INTERNATIONAL MARKETING

Kotler defined marketing as human activity directed at satisfying needs and wants through exchange process International marketing is defined as marketing carried on across national boundaries. International marketing is basically the entry into international markets. International marketing is also known as global marketing. It refers to the firm-level marketing practices across the border including: Market identifications Targeting Entry mode selection Strategic decisions

In order to compete in international markets.

SCOPE OF INTERNATIONAL MARKETING

International marketing that is also known as global marketing or export marketing. It has a broader connotation on marketing literature International marketing is basically the entry into international markets by: Opening a branch abroad for processing, packaging or even for the manufacturing purpose Establishing joint ventures in foreign countries for manufacturing and marketing Offering consultancy services and undertaking the projects abroad

INTERNATIONAL V/S DOMESTIC MARKETING

There are some similarities and differences between international and domestic marketing

Similarities:

1. Satisfying customers: Both in international market and domestic market success depends on satisfying the customer by knowing about the needs and wants of customers or consumer i.e what they actually want and delivering the products and services according to their needs.

2. Develop a goodwill: It is necessary and important to build good will both in domestic and in international markets. For example if a firm is able to develop a good will of customers or consumers its tasks become simpler than the other firms.

3. Research and development: Research and development for products development and modification and variety are important and necessary both for international and domestic marketing.

DIFFERENCES: 1. Sovereign political entity: Each country is a sovereign political entity and goods and services had to move across national boundaries and as a result they may face number of restrictions like: 2. Tariffs and customs duties Quantitative restrictions Exchange controls Local taxes Different legal systems: Each country has its own legal system and it differs from country to country. The existence of different legal existence of different legal systems makes the task of business more difficult as they are not sure that which particular system will apply to their
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transactions. Whereas in case of domestic marketing the buyers are aware of legal systems in their country

3. Cultural differences: In domestic marketing only one nation is involved and having same language and culture whereas in case of international marketing many languages and cultures are involved.

4. Different monetary systems: In case of international marketing different countries having their own monetary systems and currency differences are there. The exchange rates between currencies fluctuate every day. On the other hand in case of domestic marketing only one currency prevails in the country.

5. Trade restrictions: In case of international marketing trade restrictions are there and trade policy is to be followed whereas in case of domestic marketing on trade restrictions are there

6. Degree of risk: In international marketing there is more risk than the domestic marketing due to following reasons: Exchange fluctuation Large volume of transactions Longer time period Comparatively less knowledge Higher values of transactions

Major international marketing decision

1. Looking at environment
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2. 3. 4. 5. 6.

Deciding whether to go international Deciding which market to enter Deciding how to enter market Deciding on the global marketing program Deciding on global marketing organization

1st decision: o o o o o Looking at globed marketing environment, it involves the following: The international trade system Restrictions such as like tariffs, quotas and trade barriers. WTO and GATT It helps trade by reducing tariffs and international trade barriers.

WHY DO COMPANIES GO INTERNATIONAL?

Companies go international for the variety of reasons: GROWTH: For the purpose of growth and expansion of company, for example after Coca-Cola dominated the U.S market, it expanded their business globally in 1926 to increase their sales profit. EMPLOYEES: Companies go international to find alternative sources of labor. Some companies look for international countries in order to lower their manufacturing cost, technology assistance in order to maintain a competitive advantage, for example companies going to china because of cheap labor. RESOURCES: Some companies go to international markets in order to locate resources that are not available in their home market or can be obtained at better prices internationally. IDEAS:

Some companies go international to broaden their workforce and to obtain new ideas. For example IBM activity recruits individuals firm diverse backgrounds to become innovative DIVERSIFACTION: Some companies go international to diversify selling products and services in multiple countries reduce companys exposure to possible economic and political instability in a single country. CURRENCY DIFFERENCES: Companies go internationally so as to earn more profit.

STEPS TO AN INTERNATIONAL MARKETING STRATEGY

As technology breaks down geographic and cultural communication barriers, even small businesses can often tap into the global marketplace. So following are the steps to an international marketing strategy. Research Unless you spend excessive amounts of time in foreign countries or soak up knowledge like a Jeopardy Champion, youre probably not able to make an informed decision about a global strategy without doing your homework first. Start with the low-hanging fruit: talk to your coworkers, peers, family and friends. Find out what you can about countries and markets with the greatest potential. Read relevant print and Web publications voraciously like e Marketer, Economist, Wall Street Journal and Yahoo! for general business and market research. Compile information about various opportunities and determine which markets have the greatest overall potential. Build Most small to medium-sized businesses do not have the resources on staff to undertake a global market strategy. Assuming there are sufficient opportunities abroad, its time to determine how to develop appropriate resources (i.e. in-country sales and support, logistics and fulfillment). In the build vs. buy decision, many companies prefer to minimize financial risk by partnering with companies that have extensive experience within the target market to provide those resources. While partnering minimizes risk, there are drawbacks, such as lack of direct management oversight. Those negatives can be alleviated by hiring employees who have the education,
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experience and native language skills relevant to your target market. International students are excellent resources: they are educated, affordable, multi-lingual and usually have some relevant work experience. The potential downside is that youll probably have to navigate through a bushel of red tape in order to secure work visas. Assess As youre formulating partnerships or hiring strategies, its critical to thoroughly assess current products and services for viability in foreign markets. The offering(s) must be intuitive and scalable. If the offering is not intuitive, that is, easily applicable to the target markets (i.e. there is no apparent need) you will fail. If the offering is not scalable (i.e. it cant be produced and delivered to the target markets profitably) you will fail. The new team should lead the assessment phase and outline a strategy to build or leverage existing infrastructure.

