Five Reasons For The Growth In International Business Marketing Essay

Introduction

There are a lot of reasons for a company to go international, since not firm would like to remain the same size and the ultimate goal of any business is maximize margin of profit. In this assignment we will have detailed discussion on dynamic of international marketing. We will go into the history and philosophy of the marketing with examples. We will further discuss case studies of two successful companies where their marketing campaigns made them fortunes.

Marketing

The act or process of buying and selling in a market (Answers Corporation, 2009).

Marketing is the process associated with promoting for sale goods or services. It is considered a “social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others (Wikimedia Inc, 2009).”

The process of identifying and reaching specific segments of a population for the purposes of selling them a product or service (Home Travel Industry, 2009).

Example

The market may be segmented to target different parts of a group. Lets’ consider marketing a brand of serials (e.g., Kellogg’s), if one brand of cereals is marketed to children (e.g., Frosties) and other one to adults (e.g., Crunchy Nut Cornflakes), in this example the cereal brands marketed to two segments of people are two distinct products with different needs, traits and wants.

The Marketing Process

The objective of marketing process is all about satisfying customer needs and wants. The modern marketing process progressed through three distinct eras – production, sales and marketing. In order to achieve the marketing objective, following step by step process outline can be adopted as shown in the Figure 1.

Now, we shortly explain the above marketing process outline;

Situational analysis

A complete analysis of the situation in which the a company finds itself. It would help her in understanding past, present and future present scenarios, opportunities and its capabilities to use these opportunities to fulfill the customer’s needs (NetMBA, 2009).

The examples of related frameworks to add structure to the situation analysis are 5 C analysis and SWOT analysis.

Marketing Strategy

Figure 1One the potential opportunities to satisfy customer needs are identified; a strategic plan to pursue it is implemented. It involves: Segmentation, Targeting, Positioning, Value Proposition.

Marketing Mix Decision

The detailed actions and decision are made which include: Product development, Pricing decision, Distribution, Promotional campaigns.

Implementation and Control

As of now marketing plan has been launched and product is launched, the results of the marketing campaign should be monitored closely.

Good Marketing example

The Lottery advertisement in Herman – a poor area with high crime rates – seems well targeted to an audience willing to take the gamble with extremely low chance of winning but a big one as show in the Figure 2 (Pronet Advertising, 2007).

International Marketing Philosophy

Figure 2International marketing is simply applying the marketing principles to the broader spectrum of customers spread over more than one country. Here, we would try to convince a businessman who wants to expand his/her business to international market that how important is international marketing for the said purpose.

There are several reasons why a company should have international marketing strategy before it expand in size and location. Here, are some reasons that would support our argument to convince target businessman to convince him about the important of the strategy or philosophy based marketing.

In order to service in the twenty first century we can no longer rely on product centric approach to marketing. We need a customer centric approach to better full fulfill the customers need and wants to be successful. However, adopting customer centric approach is not that easy. It needs to change in fundamental and adopt customer trends dynamically. These fundamentals are organization, culture and technology.

The objective of the new production process is to reduce costs and failure rates. This would involve taking in confidence the distributers, retailers, and consumers at an early stage of the production. They must work together to reduce the cost and increase profit margins by producing products that have customer demand.

The international capability is not about know many languages but to understand the culture of the human beings. While being highly beneficial international marketing is highly systematic and dynamic in nature, involving international marketing players (JRC&A, 2009).

Further, there are fundamental questions should asked to get clear strategy and placement of product.

What adjustment you can and ready to make about product line, positioning and design?

What is your cost of entry in the market (SWOT)?

How soon you will be successful (financials)?

What is expected return on investment (ROI)?

Having positive feedback, we would hopefully convince our businessman to have international marketing plan in place for success venture.

Five Reasons for the Growth in International Business

We would elaborate potential top five factors or reasons that are and will be instrumental for the growth of international business. We will explain briefly about culture, political and legal issues, economy, globalization and trade blocks factors (Wikimedia Inc, 2009).

Culture

The welcoming trend to buy foreign good and working practices are culture factors that inspire to invest in other countries market. Since, marketing strategies for local and foreign business practices are very different, international marketing need to taken in consideration the local culture, norms and customs.

