Planning International Marketing

Planning International Marketing

Introduction

World markets are considered to be very essential as they play an important role in creating opportunities to improve profit margin by increasing the volume of sales, market share, growth and expansion. All organizations of various types and sizes are eager to enter foreign market due to its benefits. Recent trends have proved that all countries welcome foreign trade and also try to reduce international trade barriers. Due to its benefit to the economic conditions of a country the government of many countries has decided to implement policies that promote international trade as it leads to better economic conditions. Many firms often enter international markets as a feature of their product life cycle , as when the product reaches its declining stage a company find a foreign market as an opportunity to extend its products life cycle.

Discussion

There are various ways of entering an international market and each way has its own advantages and disadvantages. The choice of these modes is usually influenced by the corporate culture of the company and its strategic objectives. Once the mode for entry has been decided, it is followed by the marketing strategies, commitment and its involvement. The company ensures that's these decisions should reflect the thorough studies and research carried out on the scope of risk and companies capabilities. International marketing plays an essential role in this process as it is a salient feature that makes the entrance into the foreign market easier, it is also very similar to global marketing (Cateora & Graham, 2002, pp. 28).

How cultural environment affect the product market

Cultural environment is the representation of the trends and factors related to people's living style and behaviour. These factors mainly include the core values, ideal logy, beliefs historical heritage and traditions. Cultural environment has a major impact on consumer's purchasing behaviour. Therefore it is essential for the marketers to understand and carry a research on the cultural and traditional trends followed in various markets. These cultural group's characteristics helps the marketer in understanding the needs and wants of the products, which will be an important tool while developing marketing strategies specifically for them. For example Campbell's Soup differentiated in the taste of the soup on the basis of different food culture that existed foreign markets like US, Germany and Australia etc. However their product didn't get much success due to the fact that Germans did not prefer canned condensed soup (www.mhhe.com).



Why is market research so essential?

Market research is referred to as the process of gathering information through various resources in order to achieve a desired result. It ensures that the decisions made on the basis of it are reliable and successful as it eliminates the decisions made on an individual's 'gut feeling'. It helps in gaining more detailed explanation and understanding of costumer's needs and helps in pointing out customer's opinions on various issues for example product itself, its pricing, packaging and its marketing. It reduces risk of product's failure, as it creates awareness about the ...