Global Marketing – Introduction, Types, and More
Introduction to Global Marketing
Global Marketing – US companies choose to carry out international marketing activities for many reasons, and the most attractive are the expansion of the market and new profit opportunities. In general, the basic internal marketing principles can be applied to international marketing, but environmental factors abroad should be consider when treating them. These include (a) the economic environment, (b) of the competitive environment, (c) of the cultural environment, (d) political/legal environment, (e) of the technological environment, and (f) Ethical environment abroad
There are five primary forms of a company that can penetrate a foreign market, whose choice depends to a large extent on the degree of control a company wants to maintain in its commercialization. When a company chooses internationally, you have to decide to adjust your national marketing program. Some companies customize their market programs, adapt their marketing mix for each target market. Others use a standard marketing mix everywhere.
The World Competitive Environment of Global Marketing
American companies must endure international competition with foreign merchants who could have higher business strategies. Japanese companies. For example, have a method for the design of products that are less waste than the strategies of the United States. Japanese companies tend to start a design process by determining what a market will pay for a product, then advise their design teams to make a product based on this target cost. On the other hand, US companies are developing, in general, the first-rate product before determining whether a market can not afford its cost.
Types of Global Marketing
Companies are generally directed to international marketing carefully. For small businesses, export is often chosen in other strategies, as it provides a degree of risk management, costs, and allocation of resources. Small businesses tend to export in response to the application abroad application, which is perceived as low risk.
Export of low risk and is attractive for several reasons. First, the products in the maturity stage of a domestic life cycle could find new opportunities for growth abroad. On the other hand, some companies consider it less risky and more profitable to export current products instead of developing new products. Third, the companies that face the domestic demand of the season could choose from the market abroad compared to these requests. Finally, some companies could export because there is less competition abroad.
License / Franchise.
Under a license agreement, a company (licensee) provides a product to a foreign company (owner) by granting this company the right to use the licensing process, the name of the brand, patents, or knowledge, In exchange for payment. Licensee obtains a competitive advantage in this provision if the donor obtains economic access to a new market. Limited capital, import restrictions, or government restrictions often do this the only way for a company to commercialize internationally. This method does not imply certain risks. In general, it is a profitable way less to enter a foreign market, and it is a long-term commitment. In addition, if a licensed company can not successfully reproduce a particular product, you could tarnish the image of the original brand of this product.
A joint venture is an association between a national and foreign company. Both partners invest the money, ownership, and control of the company’s shares. Mixed companies need a more outstanding commitment than other methods because they are riskier and less flexible.
Multinationals can choose to participate in large-scale production and marketing abroad by directly investing in exclusive subsidiaries. Unlike the type of entry, a company’s results now carry out manufacturing or marketing abroad from the subsidiaries mentioned above. This allows companies to compete more aggressively abroad because they are literally “in” the market. However, because the subsidiary is responsible for all marketing activities in a foreign country, this method requires much more investment. This strategy is also risky because it requires a complete understanding of business and customs conditions in a foreign country.
American Shopping Centers
These centers offer resources to promote the export of US products and services abroad. The shopping center familiarizes US companies with industries, markets, and customs in other countries. The US shopping centers offer the following services: a business center; Translation and office services; a commercial library of legal information; and assistance to contracts and import/export agreements. They also facilitate contacts between buyers, sellers, bankers, distributors, and government officials.
Small businesses that do not have the resources or experience to penetrate a foreign market can hire commercial intermediaries who do not have relations in other countries. These entrepreneurs generally buy US products at 15 percent below a manufacturer’s best reduction and then reveal these products to foreign markets.
In alliances, two or more separate entities promote and jointly sell a unique concept, product, or service beneficial for all interested parties. Those interested in this case believe that a combined marketing approach will produce more significant results.
Trade and Globalization
Countries participate in international trade to focus on producing goods in the most efficient way. The way possible and achieve economies of scale in production.
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