Essay Sample: Globalizing a Company and the Effect on Marketing/International Marketing

Published: 2022-04-20
Essay Sample: Globalizing a Company and the Effect on Marketing/International Marketing
Type of paper:  Essay
Categories:  Globalization International business Strategic marketing
Pages: 7
Wordcount: 1878 words
16 min read

When a company wants to achieve its maximum potential profit wise, the management should plan on cracking into the international market. International marketing is the performance of marketing activities that simulate business activities that direct the flow of a company's goods and services to consumers or users in more than one nation for a profit. As of right now a lot of companies are trying to tap into the international market. This is because of the advantages associated with international marketing some of which include increased economies of scale, high profit opportunities as compared to the domestic market, a large market share, and a broad international market which is still not tapped. Some companies have succeeded in international marketing but others have not.

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The major problem is that a lot of the companies that have tried and failed to tap into the international market failed because they forgot one important thing. The most important thing to understand when venturing into global markets is that these countries are different from the domestic country. The business plans and marketing strategies that had worked in the United States of America for a certain company or product will sometimes not work in these foreign countries. This happens because, in each country, there are different social norms and different ways of life. If these companies are not careful, they can fall out of line by promoting a product that is frowned upon or using advertisement techniques, like sexual appeal, that is forbidden in the foreign countries. There is also a political side to this process. Each country has its own rules and regulations. The real pressure is on the international marketing managers. The role of an international marketing manager is to take a product and try to market it in a foreign location. The goal of an international marketing manager is to help expand not just the product into this foreign economy but to also help in brand exposure.

The research question that will guide this essay is on what is the best way for an international marketing manager to expand a product in a new country. If American companies can expand into other countries, it would help in in a great way to bring the world together. If companies can successfully expand into the international market, they can become very successful, particularly profit wise.

Having developed an interest in marketing as a career, I plan on researching other countries and how an international marketing manager would help the company succeed in these countries. I want to also examine companies that the international marketing manager has successfully expanded the product they are trying to market and how it affected the brand image of that company in the international market. I also plan on researching when the international marketing manager failed to expand the product and brought a negative image to the brand. I will also research how the government can influence the process of a company expanding through trade tariffs and embargos. I plan on learning more about other countries in the Middle East where it is very religious and how it will affect what and when an international marketing manager can market. I also what to talk about how an international marketing manager does market research for the company. The guiding thesis is that companies can overcome challenges and issues in the international market by learning the government structure, religious side of the country, and market research.

As noted earlier, international marketing can be one strategy by which companies can increase their performance profit-wise. However, this can only be achieved if appropriate strategies are applied by considering what works best in the particular countries that one engages in, as well as how business is run in such a country. There are records of companies that have succeeded in this venture as well as those that have failed terribly. For instance, companies such as the McDonald's, Carrefour, Gucci, and Apple have managed to penetrate to the global market successfully, launching their businesses in more than ten countries in the world. Although these companies have explored the global market willingly, there are other countries that are reluctant in this matter. However, in the current century, it is hard for any country to escape the ever-increasing trends of international marketing with activities such as importing, exporting, and foreign-based firms operating in most markets.

There are certain trends that are known to affect global business and that shape the rules that countries operate on while in these markets. Some of these dynamic trends of international business include the interdependence of the world economies, the increased growth of regional free trade areas, the increase in wealth and growth in many parts of the world thus causing enhanced purchasing power, the evolution of large emerging markets of the world such as China, India, Russia, and Poland; and the availability of advanced methods of communication and transportation and the development in information technology. These trends touch on almost every country of the world and this makes every country eligible for international business. The factors have also made international business attractive thus increasing the aggression of companies to compete in these markets with the aim of making a fortune.

The research question is on how an international marketing manager can help a company to expand a product in a new country. There are several strategies that such a manager can employ in order to achieve his goal to this end. One of the strategies emanate from the basic and most important understanding that international markets are different in the different countries of the world. As such, the international marketing manager should first seek to understand the market of the foreign country. This understanding should be in regard to the rules of the market, whether the product he or she seeks to promote is already established in that market or is embraced by the communities in that country. He should also understand the levies that are applicable in the country and for such a product. It is also advisable to research on the possible competition to the product and the level at which such products have penetrated the market as well as the market share and the possible earnings. This will help in strategizing on how to counter such products that pose a threat. Understanding the trends of such products is also helpful especially if the product is bought seasonally. Understanding the legislations of the markets can also be helpful in strategizing.

The tasks of an international marketer are more complicated as compared to those of the domestic marketer. This is because at the international level, one has to deal with two levels of uncontrollable uncertainties which is a result of each foreign country having its unique set of uncontrollable which are added up to the domestic ones. This means that the more foreign countries a company engages in business the greater the possible variety of foreign environmental uncontrollable elements with which to contend. In many cases, a solution to a problem in a certain country is not necessarily applicable to a similar problem to another country. Some of the uncontrollable elements include political and legal forces, economic and climatic conditions, cultural forces, competitive forces, geography and infrastructure of the different countries, and the level of technology. On the other hand, the manager has some controllable elements which he make maximum use with to overcome the pressure of the uncontrollable elements. Some of the controllable elements include the product, price, promotion, and channels of distribution for his product.

The manager can analyze the market to identify other competitor products for the product he plans to introduce to the market. This information will be critical in guiding him or her on the best approaches in terms of pricing and the promotion mechanisms to apply to be able to establish the product and create a market for it. The manager should be able to blend a marketing mix that from the controllable elements which will determine the success of the marketing enterprise. The cultural adjustment which is one of the foreign uncontrollable element is at the core in determining the success of products. This is applicable in almost every part of the process especially in the promotion bit where advertisement is applied. There are some adverts that would be considered unfit in a certain culture and as such the manager should seek to fully understand the culture of the people in the area he is targeting.

Nike is one of the companies that has reported success in international business. Since its inception in 1964, the company has grown steadily with its products being sold in many parts of the world and capturing a position as one of the biggest brands in sports shoes having bypassed Adidas in 2003. The secret behind the success lies in proper strategizing. Some of the strategies have been applied to good advertising, quality products, developing their systems, and diversifying their products. For instance, Nike pays for $100 million for a single endorsement. One of the companies that has suffered a blow in international business in the past has been McDonald's. In 2002, the company was suffering loss with sales going down which necessitated the closure of hundreds of restaurants that were underperforming. Its market share was contested by another brand of restaurants. It was also targeted by lawsuits in the United States. Although the company responded to the crisis especially in the US, the sustainability of the efforts was still under the test.

Understanding the religious structure of a country also helps marketing manager in devising proper strategies. For instance, in the Middle East, the dominating religion is Islam. This means that the manager has to familiarize himself fully with the ideals of the Muslim community before attempting the market. The success of the companies that have made it internationally proves that it is possible for any company to make it in international business as long as they observe the culture, religion, and the political and social environments of the countries they are venturing into.


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