Introducing to International Marketing Essay
Q.1) Name & explain with suitable examples, three reasons why international marketing is more challenging than domestic marketing? - Introducing to International Marketing Essay introduction.? [10marks]
Ans> Domestic Marketing Versus International Marketing- Domestic marketing involves one set of uncontrollables derived from the domestic marketing. International marketing is much more complex because a marketer faces two or more sets of uncontrollable variables originating from various countries.The marketer must cope with different cultural, legal, political & monetary systems.
More Essay Examples on Marketing Rubric
Benefits of International Marketing
i. Growth of Overseas markets-> Developing countries inspite of economic & marketing problems, are excellent markets. The world market is four times larger than the US market. Hence many US companies grow by going international. For eg, in case of Amway Corp., a privately held US manufacturer of cosmetics, soaps & vitamins Japan represents a larger market than the United States.
ii. Sales & Profits-> Foreign markets constitute a larger share of the total business of many firms that have wisely cultivated markets abroad. IBM & Compaq, for eg, sell more computers abroad than at home. In case of Coca-Cola, international sales account for more than 80% of the firm’s operating profits.
iii. Diversification-> Demands for most products is affected by such cyclical factors as recession & seasonal factors as climate. The unfortunate consequence of these variables is sales fluctuations, which can be substantional enough to cause layoffs of personnel. One way to diversify a company’s risk is to consider foreign markets as a solutions for variable demand.
iv. Inflation & Price Moderation-> Imports can also be highly beneficial to a country because they constitute reserve capacity for local economy. Without imports, there is no incentive for domestic firms to moderate their prices. The lack of imported product alternatives forces consumers to pay more, resulting in inflation & excessive profits for local firms.
v. Employment-> Trade restrictions in US in 1930s contributed significantly to the great depression & caused widespread unemployment. Unrestricted trade on the other hand, imporves the world’s GNP & enhances employment generally for all nations.
vi. Standard of Living-> Trade affords countries & their citizens higher standard of living than otherwise possible. Without trade, product shortages force people to pay more for less. Trade also makes it easier for industries to specialize & gain access to raw-materials, while at the same time fostering competition & efficiency. A diffusion of innovations across national boundaries is a useful by product of international trade.
Q.2)What are the relative advantages & disadvantages of standardization & adaptation? Explain with suitable examples? [10makrs]
Ans> Advantages of standardization
i. Standardization is a process which may occur through either in marketing programme or marketing processes.
ii. Standardization can also occur through strategies, policies & activities of the company.
iii. Standardization is a process followed by a firm in making marketing decisions.
iv. The greatest experience curve affects occurs only when programme & process are standardized.
Example- In business practices many consumer products have maintained standardized marketing programmes like McDonald’s.
Disadvantages of standardization
i. If the companies strategy is not write standardization does not occur.
ii. If the company come up with wrong policy then main objective of the company are not going to be fulfilled.
iii. If standardization does not occur then the affects of greatest experience curve does not put any impact for implementing & controlling the outcomes of the company.
Advantages of adaptation
i. Adaptation strategy may be used for the technical specification are different in the target market.
ii. Adaptation is required because of measurement unit or industrial convention can represent insure mountable obstacle to standardization.
iii. Adaptation play a measure role in determining what can & cannot be done in a given market.
iv. Variation in geography such as climate may make it necessary to adopt either a product or its distribution or promotion for different country-markets.
Example- Toyota has stripped out unnecessary items from the special version of its ‘Tercel’ model designed for markets in southeast Asia, such as heaters because the warm climate renders then unnecessary.
Disadvantages of adaptation
i. Society’s attitudes towards change or the rate of change also affect the viable degree of adaptation in particular market.
ii. Conversative consumer in a country market may not accept a marketing strategy that originates in a more liberal society.
iii. In a market with unique cultural characteristics, a standardized strategy from another culture is likely to be unsuccessful.
iv. Safety & pollution-control standards has to play a vital role regarding the adaptation of particular product.
Q.3) Suggest five different ways in which India could improve its image as an exporter in international markets, explaining why? [10 marks]