International Marketing Essay

International Marketing Essay examples
INTERNATIONAL MARKETING
92% of the world's consumers live outside the U.S. Thus, international marketing is very important.
When selling to foreign markets, one must realize that there are major differences between other
countries & the U.S. Aside from political and legal differences, there are economic,
technological, social (family, religion, education, health ...) & cultural differences.
Each 1 billion in trade deficit yields a loss of 25,000 jobs. [See text for how international trade is
measured and protectionism vs. free trade.]
Gray Goods – Goods imported from unauthorized dealer; problem = no manufacturer's warranty.
Dumping = Sale of export goods at less than...show more content...
2 Adapt Only The Promotion – e.g., in most of the world, bicycles are promoted as transportation; in
U.S. as leisure.
3 Adapt Only The Product – e.g., Canadians prefer a more bitter beer; Barbie looks Asian in Japan.
4 Adapt Promotion & Product – e.g., American cereals in Asia = snack food; therefore, need
different flavors (e.g., tofu).
5 Backward Invention – Simplify product & use less technology. This makes the product more
affordable & usable in certain foreign markets.
Some Ways To Operate In Foreign Markets
1 Exporting – A company sells what it produces to foreign markets via export merchants (e.g.,
export trading companies) or export agents (e.g., export management companies) or a firm's own
sales branches. [Risk of tariff & devaluation.]
2 Direct Investment & Ownership – Investment in production and or distribution facilities can
occur either through a wholly–owned foreign subsidiary or a joint venture with a foreign company.
[Risk of nationalization.]
Joint Ventures– domestic & foreign firms become partners.
Get more content on HelpWriting.net

International Marketing Essay
International Marketing
Proctor & Gamble originated in 1837, when William Proctor and James Gamble formed a
partnership in Cincinnati, Ohio. The partnership flourished making the company a gaining name as
principled manufacturer of high quality consumer goods sold at competitive prices. By 1992 Proctor
& Gamble was a multinational company with annual sales of almost $30 billion profits exceeding
$1.8 billion, and a reputation for quality products, high integrity, strong marketing, and conservative
management. When P&G grew they became more and more interested in foreign markets. In 1992
they had sold their products in more than 140 countries around the world.
In 1991 P&G after being satisfied with their success...show more content...
Retailers felt that the paper was a low profit, low loyalty category. They used it primarily to draw
consumers into their stores. Royale had been the only 3ply tissue on the market, and was viewed as
the traditional strong, premium quality facial tissue. Florelle was a 2ply tissue that had received
little promotional attention. It lost most of its market share in 1991 and was down 5.8% at the
beginning of 92. Other competing brands of tissue were Kimberly Clark with their Kleenex brand,
which had a very good year in 1991. Scott tissue who at first fell a few shares due to loss of trade
support, but relaunched their brand in September 1991, positioning it as a product with high content
of recycle material, and supporting it with heavy advertising. Irving and all others had average an
average year.
Brand Image for Royale based upon it's premium positioning, historically unique 3ply product
design and its softness claim, and had built the leading brand image in the product category.
Brand users gave Royale an overall score of 85 on a scale of 100, marginally superior to Kleenex.
Even though Royal enjoyed a very favorable overall brand image, they were lacking on thing that
would make their product do even better. Knowledge about the brand was not as high as they
would have liked. Many people who used it didn't even know that it was a 3ply tissue rather than a

