Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Data collection approach
Difference between domestic marketing and international marketing pdf
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Data collection approach
Introduction
In our increasingly global society, many companies cannot afford to live with the illusion that their domestic markets will always be strong. Therefore, companies choose to market overseas as well. This then makes the international marketer’s task more complicated as he now has to deal with two levels of uncontrollable uncertainty instead of one. Besides the uncontrollable elements of the domestic environment, he has to deal with each foreign country’s unique uncontrollable factors as well.
Although the research process and methods are basically the same whether applied in Johannesburg, Mozambique or Transkei, International marketing research involves two additional complications:
1. Information will need to be communicated across cultural boundaries.
2. The environments within which the research tools are applied are often different in foreign markets.
We can divide our research required, into 3 areas:
• General – regarding the country, area, market
• Information regarding future forecasts anticipated through economic, consumer,
industry trends within particular markets/countries.
• Precise market information, to develop the product, promotion, distribution or pricing decisions.
An extensive scope is needed for foreign research, due to higher levels of uncertainty associated with it. A country’s political stability, cultural attributes, and geographical characteristics, are not ordinary types of information gathered for the domestic market, but are essential for a sound assessment of foreign markets.
The following are a few complications warranting an in-depth investigation and understanding, so as to increase foreign market trade, instead of decreasing demand unintentionally.
Secondary Data
In many countries, there has been extensive research and data collection conducted for many years already, such as America, Japan. Unfortunately there are just as many countries who have only initiated data collection recently. Organizations such as United Nations and other private/public groups, fund the collection of information to offset the lack of inclusive data.
Even with the extensive amount of data that’s been collected, one of the major hiccups is its availability to other countries. Detailed data such as number of whole salers, retailers, manufacturers, facilitating services, are unavailable for many parts of the world. Data on population and income are also mostly unavailable. If required, marketers need to initiate their own research or rely on private sources.
Even when the data is available, the researcher needs to be fluent in the language it’s provided in or have a native speaker of the appropriate language on the team.
Our next concern relating to available data, is how reliable are they? Official statistics are sometimes too optimistic or unreliable in reporting relevant economic data regarding their countries.
Kotabe, M., & Helsen, K. (1998). Global marketing management. Temple University. New York: John Wiley & Sons.
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.
Market research provides information to help unravel marketing obstacles that businesses face in today’s business climate, an essential part of the business planning process. As shown in the example certain strategies such as segmentation or differentiation are almost unattainable without relevant market research.
Sakarya, S., Eckman, M. & Hyllegard, K. H. (2007). Market Selection for International Expansion - Assessing Opportunities in Emerging Markets. International Marketing Review, 24(2), 208-238.
A country's economic environment plays a significant role in the success of businesses operating within that country. Countries with struggling or shrinking economies were not included in the top ten ranking. Economic indicators and trends selected for this analysis:
Potential markets considered for expansion fit into five general areas: Latin America, Canada, Western Europe, Japan, and China. The marketing team, along with Legal counsel, immediately disqualified other areas of Europe and Asia due to political instability. The following table lists the eligible countries, with political and economic stability ratings from Jones-Dillard Rating Service:
Lamb, C. W 2010, Marketing (4th ed.). Cape Town, South Africa: Oxford University Press Southern Africa.
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
International business can be quite challenging and unsuccessful, if multinational companies do not look at the environment where they want to explore and invest. There are different aspects and market dimensions that can tell decisions makers if it’s convenient to invest in different markets. According to Global Edge (2014), “Global marketing has become more and more important over the years with the increasing trend of internationalization. Faced with too many choices, marketers have the challenge of determining which international markets to enter” (para. 1). The market potential indicator (MPI) is an index that can help marketers understand statistically how consumers behave and use these numbers to analyze potential countries and its risks. Based on the MPI
Reflected in its policies and attitudes toward business are a government's idea of how best to promote the national interest, considering its own resources and political philosophy. A government controls and restricts a company's activities by encouraging and offering support or by discouraging and banning or restricting its activities depending on the government. Here are steps in international law. International law recognizes the right of nations to grant or withhold permission to do business within its political boundaries and control its citizens when it comes to conducting business. Thus, political environment of countries is a critical concern for the international marketer and he should examine the salient political features of global markets they plan to enter.
Expansion across seas can be very advantageous and lucrative for many companies; however, there are many risks associated with doing business overseas, and companies that intend to expand internationally should be careful and strategic when doing so. Not only do companies run the risk of experiencing a product fail due to differences in cultures, they also face severe political and economic risks as well.
Globalization can not only affect a company opening an office in another country but it can affect a small local business as well. As the internet brings the world closer together it becomes far more likely that a business that opened with no intention of selling internationally will have customers form different parts of the world asking for their product. For instance a steel company located in Pennsylvania may suddenly find orders coming in from South American factories. How the steel plant chooses to handle this new international customer could mean ...
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...
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.
Young, D. (2012). International Marketing, Room 009, Block 17, Middlesex University Dubai. (18th March, 2012)