Modify Once the offering is fine-tuned and ready for market, your sales collateral must be modified. Even if the global partner or new team has native speaking skills, there are reasons to hire professional translation and localization services (e.g. Via Language) to that ensure all cultural nuances are dealt with appropriately. The goal is to ensure that your sales documentation demonstrates that you feel your target markets pain and that you are able to offer a relevant solution. Partner While your core business and marketing team may already be in place, there are a variety of reasons to explore additional partnerships. Companies specializing in marketing, logistics and customer service are excellent additions to the growing team. Partners within the target market may have relationships with your potential customers that can be leveraged for business development. For instance, weve partnered with a homeland security and business consultancy, Eminent Logic, to help penetrate into the Middle Eastern markets. In return, we introduce them to local companies we know that can further their business objectives. Network Alternative business development strategies include attending, sponsoring, and participating in industry networking events and conferences. Look into joining industry associations that have a footprint in your target markets, or that are native to the target market. Web-based networking groups (e.g. LinkedIn) can also help expand your network.
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Market Now that youve built out your infrastructure, trained and deployed a team, and modified your offering and marketing collateral, youre ready to turn on the fire hose. Two of the most effective forms of outreach are search engine and email marketing. Internet access is everywhere, which means everyone has access to search engines and email. The best way to build a house list of potential customers in your target market is to optimize your international Web site for search engines and offer visitors an incentive to provide their email address. Once youve got their permission to contact them regularly, build a relationship and convert site visitors and email subscribers into customers. Travel Over time, cold leads will become hot, and those hot leads will want face-to-face meetings. Its decision time: are you ready to invest in a global travel expense account? If so, be prepared to reel in the business, as most of the world works on a handshake and face time is critical. Turn your business trips into tax-deductible vacations and see the world while youre at it. Review On a quarterly basis, its very helpful to take a close look at your progress. Assess the effectiveness of your process, strategies and tactics and determine if youre on the right track. If not, look for ways to fine-tune by breaking down the entire process. If youve seen success thus far, understand what is working well for you and decide whether or not you want to scale further. When that is the case, just start over at the research phase and begin searching for your next market opportunity. Global Marketing Strategies: A global marketing strategy that totally globalizes all marketing activities is not always achievable or desirable (differentiated globalization). In the early phases of development, global marketing strategies were assumed to be of one type only, offering the same marketing strategy across the globe. As marketers gained more experience, many other types of global marketing strategies became apparent. Some of those were much less complicated and exposed a smaller aspect of a marketing strategy to globalization. A more common approach is for a company to globalize its product strategy (product lines, product designs and brand names) and localize distribution and marketing communication. Integrated Global Marketing Strategy:

When a company pursues an integrated global marketing strategy, most elements of the marketing strategy have been globalized. Globalization includes not only the product but also the communications strategy, pricing and distribution as well as such strategic elements as segmentation and positioning. Such a strategy may be advisable for companies that face completely globalized customers along the lines. It also assumes that the way a given industry works is highly similar everywhere, thus allowing a company to unfold its strategy along similar paths in country by country. One company that fits the description of an integrated global marketing strategy to a large degree is Coca Cola. That company has achieved a coherent, consistent and integrated global marketing strategy that covers almost all elements of its marketing program from segmentation to positioning, branding, distribution, bottling, advertising and more. Reality tells us that completely integrated global marketing strategies will continue to be the exception. However, there are many other types of partially globalized marketing strategies; each may be tailored to specific industry and competitive circumstances. Global Product Category Strategy: Possibly the least integrated type of global marketing strategy is the global product category strategy. Leverage is gained from competing in the same category country after country and may come in the form of product technology or development costs. Selecting the form of global product category implies that the company while staying within that category will consider targeting different segments in each category or varying the product, advertising and branding according to local market requirements. Companies competing in the multi-domestic mode are frequently applying the global category strategy and leveraging knowledge across markets without pursuing standardization. That strategy works best if there are significant differences across markets and when few segments are present in market after market. Several traditional multinational players who had for decades pursued a multi-domestic marketing approach tailoring marketing strategies to local market conditions and assigning management to local management teams- have been moving toward the global category strategy. Among them are Nestle, Unilever and Procter&Gamble, three large international consumer goods companies doing business in food and household goods. Global Segment Strategy: A company that decides to target the same segment in many countries is following a global segment strategy. The company may develop an understanding of its customer base and leverage that experience around the world. In both consumer and industrial industries significant knowledge is accumulated when a company gains in-depth understanding of a niche or segment.
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A pure global segment strategy will even allow for different products, brands or advertising although some standardization is expected. The choices may consist of competing always in the upper or middle segment of a given consumer market or for a particular technical application in an industrial segment. Segment strategies are relatively new to global marketing.

