International Marketing Management Essay Sample
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Introduction In the process of planning the marketing strategies in the international business, most of the companies makes the obvious and a highly expensive mistake of assuming that the cultural values of the foreign customers are similar to their own. This serious mistake has been consequential to the loss of finances in most multinational corporations all over the world in their processes of transplanting foreign consumer behavior into international
transplanting foreign consumer behavior into international cultures, thus overlooking the existing differences in the wants as well as the needs of different people. The prediction of the consumer buying behavior on the international level is associated with complexity due to the existent of a diverse range of factors that are responsible for the determination of the buying trends which incorporates age, class, the level of education and several other psychological traits.
The concept of marketing entails the understanding of the attitudes of the consumer towards a product and the nature of the business as well as the behavior of the consumers in the consideration of the rapid changes that are encountered in the dynamic world. The information of relevance as far as this field is concerned should be clearly fathomed and the necessary feedback relayed back to the organization for the purpose of planning as well as further decision making. The feedback serves as the indicator of the consumer needs which are instrumental to further developments as well as improvements of the product (Flanagan, 2004).
Planning sales in International market.
Some factors are significantly important and are a requirement by the sales force towards success for the sale of the company’s products in the international markets. The understanding of the cultures of the groups of people who have been targeted as the potential buyers as well as consumers of the company’s product is of prime importance. For a successful undertaking of this initiative, the company’s sales force may require a direct experience of the limitations brought about by the culture that determines the social acceptability of the product, in which a case a face-to-face contact may be the most appropriate. The marketers are required to have an understanding of the foreign market potential buyers are set in their minds with regard to the wants as well as the needs, the source of this mindset and the most probable means towards the satisfaction of their needs and wants. The exploration of the failures of the past is one option of the reinforcement of the significance attributed to the market cultures (Flanagan, 2004).
Different international markets are marked with diverse characteristics ranging from climatic as well as environmental factors, the cultural as well as socio-economic factors, raw materials as well as alternative products availability, different costs of wages as well as different buying powers, foreign exchange availability as well as the existence of the government measures on import controls. The marketing plan for the organization should take account of all these forces. The processes through which an international business is built is long and capital intensive thus requiring patience before the returns on the investment made can be realized. For the purpose of the realization of successful sale in the international market, market research is a requirement for the purposes of the identification of the existing marketing opportunities as well as the constraints. The identification of the prospective customers is another vital duty of the company’s marketing managers (Harris, 2000).
All the available methods of market research should be applied for the reasons of the determination of the most suitable market for the products of the organization. The marketing managers should be in a position of advising the firm of the largest existing market that is suitable for the products of the firm, the markets that are undergoing the fastest growth, the existing trends in the market, the conditions as well as the practices that are in progress in the market, and the existence of competitive products as well as companies. This information is of vital importance not unless the company is selling through an intermediary (Hawk, 2005).
The marketing managers of the organizations are also responsible with the duty of informing the firms that they represent about the policy decisions that affect that influence the pricing of the products that have been earmarked for international market. The cost of production of the particular product has got the implication of the products investment cost intended for all its stages of production. For the purposes of its effectiveness an advance planning is necessary while considering the possibilities of the occurrence of fluctuation and thus allowing for their contingencies. Proper marketing research is also a requirement for the purpose of understanding the progress of demand in the market (Hebden, 2006).
The marketing manager is also required to closely monitor the activities of the potential competitors and analyze their product, the product quality and its value with special regard to the core competitors by the use of methods of investigation. The manager should consequently make intensive comparison of the firms product in relation to that of the competitor in terms of the quoted price in the market. The packaging styles, the product shelve life, among others. The consideration of these aspects is instrumental to the company’s efforts to improve on its products in an effort to beat the competitor, through measures to boost the product quality at the shortest interval of time in a pace that tremendously chases the achievement of the maximum possible profits as well as earning the best reputation in the international market (Korack & Kouzmin, 2002).
