In fundamental terms, entering a new country-market is very like a start-up situation, with no sales, no marketing infrastructure in place, and little or no knowledge of the market. Despite this, companies usually treat this situation as if it were an extension of their business, a source of incremental revenues for existing products and services.
While the overall concept of marketing is the same worldwide, the environment within which the marketing plan is implemented can be dramatically different from region to region.
Common marketing concerns—such as input costs, price, advertising, and distribution—are likely to differ dramatically in the countries in which a firm elects to market its goods or services. Business consultants thus contend that the key to successful international marketing for any business—whether a multinational corporation or a small entrepreneurial venture—is the ability to adapt, manage, and coordinate an intelligent plan in an unfamiliar and sometimes unstable foreign environment.
Businesses choose to explore foreign markets for a host of sound reasons. In some instances, firms initiate foreign market exploration in response to unsolicited orders from consumers in those markets.
Many others, meanwhile, seek to establish a business to absorb overhead costs at home, diversify their corporate holdings, take advantage of domestic or international political or economic changes, or tap into new or growing markets.
The overriding factor spurring international marketing efforts is, of course, to make money, and as the systems that comprise the global economy become ever more interrelated, many companies have recognized that international opportunities can ultimately spell the difference between success and failure.
Jerome McCarthy and William D. Product-market opportunities are often no more limited by national boundaries than they are by state lines within the United States. Around the world there are potential customers with needs and money to spend.
First, the products that they market abroad, usually patented, are believed to have high earnings potential in foreign markets. Second, the management of companies marketing internationally must be ready to make a commitment to these markets.
This entails far more than simply throwing money at a new exporting venture. Indeed, a business that is genuinely committed to establishing an international presence must be willing to educate itself thoroughly on the particular countries it chooses to enter through a course of market research.
A company can commit itself to one or more of the above arrangements at any time during its efforts to develop foreign markets.
Each method has its own distinct advantages and disadvantages. New companies, or those that are taking their first steps into the realm of international commerce, often begin to explore international markets through exporting though they often struggle with financing.
Achieving export sales can be accomplished in numerous ways.
Sales can be made directly, via mail order, or through offices established abroad. Many companies are able to establish a healthy presence in foreign markets without ever expanding beyond exporting practices. Although large companies often grant licenses, this practice is also frequently used by small and medium-sized companies.
Often seen as a supplement to manufacturing and exporting activities, licensing may be the least profitable way of entering a market. Nonetheless, it is sometimes an attractive option when an exporter is short of money, when foreign government import restrictions forbid other ways of entering a market, or when a host country is apprehensive about foreign ownership.
A method similar to licensing, called franchising, is also increasingly common. A fourth way to enter a foreign market is through a joint venture arrangement, whereby a company trying to enter a foreign market forms a partnership with one or more companies already established in the host country.
Often, the local firm provides expertise on the intended market, while the exporting firm tends to general management and marketing tasks. Use of this method of international investing has accelerated dramatically in the past 25 years. Contract manufacturing, meanwhile, is an arrangement wherein an exporter turns over the production reins to another company, but maintains control of the marketing process.Cross-border recognition is one of those issues that tends not to get too many column Read more Cross-border Progress.
Social Mobility in China: Class and Stratification in the Reform Era by David S. G. Goodman “[S]tudies have revealed a high level of intergenerational transfer of class and social status, privileged and otherwise.”. A market entry strategy is the planned method of delivering goods or services to a new target market and distributing them there.
When importing or exporting services, it refers to establishing and managing contracts in a foreign country.
International marketing takes place when a business directs its products and services toward consumers in a country other than the one in which it is located. While the overall concept of marketing is the same worldwide, the environment within which the marketing plan is implemented can be.
Marketing strategy is a long-term, forward-looking approach to planning with the fundamental goal achieving a sustainable competitive advantage.
Strategic planning involves an analysis of the company's strategic initial situation prior to the formulation, evaluation and selection of market-oriented competitive position that contributes to the . What makes for a good strategy in highly uncertain business environments?
Some executives seek to shape the future with high-stakes bets. Eastman Kodak Company, for example, is spending $