Global Marketing Mix Element Strategies: These strategies pursue globalization along individual marketing mix elements such as pricing, distribution, place, promotion, communications or product. They are partially globalized strategies that allow a company that customize other aspects of its marketing strategy. Although various types of strategies may apply, the most important ones are global product strategies, global advertising strategies and global branding strategies. Typically companies globalize those marketing mix elements that are subject to particularly strong global logic forces. A company facing strong global purchasing logic may globalize its account management practices or its pricing strategy. Another firm facing strong global information logic will find it important to globalize its communications strategy. Global Product Strategy: Pursuing a global product strategy implies that a company has largely globalized its product offering. Although the product may not need to be completely standardized worldwide, key aspects or modules may in fact be globalized. Global product strategies require that product use conditions, expected features and required product functions be largely identical so that few variations or changes are needed. Companies pursuing a global product strategy are interested in leveraging the fact that all investments for producing and developing a given product have already been made. Global strategies will yield more volume, which will make the original investment easier to justify. Global Branding Strategies: Global branding strategies consist of using the same brand name or logo worldwide. Companies want to leverage the creation of such brand names across many markets, because the launching of new brands requires a considerable marketing investment. Global branding strategies tend to
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be advisable if the target customers travel across country borders and will be exposed to products elsewhere. Global branding strategies also become important if target customers are exposed to advertising worldwide. This is often the case for industrial marketing customers who may read industry and trade journals from other countries. Increasingly, global branding has become important also for consumer products where cross-border advertising through international TV channels has become common. Even in some markets such as Eastern Europe, many consumers had become aware of brands offered in Western Europe before the liberalization of the economies in the early 1990s. Global branding allows a company to take advantage of such existing goodwill. Companies pursuing global branding strategies may include luxury product marketers who typically face a large fixed investment for the worldwide promotion of a product. Global Advertising Strategy: Globalized advertising is generally associated with the use of the same brand name across the world. However, a company may want to use different brand names partly for historic purposes. Many global firms have made acquisitions in other countries resulting in a number of local brands. These local brands have their own distinctive market and a company may find it counterproductive to change those names. Instead, the company may want to leverage a certain theme or advertising approach that may have been developed as a result of some global customer research. Global advertising themes are most advisable when a firm may market to customers seeking similar benefits across the world. Once the purchasing reason has been determined as similar, a common theme may be created to address it. Composite Global Marketing Strategy: The above descriptions of the various global marketing models give the distinct impression that companies might be using one or the other generic strategy exclusively. Reality shows, however, that few companies consistently adhere to only one single strategy. More often companies adopt several generic global strategies and run them in parallel. A company might for one part of its business follow a global brand strategy while at the same time running local brands in other parts. Many firms are a mixture of different approaches, thus the term composite. Competitive Global Marketing Strategies: Two types of approaches emerge as of particular interest to us. First, there are a number of heated global marketing duels in which two firms compete with each other across the entire
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global chessboard. The second, game pits a global company versus a local company- a situation frequently faced in many markets. One of the longest running battles in global competition is the fight for market dominance between Coca Cola and PepsiCo, the world`s largest soft drink companies. Global firms are able to leverage their experience and market position in one market for the benefit of another. Consequently, the global firm is often a more potent competitor for a local company. Although global firms have superior resources, they often become inflexible after several successful market entries and tend to stay with standard approaches when flexibility is called for. In general, the global firms` strongest local competitors are those who watch global firms carefully and learn from their moves in other countries. With some global firms requiring several years before a product is introduced in all markets, local competitors in some markets can take advantage of such advance notice by building defenses or launching a preemptive attack on the same segment. As it is mentioned above that different companies use the blend of these strategies so following are the examples. Nike Nike has positioned it as a global premium brand which is selling designed and expensive products for customers who cannot compromise with quality. The company is using an international marketing strategy with no local incorporation and it is evident from the same logo of the company and the same advertising slogan for all international ads. The slogan of the company is "Just do it". The pricing strategy of the company is also premium and the company is charging premium prices all over the world. Nike products are same and are distributed all over the world under the same brand name and without any incorporation of local features. For its promotion company is using extensive advertising in print, television and other media. The same international ads are broadcast in all of the counties where Nike supplies its products. Today Nike is the number one brand of celebrity, athletes, professional teams and customers. Honda It has Standardizes certain core elements and localizes some marketing mix elements.
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Example : Honda Accor Same brand and positioning in Europe and in the USA But the product is not the same everywhere - In Europe, Accor sales are low, and cars are imported from Japan - In the US, sales are higher and a special product is manufactured for the US market Automatic gearbox Slightly different style Different motors Different interior design and equipment Since 1986, Honda has developed a new brand, Acura, on the high-end, in the US & Japan, with specific models and a dedicated retail network. Coca Cola Coca Cola marketing is coherent worldwide and some elements are global Brand Colours Symbols Same major sales channels Some advertising campaigns Sponsoring of major sport events - Olympic Games since 1928 - Football World Cup

Foreign market entry modes

A mode of entering into international markets is the channel which your organization employs to gain entry to a new international market. With rare exceptions, products just dont emerge in foreign markets overnight a firm has to build up a market over time. Several strategies, which differ in aggressiveness, risk, and the amount of control that the firm is able to maintain. The decision how enter in the foreign markets can have a significant impact on results. Expansion in foreign markets can achieve through following mechanism: Exporting Licensing Joint venture Direct investment Franchising Turnkey projects
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Piggybacking

Exporting: Exporting is that the market entry strategy chosen by most small companies. The reason for this is quite straightforward. Direct exporting is the most basic entry into international markets. Exporting represents the least commitment on the part of the firm entering a foreign Market. Exporting to a foreign market is a strategy many companies follow for at least some of their markets. Since many countries do not offer a large enough opportunity to justify local production, exporting allows a company to centrally manufacture its products for several markets and therefore to obtain economies of scale. A firm has two basic options for carrying out its export operations. The form of exporting can be directly under the firm`s control or indirect and outside the firm`s control. Exporting is a relatively low risk strategy in which few investments are made in the new country. A drawback is that, because the firm makes few if any marketing investments in the new country, market share may be below potential. Advantages: Avoids the often substantial cost of establishing manufacturing May help firm achieve experience curve & location economies

Disadvantages: Not appropriate if lower cost manufacturing locations High transport costs can make exporting uneconomical especially bulk products Tariff barriers can make exporting uneconomical

Licensing: Licensing, as a market entry strategy, is best used by those companies that have a component of intellectual property in their product. It can be used by any type of company depending on what they are wanting to license. Licensing is similar to contract manufacturing, as the foreign licensee receives specifications for producing products locally, but the licensor generally receives set fee or royalty rather than finished products. Licensing may offer the foreign firm access to brands, trademarks, trade secrets or patents associated with products manufactured. Under licensing, a company assigns the right to a patent (which protects a product, technology or process) or a trademark (which protects a product name) to another company for a fee or royalty. Advantages: Receive royalties for granting the rights to intangible property to licensee for specified period
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Allows firm to participate where there are barriers to investment Primarily used by manufacturing firm

Disadvantages: Does not give firm tight control over manufacturing, marketing & strategy to realize experience curve Does not allow firm to coordinate strategic moves across countries by using profits earned in one country for competitive attacks in another Firms can lose control over the competitive advantage of their technological know-how.

