International marketing strategies
How is it different from domestic marketing strategies?
Definition:
International marketing can be defined as marketing of goods and services outside the firm’s home country. International marketing has the following two forms of marketing:
• Multinational marketing.
• Global marketing.
Multinational marketing is very complex as a firm engages in marketing operations in many countries.
In multinational marketing, a firm visualizes different countries as one market and build their brand or service according to the business environment of the foreign countries.
Global marketing indicates the integrated and coordinated marketing activities across many different markets.
Taking into account the various conditions on which markets vary and depend, appropriate marketing strategies should be devised and adopted.
Example:
• Some countries prevent foreign firms from entering into its market space through protective legislation.
• Protectionism on the long run results in inefficiency of local firms as it is independent towards competition from foreign firms and other technological advancements.
• It also increases the living costs and protects inefficient domestic firms.
The decision of a firm to compete internationally is strategic; it will have an effect on the firm, including its management and operations locally.
The decision of a firm to compete in foreign markets has many reasons.
Some firms go abroad as the result of potential opportunities to exploit the market and to grow globally. And for some it is a policy driven decision to globalize and to take advantage by pressurizing competitors.
1. Segmentation
Firms that serve global markets can be segregated into several clusters based on their similarities. Each such cluster is termed as a segment. Segmentation helps the firms to serve the markets in an improved way
2. Market positioning
The firms should position their product in the global market. Product positioning is the process of creating a favorable image of the product against the competitor’s products.
• In global markets product positioning is categorized as high-tech or high–touch positioning. The classification of high-tech and high-touch products.
• One challenge that firms face is to make a trade-off between adjusting their products to the specific demands of a country and gaining advantage of standardization such as the maintenance of a consistent global brand image and cost savings.
3.International product policy
Some thinkers of the industry tend to draw a distinction between conventional products and services, stressing on service characteristics such as heterogeneity, inseparability from consumption, intangibility, and perishability.
4. International pricing decisions
Pricing is the process of ascertaining the value for the product or service that will be offered for sale. In international markets, making pricing decisions is entangled in difficulties as it involves trade barriers, multiple currencies, additional cost considerations, and longer distribution channels.
The strategies for international pricing can be classified into the following three types:
(a) Market penetration
(b) Market holding
(c) Market skimming
5. International advertising
International advertising is usually associated with using the same brand name all over the world. However, a firm can use different brand names for historic reasons.
The purpose of international advertising is to reach and communicate to target audiences in more than one country. The target audience differs from country to country.
International marketing strategies
How is it different from domestic marketing strategies?
Definition:
International marketing can be defined as marketing of goods and services outside the firm’s home country. International marketing has the following two forms of marketing:
• Multinational marketing.
• Global marketing.
Multinational marketing is very complex as a firm engages in marketing operations in many countries.
In multinational marketing, a firm visualizes different countries as one market and build their brand or service according to the business environment of the foreign countries
Global marketing indicates the integrated and coordinated marketing activities across many different markets.
Taking into account the various conditions on which markets vary and depend, appropriate marketing strategies should be devised and adopted.
Example:
• Some countries prevent foreign firms from entering into its market space through protective legislation.
• Protectionism on the long run results in inefficiency of local firms as it is independent towards competition from foreign firms and other technological advancements.
• It also increases the living costs and protects inefficient domestic firms.
The decision of a firm to compete internationally is strategic; it will have an effect on the firm, including its management and operations locally.
The decision of a firm to compete in foreign markets has many reasons.
Some firms go abroad as the result of potential opportunities to exploit the market and to grow globally. And for some it is a policy driven decision to globalize and to take advantage by pressurizing competitors.
1. Segmentation
Firms that serve global markets can be segregated into several clusters based on their similarities. Each such cluster is termed as a segment. Segmentation helps the firms to serve the markets in an improved way
2. Market positioning
The firms should position their product in the global market. Product positioning is the process of creating a favorable image of the product against the competitor’s products.
• In global markets product positioning is categorized as high-tech or high–touch positioning. The classification of high-tech and high-touch products.
• One challenge that firms face is to make a trade-off between adjusting their products to the specific demands of a country and gaining advantage of standardization such as the maintenance of a consistent global brand image and cost savings.
3.International product policy
Some thinkers of the industry tend to draw a distinction between conventional products and services, stressing on service characteristics such as heterogeneity, inseparability from consumption, intangibility, and
perish ability.
4. International pricing decisions
Pricing is the process of ascertaining the value for the product or service that will be offered for sale. In international markets, making pricing decisions is entangled in difficulties as it involves trade barriers, multiple currencies, additional cost considerations, and longer distribution channels.
The strategies for international pricing can be classified into the following three types:
(a) Market penetration
(b) Market holding
(c) Market skimming
5. International advertising
International advertising is usually associated with using the same brand name all over the world. However, a firm can use different brand names for historic reasons.
The purpose of international advertising is to reach and communicate to target audiences in more than one country. The target audience differs from country to country.