The advertisement can be on American influence located in China. If a theme works exceedingly well in one country, then it naturally becomes very tempting for a firm to want to use it in another country. There is a big risk involved in doing this, because admirable themes are culturally oriented. For example, consider the very popular Marlboro advertisements.
The Marlboro man projects a strong masculine image in America and in Europe. In Hong Kong, attempts to use this advertisement were unsuccessful because the urban people did not identify with horseback riding in the countryside. Several firms have tried to use old, reliable promotional methods in countries where they simply do not work. Billboard advertisements, for example, are perfectly legal in most parts of the Middle East, but it does not mean one should use them.
In some cases companies have been know to advertise in the wrong language. Such mistakes can cause major problems. It is often the promotional strategy that creates mistakes. The perception of the product characteristics plays an important role in the international marketing strategy. Multinational corporations, therefore, must consider varying promotional tactics. Adapting the product but using the same promotional mix is a strategy used when a product will not appeal to different local tastes.
For example an American cheese company may need to use different ingredients when making cream cheese for the markets of different countries. The most expensive strategy is adapting to both the product and its promotion. This strategy may be required when neither the existing product nor its promotion would appeal to foreign markets.
In some cases, the international firm may develop a completely new product for a foreign market. It can be very costly to create a new product line for a foreign market. It does not matter if it is licensing, exporting, or manufacturing in the host country. International marketers use existing distribution channels for the most part.
Distribution channels link the producer of a product to the consumer or industrial user. This international marketing channel is sequence of marketing organizations from nation to nation that directs the flow of products.
Most industrial products use shorter channels. One of the most basic levels of international marketing is licensing. A license is a contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation. This grant may be in the form of a direct sale of rights or be limited to a certain period of time. International licensing can be tied to joint ventures between the parent and the subsidiary.
For example, an American candy manufacturer might enter into a licensing arrangement with a British firm. The advantage of licensing is that it provides a simple method of expanding into a foreign market with no investment.
Another disadvantage is that a licensing arrangement does not usually provide the original producer with any foreign marketing experience. Technology licensing is a conceivable alternative to the exportation of finished products through intermediaries or to the different types of capital involvement, which could be chosen as an international strategy.
Many companies use intercompany licenses to protect the intellectual property of the parent company that is held by the subsidiary, and to allow for payments by the subsidiary to the parent of certain license fees. Licensing is also dependent upon product characteristics.
Products subject to rapid technological change are also good licensing candidates. For most large companies licensing is designed as a means to enter secondary markets. The potential licensor must look at legal and financial considerations. Many times the decision to license has been made since the company has no other alternative because the government restricts direct investment through controls on foreign ownership or because it restricts the development of marketing network by a number of tariff barriers.
Licensing allows the licensor to enter into foreign markets with a low financial risk. The decision to license is a complex one. The creation of joint ventures sometimes prevents all the problems encountered by a company when going overseas from occurring. With the combined expertise and efforts of local and foreign firms, many problems will be eliminated. A joint venture is a partnership that is formed to achieve a specific goal or to operate for a specific period of time. International corporations may enter into joint ventures.
Most joint ventures were formed to share the extremely high cost of exploring for offshore products. A company should create a joint venture only after giving it some consideration. Licensing decisions are as difficult to analyze as those decisions involving the creation of a joint venture. Failure to make the correct decisions at the right time can result in the loss of substantial long-range business prospects and profits.
A firm can also manufacture its products in its home country and export them for sale in foreign markets. Like licensing, exporting can be a relatively low-risk method of entering foreign markets. Unlike licensing, it is not an easy task. Exporting opens up several levels of involvement to the exporting firm. This merchant assumes all the risks of product ownership, distribution, and sale.
The agent is an independent firm that sells and may perform other marketing functions for the exporter. The exporter retains title to the products during shipment and until they are sold.
An exporting firm may also establish its own sales offices in foreign countries. The exporting firm maintains control over sales, and it gains both experience and knowledge of foreign markets.
Eventually, the firm may develop its own sales force to operate in conjunction with foreign sales offices or branches. Pricing is a very important factor in international business. The pricing system more common in international marketing is cost-based pricing. Cost-based pricing is not as popular in domestic marketing as it is in international marketing.
Using this simple method of pricing, the seller first determines the total cost of producing or purchasing one unit of the product. The seller then adds the amount to cover additional cost and profit. The cost added is called the markup. The total cost of the markup is the selling price of the product. Many smaller firms calculate the markup as a percentage of their total cost.
