GROUP ASSIGNMENT : INTERNATIONAL MARKETING

1. QUE : DISCUSS RELEVANCE OF INTERNATIONAL MARKETING AND ITS CHALLENGES TO

MORDEN DAY BUSINESS.

1.0 Introduction

International marketing is the export,franchising, licensing or full direct entry of a marketing

organization into another country.

International marketing has been made more relevant as a result of globalization. Globalization
has had a significant impact on international markets as more and more markets have become
open to international organizations as cost and complexity of operating overseas have been
reduced.

International marketing, which involves operating across a number of foreign country markets
in which is not only do the uncontrollable variables differ significantly between one market and
another, but the controllable factors in the form of cost and price structures, opportunities for
advertising and distributive infrastructure are also likely to differ significantly.

1.1 Potential to increase organizations customer base

There is potential for modern day businesses to increase their customer base and market share.
Steps would be entering other country markets within the region and eventually entering
attractive regions outside the domestic one. This will eventually lead to growth through
multinational companies to achieve a presence in all major regions of the world and a very
broad breadth of international marketing examples would be Unilever and Bata .
1.2 Reduces risks

A wide customer base reduces risks associated with operating under a single market. Many
modern businesses have been forced to reconsider international marketing especially in
economic downturns, as domestic customers may not be able to afford. It adds more stability
to the company performance and a more consistent flow in sales and earnings per share.

1.3 New Opportunities

Whilst modern businesses can find new opportunities just by marketing locally, international
marketing can provides with even more opportunities. The more people marketed to, the
greater and wider the reputation received, after all, a strong brand identity is paramount to
build loyalty and trust and in order to convey stability, but spread this worldwide and this will
flourish. One of the major benefits of international marketing includes business growth, which
can be identified by conducting a direct competition analysis. Better understanding is gained of
the products and brands in your industry that are rising in popularity, and just why that is the
case. From here, modern businesses identify what advantages that are present over
competition in order to stay ahead of the competition.

1.4 Market Expansion

There are many reasons why modern businesses should invest in international marketing.
Whilst there are innumerable advantages of expanding businesses alone, international
marketing can significantly help open up a larger customer base, which is paramount to achieve
greater profit margins. Whilst a small business may find marketing internationally not cost-
effective, technology such as social media and online advertising can make the process of
international marketing even more affordable. Today, customers can buy from across the world
via the internet, making market expansion through international marketing a useful skill for
modern businesses to understand. A good example is the Alibaba online site it has managed to
expand its market by delivering in almost every country around the world thus showing a
growth in the market.

1.5 New Relationships

International marketing enables businesses to develop new relationships. Whilst it will take
some time to build long-term business relationships, these connections never go haywire.
When modern businesses begin focusing on the process building relations, one essentially
creates lifetime connections, and thus you can relax marketing efforts and appoint brand
advocates that help build your reputation and increase awareness regarding your brand and
offering instead.

1.6 Brand Reputation

International marketing can significantly help boost modern businesses brand’s reputation.
Regardless, customers recognize a brand that is selling in multiple markets to be of higher
quality and better service than brands that sell locally. Technology companies and multi-
national banks are just two examples of this. Whilst this may not always be the case, in order
for your business to be viewed as honourable, it is worthwhile investing in international
marketing.

There is no better time to invest in international marketing. With businesses from across the
globe choosing to now market their brand in more than one country; it is important that you do
the same in order to become a trust brand among hundreds, if not thousands, of businesses in
the same industry.
Modern businesses have been forced to consider international marketing due to intense global
competition.

Challenges of International marketing

1.7 Language

Modern businesses should reevaluate their brand name and advertising as it might translate
into something that is not acceptable in different countries. Translations can often lead to
unintended meanings such as Colgate, marketed a toothpaste called Cue in France without the
knowledge that it was also a name used by a pornographic magazine and also in China Kentucky
Fried Chicken’s slogan ‘Finger lickin good ‘ translated ‘Eat your fingers off’. There is a need for
thorough research before moving into international markets as organizations would not want
to spend money in trying to recover or eliminate a bad reputation as a result of offensive
brands or advertisements.

1.8 Slow growth in the developed markets

The first challenge facing modern businesses is slow growth in the developed markets. It is a
fact that the growth rate in developed markets has slowed down. An International marketer
however, remains to remember that despite the slow growth rate these markets remain large
markets and that all marketers would need to continue to target these markets.

1.9 Falling growth rates in emerging markets

The second big challenge facing the world is falling growth rates in emerging markets. Despite
the fall in growth rates of a lot of emerging markets a marketer needs to remember that the
emerging markets will continue to grow at a faster pace than the developed markets. This is
because of their large population and rising income levels which gives a boost to demand in
these markets. Thus all international marketing organizations’ need to look beyond the
developed markets and focus their efforts on all emerging markets too.

1.10 Demographics

The third key factor to remember is demographics. The population in developed western
markets is aged whereas the emerging economies have a younger population. The emerging
markets will, therefore remain important and international marketing organizations, therefore
will need to continue their focus on emerging markets.

1.11 Increased competition and innovation

The fourth important factor is that of increased competition and innovation. Companies in the
developed world will be challenged by more and more companies from emerging markets.
Organizations which focus on innovation to reduce costs or increase the perceived benefit to
their customers will thrive.

1.12 The increased role of communication

The last important content would be the increased role of communication. The role of
communication will further go up as companies from one part of the world acquires customers
from very different parts of the world. A successful international marketing organization will
therefore, need to focus more and more on its efforts to communicate effectively with its
customers.
1.13 Conclusion

As technology creates leaps in communication, transportation, and financial flows, the world
continues to feel smaller and smaller. It is possible for companies and consumers to conduct
business in almost any country around the world thanks to advances in international trade.

As global economic growth occurs, understanding marketing in all cultures is increasingly

important. This course addresses global issues and describes concepts relevant to all international
marketers, regardless of the extent of their international involvement. Emphasis is on the
strategic implications of competition in the markets