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Concepts and meanings of international marketing
Definition of international marketingInternational marketing or global marketing refers to marketing executed by transatlantic companies or across national borders. This strategy uses an extension of the techniques used in the main country of the company. According to the American Marketing Association the "international marketing is a multinational process of planning and executing the conception, put price, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives." In contrast to the definition of marketing only the multinational Word added. In simple words the international marketing is the application of the principles of marketing across national borders. However there is a transition between which is usually expressed by the international marketing and global marketing which are equal words.
The crossing is the result of the process of internationalization. Many American and European authors see international marketing by a trivial extension of export when the marketing mix is adapted simply in one certain way to track differences in consumers and segments. It follows that global marketing takes a more standardized approach to world markets and focused towards equality, in other words to the similarities in consumers and segments.
More definitionsSimilar to other elements of marketing there is no a single definition for international marketing. Additionally some authors define international marketing and global marketing differently:
• "At a very simple level international marketing implies the company by making one or more of the marketing mix across national borders. "To a very complex level company implies it in established production to overseas plants and coordinating marketing strategies across the world."
• "International Marketing is the provision of commercial activities that directs the flow of goods and services of the company to consumers or users in more than one nation by the gain."
• "International Marketing is the orientation and implementation capabilities of marketing to international business."
• "The international market exceeds the export merchant and involves more in the environment of marketing in the countries in which it does business."
• "Global/multinational Marketing jib to effectively employ investments, products to the experience of a company at a global level and also adapt it to what is really unique and different in each country."
• "Global Marketing refers to the marketing activities that are coordinated and integrated across multiple markets of those countries."
International marketing is often not the same as selling the product simply to several countries. Companies need to take care of the language barrier, the ideals and habits in the markets in which approaching. Adapting marketing strategies to attract a specific group that is trying to sell is very important and can be the cause number one a failure or a success.
Differences between domestic marketing and international marketingThere are many differences between domestic marketing and international marketing as a cultural, political, religious, customary, ideological differences and more. Because of language barriers, it is more difficult to obtain and interpret information from research in international marketing. Advertising messages has to care for many cultural differences between the countries. That includes differences in languages, habits, expressions, gestures, ideological and more. For example, in the United States the round "or" made by the thumb and index finger sign means "okay" while the same Mediterranean countries sign represents "zero" or "worst". In Tunisia it is understood it to "I will kill you" as soon as a Japanese consumer gesture means 'money'.
Reason to internationalizeWe can distinguish two different types of reasons. On the one hand a single company does national or regional business and wants to extend its operations to other countries or regions. Instead of that there are companies that are already represented at the global level and who want to intensify their international business. These businesses also refers with the anglicism "born global". In both cases the reason to internationalize are very similar although the implementation strategies can be very different. The most typical reasons for doing foreign business are saturation and intensive competition in domestic markets, entry into unsaturated markets, economies of scale, diversification of risk and more.
in many Western countries there are markets that are already saturated. If demand does not grow at the desired pace enterprises of various industries seek new markets for their products even if they are more distant.
Faced with new competitors from abroadSome companies enter new markets with aggressive strategies to face competitors. For example when Michelin, the great French tyre manufacturer, entered aggressively the U.S. market.UU. with very low prices, Goodyear, the American giant, did not respond to protecting its domestic market, which was their main source of funds, and that was the target of Michelin. Goodyear responded by aggressively attacking the French market, delivering a blow to Michelin in its own stronghold.
Search for markets less competitive or a different from the product or service lifecycle stage
When a product has reached the maturity phase, it faces many competitors and the market growth rate is very low. In other countries where the product is not yet very well known there are many possibilities to export the product. This is what have made companies such as Philip Morris and Coca-Cola, who have penetrated early in markets of developing countries.
Emergence of new highly attractive marketsmany Asian regions are becoming an area with a strong push from both the supply side and the demand. While the domestic markets are saturated companies use international strategies to participate in these growing economies.
Government incentives and trade deficit
many countries with high trade deficits stimulate exports in order to obtain foreign currency to buy what you need the country that isn't in its interior. For example in Belgium or Japan export rate exceeds 80% of the produced in the interior of the country.
Find wider markets that take advantage of economies of scale
According to the economies of scale unit costs decrease by increasing the number of units produced. If the domestic market does not allow a rise in production because the company is saturated you can find possibilities for distribution in foreign markets.
Diversification of risksell in different countries contributes to the diversification of risk. It is a way of not concentrating the company's success in a single country, whose avatars might succumb to the same.
Follow to an important client in your international adventure
Some companies do not have many customers and business is concentrated in a few large customers. For these companies the reason to enter international markets is often key customers who decide to enter foreign markets. It is the case of many U.S. manufacturers of parts and components for the automotive industry that have accompanied to Ford and General Motors in its international expansion, first exporting them and then settling near them in other countries.
Find easy access in technological advances and of raw materials
international operations allow easier access to the expertise of suppliers, customers and competitors. In the automotive industry the European manufacturers led technology of fuel injection devices, which helped those American companies that had an active presence in Europe.