Markup pricing is easy to apply, and it is used by most businesses. However, it has two major flaws. Another form of International marketing involves differentiated marketing. This type of marketing requires firms to segment their overseas markets, and implement a localised marketing mix to meet the needs of each of its foreign markets. The aim of the organisation was to become a worldwide global brand.
The advertising strategies adopted by the firm are more local and differentiated rather than standardized. Essay UK - http: If this essay isn't quite what you're looking for, why not order your own custom Marketing essay, dissertation or piece of coursework that answers your exact question? There are UK writers just like me on hand, waiting to help you. Each of us is qualified to a high level in our area of expertise, and we can write you a fully researched, fully referenced complete original answer to your essay question.
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Out of all the branches of marketing the international marketing is very significant and important with a view of handling the business when it is on international expansion stage Kotabe and Helsen, This marketing puts emphasize on the fact that when a company goes foreign they have to focus on a variety of aspects.
Working in international environment could become easier when the company is able to make alignment with the international market and can understand the local culture. Here in this report the challenges and opportunities available in the international marketing has been explained along with the description of suggestions that helps in improving the decision making regarding the building of an internal organizational culture. International marketing is very different than the national marketing.
It may also involve the same marketing practices, but the set of strategies is always different. Every organization prepares different kind of marketing and product mix in order to cater the attention of people residing in different regions and areas.
Various elements of the marketing mix are also affected at international level. However the roles of promotional mix mainly remains the same due to the element of globalization Deresky, The tools for the promotional aspects remain same and online or digital marketing could be treated as the ultimate solution for the same purpose.
On the ground of price the role of economic environment is required to be understandable. If any organization wants to set their prices within any country, then different dimensions of economic environment can help in taking the appropriate decisions. Mainly the organizations took the decision to enter into the foreign market as they aimed at higher profits and capturing a bigger market share.
In Asian markets there are two big economies where the density of populations is very high and business entities have seen a huge potential within these Asian countries.
India and China both are most populated countries in this world Gillespie, Jeannet and Hennessey, Further, the cultural aspect is also something where huge difference could be experienced. This essay has been submitted to us by a student in order to help you with your studies. This is not an example of the work written by our professional essay writers.
Another opportunity which also fosters the companies to go for international expansions is the availability of big market. Once company caters the local market, then the organizations always look to expand their business, so that the element of saturation could be avoided. In the situation of international marketing companies has to have held on marketing research techniques. It can definitely enable them to predict about the growth and development speed within the country.
After the discussion of all these benefits, it is essential to understand that the organizations should go for international expansion or not. Some of the management experts have mentioned that no doubt international environment creates more opportunities and extra sales, but the level of burden and responsibilities also increases proportionately Usunier and Lee, In order to handle them the organization has to invest more and there is a huge requirement of focusing on to the money as well as time management.
Further, the management people have theory that if an organization is committed to increase their sales and profitability, then continuous improvement and innovation could allow them to retain their customers for the longer period of time. It is something that allows business entities to gain competitive advantage in the local market.
In contrast to it some management experts mentioned that while going into the international environment the organization can build its reputation and mostly they can create their brand value as well Das and Kumar, Sometime it happens that any region comes out with lots of skilled and innovative organizations active in the same industry.
Likewise, Italy has a huge level of fashion designing houses and big apparels brand. So if they all would have been remained in the local market only, then their profit margins could not be on this much of heights. The same scenario is with the German automotive industry. Thus, the nature of business and product also boost companies to go into the international market. German companies just introduce innovative cars at world level and introduce people with status quo products. It increases their demand and people accept the uniqueness and innovation within their products.
This particular helps them to understand that by going into the international market they can not only increase their profitability, but also the sustainability another most significant business objective factor also matters a lot Engelen and Brettel,
A free marketing essay on the subject of international marketing using Starbucks as an example - view, print and download to help you with your studies.
International marketing is that the company wants to expand their market enter into other countries. If one company wants to enter international market they should.
Free international marketing papers, essays, and research papers. The International Marketing Environment Marketing Essay. After reviewing and analyzing various literatures available on market entry strategies, it is clear that there are many views and conclusions on both the success and opportunities on marketing specific services.
Dissertation and Essay Samples: International Marketing International Business. The following essay or dissertation on the topic of International Business has been submitted by a student so that it may help you with your research work and dissertation help. May 09, · Free Essays from Bartleby | International marketing Introduction Companies competing in the 21st century are seeking to increase revenues, growth and broaden.