There exists a great difference between international marketing and domestic marketing. The realization of this basic principle is of importance towards the appreciation of the existence of diverse tastes needs as well as customs inherent in the international audience. Marketing strategies that are sound as well as efficient are an important tool used by the marketing managers in their endeavor towards the understanding as well as addressing the identified potential differences. The way forward to capture these strategies is through the preparation of a sound marketing plan of an international standard, which is a flexible document requiring to be reviewed, revised as well as modified regularly in the entire duration of the company’s marketing period. This is because of the continuous nature of the activity since all the information about the consumer and the best approach to satisfy their needs as well as wants can not be achieved at once. The marketing managers should be equipped with the skills of the 4Ps of the marketing mix as the starting point towards entry into the international market. The manager should devise a plan that is able to address multiple of factors including payments, paperwork, practices, partnerships and protection, among others, whose clear understanding is liable for the transformation of the marketing plan to the status of the marketing action (Harris, 2000).
The managers are liable to initiate programs for the purposes of international marketing that are capable of modification as well as adaptable to a diversity of foreign markets. The competitiveness of th program is based on its ability of the application of strategies that are relevant towards the accomplishment of the company’s goals of marketing. The manager is also charged with the responsibility of identification of the possible combinations the marketing environment as well as target markets that may exist within the boundaries of a single foreign nation that bears significant differences to the home country markets as well as other markets in the rest of the foreign countries. The successful managers are also responsible for the recognition of the existing differences and similarities inherent in the consumer behavior whose failure is resultant to a bundle of mistakes (Alpander & Lee, 2005).
As part of the responsibilities of the company’s marketing manager, the familiarization with the existing rules as well as regulations that govern the safety of the product, its health, the products security issues, the labeling as well as the the packaging procedures, the associated customs as well as the duties affecting the product, among other important issues needs to be an obvious task. The rules as well as the regulations vary according to the type of the exported product. This understanding is crucial for the company and their application in the the implementation of he task of international marketing should be prior to the introduction of the product in the market as well as the opening of the location of the business (Elashmawi, 2000).
The managers should also advise their firms about the most appropriate source of financing the venture into the international marketing as it has been proved to be a capital as well as time intensive undertaking. the company has the requirement for a financial stability as well as a consistent cash flow adequate for the sustainment of the firm during this period. The company may need to temporarily rely upon its domestic sales during the early part of the program, whose inapplicability may require that the firm identifies alternative sources of finance. The manager should equip the firm with a financial plan that is instrumental towards the the understanding of the relevant costs that are associated with the introduction of international marketing strategies (Clote 2006).
Difference in th scope of market planning between domestic an international markets
The process of gathering information for the purpose of the understanding of the scope of the international market is associated with more complexities in comparison to the information gathering processes destined for the domestic markets. This is due to the realization of the fact that international marketing involves dealing with multiple countries all of which are associated with multiple markets as well as multiple trends of the markets. Therefore the preparation of the business plan to address the international market is more complex even if the changes expected in the mechanics of the market planning may be insignificant (Harris, 2000).
The company’s sale person entitled to plan for sales in the international market has to encounter more enhanced challenges as well as enlarged roles in comparison to a sales person working at a domestic level. A sales plan that focuses the international market should address the issue of the rates of the currency exchange. The procedures in place to handle the rates of currency change and their potential influence on the plan and the production of a standard plan are significant issues of consideration. It is well understood that currency is liable to undergo fluctuations at the international standards which is a critical issue in as far as the international business is concerned. The effective currency changes are a reflection of similar changes in the costs of the products as well as the associated expenses. This consequently affects the sales as well as the assets values and the company’s liabilities (Alpander & Lee, 2005).
The main problem associated with the fluctuations in the currency is associated with the ability to guess about the future and a game of guessing is involved with regard to the rates of currency exchange in a similar manner as it happens in the prices of stock market. A correct guess leads to profits while a wrong one is consequential to losses. This undertaking of prediction as well as management of the currency exchange is especially critical with regard of an international business of a big magnitude. The major problem to encounter is the potential ability to project the future rates of currency fluctuations. The ability to guess the rates of currency exchange forms an important field of inquiry, study as well as investment. This involves the understanding of the factors that are responsible for the changes in the rates of the currency exchange. They include factors of politics, economy, market as well as psychology (Farrow, 2000).