The tobacco industry for example, companies will often use the symbols and trends of western society in regards of smoking to attract the local customers. Taking another good example; company marketing pork would experience lesser sales in Islamic country, than it would in China.

Political and legal issues

Following political and legal factor are influential in deciding to invest in abroad and therefore be included in international marketing strategy.

Government attitude

The level of government regulations

Red-tap and bureaucracy

Monetary regulations

Political situation

Economy

With respect to the level of development the target economy can be identified as;

Developing

Newly industrialized

Industrialized

The pros and cons of above economies vary as per circumstances. For example, people in developing countries have low standard of living, buying cost but cheaper labor and raw material. On the other hand in developed countries competition may be high and margin of profit may be less.

Globalization

Today, countries are making economic ties, trade organizational and links which pose good opportunity for new businesses to grow in foreign markets. The advantages for firms are that regulation and cost are lower, that would help them outsourcing business to foreign economies. That would further convince the businessman to go for international marketing.

Trade blocks

Over the time various trade blocks have emerged which is great source of convincing to invest in international marketing. The common example of such blocks include the European Union, the North America Free Trade Agreement (NAFTA), South Asian Association for Regional Cooperation (SAARC) and the Association of South East Asian Nations (ASEAN)

Two examples of Successful International Businesses

Here we will discuss two successful business case studies related to international marketing:

Case Study 1: Solutions For Women

History or Background

Solutions for Women (Dawn Kraus, 2009) is women owned business started back in 1992 by Sabina Fasano that researches and markets natural ways to deal with symptoms of peri-menopause and menopause. From personal venture it grew up as educational website. Products and Services Description

Products and Services Description

Other than educational services they also promotes their flagship product Femmerol®, A clinically tested, patented, micronized herbal extract formulation Capsugel, a division of Warner Lambert. They help women to get in control of the inevitable hormonal changes and ultimately making their life healthier and happier.

Explanation of Success Story

With high overhead costs, Ms Fasano was beginning to market her product impossible and expansive that she decided to meet and consults Lucinda Cassamassino from Lucit Translations. They offer a variety of search engine marketing and optimization services. Together Ms Fasano and Ms Cassamassino worked to formulate an internet strategy that would work best to put her company at the forefront of global marketplace.

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At first they change the website making it user friendly and rich of contents and searchable keywords, so that it is ranked higher at Google and Yahoo that resulted in attracting more traffic. She was able to admire that advertising was most cost effective and result oriented. By launching an aggressive internet marketing campaign has wide audience and traffic to its website to increase it sales. Ms Fasano now finds herself in a stable position and relax that her product is now helping more women.

Case Study 2: RISMEDIA

History or Background

The RISMEDIA (RISMEDIA, 2009) is a leading independent provider of news, information, reference publications, high level and consulting services in the real estate and relocation industry.

Products and Services Description

RISMEDIA’s “Today’s Real Estate News” email had emerged as a powerful means for reaching and maintaining contact with the most important players in the sector. The subscription list has grown more than 200,000 real estate industry professionals, readers including CEO’s and presidents.

Explanation of Success Story

First they tries to manage growing list of new latter readers on their own servers, with success and numbers on the increase it was not possible to maintain the same service. Finally, Peter Featherston, CEO of RISMDIA, contacted EZ Publishing with problem, EZ publishing’s Stream Send service was answer. It automated list management tasks such as new subscriptions, unsubscribe, and invalid addresses. It offered powerful reporting capabilities so that he could view the campaigns. The results were remarkable after one week of contact the new system was in place; it reported 20% of the email addresses were invalid. The subscribers list grew to 800,000. Now, little time RISMEDIA could see the reader list and manipulate the results. This successful email marketing campaign was made possible to reach big time executives at low budget.

Conclusion

In this agile and dynamic marketplace going one can not remain static and wait for distinction, every firm ultimate goal is earn high profit of margin. In order to do so business has to expand from one regional boundary to another by benefiting advantages of Globalization or International marketing. The marketing or selling approach should be customer oriented based on their needs and wants.