In a world where consumer demands change as quickly as advances in technology and
communication, it is no wonder that companies are entering into a global market. In order for
companies to stay on top and be the best in their industry, it is no longer enough to exclusively sell
to a domestic market. The real challenge for companies remains in their ability to successfully
market their products abroad. While some basic principles of marketing remain, such as
consideration of price, promotion, place, and product, a whole other set of rules is introduced when
speaking of international marketing. (International Marketing, 2002) The stakes of companies
entering into a global market are much higher than those that choose to stay...show more content...
Prices for both essential and nonessential products have the potential to impact consumer buying
patterns. If necessary goods carry a higher price tag, it leaves less discretionary income for
non–essential, more luxurious items. Understanding the idea of income inequality may also prove to
be important when determining the price of products. It is important to understand that middle and
upper–income people may also live in areas where the per capita income is low. (Onkvisit, Shaw,
2004) The analysis of substitution of products is also critical for marketers to do. Some
consumers, based on local conditions may be more likely to consider other products and services
in replace of others. One example a source gave was mass transportation. In cities where there is a
high population density, inhabitants may opt for such type of transportation instead of individually
owned automobiles. This would be vitally important for car companies to be aware of. (Onkvisit,
Shaw, 2004) Lastly, but perhaps most important to take into consideration are cultural tastes and
differences. One of the worst things a company can do is market to a country in which they have
failed to do their research. There are countless examples of companies making costly marketing
blunders when moving abroad. The importance of being aware of cultural norms and taboos can
never be underestimated. Just as in the United States different

International Marketing Case Study
Explain the stages that are typically taken by a firm moving from a domestic business to an
international?
Domestic Marketing: involves the company manipulating a series of controllable variables such as
price, advertising, distribution and the product in a largely uncontrollable external environment that
is made up of different economic structures, competitors, cultural values and legal infrastructure
within specific political or geographic country boundaries:
International Marketing: Involves operating across a number of foreign country markets in which not
only do the uncontrollable variables differ significantly between one market and another, but the
controllable factors in the form of cost and price...show more content...
Markets – Widespread and sometimes fragmented. Data – Difficult to obtain and often expensive.
Politics – Regimes vary in stability– political risk becomes an important variable. Governments –
Can be a strong influence in regulating importers and foreign business ventures. Economies –
Varying levels of development and varying and sometimes unstable currencies. Finance– Many
differing finance systems and regulatory bodies. Stakeholders – Commercial, home country and host
country. Business – Diverse rules culturally influenced. Control – Difficult to control and coordinate
across markets.
Moving from being a purely domestic business to an international one is typically a gradual
evolution through a number of stages.
1. Management is not interested in exporting and would be unwilling to fill an unsolicited order. The
company exists to serve the domestic market only and does not intend to enter foreign markets.
2. Management fills unsolicited orders from abroad. The 'passive exporter' tends to lack any
international focus and perceives export markets as having a high hassle factor. Many passive
exporters are relatively new to the export business, often reacting to unsolicited orders and tend to
see their market as essentially home based. Such firms do not carry out research or invest in export
promotion campaigns and have little direct contact with foreign companies. Firms at this stage
perceive

The Cosmetics Industry
Estee Lauder vs. Shiseido Cosmetics
Introduction
The cosmetics business is a billion dollar industry. Every year, women are responsible for
consuming millions of cosmetic products. The cosmetics industry is so large because of several
factors. The media is a huge contributor to the intense pressure to look a certain way. The idea that "
sex sells" is evident in gossip magazines, movies, advertisements, music, and more subtly– in the
business world. People first notice what race someone is, how beautiful or ugly they are and what
clothes they are wearing. Beauty is skin deep; however, first impressions are usually what others use
to base their personal judgments. In...show more content...
I met students in China who had never gone to the bars before, especially with American students,
and there were many students who still chose not to make an exception because they are responsible.
Don't get me wrong, I believe that the Chinese do care about looking pretty, but they will not put
precedence of looking attractive if it means it will prevent them from getting things done.
I also visited a shopping mall in Shanghai. A particular department store offered a variety of
cosmetic brands, most of which I recognized and am familiar with. I was surprised to see that
Maybeline, a cosmetic brand sold in discount stores such as Target, had a large kiosk complete
with sales representatives. Although there were a variety of American and European cosmetic
brands being offered at this department store, about half were advertised with European models. I
expected to see predominantly Chinese or Asian models. In Nebraska, we seldom ever see any
Asian models featured in cosmetic advertisements because there isn't a large demographic of Asians
here, but the difference is that China does not have a highly contrasting, diverse, racial population.
So, it would have seemed logical to expect Chinese faces in all cosmetic/retail advertisements, but it
wasn't so.
The Products
Cosmetics are almost a universal product for women around the world. According to market
research, four out of five women wear

