Marketing success of an international business

Factors Marketing Success

Success factors in International Marketing

Introduction

This is a difficult question to answer due to the fact that there are so many things that one can do in order to succeed. In fact, just selecting only few factors does not do it any justice because so many things need to be accomplished in order to truly be successful in an international market. There really are no "right" or "wrong" answers because they will vary from person to person, but here are my factors for succeeding internationally.

Success Factors

In fact, international marketing is different from domestic marketing; this is a sufficient reason that the firm has need to market internationally. There are other three reasons to indicate the need to think international. One reason is world interdependence. Today more than over, no country can isolate itself from the rest of the world. Second reason for firm need to think international is competition and markets. The competition facing them domestically is increasingly from foreign firms. The other reason for firms to think international is to find market opportunities and growth. Markets mean people; there are lots of the world's population lives outside one country. It means that for many products and services, the potential markets are abroad.

So many reasons indicate that marketing abroad are very important. There are some reasons for advantages of trading in overseas markets.

Less competition: competition in as chosen target market may be less intense than at home or there may be the promise of tariff barriers to exclude potential competitors in return for a substantial foreign investment. For example, production in the highly labour-intensive industries moving to the low-labour-cost countries with freeport advantages.

Market diversification: if a company sees only limited growth opportunities in the home market for a proven product it may well seek market diversification as a means of expansion. This could mean new market segments within a domestic market, but it may well mean geographic expansion in foreign markets. Thus companies are trying to spread risks and to reduce their dependence on any one market. (Phillips, Doole and Lowe. 1995)

Excess capacity: when the domestic market experiences a downturn or reaches saturation, firms may turn to export markets to make good the shortfall. For firms in industries requiring long production runs to ensure commercial viability, foreign orders may make the crucial difference between profit and loss. On the other hand, low prices are often quoted to ensure sales success in order to secure long production runs or to sell of high inventory level.

Comparative advantage: most nations cannot supply all of their needs from domestic resources. They find it to their advantage to specialize in the things they are relatively efficient at producing, and to trade for things that other nations are relatively efficient in supplying.

Geographic diversification: firms find it preferable to remain with the product line which they know and are successful with rather than diversifying into new product lines or product technologies.

Financial reason: International Monetary Fund (IMF) is an organization to ...