Franchising: Franchising is a special form of licensing in which the franchiser makes a total marketing program available including the brand name, logo, products and method of operation. Franchising is becoming a more popular market entry strategy given the world wide branding of various products as a result of the internet. International franchise agreements are the same as domestic ones with the obvious exception that they must meet the commercial laws of the country you are franchising too. Franchising is not a strongly recommended market entry strategy if you do not have solid brand recognition in your own country or your product is culturally biased.

Advantages: Involves longer term commitment than licensing. Primarily used by service firms (McDonalds) Franchiser sells intangible property (trademark) & insists franchisee agrees to abide by strict business rules Firm relieved of many costs & risks of opening new market

Disadvantages: No manufacturing so no location economies & experience curve May inhibit the ability to take profits out of one country to support competitive attacks in another Risk of worldwide reputation if no quality control

Joint venture: Joint ventures can be defined as "an enterprise in which two or more investors share ownership and control over property rights and operation". Joint ventures are a more extensive form of
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participation than either exporting or licensing. In Zimbabwe, an Olivine industry has a joint venture agreement with HJ Heinz in food processing. Advantages: Sharing of risk and ability to combine the local in-depth knowledge with a foreign partner with know-how in technology or process Joint financial strength

Disadvantages: Partners do not have full control of management Disagreement on third party markets to serve Partners may have different views on expected benefits.

Piggybacking: Piggybacking is an interesting development. The method means that organizations with little exporting skill may use the services of one that has. Another form is the consolidation of orders by a number of companies in order to take advantage of bulk buying. Normally these would be geographically adjacent or able to be served, say, on an air route. The fertilizer manufacturers of Zimbabwe, for example, could piggyback with the South Africans who both import potassium from outside their respective countries.

Turnkey Projects: A product and service which can be implemented or utilized with no additional work required by buyer. The contactors agree to handle every detail of the project for a foreign client, including the training of operating personnel. Advantages: A way of earning great economic returns from the know-how & exporting process technology This strategy is useful where FDI is limited by host government Disadvantages: Firm has no long term interest in the country Can take minority equity interest in company Firm may inadvertently create a competitor If firms process technology is a source of competitive advantage, then selling technology is also selling competitive advantage to potential competitors.
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Emerging Markets
These are the countries which have a rapidly expanding society as well industries. Which make them profitable to invest money in their economy? An emerging market economy (EME) is defined as an economy with low to middle per capita income. Such countries constitute approximately 80% of the global population, and represent about 20% of the world's economies. The term was coined in 1981 by Antoine W. Van Agtmael of the International Finance Corporation of the World Bank. Although the term "emerging market" is loosely defined, countries that fall into this category, varying from very big to very small, are usually considered emerging because of their developments and reforms. Hence, even though China is deemed one of the world's economic powerhouses, it is lumped into the category alongside much smaller economies with a great deal less resources, like Tunisia. Both China and Tunisia belong to this category because both have embarked on economic development and reform programs, and have begun to open up their markets and "emerge" onto the global scene. EMEs are considered to be fast-growing economies. These are the example of the emerging market with content to 2010 research. They are China, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, South Africa and Israel, Czech Republic, Hungary, Greece, Portugal, Turkey, Argentina, Brazil, Chile, Mexico, Venezuela. Russia, Ukraine, The Baltics. Although Pakistan is not in this let but in my option Pakistan is one of the emerging nations. We can see that Mexico is the recent year has 50000 deaths with fighting drug cartel. One key characteristic of the EME is an increase in both local and foreign investment (portfolio and direct). A growth in investment in a country often indicates that the country has been able to build confidence in the local economy. Moreover, foreign investment is a signal that the world has begun to take notice of the emerging market, and when international capital flows are directed toward an EME, the injection of foreign currency into the local economy adds volume to the country's stock market and long-term investment to the infrastructure. Because their markets are in transition and hence not stable, emerging markets offer an opportunity to investors who are looking to add some risk to their portfolios. The possibility for some economies to fall back into a not-completely-resolved civil war or a revolution sparking a change in government could result in a return to nationalization, expropriation and the collapse of the capital market. Because the risk of an EME investment is higher than an investment in a developed market, panic, speculation and knee-jerk reactions are also more common - the 1997 Asian crisis, during which international portfolio flows into these countries actually began to reverse themselves, is a good example of how EMEs can be high-risk investment opportunities
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Rate of growth of real GDP (%),

Projections for 2012 & 2013
World Economic Outlook, IMF, April 2012

Euro-recession is pulling down growth. The US is doing better.

Emerging Market growth is slowing too, but solidly >0.

Most worrisome: Turkey. Turkey can probably not sustain the rapid economic growth and very high trade deficits of recent years. Vulnerable to world oil price. China could land hard as its real-estate bubble deflates and the countrys banks are forced to work off bad loans. High GDP growth rates in Latin America over the same period could reverse, particularly if global commodity prices fall Esp. if the cause is that the Chinese economy begins to falter.

