Due to the increasing competition in the global market place and more so in the local markets most companies are exploring the option of venturing oversees to market their goods. Various factors motivate such moves most of them being business sustainability oriented. Such firms are applying marketing principles in several countries. The firms are making single or several marketing mix decisions beyond state boundaries. Such moves at times involve establishing production bases in foreign countries and harmonizing marketing strategies all over the world. Some firms have penetrated the global market by either establishing partnerships in the foreign countries; merging with target country firms; or even by acquiring foreign based companies Nakra, 2006). Haier Group Company, a Chinese manufacturer and marketer of home appliances has not been left in such marketing strategies and has established its base in the Indonesian market.
There are specifically four main segments which the Haier Company has identified within Indonesia which represents great market opportunities. They include: Successful idealists market segment who have already acquired both professional and material success though they still have a liking to new and appealing factors; affluent materialists segment are very conscious of their status and very selective on their buying; disaffected survivors segment who have no power and wealth and are most likely contented, they are found within the remote areas which could be characterized with crimes; and the comfortable belongers segment who are conservative in nature and not welcome to new findings or products. It is clear that out of the four identified market segments within Indonesia, the Successful Idealists presents t...
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...bwe among others.
References
Nakra Prema, (2006). Beware of Non-Tariff Barriers in Global Markets. International Business
Training. Available at: http://www.ibt-articles.com/absnet/templates/trade_article.aspx?articleid=70&zoneid=2
Nakra Prema, (2006). International Marketers Dilemma: To License or Not To License!
International Business Training. Available at: http://www.ibt-articles.com/absnet/templates/trade_article.aspx?articleid=64&zoneid=2
Nakra Prema, (2006). Should You Care About Country of origin Impact? International Business
Training. Available at: http://www.i-b t.net/anm/templates/trade_article.asp?articleid=218&zoneid=3
Nakra Prema, (2005). Are You Strategically Planning Your International Distribution?
International Business Training. Available at: http://www.ibt-articles.com/absnet/templates/trade_article.aspx?articleid=104&zoneid=2
We recommend that Haier focuses on specific/niche product lines when they venture into foreign markets. We also recommend that the company employ locals in foreign markets to enable them to better understand what their preferences are, as well as providing them with a better understanding of the culture. Lastly, we recommend that Haier focuses on specific or emerging markets since they have had tremendous success in implementing their core competencies (catering specifically to an area or demographic, after-sale service and innovation). Haier was very successful in implementing t...
The international business development has heightened the importance of international market selection (IMS) of companies, especially for their exporting strategy. However, not many companies really comprehend the geographical, social, economic characteristics of foreign countries in comparison with their home countries (Cavusgil, 1985). This fact has challenged many studies to create the optimal approach for IMS. The major question is: Which foreign market should a company enter? Thus, this report focuses on providing a practical consultancy to evaluate and determine its most appropriate foreign markets.
Reebok's United Kingdom-based ancestor company was founded for one of the best reasons possible: athletes wanted to run faster. Therefore, in the 1890s, Joseph William Foster made some of the first known running shoes with spikes in them. By 1895, he was in business making shoes by hand for top runners; and before long his fledgling company, J.W. Foster and Sons developed an international clientele of distinguished athletes.
Global marketing strategies aim to maximize standardization, homogenization and integration of marketing activities across markets throughout the world. (Kotler, 2009)
The marketing department of a multinational company wishes to expand its product sales into a new overseas market. What factors do they need to take into account? Introduction - Multinational Company ------------------------------------ Economists are not in agreement as to how multinational or transnational corporations should be defined. Multinational corporations have many dimensions and can be viewed from several perspectives (ownership, management, strategy and structural).
Marketing is the principle which connected to people’s daily life. In the past, marketers defined marketing as the concept of selling by telling benefits of products (Kotler & Armstrong , 2004). In the recent years, there has been a particular alteration on this principle. Kotler (2005) claims that “Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit”. Marketers focused mostly on added value to product that could meet’s customer expectation in domestic market (Kotler & Armstrong , 2004). Then, as the world is associated from country to country by technology, marketers see the world as a single market. (Heerden & Barter, 2008). It could be good opportunity for international companies to expand their product across countries to achieve financial goal and gain acceptability of branding (Heerden & Barter, 2008).Therefore, international marketing is a crucial role that apply to foreign market to understand the
In conclusion, it can be said that global marketing has been emerged very rapidly in recent years. It has provided various opportunities for the companies to expand their business to the other regions of the word. However, there remain certain environmental issues that need to be considered before entering in to the desired region. These issues can be resolved with designing the strong global marketing plans and strategies, the data for which can be gathered through conducting global market research. Despite numerous issues, one can easily say that globalisation has reduced the global reach of the organizations as well as customers. It would not be wrong to conclude that
The key difference between domestic marketing and marketing on an international scale is the multi-dimensionality and complexity of the many foreign markets a company may operate in. The essential elements of effective international marketing are the ability to interpret the business environment, recognize foreign market opportunities and appreciate how the firm’s resources can best be used to match and develop patterns of market demand. The development of successful international marketing strategies is based on a sound understanding of the similarities and differences that exist in countries around the world.
A. Hong KongA1. Consumer characteristicsA1.1. Dining habitIn Hong Kong, dining out is the primary way in which people socialize. Because of busy lifestyles and a lack of space in most people’s apartments (due to high population density and absurdly high housing cost), social gatherings at home are limited. Thus, consumers in Hong Kong have a high tendency to dine out. According to Euromonitor, eat-in accounted for 93% of value sales while takeout only accounted for a mere 7% (2009). Indeed, office workers dine out the most. A majority of them dine out for lunch 5 times in a week because this is often the most convenient and cheapest option; as for dinner, because many of them need to work overtime until at least 8 pm, they cannot go back home in time for dinner, an evening eat-out often follows work. In a survey that I sent out to Hong Kong citizens at Cornell, more than 70% of the respondents said that they dine out more than 7 times in a week when they are in Hong Kong.
The product that I am trying to produce and sell is an app that can be used on all smart phones. This application will allow the consumer to walk into any store that is compatible with the app and buy any product without having to wait in line or for check out. This app will require a credit card or debit card to pay for the transaction made. Once this transaction is processed the consumer will be sent a receipt and will be able to walk out of the store with the item they just purchased. The only other part of the equation is that there will need to be a security terminal type doorway, almost like in airports that check to make sure everything is actually being paid for.
The broad definition of marketing describes it as the combination of all activities designed to generate and facilitate any exchange intended to satisfy human needs and wants. In this case, Kumar intends to market Swift’s runner shoes to Bangladesh. For successful marketing of the product, Swift has to prepare a marketing plan which consists of various tools like the 4 P’s of marketing, target marketing, segmentation, positioning etc. The promotional mix is also formulated which consists of advertising, direct selling, sales promotion etc which helps in the promotion of the product.
A toothbrush that has multiple uses and saves space, that’s the vision behind the Multi Express Toothbrush. The product at hand is a toothbrush that pulls apart at the handle to provide consumers with dental floss and toothpaste. The rear part of the handle contains a button that when pushed down also allows forward movement; this action squeezes the toothpaste cartridge. When the button is pressed a hole at the end of the handle opens up allowing the toothpaste to exist, when the button is released the hole closes and seals off the toothpaste. The end with the brush contains a cartridge full of dental floss. The use of cartridges is important because when one becomes empty just pull it out and insert another quick, easy, and simple. When done brushing and flossing snap the two ends together and your ready for your next use.
International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...
International business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international production of physical goods and services such as finance, banking, insurance, and construction.
Regardless of the success of your company on a national scale, to engage yourself in a successful venture outside of your borders requires several critical elements that one must acknowledge and apply with great care. One of those requirements would be to thoroughly research the cultural environment in which you wish to launch your product no matter how popular and indispensable you believe it might be. In the past, many national giants have hit the wall when introducing a foreign market or launching a new marketing campaign because of the cultural gap they encountered on the other side of their borders. Another way of preventing a flop on an international market is to carefully study the economical past of this country, which might differ quite a bit from the one the company flourished in. In addition to the previous precautions, it Would be advise to make sure that your product will blend seamlessly within the spending habits of the consumers. Overall, meticulous market studies and patience often constitute the way to success on a foreign soil.