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Scope and definition of international marketing..

   

Added on  2021-07-14

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Scope and definition of international marketing.The first scope of international marketing is important. Importing is the easiest way tointernationalize a company. International companies can import things and resell them intheir home country’s market. But this can only happen when the demand is high in thedomestic market. Also, companies should localize certain products or meet the restrictions ofcertain countries so that the product can successfully be imported[Citation error].The opposite side of importing is export. Exporting is also a scope of internationalmarketing. Companies can export their product towards other countries to enlarge theirmarket and increase their company’s reputation. Same as importing, exporting has its ownrestriction. For example, if MacDonald wants to export their product or enlarge their marketto Malaysia, they must get a halal certification first before they export their product intoMalaysia(The Scope of International Marketing | Marketing Lessons, 2017).The next scope of international marketing is Contractual Agreements. Contractualagreement is an agreement that is made between two or more parties. This agreement islegally enforceable and it allows companies to expand their market toward other countries.With this contract, companies can grow and expand their market and customer base.Companies can grow rapidly by making a contractual agreement with partnersoverseas[Citation error].Apart from that, Joint Venturing is also one of a scope of international marketing. Jointventure is a business arrangement that is made by two or more parties that have the sameobjective. Local companies can partner with foreign companies to get benefits. For example,a local company can partner with a foreign company because the foreign company can helpus to know foreign market’s dynamics and it is beneficial to our local company to survive inforeign market[Citation error]. Furthermore, I would like to talk about fully owned manufacturing. In order to stabilize ourmarket in foreign country, it is important if we fully own manufacturing at foreign country.This could help companies to control the quantity and quality of product that they need toproduce and companies can also sell their product easily to the country nearby.Last but not least, the definition of international marketing is to satisfy and fulfill needs ordemand from different countries and different people.Rationale for why organizations are seeking to internationalizationThe reason for Econsave seeking internationalization is to expand the market size. This isbecause the cost of expanding market size in the local market is more expensive than

expanding in the foreign market. In a relatively remote area of foreign country, it usuallylacks a shopping mall that sells daily supplies, although it must be in a nearby city area. IfEconsave open subsidiaries in this kind of area it can easily expand their market size. The second reason is to avoid competing with local companies. This is because ascompetition intensified, the company inevitably fell into a price war. When the price war,company’s profits will be seriously affected. So, to avoid this kind of situation, companieswill tend to change their target market to foreign market. The third reason is to earn high margins and profits. Companies can expand their marketin those areas that are in high demand to what the company offers so that the company canget high profit. For example, Microsoft sells its products to the USA due to usage of softwarethere and computer operations there(Happy, 2015)The fourth reason is to be close to the supply source, benefit from global sources advantageand gain flexibility to product sourcing. Companies that establish its operations next tosuppliers can get the raw material flexibility and decrease the production cost. For example,Ford established its operation in Dubai due to petrol affordability which means people aremore likely to buy cars there(Happy, 2015)Key global macro and customer trendsGlobalisation is the growing integration and independence of economics and culturesand involves increased trade and increased movement and capital and people. It resultsin large increases in trade between countries and large increases in money moving betweencountries and in foreign direct investment by governments and transnational corporations.There Are also increasingly similar products and services being sold across the world andlarge increases in outsourcing to different countries for components or services. It canincrease in international travel and instant communication across the world. This canincreasingly similar cultures and attitudes across the world and converging income levelsacross the world. In particular, economic globalisation includes decreasing barriers to trade,increasing ease of moving capital and money across countries and increased incentives forforeign direct investment. Globalisation is a developing phenomenon. It brings greatopportunities and also more risks as businesses and their competitors are increasingly able to

operate in more than one country. Econsave’s opportunities are falling tariffs and otherbarriers to trade mean it is cheaper and easier to sell to other countries. Costs fall as moreefficient, lower-cost labour and materials can be accessed, so it’s product can be pricedlower. This can let Econsave increase the outcomes and access to information sources meanconsumers are exposed to marketing activities and are more able to buy. It can expand themarkets to other countries, for example like in Brazil, China, India and Africa. Econsave alsohas internet-based marketing that enables international marketing, even for smallerbusinesses and lets global branding become possible. This has risks or threats that small ornationally based businesses face increasing competition from global businesses. Globalbusinesses have to fund ever more expensive marketing campaigns and people focus on theirown culture and reject global products.Econsave can increase economic collaboration by increasingly acting together to bring freetrade as international governments agree to remove barriers to trade by negotiation, forexample, through the World Trade Organization. This creates increasing opportunities forbusinesses to engage in international marketing activities. It also leads to trade blocs thathave low or no tariff or non-tariff barriers between members. However, there may be highbarriers to trade with non-members. These blocs include the Association of Southeast AsianNations(ASEAN). Businesses looking for international markets must research these blocs andtheir rules closely when choosing where and how to market.Their customer trends is to become the front-runner supermarket of Malaysian in whichconsumers can obtain great bargain and saving from grocery shopping and strive to offer ourcustomer with wide range of groceries at the lowest price possible without compromising onthe quality of service and customers’ comfortabilityMarketing’s role in contributing to the business strategy in an international context.Formulating a global marketing strategy may be an important fund for Econsave.Formulating a variety of aspects of global marketing strategy is the most important thingfor companies to compete globally. For many companies, marketing on a global scale isessential. When companies are marketing globally, they increase customer base, traffic, andbaseline. Increasing the number of customers the company has is a valid way to increasesales(Importance of Global Marketing Strate...).Developing an international context marketing strategy can help Econsave ‘s business inmany methods. The first method is to promote the global market to improve the efficiency ofEconsave products and services. As the company grows and learns, new and improvedproducts or services will become more to provide customers with better choices andquotations, the company should share their improvements with a wider audience. Byformulating a global marketing strategy(Importance of Global Marketing Strate...).Over the past few years, strategic marketing has become increasingly popular within theorganization. However , there is still some confusion about the accurate meaning of strategicmarketing and its role in the organization.Econsave has the largest and most extensive