Issues in International Marketing Efforts

Being first is no longer a great issue, for most agreeable international markets have been initiated by most forms of international expansion interests, whether heavy production, oil interests or McDonalds franchises and company-owned locations. The rules still apply, however, as evidenced by results of some that have equaled the required action of one heavy equipment manufacturer, The danger, however, is moving into foreign markets without thorough analysis. This can result in costly withdrawals, as when Caterpillar Inc. recently was forced to close a factory in Scotland. Careful study of foreign markets is an urgent prerequisite to entry. Potential markets need to be screened in at least five areas before any decision is made to expand into one or more of them. Those areas are: Demand Competition Economic environment Legal environment Cultural environment Demand: It may be the most basic of all criteria, but others are no less important. If demand is high but the legal structure is such that no profit of any kind can be made, then obviously there is little point
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in entering the specific market. If all other factors are favorable yet there is no demand, however, it really makes little difference how receptive the government or even the people may be. Some needs and desires are obvious; others are less so. In some cases, demand can only be assessed in terms of the marketers abilities to create demand for products that have not before been available within the region or nation. An example is that of McDonalds in China. Though many of the Chinese are open to anything Western, the company was required to determine whether operations could remain profitable after the novelty of the American hamburger had diminished. The product truly is totally foreign in terms of approach, content and packaging, and could have proven to be little more than a curiosity factor if the company was not able to create continuing demand. Consumer demand also is of little import if per capita income is not of a level that would allow them to take advantage of the new availability of the product. Some evaluations are based on per capita consumption statistics, but such an assumption could be faulty and yield erroneous results if existing suppliers have already filled that demand. Past consumption statistics also are of little use when the product previously has not been available. A better, although imperfect, measure of demand may be literature which describes living conditions in foreign countries. Marketers should watch for evidence of demand now and in the future as the economies and technologies of foreign nations become more mature. Tracking of Internet sites and usage patterns can yield valuable information of other potential markets into which entry may be advantageous. Competition: Of course competition is an important assessment to make in evaluating potential international markets. If consumption habits have been favorable, then it is obvious that the product has been available and that others already are well established. If there is no competition that is well established, then it can be assumed that either demand was not as high as evaluation would indicate or that the competition had internal problems that prevented it from taking full advantage of the opportunities before it. Such determinations must be made in order to arrive at a valid assessment of the current condition of the market. The presence of competitors is no reason to avoid entering the market, but their activity can give the new entrant valuable information it will need in order to directly compete with those already in operation in the locale. If there are more competitors than there is obvious demand, then it follows that success will be difficult to attain. But if there are only a few competitors and a large demand, fortunes could be vastly different for the new entrant. It is when competition and demand are more balanced that the decision becomes more intuitive and requires further investigation into aspects of market conditions. Those assessments should include numbers of competitors currently active, their sizes, the anticipated size of the market, products currently available and products relative levels of quality and price. Customer service also should be considered, as that single factor alone can provide the incentive for consumers to abandon one competitor in favor of another when most other qualities are relatively equal. Economic Environment: The historic, current and anticipated economic condition of the potential market for entry is of importance for all products, but is of more consequence for some than for others. Per capita income is important in determining actual or projected demand for specific products, but other factors also must be assessed. Evaluating the per capita portion of gross domestic product (GDP)
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will not be a sufficient indicator of the likelihood of success if inflation is rampant or interest rates are prohibitively high. Exchange rates can be of issue, particularly if the product will be imported into the country rather than being produced there for sale within its borders. Assessment of these indicators also must be made with the product in mind as well. The current state of Brazils currency crisis is such that regulators are attempting to bring it under control and have instituted punitive interest rates as part of their first aid and rehabilitative packages. Though interest rates may not affect the sale of hamburgers at all, an automaker expecting to sell cars on credit in such an interest rate environment very likely would have no business at all. Legal Environment: All other factors could indicate positive results yet any project can fail without fully examining the laws of operation and taxation that exist within any potential market. Among the major legal issues that bear investigation are barriers to entry, restrictions on profit repatriation, tax laws, trade restrictions, price controls, and ad restrictions. China is now greatly more open to foreign direct investment but requires in many instances new entrants to locate in areas that lack the infrastructure support necessary for the operation of the business. While the government actively works to develop telecommunications within the country in more outlying areas, it is requiring large businesses such as IBM to furnish their own power lines and paved roads to support their business operations. Success of competitors in one area of the country is no indication that the government will agree to allow new entrants into the same region for direct competition. The attendant requirements of new entrants may be prohibitive when all other indicators would present a positive view of the locale. Other issues becoming increasingly important are those of environmental impact on the local area. As example, Costa Rica is warmly open to any business that will treat its pristine countryside with the same respect as do the people of the country. Any potential for pollution or other environmental damage carries stiff penalties. The atmosphere in China is far different. The government sets highly stringent rules for business but itself wantonly places dams, reservoirs, roads and other structures without regard for environmental impact and with impunity. Such an atmosphere of double standard can be doubly threatening for any business later locating in the region. Cultural Environment: The culture is significant because it has a major impact on behavior and on the actions of government officials, business executives, foreign employees, financial institution officials, and the public. Marketers should be alert for major influences, such as the impact of religion, language, attitudes toward work, material values, literacy, the family, and education. In other words, there is little need to expect any success in attempting to market video games in a country where the primary economic activity is subsistence farming and televisions and computers (or even electricity) may be rare. Nuances of language must be carefully monitored. While marketing in native language and dialect is always desirable, it must be done correctly. One airline flying between Florida and several
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South American countries attempted to urge its customers to surround themselves with the luxury afforded by the airlines leather seats and attentive staff, but achieved only the message not that passenger should fly in luxury, but that they should fly naked. Similarly, there are vast differences, between English as used in the US, Great Britain, Australia and Singapore. The same words exist in all, but many have very different meanings as they are locally used. There are other cultural factors as well, and they must be given careful study. McDonalds met with great success in most of the European countries it entered, but results in France not only were disappointing but threatened the ability of the first McDonalds there to remain in operation. The French have drunk wine with their meals for centuries, and the people rebelled against McDonalds insistence that they substitute either a cola or a shake. They refused. Of the 109 countries in which McDonalds has presence, France remains the only one in which it is possible to buy any form of alcohol at the same location as a Big Mac.