With a clear conscience and a coherent understanding of the issues related to currency exchange, the mechanics involved in planning a marketing strategy becomes relatively simple although the process of thinking may prove to be significantly complex while the importance attributed to planning as well as forecasting is enormous. The end of the mechanics marks the beginning of planning where problems of softwares as well as formulas is not a problem, but the real problem the projections in the rates of fluctuation associated with the future. The managers faces the uphill task of guesswork in the trends of rates of the currency exchange being a paramount field of exploration as well as investment (Clement, 2004).
Another challenge that is encountered by the marketing personnels in the the international market involves taxation as well as accounting practices. This necessitates that the marketing plan remains in the same currency as from the beginning in the process of accounting as well as calculating the tax burdens. However, in the process of the business [planning, the marketing executive is responsible for the an advance planning of the business decisions, but not preparing a report for the tax collection authorities. There is a possibility for the use of additional formulas for the purposes of the calculation of the taxes, but for the purpose of market planning, a single line summary appearing after the financial statement is sufficient (Brown & Starkey, 2003).
The international business is marked by significantly higher levels of uncertainties in relation to the business in the domestic level. The rates of currency exchange is the first case posing a direct impact and later compounded by the existence of extra problems related to the estimation of the costs, issues related to sales, as well as expenses. The exact time of the translation of the foreign currency also bears some significant effects as far as the international marketing is concerned. The currency fluctuation necessitates that the managers learn to time the transactions in the market to avoid some negative effects that may occur as a result of the changes that the business is exposed to. The managers should make use of the contribution of their accountants for advise as to the most appropriate time for this transaction which is most important as far as the profitability of the business is concerned (Butcher & Clarke 2001).
The fluctuations of the rates of currency in the business marketing plan should be considered to be similar to any other type of price fluctuation in the market. Irrespective of the standard of the international business, the financial statements as well as reporting in reference to tax authorities should all be based on one currency, disregarding the number of the countries which the intended transaction is supposed to involve (Alpander & Lee, 2005).
The problems that are associated with the estimation of the business numbers is not a complex issue of understanding for a competent marketing manager. This is based on the understanding of the different cultures associated with different people across the globe as well as the laws of supply in relation to demand in the various existing international markets. The understanding of the possibility of the existence of government policies involving the promotion of the production of the basic goods at low cost is important to understand the viability of venturing in that country with the intention of transacting an international business. Export may as well be prohibited in the interest of preventing competition, All these factors when taken in unison with other changes affecting the local economy are a threat to the company’s business as far as the international business is concerned. The requirement of the manager to comprehend the local politics, the national as well as the international politics is important towards the understanding of the import as well as the export policies, pricing as well as the availability. The disadvantage of the company’s marketing manager is based on the understanding of the fact that there exists a geographical barrier between the company and the market and consequently more troubles are inevitable in the process of the estimation of the future market trends (Berrell &Wright, 2001).
International marketing marketing is a healthy avenue for the opportunities that allow for the growth of the organization, the potential for the increases in the volumes of sales as well as a means for the diversification of the market. The starting point however is the production of the highest quality of the product which qualifies to the status of marketability. As far as this venture is lucrative as well as fruitful in the long term, its initial steps are marked with the requirement for diligence, patience determination as well as commitment since it is a time as well as an effort demanding undertaking. The exploration of the company’s inherent strengths, the rectifiable weaknesses, the goals and objectives as well as the possible strategies is an undertaking of significant consideration at the time of the exploration of the possible opportunities that may be in existent in the international markets. The marketing managers should be supportive to their firms in as far as the identification of priorities is concerned at the time the company is laying the foundation towards the entry into the international market.
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