Marketing can be defined as a process of creating, delivering and communicating the value of a product or service by an organizational function to the customers for the purpose of selling the product or service in ways that also benefit the organization and its shareholders. In international marketing, also known as global marketing, the organizations find out the needs of the customers in foreign countries so that marketing is carried out across the national borderlines for providing the customers the required entities at right place and at the right time. In this strategy the organizations adopts techniques that are the extensions used in the home country. It includes market identification and market targeting, selection of entry mode, marketing mix decision and strategic decisions in order to compete in the international markets.
When creating a worldwide marketing plan, every organization needs to formulate its international marketing strategies. It involves a five step procedure. This includes market assessment product strategy, price strategy, place strategy and promotion strategy. The factors to be considered while formulating an international marketing strategy are briefly discussed below:
This includes a five step screening procedure:
- The first step is the identification of the customers’ needs and to list out the items.
- After listing out the basic items, the list is shortened in the next step by screening by analysing the financial and economic condition of various potential markets.
- Under the third step, before entering any potential market the organization considers the legal and political forces of the host country.
- In the similar way, under the fourth step also the organizations should consider the socio-cultural forces of potential markets.
- If the organization finds a choice between two or more countries, then at the fifth step they should consider the markets where the competitions are less.
After all the screening steps, in the final selection the organization arranges trips to the actual locations where their executives can evaluate the potential markets for providing overseas goods and services.
Product strategy varies depending on the goods and the customers. To sell a particular product in a country some modifications are required in the product or its marketing strategy according to the requirements of the market.
To price a product depend on many factors like the cost of raw materials, cost of developing the product, cost of transportation of the product etc. While pricing product government regulations, legal forces are also some of the limiting factors.
While selling a product the multinational organizations should keep in mind to choose a place that is most convenient for the customers. To distribute the product so that it reaches the customers the organizations should fix proper distribution channels. The manner, by which the product is distributed, on the other hand, is influenced by the competitions in the market for similar types of the product.
To stimulate the demand of a particular product or a service, a company adopts many strategies to attract the customers. Some strategies may be through advertisement and personal selling. By adopting such strategies multinational enterprises promote their goods and services in different countries.
Qiu Inc(www.qiuinc.com/about.html) is an international business development and market entry consulting firm headquartered in Asia. Sandeep Balaji is the Director and has more than a 12+ year track record in business development, new market entry and growth advisory for a variety of businesses
International Marketing Strategies Assessment and Analysis