Recommendation
On paper, global marketing is undoubtedly a great concept. The idea of leveraging a marketing strategy across multiple markets seems to be nothing but beneficial. It saves effort and resources, and ensures a high degree of consistency between all in-market branding and activities. Stop the swinging pendulum: Marketing departments, particularly those in larger companies, seem to follow similar pendulum movements. Sometimes central teams are set up to oversee all territories; at other times these same teams are fragmented into regional or local components, each focusing on their specific market(s). Yet, there are ways to stabilize the pendulum in a happier middle position. Global marketing can indeed work; drive synergies and economies of scale whilst preserving specific local needs and cultural considerations. However, as with most marketing approaches, the key to success is a balanced approach. Not all marketing activities can or should be driven from the center. Here are some tips for a balanced and successful global marketing approach Clarify what is driven globally and what is managed locally: A global marketing approach does not mean the absence of local, market-specific plans and initiatives. These should, in fact, be complementary. Global marketing will typically set the framework and parameters within which local marketing operates, whilst giving in-market teams the freedom to control local success levers.
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Some areas of marketing that lend themselves to being led at a global or central level include branding and brand guidelines, strategic marketing planning and budgeting (with autonomy given to markets within their allocated budget), large-scale marketing campaigns, social media strategy and guidelines, research strategy, and global PR. Other areas best managed locally include local outreach initiatives and more tactical campaigns, local social media channels and PR initiatives, local partnerships and events, etc. Markets need to have some control over the local channels that contribute to driving their success. In practice, it might be useful to divide your markets in tiers. A tiered market will help you identify territories that might drive the highest potential returns. It also allows top tier markets to access bigger budgets, giving them autonomy; for example, research into local users behaviors to inform product development. Global and local areas of ownership may differ from company to company. However, it is critical you define the areas clearly to avoid friction and inefficiencies. Take the time to do this upfront dont wait until issues start arising. Understand local market needs and develop a collaborative approach: Too often, operating globally is seen as an excuse to avoid spending time understanding local cultures, customer needs and behaviors, as well as successful and less successful marketing approaches. And yet, it is obvious that a US-based customer is likely to be very different from a customer located in India or SEA. Their lives, cultures, and needs are different, so it makes sense they will interact very differently with your products or services. For a global model to work, global teams need to develop an understanding of local markets and establish a close relationship with local marketing teams. Gone are the days when global campaigns and strategies were applied in a blanket fashion across all international territories it simply doesnt work. Globally defined initiatives and plans need to factor in a degree of flexibility to cater for cultural differences. A community meet-up, social media competition, or treasurehunt based campaign might resonate well with some markets, and not at all with others. Celebrity endorsement or participation will only work with well, actual celebrities. And an Indian celebrity is unlikely to be known in France or Japan. Privacy laws can be very different from
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country to country too. So, if you are in a global marketing role:

Research the markets and take the time to get to know the international teams you will be working with. Trust them to be the experts on local customs and users. And leverage their knowledge to make your global plans and campaigns a success.

Develop and socialize a global marketing plan early (seek feedback): So, you have established key relationships, researched local markets, and defined global marketing plans which you think accommodate local needs where required. Thats a great start, but dont wait for the campaign to begin to validate your assumptions. Socialize these plans with your international teams as soon as possible, seek their feedback and ensure that there are no legal issues to prevent your plans from working in certain markets. A proactive approach will give you time to adjust and revise your plans in the event of a problem. It will also allow you to get buy-in from your local colleagues. And, after all, a huge part of the success will rest on their shoulders during execution. Manage campaigns like an army operation plan ruthlessly: As the time for your campaign to kick-off approaches, there are a few key elements to consider helping it succeed; starting with outstanding project planning.

Appoint a global campaign manager with responsibility for all communication and coordination around the campaign. Make sure his/her overall accountability is understood by all. Failing to do this will result in cross-communication, misunderstandings and missed deliverables. Plan ruthlessly make sure deadlines, responsibilities and deliverables are clear to everyone involved. Plan your campaigns official launch at a time and date that works for all the countries in the campaign. And, at every step of the way, get all parties to confirm when deliverables have been completed so you can stay on top of the project at a global level. Consider time-zones your timelines must reflect these so all relevant materials are ready concurrently across all markets. And dont forget to factor in time for translation, localization, reviews and iterations. Communicate plans, deliverables and expectations across different channels and multiple times. Touch base with in-country teams regularly to provide support and advice and to stay on top of the campaign as it unfolds.

Make sure you track and adjust in real time: Running a campaign in multiple markets means you will have to be particularly disciplined about tracking results. The campaign manager is a good person to coordinate this.
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Here are a few suggestions:

Define key metrics and goals at the start of the campaign at both global and market level (clicks, click-through rate%, conversion rate, average customer spend, etc.) Get buy-in from in-market teams on these targets. Share these metrics early and share them all. Seeing how each market contributes to the overall success of the campaign might help drive a bit of healthy competition! Keep a centralized shared template where market metrics are updated every week/day/any other relevant frequency Review metrics weekly with the team, preferably on a call or video call, and take actions to address under-performance. These discussions should be active and vibrant, allowing all local teams to chip in and contribute. This is also a good opportunity to leverage best practice across markets.