network of branches in all major towns and cities, which is unique to any other supermarketor hypermarket operator. In addition, Econsave has a strong influence nationwide and it isalways looking for new opportunities throughout Malaysia. Econsave currently operatessupermarket chains in Malaysia. Econsave Group currently has 50 retail stores in Malaysiaand they are looking for people who are affectionate about the grocery industry and want tobe part of a growing company. However, Econsave’s vision is to create a management teamof dedicated professionals who have strong integrity, high professionalism, and emphasis onexcellence and a dynamic decision- making process(Admin 2019).Econsave’s advantage lies in having its own strong brand and valuable services. Comparedwith other large companies, econsave’s coordination is much worse, which makes them moreadaptable compared with other companies. Econsave also has a competitive price strategy,and concentrated price cuts allow it to attract more consumers through competitors and obtainthe quantity that supports the lowest price. Econsave has a larger business that is not onlyconcentrated in major cities, but also operates in almost every region, and has more than 60outlets in Malaysia(Admin 2019).Factors That Influence Internationalisation.Developed countries are already discussing factors affecting SMEs, but they are still trying tofind empirical evidence. It aims to understand the influencing factors that affect theinternationalization of Malaysian SEM, and identify the most influential factors anddetermine the most influential aspects. They use Delphi technique through telephoneinterviews and also E-mail to do this exploratory. The participants include panel 32 experts,academicians, policymakers, government agencies and Chamber of Commerce. Theinfluencing factors they found were company characteristics, industry factors, external factorsand incentive factors. The Internet is the most influential factor. Malaysia originated from thefactors affecting the internationalization of SMEs. In short, they have some insights into theinternationalization process of SMEs, and put forward some suggestions for future

research[CitationError].The first factor is the motivation for internationalization, and the second factor is thecharacteristics of the company, the third factor is industrial issues, the fourth factor is externalinfluences and the last factors is networking. The percentage of consensus is in the diagram.First, the experts identified 44 projects, which is the motivation and reason for theinternationalization of Malaysian SMEs. These motivations can be divided into 6subcategories. 69% of experts believe that domestic conditions are the most importantinfluencing factors, of which 11 projects, 50% of resources seek conditions 9 projects, 50%globalization includes 4 projects, 4 projects that comply with the conditions of suppliers31% , Survive 25% to survive 5 items.[Citation error]The second factor requires the identification of two important drivers. The first companyis the company itself, such as the company's human and other resources, capabilities andreputation. The second key feature of top management. According to the percentages and theitems in the diagram these findings suggest strong agreement among the experts that top

management characteristics, for example the interpersonal skills and background have asignificant influence on the firm’s choice to go international.[Citation error]The third factor is the industrial factor. Malaysia is a temptation for SMEs. Among them,50% mentioned that our sales economy has improved, and 38% believe that the nature of thebusiness sector makes it easier for them to enter foreign markets. The survey results alsoindicate the industrial and industrial nature of "halal food" and other wood products.The fourth factor is theexternal factor. SEMs need to be alert to foreign and local politicaland 295 Influential factors for SMEs. The highlight of being aware of the externalenvironment is globalisation of enable take part in international outsourcing and cross borderalliances In product reduced transaction costs. Communication, international transportationand logistics have facilitated rapid growth internationally.([No title], n.d.)The last factor isnetworking . In global markets, networking played a remarkable role bylinking SME into the global market. 100% are agree the importance of institution.81% arepersonal relations and 75% referred to the importance of business not matter small or foreignSetting an international marketing strategy to meet objectives.By now, it should be obvious that companies and organizations that plan to competeeffectively in the world market need a clear, prominent international marketing planthat must be based on a complete agreement on the market in which the company isintroducing its products. Therefore, despising international marketing is to ensure that anyinternational strategy should be studied in detail, and the knowledge required to gain acompetitive advantage should be understood and accurately assessed.Therefore, the decision-making arrangements in the international market are much larger than those in the domesticmarket.First, the product and promotion is the importance of an international marketingstrategy. One product, one message, all over the world. Although many customers orconsumers believe that this will be a strategy that many products will recognize in the future,in reality, only a small number of products may claim to have achieved this goal. Productadaptation and promotion expansion.This strategy is used if a promotional campaign hasreached international appeal, but the product needs to be improved because of local needs.For example, while Econsave and Aeon shopping malls aim at everyday produce dailynecessities for the mass market in the advanced countries, in less-advanced countries they areperceived as places for special time shopping, and are beyond the reach of the poorest

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