Take advantage of idle production capacityplants, machines and other idle devices of production caused costs that are not covered. The possibility of selling the products in foreign markets can allow a more efficient occupation of devices and reduce the expense.
International vocation of its directors
which is given by the trend that managers will have to make an effort and open up to new markets. This vocation is usually come when these managers have a pleasant experience in foreign countries; languages dominate, they have studied or done some course abroad, etc.
International marketing conceptMarketing or marketing is a discipline which, through the study of the behavior of markets and consumers, attempts to stimulate demand and increase trade. Marketing experts set out various strategies for the commercial management of companies intending to gain the loyalty of customers.
The adjective international, on the other hand, refers to belonging or relating to two or more countries, other than their own Nations or what has transcended national borders.
The international marketing, therefore, is related to the application of marketing in cultures or different to their own environments. You are dealing with realities that are outside the usual environment and, therefore, require the attention of multiple factors that may influence the introduction of and demand for products.
A pillar of the commercial success is the production of goods that can meet the needs of the consumer. If we are talking about an international market, the expert in marketing must have clear these needs and how producers can meet them.
A first step of the international marketing, in this way, is the foreign market research. Newly you can then design and develop the product that is intended to enter and perform the corresponding tests before the official launch.
If these marketing strategies are successful, the producer may develop in international ElComercio.com and export their products. International marketing will have to deal with after analyzing how loyalty to the consumer market in question.
Meaning of international marketingINTERNATIONAL MARKETING
It is the marketing applied to other cultures or different realities alien to our environment, and should therefore take into account multiple factors in development and introduction of products.
The producer should try to design and produce consumer goods that meet the needs of the consumer. In order to discover what these are used knowledge of marketing.
Marketing has many more functions that must comply with before starting the process of production; among these, it market research, design, development and testing of the final product.
International trade, exchange of goods and services between countries. Goods may be defined as final products, intermediate products needed for production finishes or raw materials and agricultural products. International trade enables a country specializing in the production of goods that manufactures more efficiently and with lower costs. Trade also allows a State to consume more than it could if it occurred in conditions of autarky. Finally, international trade increases the potential market of property that produces particular economy, and characterized the relations between countries, allowing to measure the strength of their respective economies.
The importance of international trade varies depending on each national economy. Certain countries only exported goods in order to increase its national market or to help economically depressed sectors of its economy. Others depend on international trade to achieve currency and goods to meet domestic demand. During the last years is considered international trade as a means to foster the growth of a given economy; less developed countries and international organizations are increasingly promoting this pattern of trade.
-DIFFERENCE BETWEEN INTERNATIONAL MARKETING AND INTERNATIONAL TRADE
The difference between them is only international trade involves the exchange of goods and services between countries, its restrictions and tariff barriers; While the international marketing includes marketing mix, it goes beyond the simple exchange of products, involves analyzing the tastes of consumers, aims to establish your needs and desires and influence their behavior so that they wish to acquire existing assets, to develop different techniques aimed at persuading consumers to purchase a particular product. The marketing activity includes planning, organization, direction and control of customer making decisions about product lines, pricing, promotion and services. In these areas the marketing is essential; in others, as in the development of new product lines, it plays an advisory role. In addition, it is responsible for the physical distribution of products, establishes distribution channels to use and oversees the transport of goods from factory to warehouse, and from there, to the point of final sale.
-BASIC DECISIONS OF INTERNATIONAL MARKETING
Earlier, American companies paid very little attention to international trade. Today, the situation is very different. The products developed in one country are finding enthusiastic acceptance in other countries. The present global competition intensifies. The company who stays in his country, to play it safe, could not only lose the opportunity to enter other markets, but it also runs the risk of losing their domestic market.
A company faces six major decisions for international marketing:
1 Analyze the international marketing environment.
2. Decide if you exit to the outside.
3 Decide which markets to enter.
4 Decide how to enter the market.
5 Decide the marketing program.
6 Decide the marketing organization.
1 ANALYZE THE INTERNATIONAL MARKETING ENVIRONMENT
The company, before deciding if it will sell abroad, must thoroughly understand the global marketing environment.
Within the international trade system: the company will face various trade restrictions. The most common are the fare (a tax), the fee (set limits on the quantity of imported goods), embargoes (totally prohibit some types of imports), exchange controls (limiting the amount of money that can be converted into foreign currency, and non-tariff trade barriers (prejudices and restrictive rules for certain products).
There are also forces that contribute to trade between countries as zones of free trade or economic communities (groups of countries that have been organized to reach common goals to effect of regulating international trade).
Each country has unique characteristics that must be understood:
The economic environment.There are two economic factors that reflect the attractiveness of a country as a market: industrial structure and its distribution of income.