Consolidate and share insight: Once your campaign comes to an end, make sure you consolidate the insight gained and organize debrief. It is important results are both shared upward and reviewed with in-market teams. Discuss what worked, what didnt; which markets the campaign was most successful in and why. Learnings will be invaluable in planning future activity. Over-communicate: Effective communication is important at all times, not only when running campaigns. Being in a global marketing role inevitably means you will be working with colleagues around the globe; most of whom will be sitting thousands of miles away from you. In these circumstances its easy to feel disconnected. And, if you are disconnected, so is your strategy, plans and activities. A critical element that makes global marketing work is the relationship you establish with in-market teams. An open communication channel is vital in developing trust and nurturing these relationships. Regular (video) calls are a great way to keep the teams up-to-date with the latest global plans and changes, as well as to learn about the latest competitive developments inmarket, or to discuss new campaign ideas. Time-zones will make this a challenge, but it can work, and it will pay off. Creating cohesion in the team will go a long way in driving your joined success. Reap the benefits of operating globally: Yes, global marketing requires some effort to work, but it does have a number of benefits.
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Most obviously, it ensures your marketing strategy is applied consistently (but smartly) across territories and it allows you to operate more efficiently through economies of scale. Beyond this, one of the biggest benefits of operating globally with a local presence is the opportunity it provides to develop a deeper understanding of the markets in which your company operates and their potential. It enables you to priorities and optimizes your efforts and budgets effectively. And last but not least, it gives you as many territories to test and learn from. For each campaign or activity you run, you will gather feedback and suggestions from a range of markets. This is invaluable insight you can leverage by developing a repository of best practice and ideas which will help drive your long term success.

Tools of International Marketing

Tools of international marketing are that the means and ways by which you can market your product in any international market. It basically tells about the methods to the marketers by which they can market their product in the market and here are some methods of marketing your product in international markets. Before marketing your product in other markets there are some factors which you have to consider so that your way of marketing can be more effective. So before using any of these tools you should have a defined business plan before launching your product and also your every employee should be a vital member of your international team. You should also have your own website so that marketing on internet could be done easily. Plan about your product or services and also keep in mind something about the expansion and also about the budget that how much you can afford in order to market your product. All such documentation should be done before start working on the ways of marketing. Some of the international marketing tools are explained below. First of all you should keep certain things in mind when you are launching your product in different cultures like the personalities, wealth, habits, language and also age. By knowing all these things you would be more able to do marketing in different cultures. Media Choices for International Marketing: Marketing communications in international markets needs to be conducted with care. This portion will consider some of the key issues that you need to take into account when promoting products or services in overseas markets. There will be influences upon your media choice, cultural issues to be considered, as well as the media choices themselves - personal selling, advertising, and others. Influences upon International Media Choice: There are a number of factors that will impact upon choice and availability of media such as:
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The nature and level of competition for channels in your target market. Whether or not there is a rich variety of media in your target market. The level of economic development in your target market (for example, in remote regions of Africa there would be no mains electricity on which to run TVs or radios). The availability of other local resources to assist you with your campaign will also need to be investigated (for example, sales people or local advertising expertise). Local laws may not allow specific content or references to be made in adverts (for example, it is not acceptable to show naked legs in adverts displayed in Muslim countries). And of course a lot depends upon the purpose of the international campaign in the first place. What are your international marketing communications objectives?

Cultural Issues and International Marketing Communications: There are a whole range of cultural issues that international marketers need to consider when communicating with target audiences in different cultures. Language will always be a challenge. One cannot use a single language for an international campaign. For example, there are between six and twelve main regional variations of the Chinese languages, with the most popular being Mandarin (c 850 Million), followed by Wu (c. 90 million), Min (c. 70 million) and Cantonese (c. 70 million). India has 22 languages including Assamese, Bengali, Bodo, Dogri, Gujarati, Hindi, Punjabi, and Tamil to name but a few. Of course language choice could affect branding choices, and the names of products and services. Hidden messages and humor would be especially tricky to convey. Famous examples include the Vauxhall Corsa, which was called the Nova in the United Kingdom - of course No Va! Would not be an acceptable name in Spanish. A similar problem was left unaddressed by Toyota, with their MR2 in France. Design, symbolism and aesthetics sometimes do not transcend international boundaries. For example Japanese aesthetics sometimes focus upon taste and beauty. Also look at Japanese cars from the front - they have a smiling face. The manner in which people present themselves in terms of dress and appearance changes from culture to culture. For example in Maori culture, dress plays a central role with everyday clothing differing greatly from ceremonial costume. Whereas in Western business-culture the standard 'uniform' tends to be a conservative collar and tie. Other factors that need to be considered in relation to international marketing communications (Promotion) include: The work ethic of employees and customers to be targeted by media.
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Levels of literacy and the availability of education for the national population. The similarity or diversity of beliefs, religion, morality and values in the target nation. The similarity or diversity of beliefs, religion, morality and values in the target nation. The family and the roles of those within it are factors to take into account. Personal Selling in International Marketing: Personal selling has a number of pros and cons:

It is beneficial where wages tend to be low, since staffing costs will be comparatively low. Where there are many languages, you'll need trained sales personnel that can convey your message in specific tongues. The sales force will need to be supported. Commercial administration staff will have to take care of sales enquiries, send out product literature and samples, and make quotations - often online. You'll need to invest time and effort in recruiting, motivating, organizing and training a local sales force. Recruits will need to know about products and markets, language and culture, the location of target segments, customer buyer behavior - and that's just the beginning. There is a dilemma as to whether to place expatriate employees into your international target market, or to recruit locally. Local is best! Where business etiquette varies from culture to culture, you'll need to train your people in what to expect - or recruit salesmen from the local market.

