International versus domestic marketing strategies
Category : International Business Review, Marketing Strategies
In the business engagements, the marketing aspect is important, same as the importance level of the business’s other aspect. The marketing aspect or department is the one concerns on how to make the product being introduce and sell in the market. Making a way to the market is not easy but it’s not that hard either. Maybe, it can be considered as placed in the middle of the common business’s challenges. With the right amount of ingredients for the marketing success, the formulation of different kind of strategies can be recognized.
There are many kinds of organizations created such as the domestic business, multinational business, international business, etc. The marketing strategies of these kind of business depends on the nature of the business involvement. Therefore, the marketing strategy should be determined from one another, especially in the different perspective between the domestic and international markets.
From the beginning, the differences of the two markets are obvious from the point of their market host and demand domain.
There are four guiding principles that derives the marketing strategy
Knowledge Based Promotion: Marketing platform is to deliver the huge benefit of products through ethically designed promotional strategies. The criteria will ensure that a product will be promoted in the marketplace with a message that is focused, competitively advantageous, relevant and evocative to target audience segments, clinically supportable, and sustainable over time.
Building Loyalty: Marketers try to ensure that their product doesn’t either go out of fashion or be entirely superseded by any alternatives. Brand loyalty is an integral part of value adding processes in the business.
Parameters Not Formulas: There is no set formula to devising the marketing and sales strategies. Every product should be different and respectively faces its own unique confluence of factors influencing its performance over time. The parameters are defined with respect to sales and market share and each of these parameters should be reviewed as frequently as possible through external market conditions, other corporate priorities, pricing changes, and new or revived competitors.
Meeting the Genuine need: Continuing to meet a genuine need is of crucial importance means offering a product that deals with customer need that recognize by them for their patients in the mainstream marketplace.
International marketing is a kind of marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm.
An effective marketing strategy is the key to developing and maintaining success. Whether or not an organization considers itself to be global, to succeed, the company must consider the global context it operates within. Global Marketing Strategy gives a practical managerial orientation to the topic of international marketing in today's complex, rapidly changing global business environment. The marketing strategy focuses on strategically issues, including customer analysis, competitor analysis and company analysis. After establishing the marketing strategy the gain on appreciation of the basic strategic issues involved in segmenting markets, targeting markets and market positioning in the international arena.
Many companies chose in doing business abroad because of the various reasons that turned into their inspirations, goals, and objectives. However, there are many factors to be considered before moving abroad. They must first measure the demographic and physical environment that should be assessed in categories like population size, growth, distribution channels, etc.
Secondly the economic environment that goes around with the income and expenditure activities, inflation, currency stability, etc. that will contribute for the new service or product’s success. Next is the consideration of the social and cultural environment that encompasses a wide range of anticipations and assumptions with regards to the culture and social differences. The fourth is the legal environment which includes the limitations on trade and tariffs, proper documentation and import regulations. And lastly, is the political environment which the government’s system is included. Part of it is the stability of the political aspect, ideology and economic priorities.
In the idea of strategies, the international market is truly different and more complicated that the thought of domestic markets.
Individualized Marketing Strategy: Companies that conduct international business in several nations and 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.
Global Marketing Strategy - 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. It 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.
Domestic vs. International
The common differences are presented below and had been summarized.
1. Domestic marketing is marketing aimed at a single market.
2. This single market is the firm’s domestic market.
3. The firm faces only one set of competitive, economic and market issues.
1. International marketing goes beyond exporting and calls for direct involvement in the local marketing environment within a given country.
2. Understanding different cultural, economic and political environments becomes necessary for success in international markets.
There are many companies that doing business strategies in different market types. The domestic business samples probably rise in the range of local suppliers, meanwhile the internationally engaged business strives to keep their business growing such as the Nike, automobile business’s, and even beauty products.
As always, the kind of business is different from the other not only because of their business line, but also on their types of clients or customers. The objectives and goals that they imposed from the very moment they established the business must stay in the blood of the business to keep the funding pumping.
A strive to create a business is a good start to show the products and services that an individual or an organization keeps. As a old saying goes, “everything starts in a small step”, this quote should be retain in the business’s mind as the start of the business cycle. It only means that the business should start in a way where the people behind it will learn to solve problems in a small little way. People that doing the strategic approaches, dictates the outcomes of the business, only because they assume and formulated the various outcomes of it.