§ The industrial structure of the country gives shape to your needs for products and services, income levels and employment levels. The four types of industrial structures would be: subsistence economies (the vast majority of people are engaged in simple agriculture), exporting economies of raw materials (they are rich because they have a natural resource or several, but they are poor in other senses), industrialising economies (manufacturing represent between 10 and 20% of the country's economy), and industrial economies (are large exporters of manufactured goods and investment funds).
§ The distribution of the income of the country can be found among five: (1) entry very low family; (2) household income for the most part low; (3) very low/very high household income; (4) household income low/medium/high; (5) household income in its major part means.
Politics environment.Should be studied when least four juridico-politicos factors:
§ The attitude to international purchases. Some countries receive very well to foreign companies, but others are quite hostile.
§ Political stability. Changing governments. The assets of the foreign company can be seized, blocked monetary possessions, or can set you new quotas for imports or tariffs. The changing situation will affect the way in which trade and financial matters are handled.
§ Monetary regulations. Most international trade is done with cash transactions. However, many countries have very little liquidity, which has led to the contracomercio, which takes several forms: redemption (direct exchange of goods and services), compensation (the computer seller accepts payment with products which prove), the contradquisicion (the seller receives full payment in money, but agrees to spend part of that money in the country, in a certain time).
§ The Government bureaucracy. The extent in which the host Government helps foreign companies through efficient customs management, buna information on markets, etc.
The cultural environment.Each country has its own customs, norms, and taboos. The seller should study the way of thinking of consumers, as well as the use given to certain products, before planning a marketing program.
2. THE DECISION TO GO ABROAD
Not all companies must venture into foreign markets to survive, companies operating in global industries must think and act in global terms.
There are several factors that could lead to a company in the international arena. Global competitors could attack the company's internal market, offering products of higher quality or lower prices. The company could find foreign markets that offer the possibility of obtaining higher profits. The company's national market may be shrinking.
3. THE DECISION TO ENTER CERTAIN MARKETS
Before going abroad, the company should try to define their objectives and marketing policies: decide what volume of sales to be achieved abroad; Choose how many countries will constitute your market; decide what types of country will enter.
4. THE DECISION TO ENTER THE MARKET AS
When the company has decided that it will sell in another country, you must determine what will be the best way to join him. Your options are: exports, the joint ventures and direct investment.
You can export their surplus from time to time passively or it can adopt an active attitude to expanding. The company produces all their goods in their country and can modify them for the export market or not.
§ Indirect exports. Working through independent international intermediaries for marketing.
§ Direct exports. Managing their own exports.
Societies in participation.
It means partnering with foreign companies to produce or market products or services. The company joins a partner to sell or market abroad. There are four types of societies in participation:
§ Licenses. The manufacturer allows uncomplicated, entering international markets. The company signed a contract with a licensee in a foreign market. The licensee, in return for a fee or royalty, acquires the right to use the production process, trademark, patent, trade secret or any other value of the company.
§ The production contract. The company hires manufacturers on the foreign market to manufacture your product or offer your service.
§ The contract for the administration. The national company provides management and technique to the foreign company that provides capital.
§ Societies in participation. Those where a company joins forces with foreign investors to establish a local company, sharing with them the domain and control of the business.
It is the development of a group or of production facilities in the foreign country.
5. HOW TO CHOOSE THE PROGRAM FOR GLOBAL MARKETING
You must decide if adapted or not, mixtures of marketing in local conditions. You can use a standard marketing mix to everyone (well production, distribution, marketing and administration costs can be reduced). Or the marketing mix adapted in producer adapting elements of the marketing mix to each one of the markets that has targeted (generating higher costs, but with the hope of gaining a greater market share, as well as performance).
The product.There are three strategies to adapt products to a foreign market:
§ The simple extension of the product. The product is sold in foreign markets without any change.
§ The adaptation of the product. It involves making changes to the product that satisfies the conditions or local desires.
§ The invention of the product. It consists in creating something new for the foreign market.
The promotion.Companies can adopt the same strategy of promotion used in the domestic market or you can change it for each local market. Other companies adapt their advertising messages to local markets. The media should also be adapted, by availability.
The price.Companies also have many problems when you set their international prices. You could set a uniform price for everyone, but it could be very high for poor countries and very for the rich. You could collect what consumers in each country can withstand, but this strategy would not take into account actual costs between countries. The company could apply a standard surcharge on your costs everywhere, but stay outside the market from competition.
If the company charges too little to the subsidiary, it cannot be accused of dumping. International firms try to avoid gray markets, raising prices for distributors that have lower costs and eliminating those who are cheating or alter the product in different countries.
Distribution channels.The international company can adopt the vision of an entire channel to the problem of the distribution of products to final consumers.
Channels of distribution of countries vary greatly from one country to another. They are differences of quantity and type of intermediaries that cover every outdoor market. Another difference lies in the size and the nature of the units for sale to the detail on the outside, if income is low, people buy every day in small quantities.
6. HOW TO CHOOSE THE TYPE OF ORGANIZATION FOR THE GLOBAL MARKETING
The companies manage their marketing activities international, when less than three ways: