What is International Marketing and Concepts behind International Marketing?
A marketing activity that happens across borders is called international marketing. The reputation of the brand can be impressive with international marketing. However, entering a new international market can be challenging for the company. The company may face cultural differences, language barriers, administrative policies, political instability, and other issues and challenges. Therefore, the company needs to analyse the potential risks, evaluate different policies and cultural diversity and make strategic business planning before venturing into a new market.
International Market research and country analysis / Market Entry Strategy
However, Larkin and Nankervis (2021), point out that due to the pandemic situation the supply chain distribution is somehow affected, however, the automation process through advanced technology such as AI has benefited the retail players. On the other hand, Roy et al. (2018), statesthat despite not directly affecting customers' attitude, perceived innovation characteristics affect it indirectly. The research study also finds out that technologies need to be implemented in order toenhance customer value by bringing better shopping efficiency to retail stores.
Impact of market entry
Marketing decisions made in the foreign market are little different from the domestic market condition. However, before entering into a new international market, the company needs to analyze the economical conditions, employment rate, political factors, legal factors, and supply chain or logistic risks. The economical condition of the country can deeply affect the business process. Thespending of the consumers, inflation rate, and people employed by the bones all impact the decision-making of the customers. The unemployment rate also can affect the business, the rate of unemployment in an economy indicates that the valuable workers are not fully utilized (Bbc.co.uk,2021). The constantly caching of consumer spending also affects business development. Spending by consumers is likely to increase as consumers' incomes increase. This will facilitate business expansion, reduce unemployment and strengthen the economy.
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Analyse and justify two different market entry methods
Selling products and services in another country opens up a huge market to the company, increases slaves and profits, establishes brand recognition, and reduces the risk of operating in a single market. The company needs to figure out how to enter a foreign market once they understand the scale. The decision of the company can significantly affect the result and the performance of the business. Therefore, the company needs to choose a strategic new marketing entry method before venturing into a new international market. In this report, two latest new entry methods have been evaluated that can help the company make decisions on opening a market in a foreign country.
Whenever goods and services are directly shifted from one country to another, it is called exporting. This is probably the easiest and least risky method of entering a new foreign market. Additionally, it will be more cost-effective as the company would not have to invest a large amount of money in the production facility in the selected country. In the home country, all the products can be manufactured at a lower cost and can be exported to the destined country.
According to Dinu (2018), a company wishing to enter a particular market is required to decide on the best entry method and needs to select a variety of marketing entry methods such as direct exporting, indirect exporting, or direct marketing. Although transportation costs are expected to rise shortly, the cost of exporting is also likely to increase.
Expenses related to marketing make up the majority of exporting costs. Therefore, the company needs to be involved with four parties in order to conduct export: the export or import service provider and the government of the country that the company is trying to export.
Joint ventures involve two companies entering into a partnership for mutual benefits, in this case, one company is from a local country and the other company can be from a different country. A management team would be provided by both companies for the new business, which would be run jointly by both companies. Such a venture offers a number of advantages, including being able to share costs and gain local knowledge about the international market. According to Muñoz et al.(2020), Joint ventures are a common business strategy for expanding and internationalizing a company. By having such an entry method into the international market, the companies can build a sustainable international market. The study of Muñoz et al. (2020), also points out that businesses participating in this type of collaboration are generally either located in the same country or with varying economic systems.
Some concepts of International Marketing
New products or services entering a new market provide customers with a wider variety of options. However, venturing into a new market is a difficult task, therefore the company needs to evaluate and analyse different issues and challenges of the market. Moreover, companies need to make new market-entry methods suitable for the company. According to Oliveira et al. (20180, there is a critical question of whether firms need to conduct three export activities in a more diverse way by implementing a greater level of entry mode as a means of improving export performance. On the other hand, the study of Stoian et al. (2018), states that international business firms that utilize more than just export to enter foreign markets are known as micro nationals.
Debellis and Pinelli (2020), argue that by forming joint ventures with foreign partners companies are able to become more international, reduce the risk of investment and gain access to resources. The study also points out that in consideration of the high degree of uncertainty regarding the future behaviour of foreign partners with diverse cultures entering the new market. According to Sestu. And Majocchi (2020), taking indigeneity into account, joint ventures are more likely to form in the case both the investing parties are local firms.
Before entering an international market, companies need to follow and analyse some basic rules and methods.
Ideas for lower barrier territories
Language barrier: Before entering, the new international market companies need to evaluate if there are any language barriers in the business. A language barrier can disrupt the business process in terms of international marketing .
Similar demographics: The companies need to expand their businesses into a similar international market. Moreover, the target audience of both domestic and international companies needs to be similar in terms of gender, age, and purchasing power.
Cost and resources in the expansion
Before the company can expand its business operations in the international market, they need to consider different costs such as shipping costs, foreign taxes, legal expenses, and travel expenses Moreover, the companies need to consider the employment hiring cost,and marketing costs in order to expand the business in the international market.
The company also needs to evaluate the supply chain channels and logistics facilities in order to make the business more efficient.
Conducting market research considering the regulations, cost evaluation, work culture, demographics, and targeted mother allows the business to make strategic business plans in the international market.
Customer level cross-cultural research and analysis
Cross-cultural differences and similarities in marketing opportunities and challenges
People's lives, the way they live their lives, and the decisions they make are influenced by trier culture. Religions, family education, and social systems have significant influences on their lives. The culture always shapes the environment of marketing. The culture of the countries where theory products are going to be sold needs to be taken into account by companies before selling the products there. Cultural differences among nations and between regions within one country may seem insignificant to the marketers, however, ignoring them can lead to the failure of the whole program. To be successful in cross-cultural marketing, the company needs to understand both cultures in order to make strategic marketing.
The key to effective cross-culture marketing is language as might seem obvious. International marketing requires the marketer of an organization to learn the language of the nation whose markets they are targeting. In order to participate in successful growth strategies across cultural borders, any company needs to learn different languages (Rambocas and Pacheco, 2018.). Promoters need to communicate with their target market in order to influence the customer to purchase the products. B2B companies use verbal language to perform various functions such as communicating with local communities, gathering information, and assessing efforts.
It is important to carefully consider the cultural values of the country where the company is tryingto expand its business operations. Cultural norms are accepted, agreed upon, or assumed of how things need to be done according to cultures (Minton et al. 2018). Marketers who are successful in the international market always pay attention to the cultural norms of their target market. The similarity of the culture are advantages to the business, differences in culture can create a dispute in the marketing strategies.
Organizations operating on the global market can be influenced by religions in their marketing strategies. In the business world, markets and promoters needed to consider how their target market views faith and religion (Cruz et al. 2018). Therefore, it is important to analyse the marketers in order to make the sales more attractive by linking communication tools with religion.
Education of the customers is also an important aspect of the marketing strategies, as education can critically influence the marketing campaigns. It is crucial to understand the education of the consumers in the international market so that markers can offer the right products to the right person (Alsaleh et al. 2019).
Customer-oriented cultural theory
Originated by Geert Hofstede the theory of "Hofstede's Cultural Dimensions' 'provides a framework in order to understanding the cultural differences of different countries (Bissessar, 2018). There are six dimensions of the theory of Hofstede, that includes, power distance, individualism, masculinity, uncertainty avoidance, long term orientation, and indulgence
In these dimensions, the culture of the nation expresses the way it views inequalities among individuals in society (Paharia and Swaminathan, 2019). This reflects the way the people see inequalities among different individuals in society.
In a culture with a higher power, distance shows that inequalities are accepted, bureaucracy is encouraged and authority and ranks are highly respected. On the other hand, suggest that culture encourages flat participatory management and decentralized decision making.
The individualistic approach indicates that personal goals are more important than group goals. Inthis category, the self-image of a person is "I". It is the responsibility of the individuals in an individualistic society to take care of themselves and their families (Germani et al. 2021).
Masculinity consists of specific gender roles, assertiveness, and a tendency to build wealth. In a society with a high masculinity index, success, achievement, and competition will rule (Pelau and Pop, 2018). With a low score in this dimension, care for others and quality of life are considered to be the dominant values in society.
In this measure, uncertainty and ambiguity are considered in relation to each other. Managing unforeseeable situations and events is a part of this dimension (Alipour, 2019).
A society with a high uncertainty avoidance index indicates that a person has little tolerance for ambiguity, uncertainty, and risk. On the other hand, low uncertainty avoidance shows people havea high risk-taking capability, tolerance, and ambiguity.
Long Term Orientation
This dimension indicates how the people of the society maintain the past to the future, how they deal with different challenges, and the ability to handle pressure. Long-term orientation shows theachieved success of the people (Bukowski and Rudnicki, 2019).
Based on their upbringing, people may seek to control their impulses and desires in this dimension. The term "indulgence" is used to describe low control and "restraint" to describe relatively strongcontrol (Ruiz-Equihua et al. 2020).
Impact of cross-cultural issues on international marketing mix strategy
Marketing mix related theory
International Promotion Strategy
There are two broad promotional theories that apply to all marketing promotion activities, these theories are the "pull" or "push" theory. In Addition to the advertisement, public relations, promotional sales all marketing activities fall under this theory. Promotion n through distribution channels is a "push theory". By contrast, a "pull" strategy depends on marking communication inorder to generate desired sales and awareness. According to Gódány et al. (2021), "pull" and "push" theories motivate entrepreneurs in terms of marketing strategies.
International Place Strategy
In a marketing mix, a company's place strategy deals with where its products are sold so that they will be reasonably available to its target market.
International Product Strategy
There are different product strategies for expanding in new international markets such as product expectations, product innovation, and product station.
These are some strategies that are required to be followed. The strategies are:
- Need to evaluate cross-cultural elements in marketing strategies.
- it needs to use digital marketing technology in order to gain competitive demand.
- The company needs to use advanced technologies such as Artificial intelligence, Machine leering, big data, and industry 4.0 in the marketing strategy.
- Needs to evaluate the government policies and regulations before venturing into a new market.