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International marketing challenges: The issues faces by organizations by using standardized marketing strategy across culture 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 …show more content…
Firstly, the countries that have a similar culture value do not need to adapt marketing strategies. Because they could understand product value by using the same strategy (Jeannet & Hennessey, 2004). Secondly, some of product could not effect on decision such as airline flight and computer (Doole & Lowe, 2004). Lastly, the megabrand which have a strength on product value might not have to adjust their product to countries (Mooij, Global marketing and advertising Understanding Cultural Paradoxes, 2005). For instance, Apple which have core value on identity of product and design. Most of consumer purchase this brand to represent themselves. Thus, Apple could use the same product design, brand to broadcast in every market. (
Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.
By observing the PEST-C variables, international businesses are able to make smarter choices in their global marketing decisions. These attributes that must be thoroughly understood and analysed in order to succeed in the international marketplace. All of the variables relate to global marketing. Global marketing can be defined as marketing on a worldwide scale. All variables must consider the understanding of the advantages of global operational differences, similarities, threats, and opportunities that can be used to meet international objectives.
International marketing is the sales and promotion of an organizations good and services to customers in global countries. It needs huge amount of finance to run the business. It is a complex process because each countries has own culture, law and legislation and own currency. Global business companies need to follow different marketing strategies based on customers’ needs, wants and demand.
International marketing is an important factor in helping organizations to become globally competitive. According to Cateora, Gilly, and Graham (2013), “international marketing is the performance of business activities designed to plan, price, promote, and direct flow of the companies goods and services to consumers of users in more than one nation for profit” (p. 10). International marketing strategies and its efficiency assists in the expansion of an organization. Moreover, the major goals of a marketing manager are to reduce risk and capitalize on returns in profit. Global expansion has developed a tactical imperative for nearly all large organizations and marketing managers have a great deal on their hands in developing, monitoring and changing these strategies. Cultural understanding is plainly essential for an organization expecting to be successful in operating in a host country. As stated by Dawes and Lee, “It is a part of the basic orientation of a country, and anyone who is confused about the environment is more than likely not going to be effective” (as cited in Tangen, 2011, p. 122).
The first and likely most complex influence on both nations' marketing is culture. A country's culture is a mesh of a people's beliefs, values, societal institutions, religions, laws, and attitudes, among others. In the United States, culture is quite blended, with a multitude of different races, religions, and values all existing together. The US does not have a deep rooted sense of tradition, likely due to the fact that it is a young nation comparatively, and that it is made up of immigrants from many different nations. What the US does hold at the heart of its culture is capitalism and individualism. Americans tend to reward individual efforts rather than the efforts of a group, which has a significant impact on our society (Cateora & Graham, 2007).
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
In internationalization, the most challenging decision faced by the company to choose between standardization and adaptation in its operations, products or services. It has been one of the important and most popular research topics since 1960s to understand whether standardization is better or adaptation for marketing mix in international marketing. The increasing role of international expansion of business across the borders has also increased the focus of companies towards the international marketing strategies. It is also a biggest challenge for companies to better understand the different needs and choice of customers due to the huge differences among the cultures from various nationalities. This leads to the dilemma in the mind of marketers to understand which strategy is effective and good - standardization or adaptation. There is a significant impact of standardization or adaptation on all avenues of business such as research & development, structure, marketing mix, production, finance and marketing mix. The attitude of a company towards the culture of a particular country in which it is going to enter or start its operations decides to choose between standardization and adaptation. Consider the different views and arguments for each standardization and adaptation, this essay critically analyze which strategy is better to choose for international marketing.
Cross cultural marketing is the process of a company during business in a market in which the cultural of the potential customer is different from the company that wants to sell in that market. These differences can be seen in many different areas, including language, value systems and social morale. In addition the educational level and the style of living must be considered. This essay will focus on what must be done by Company A a United States based company to understand and do business with a cross cultural marketing in France. In this essay I will discuss the different areas that the company must be prepared to deal with because of the differences of culture, and how to overcome those challenges. When dealing in a cross-cultural market
in many countries all over the world, but international marketing is not a simple activity that can be successfully applied by every firm. First, to achieve success in international marketing activities, a company should consider economic, social and cultural facts about the countries which the firm plans to expand its activities to.
The first step in international marketing is deciding whether to go abroad. At this step, companies must weigh the pros (better profit opportunities than domestic markets, larger customer base to achieve economies of scale, can reduce dependence on any one market) and cons (company might not understand foreign preferences, business culture, or regulations) of international business and also their company’s situation (size, financial resources, HR, expertise, experience). If they decide expanding internationally is a viable option, they must then decide which market(s) to enter. This is a very important question for a company to address and I will keep it short for the outline portion of this answer but will get into more detail later.
A good definition of marketing is the process of the intermediary function between product development and sales. (Reddy ) The field of marketing entails taking a generic product or generic service (the product or services do not have to be “generic” they may be actually unique to the marketplace) and associating the generic product with a brand name (Petty 2001). Under this generic concept are the activities of advertising, public relations, media planning, sales strategy and so on.
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).
In week five we learn about the importance of globalization and how it can help your company’s profits grow. There are many things to look at when selling globally as different cultures need to be looked at differently when making a marketing strategy. If you understand how to market your products to different cultures in different countries you can take advantage of the profits that can be made through globalization.
Marketing has been a major component in organisations, it exhibits the primary focus on transactional exchange and its key focus on the products or services may be of interest to customers, and the strategy to use in sales, communications and business development (Kotler, 2009). The history of marketing and marketing practices itself can be related back to as far as 7000 B.C. (Carratu 1987), it derived from the changing revolutions as well as the rise of economies particularly in the 19th century (Robert 1988). Marketing come from evolving practices, approaches and theories that have been accumulated and brought up from scholars, business people and practitioners. The changing environment in organisations, social changes, development, and particularly the growth of national and international economies has led to organisations into the field of marketing.
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.