Quiz 1: The Scope and Challenge of International Marketing
International marketing : International marketing can be defined as making one or more marketing mix decisions across national boundaries. It also means establishing manufacturing facilities overseas and coordinating strategies across the globe. Controllable elements : It basically refers to the factors that can be adjusted in response to changing market conditions. These may include the following 1. Product : It includes services and electronic/digital products such as e books that don't have a recognizable physical substance. Besides that, a product has its features, service, warranty, branding and packaging. 2. Price : It refers to price set by the marketers that would be charged by them to the consumers. It is only element of 4Ps that involves revenue than an expense. 3. Place : This P emphasizes on getting the product to the ultimate customer. It includes warehousing, shipping, middlemen and fulfillment. 4. Promotion : This P focuses on marketing the product effectively. It includes advertising, copywriting, promotion and positioning. Uncontrollable elements : These are element and factors that are beyond the control of a marketer. These may include the economy, legislation, cultural factors and natural disaster etc. Domestic uncontrollable : These are uncontrollable elements due to home-country environment that can affect the success of foreign venture. These may include economical, legal and competitive environment. Foreign Environment Uncontrollable: These are uncontrollable elements due to uncertainty and instability in foreign environment. These may include political stability, class structure, and economic climate. Self-reference criterion: These are the references one's own cultural values, experiences, and knowledge that an individual takes for taking a decision. Global Awareness: It can be defined as the awareness of the global market potentials and global economic, social, and political trends.
Marketing involves several activities like planning, implementing, promoting, supply channels, etc. of goods and services to obtain profits for an organization. Marketing practices can occur in every level of the market such as domestic or local marketing and international marketing. DI in TX, is locally regulated by large governmental authorities like township or city. The kind of marketing prevailing at DI is domestic marketing that involves various common marketing techniques within the profound area of the country TX. Apart from domestic, marketing is also practiced in various international levels in DI. At this stage, a marketer must adapt various cross culture strategies by considering culture, language, tastes and preferences. DA is recognized to be the former capital and the famous city in TA. It is one of the fastest growing cities of TA that fetches profits both from domestic and international marketing. Here, the international marketing involves various common factors affecting the market such as adaption to cross culture strategies. It also adds up to reduce political, risk uncertainty factors. Hence, it can be concluded marketing process would go smooth in local marketing but involves considerable changes in international levels of marketing. This is because, domestic marketing regulations would be compatible for a domestic organization to carry business operations but involves several authentications and variations while carrying business with other country.
The underlying reasons for the marked growth in international marketing of a number of AM companies have been many. We shall state the premise behind this phenomenon by giving arguments which substantiate the statement. It is important to understand that economic, technological, industrial, political and demographic factors play their part in the renewed growth of international marketing by AM firms, whether big or small Global business promotes global peace: Many large AM firms, owing to the nature of their business, have realized major portion of their earnings come from markets abroad. Besides this, their workforce is global, with employees based around the world. Such a vast expanse of workforce requires coordination and personal interaction quite a few times. This produces mutual gain not just in the realm of business relationships, but also in the context of personal relationships and mutual understanding. These form the building blocks of global peace and prosperity. Thus, an aeronautical giant like BG, with about 80 percent of its revenues accruing from international markets, has to build a global workforce, to maintain and sustain its operations worldwide. International marketing, when done well, either by large or small firm, results in understanding the needs and wants of customers in foreign markets. The result: peace and prosperity are promoted in the process Other noticeable factor is perceptible change in the competitive structures along with a marked change in demand in global markets. Increased globalization of markets has led to more foreign customers, competitors and suppliers even in the domestic markets. Thus competition is from both domestic and foreign firms. AM market is now occupied by domestic firms as well as foreign firms, both competing for their share of the pie. AM firms with only domestic market base, thus find it difficult to sustain the earlier customary growth rates, due to the changed competition structure. Hence, they have a compelling reason to expand into international markets. Further, AM firms with global operations, have their foreign revenues forming the major contribution to their total corporate profits. This encourages other firms with a domestic business base to follow suit and expand their business into foreign markets. In fact, when revenues of AM multinational companies are mapped against their investments abroad, it has been shown that foreign sales are greater than sales from AM markets. Lastly, AM companies are not insulated from the influence of integration of AM economy with other economies. The globalization of world markets, and the emergence of developing markets with an expanding potential, all have an impact. Due to the intensification of competition for world markets, companies operating with only a domestic market base will decrease. Thus to go for international marketing, is not a choice, but a necessity for economic survival of the AM firms