so that hundreds and
thousands of people can view it. As a result, traffic to the business website/blog
improves greatly.

Newsletters
Email newsletters are an effective method to getting traffic to your site. Some
essential information related to the topic you choose will be sent to you via email
along with the link to the site. Apparently, the email newsletters are sent to an opt-
in list of interested subscribers. With the help of an auto responder emails can be
sent and list can be maintained for free.
Forum Posting
Forum posting, though it is a new method of online marketing, it's really effective.
People join groups to know and discuss something of similar interest.
People comment and answer the questions along with the URLs of their business
website. As a result, back links that lead people to your website are created. Thus,
traffic to the website increases automatically, resulting in higher sales and cash
flow.

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Wikipedia
Wikipedia is another good example of marketing through internet. Here you can
put ads of your product or write some page about your product and thus in this way
you can easily market your product because it has a large number of users who will
visit this site many times thus your product will be marketed.

Social Networks
Social network sites are also a big tool of marketing your product through internet.
Social websites including Facebook, Twitter are also a big tool of marketing your
product because these websites has large no of users and many people from around
the world visit these websites many times. So this is also a tool of marketing.
Affiliate Programs:
With an affiliate program you offer affiliates an incentive to perform a particular
outcome, which may be to increase clicks to your site or improve sales from a
banner ad, text link, graphic or other means. The incentive is usually a fee,
provided as a flat rate or percentage depending on your affiliate program
objectives. Because you are marketing yourself internationally, it will be necessary
for you to sign up with affiliates in their language and arrange foreign payments to
pay them their fees.

Conclusion
There are many differences that can be explored when doing business in the
foreign country versus doing business in your country. Changes in the world
market and in technological conditions in the world economy in the recent past, in
particular in the last decade, pose new challenges to industrialization and the
development of a competitive manufacturing sector. Three main categories of
changes are most relevant: changes in market conditions, in technology hardware
and software and in the organization of production.
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In many respects the conventional advantage of low labor cost is being undermined
by the increasing importance of competitive characteristics other than cost of
production, notably product/service quality and just-in-time delivery. To cope with
these requirements, greater effort will be required to develop design, marketing and
new organizational and linkage capabilities, in addition to selectively acquiring
new manufacturing technologies.
These market and technological changes are likely to have considerable
implications for the shift in the direction of knowledge-intensive production and
for the kinds of capabilities that must be developed to cope with the changing
situation. First, greater effort will be needed to monitor these changes with a view
to adapting to the new situation. This will often imply selective adoption of new
technologies in production and marketing at the right time and in the right
applications according to the dictates of quality, precision, speed and productivity
requirements. Second, greater effort will be needed to create a conducive
environment for the creation and development of core capabilities within firms and
in the institutions that interact with those firms so as to cope with the changing
conditions.