Advertising in International Marketing: Advertising has a number of pros and cons:

When considering press advertising try to anticipate the levels of literacy within the nation in question. Where literacy levels are lower, perhaps you could use a more visual campaign. Which language(s) is the press written in? What is the split between regional and national press in your target market? What types of television channels are available? Are they HDD, digital, analogue, satellite, cable, via the telephone, via a broadband or ADSL connection? Which TV channels do our target segments watch?
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Is there space on the suitable TV channels when we want it, or at a price that we can afford? Where visual communication is paramount, are there suitable poster locations? What is the behavior of the target population in relation to cinema? For example, Cinema is tremendously popular in India. Radio has similar issues as TV and press. Which stations do your target groups listen to news, sports or music? Is there space available with the most suitable stations?

Other Media Choices in International Marketing: Other potential media would include:

Web-based marketing using your own domestic site, or one developed specifically for the target market. Chinese websites are very different to Western sites. They are very busy and every single space is filled with images and text. Affiliate or pay-per-click advertising may be available. International tradeshows, trade missions, sponsorship (for example international sporting events), Public Relations (for example oil companies) and a variety of other international marketing communications are available to the international marketer.

Marketing Through Internet: Over the last few years the popularity of the Internet has grown at an unbelievable rate as it changed its overall purpose from defense to commercial applications. The Internet consists of thousands of computer networks interconnected on a global scale. Those net-works may offer services that people use to communicate with one another or to nd and retrieve information all around the world. Ways of marketing through internet are given below. Email It is an electronic mailbox where one can send and receive messages; can reduce mailing costs, increase delivering speed, improve customer relations, and do much more. Mailing List Mailing lists are a great tool for communicating to members or potential customers by e-mail. A mailing list is a group of people with a common interest such as membership in a credit union, who receive e-mail messages by subscribing to the list. The goal here is to provide members with the ability to receive new information directly and automatically. News Group
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Usenet newsgroups are an application on the Internet where individuals post messages for public view and which can be used to do market research or to promote a business. Usenet, which started in the 1980s, is a huge conferencing or bulletin board messaging system with over 13,000 different newsgroups today, organized by topic. One must be careful about how to use newsgroups because there are some highly sensitive and sophisticated users on the Internet who can bring an on-line business to a crashing halt if one provokes them with unwanted e-mail (i.e. SPAM). World Wide Web One of the hottest concepts for on-line marketing is the WWW. It offers companies an easy, inexpensive, fast, and technologically sophisticated tool for advertising goods and services, taking and placing orders, promoting their philosophy and policy, and communicating with their customers all over the world. In the Web environment, a company can deliver a full presentation with sound, pictures and video to millions of potential consumers. A Web site is much more enticing and informative than e-mail messages, but it can be much more difficult to plan and implement. Cyber Mall Even shopping malls have gone on-line. These virtual marketplaces consist of individual Web sites linked under a general site the cybermall, which is run much like the mall in a neighborhood. Basically, there are two types of cybermalls: a) vertical, which consists of cyberstores selling the same type of product (for example, some malls have sites that sell only artsand-crafts products), and b) horizontal, where the bookstore might be next to the jewelry store. Press Releases Though this is an old method marketing method, it is high effective even today in the online world. Even on the Internet, companies willing to market their product use press release as a tool. Apparently, what they do is write a few hundred words press release and post it on online press release agencies. These agencies, in turn, publish the press release for free so that hundreds and thousands of people can view it. As a result, traffic to the business website/blog improves greatly.

Newsletters Email newsletters are an effective method to getting traffic to your site. Some essential information related to the topic you choose will be sent to you via email along with the link to the site. Apparently, the email newsletters are sent to an opt-in list of interested subscribers. With the help of an auto responder emails can be sent and list can be maintained for free.
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Forum Posting Forum posting, though it is a new method of online marketing, it's really effective. People join groups to know and discuss something of similar interest. People comment and answer the questions along with the URLs of their business website. As a result, back links that lead people to your website are created. Thus, traffic to the website increases automatically, resulting in higher sales and cash flow.

Wikipedia Wikipedia is another good example of marketing through internet. Here you can put ads of your product or write some page about your product and thus in this way you can easily market your product because it has a large number of users who will visit this site many times thus your product will be marketed.

Social Networks Social network sites are also a big tool of marketing your product through internet. Social websites including Facebook, Twitter are also a big tool of marketing your product because these websites has large no of users and many people from around the world visit these websites many times. So this is also a tool of marketing. Affiliate Programs: With an affiliate program you offer affiliates an incentive to perform a particular outcome, which may be to increase clicks to your site or improve sales from a banner ad, text link, graphic or other means. The incentive is usually a fee, provided as a flat rate or percentage depending on your affiliate program objectives. Because you are marketing yourself internationally, it will be necessary for you to sign up with affiliates in their language and arrange foreign payments to pay them their fees.

Conclusion
There are many differences that can be explored when doing business in the foreign country versus doing business in your country. Changes in the world market and in technological
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conditions in the world economy in the recent past, in particular in the last decade, pose new challenges to industrialization and the development of a competitive manufacturing sector. Three main categories of changes are most relevant: changes in market conditions, in technology hardware and software and in the organization of production. In many respects the conventional advantage of low labor cost is being undermined by the increasing importance of competitive characteristics other than cost of production, notably product/service quality and just-in-time delivery. To cope with these requirements, greater effort will be required to develop design, marketing and new organizational and linkage capabilities, in addition to selectively acquiring new manufacturing technologies. These market and technological changes are likely to have considerable implications for the shift in the direction of knowledge-intensive production and for the kinds of capabilities that must be developed to cope with the changing situation. First, greater effort will be needed to monitor these changes with a view to adapting to the new situation. This will often imply selective adoption of new technologies in production and marketing at the right time and in the right applications according to the dictates of quality, precision, speed and productivity requirements. Second, greater effort will be needed to create a conducive environment for the creation and development of core capabilities within firms and in the institutions that interact with those firms so as to cope with the changing conditions.

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