International marketing Essay Example

  • Category:
    Marketing
  • Document type:
    Math Problem
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    1447

International Marketing

  • Using Specific examples identify and discuss the elements of the international economicenvironment that are likely to impact on a firm’s marketing mix

    • Tariffs/ barriers / Subsidies – These are the common factors that determines the const of international trade. These elements usually play an important role in deciding the product to enter into a country and other conditions that directs the business. Governments utilise these elements in protecting local industries.

    • Competition and globalisation – the more the competitors means that the marketing mix strategy should be engaging and appealing to the audience. The aim of such a model is to attract consumers from other brands to the current brands.

    • E-commerce – It has played an important role because it is easier for an individual in Australia to purchase a product from United States of America. This has contributed to determination of marketing mix that does not factor the cost of transportation and logistics because the consumer is responsible for such costs.

    • Economic structure e.g. agriculture based, industry based, service based – the type of industry also determines the impact of marketing mix. Some products are taxed more compared to other products from another industry.

  • Using attached assignment as the context for answer describes 3 specific examples of how did it adapted its marketing mix to Saudi Arabia’s economic environment

    • Tariffs/barriers – there are no barriers in operating apparel business since the market is liberated. Therefore, there is no increase of costs that are associated with additional governmental costs.

    • E-commerce – this is an important component since it is easier to access and engage the consumers on clothing offerings. It is a cheaper and penetrating method in which products can be supplied and also the consumers can purchase the product.

    • Competition – numerous companies with larger resources have entered the market and are becoming the major players. Therefore, the product offering should be unique in terms of quality and also on price to ensure it appeals to more consumers.

  • Using specific examples identify and discuss the elements of the international cultural environment that are likely to impact on a firm’s marketing mix.

    • Social institutions/conventions – the family and social environment determines the way consumers relates with a product or service. Some products may be appreciated by some consumers because of cultural attachment. For example in Saudi Arabia, co-education is not encouraged because of cultural directives. Therefore, a person starting an educational facility should understand this component before determining the type of school to be established.

    • Relations with the universe – e.g. religion — in some countries, religion plays an important role and it determines how some things are embraced. For example, alcohol is not acceptable in United Emirates and may impact immensely to a company that wants to start selling alcohol in United Emirates.

    • Language – Language is a major factor in international trade and determines the cost the marketing mix components. For example, it is easier to employ a marketing mix strategy in environments that utilise English as a first language rather than introducing an English based product to an Arabic country. For example, selling a product in United Kingdom has minimal difference with selling a similar product to United States because both countries communicate using English.

    • Cultural knowledge – Understanding the benefit of a given product or service is important and the marketing mix strategy can easily be understood by the targeted audience. An informed culture can easily appropriate a given product or service rather than a culture that is not informed. This means that information is important and therefore a firm should maximise on information dispensation so that consumers can appreciate the product.

    • Cognitive styles – this brings into consideration determination of whether a product has risk perception or its involvement to the society. Products and services that are perceived to be risky attract consumers based on cognitive knowledge and beliefs.

  • Using attached assignment as the context for answer describes 3 specific examples of how did it adapted its marketing mix to Saudi Arabia’s cultural environment

    • Occupation – different clothes are worn based on numerous factors and one such factor is the occupation. The type of work determines the type of job and task that should be completed. Therefore, the shirt is appropriate for office work and hence its marketing mix should consider this factor.

    • Social change – the society has witnessed numerous changes because of economic, social and cultural factors. For example, tourism has resulted in introduction of clothing that is suitable to these consumers and therefore increases of specific apparel.

    • Climate – the climate determines the colour of clothing and also the material. The most appropriate colour is bright colours especially white because of religious background and religion clothing. Moreover, the colour addresses the environmental and climate situations.

There are a wide variety of organisations available to help minimise the effect of these restraining forces on firms. Using examples identify and discuss 4 such organisations and the specific roles they play in helping facilitate international trade.

Some of the organisations are:

  • International monetary fund – It was created in 1945 and it is aimed at reconstructing the international payment system after the Second World War. Countries contribute towards the fund and countries are allowed to borrow when they are faced by payment imbalances. Therefore, the organisation facilitates international trade, secure financial stability, fostering of monetary cooperation and encouraging economic growth.

  • World Trade Organisation – this is an important international organisation that aims at liberalising international trade. The organisation replaced the GATT and its major aim is regulating trade between countries, creation of framework, formalisation of trade agreements and resolves conflicts.

  • European Economic Community (EU) – The organisation referred to as European Economic Community is currently called European Union tasked with bringing together countries in Europe with the aim of establishing common external tariff, formulate policies bringing together different countries within the block and expecting its operations across the world.

  • General Agreement on Tariffs and Trade (GATT) – This was the original organisation aimed at reduction of trade barriers and tariffs and also elimination of preferences. The aim of this organisation was to ensure different governments across the world could operate effectively with the aim of reducing chances associated with international trade.

Q 4 Identify and discuss what these negative trade-offs are for each of these following methods

  • Direct exporting – this is selling products or services directly to the buyers who are foreign. This approach of doing international business have numerous trade offs which include accountability, huge management base, requirement of huge resources, and the requirement of addressing concerns and requirements of consumers when it comes to warranty and guarantees depending on product on question.

  • Franchising – it is permitting a local entity to utilise the services of another international organisation such as KFC. Some of the negative trade-offs of this approach includes less autonomy in making business decisions, periodic loyalties to the franchisor, restrained in selling of the business, and the franchisor may not renew the franchise resulting in loss of business.

  • Joint Venture – this is incorporating and working together with a foreign firm. Some of the trades off include maintaining relationship which sometimes may be difficulty because of different goals and culture. Joint ventures also have time span and this requirement may affect immensely the way the business is done and accomplished. Moreover, disagreements may occur such as distribution of profits in that reinvesting locally or repatriating the profits.

For each of these market entry methods, identify strategies a firm could use to minimise the negative consequences associated with each method.

  • Direct exporting – Resources are important for international expansion and accessing international businesses. To succeed in avoiding numerous pitfalls associated with direct exportation, it is important for these firms to start a local branch in which cultural diversity and requirements can be addressed easily.

  • Franchising – Franchises are also becoming common because numerous business utilises the strength of the brand in starting new franchises. It is important to understand and define the relationship between the franchisor and franchisee before start of the business. Moreover, a clause should be in place in determining mitigation of issues and determining reasons in which renewal of the contract is based on. Therefore, the span of the business should be indefinite provide occurrences should be based on contractual agreements.

  • Joint venture – Joint ventures have continued to become common and to prevent occurrences of challenges, the appropriate strategy is placing into consideration agreements in the way business should be done and conflict mitigation strategies. Moreover, in the contract agreement it is important to include clauses that determines how profits and losses should be distributed, and define the future of the business.