Экономические науки/ 6.Маркетинг и менеджмент.

Postgraduate student: Shapovalova E.,

Scientific supervisor: Yerysh L

Donetsk National University of Tugan-Baranovsky, Ukraine

Forms of international marketing

International marketing takes place when a business directs its products and services toward consumers in a country other than the one in which it is located. While the overall concept of marketing is the same worldwide, the environment within which the marketing plan is implemented can be dramatically different from region to region. Common marketing concerns—such as input costs, price, advertising, and distribution—are likely to differ dramatically in the countries in which a firm elects to market its goods or services. Business consultants thus contend that the key to successful international marketing for any business—whether a multinational corporation or a small entrepreneurial venture—is the ability to adapt, manage, and coordinate an intelligent plan in an unfamiliar (and sometimes unstable) foreign environment.

While companies choosing to market internationally do not share an overall profile, they seem to have two specific characteristics in common. First, the products that they market abroad, usually patented, are believed to have high earnings potential in foreign markets. Second, the management of companies marketing internationally must be ready to make a commitment to these markets. This entails far more than simply throwing money at a new exporting venture. Indeed, a business that is genuinely committed to establishing an international presence must be willing to educate itself thoroughly on the particular countries it chooses to enter through a course of market research.

International market efforts take many forms. Companies that conduct international business in several nations often favor what is known as an "individualized" marketing strategy. This approach, which also is often utilized by smaller businesses involved in only one or two foreign markets, typically involves a comprehensive market research component and a significant effort to tailor a product or service to each individual target market. Under this approach, political, social, and economic factors are important components of the marketing process.

Another strategy that is sometimes used is commonly called the Global Marketing Strategy (GMS). This controversial approach largely ignores differences between nations. Instead, its proponents claim that while a business that sells its products in the same way in every market may suffer losses in isolated instances, it will reap compensatory savings elsewhere. "GMS is based on the notion that consumers around the world are growing more and more similar and that a standardized product and marketing mix can achieve enormous economies, especially in advertising, packing, and distribution because they would not be changed," summarized Hiam and Schewe. Of course, many companies have embraced a hybrid of the GMS and individualized marketing strategies.

Small businesses are discouraged from relying on the GMS strategy. Analysts note that whereas large multinational companies can afford to take a hit on a poorly marketed product on occasion, most small businesses are not so strong. For small enterprises, then, market research becomes an essential component of operations. After all, a single misstep in the international market can cripple a young company, or at least make it apprehensive about future forays. This can be damaging in and of itself, for as the SBA warned,"your business cannot ignore international realities if you intend to maintain your market share and keep pace with your competitors."

Moreover, there can be several reasons to be mentioned including comparative advantage, economic trends, demographic conditions, competition at home, the stage in the product life cycle, tax structures and peace. To succeed in global marketing companies need to look carefully at their geographic expansion. To some extent, a firm makes a conscious decision about its extent of globalization by choosing a posture that may range from entirely domestic without any international involvement (domestic focus) to a global reach where the company devot

es its entire marketing strategy to global competition. In the development of an international marketing strategy, the firm may decide to be domestic-only, home-country, host-country or regional/global-oriented.

Factors like distance, culture, language and practices create barriers to effective control. Yet without control over international operations, the degree to which they have or have not been successful cannot be judged. Plans are the prerequisite to control, yet these are developed in the midst of uncertain forces both internal and external to the firm. Basically control involves the establishment of standards of performance, measuring performance against standards and correcting deviations from standards and plans. In international marketing the ability to control is disturbed by the distance, culture, political and other factors.

A number of factors may influence the control methods. These include: a) Domestic practices and values of standardisation - these may not be appropriate; b) Communication systems - have a heavy influence on control mechanisms - electronic control measures may not always be available; c) Distance - the greater the distance, the bigger the physical and psychological differences; d) The product - the more technological the product the easier it is to implement uniform standards; e) Environmental differences - the greater the environmental differences the greater the delegation of responsibility and the more limited the control process; f) Environmental stability - the greater the instability in a country the less relevance a standardised measure of performance has; g) Subsidiary performance - the more a subsidiary does, or reports, a non variance, the less likely is there to be headquarters interference; h) Size of international operators - the bigger and greater the specialisation of headquarters staff the more likely will extensive control be applied.

Obviously the ability to control any international operation, whether it be very sophisticated or relatively unsophisticated, the process will break down without adequate face-to-face and/or electronic communications.

Bibliography:

1. Helmberger P., Campbell C and Patson W. "Organisation and Performance of Agricultural Markets in A Survey of Agricultural Economies Literature".

2. http://wiki.answers.com/Q/What_are_the_types_of_international_marketing_plans?#slide=1

3. https://www.boundless.com/marketing/boundless-open-textbook/global-marketing/types-of-international-business/

4. Breaking Into the Trade Game: A Small Business Guide to Exporting. Small Business Administration, n.a.