Essay on International Marketing
Introduction
Marketing across cultures around the world is increasingly becoming a thriving business with the
fast–speed globalisation nowadays. The Four 'Ps' of marketing, namely product, price, place and
promotion, include most of the elements of marketing decision–making. However, socio–cultural
factors, in considering the combination of marketing strategies, will always run through them.
Socio–cultural factors have a huge influence in people's concept of product and buying behavior.
Lack of cultural awareness not only can lead to a decrease of product sales, but can even collapse
the company's whole international image. In this sense, understanding cultural differences plays an
incredibly significant role in process of developing...show more content...
Among them, 'Uncertainty Avoidance' was defined as ' the lack of tolerance for ambiguity and the
need for formal rules' by Hoecklin (1995). Haviland (2004) summarised the characteristics of culture
. Values and attitudes are considered as an important part of culture. Value was defined as 'the
beliefs that are held individually or collectively, perceived consciously or unconsciously,
communicated explicitly (verbally articulately) or implicitly (symbolically), used as the criteria
for cognitive, affective, or behavioral judgments to guide our choices out of available options, as
they influence society, while society influences them.'( Kluckhohn et al, 1951) Tepstra and Sarathy
(2000) stated that values and attitudes of customers played a significant role in the work place. As
to Starbucks, Harris (2007) claimed that teahouse was a great challenger to Starbucks since it was
undergoing a set of reforms. Kembell (2002) stated that the locations of Starbucks were mainly
focused on those unban areas as well as crowed places in town. In terms of the design of Starbucks
in China, Harris пј€2007
пј‰ found that the design and decoration of Starbucks were consistent with
the characteristics of local cultures.
Methodology
The data I gathered in this paper is mainly from Secondary data sources. I found most

1. Many U.S. firms do exceedingly well in the global arena. Which of the following organizations
is considered to be the U.S. leader with global revenues approximated at $285 billion annually?
(Points: 1) IBM ExxonMobil Ford Motor Wal–Mart Stores Hewlett–Packard
2. Considering the model of the international marketing task displayed in the text, which of the
following reasons demonstrates the most important difference between the international marketer 's
task and that of the domestic marketer? (Points: 1) The international marketer must deal with at least
two levels of uncontrollable uncertainty instead of one. The international marketer must rely on at
least two...show more content...
Lam should consider all of the above factors.
11. The four social institutions that most strongly influence values and culture are schools, churches
(religious institutions), families, and: (Points: 1) shopping malls day care centers government
agencies the media corporations
12. Which of the following countries would have the most affinity (score highest) for collectivism
(cohesive groups are honored and encouraged)? (Points: 1) Great Britain Australia Canada France
Japan
13. ______________ is being attuned to the nuances of culture so that a new culture can be viewed
objectively, evaluated, and appreciated. (Points: 1) Cultural ombudsmanship Being a cultural icon
Being a cultural maven Cultural sensitivity Cultural borrowing
14. A liking for others, open to tolerance, flexibility, and ability to adjust to varying tempos would all
be criteria for achieving ___________ in international marketing. (Points: 1) profit perception
adaptation standardization correlation individualization
15. Time is viewed differently around the world. For example, in Spain "those who rush arrive first
at the grave" is a description of feelings toward time. In which country would we expect to hear

Chapter 7&8 – International Market selection and Entry
Approaches to market selection в†ђ incremental entry vs simultaneous entries в—¦ incremental в†’
usually for small companies with fewer resources that wants to lower their risk preclude economies
of scale. в—¦ simultaneous в†’ extensive resource thus, resulting in higher operating risk, may
decide to leverage across asia pacific area, facilitate economies of scale. в†ђ Concentrated approach
vs diversified approach в—¦ concentrated в†’ resources limited/concentrated in limited number of
markets which will reduce cost and operating risks. Economies of scale. Only concentrating on a
number of market в—¦ Diversified в†’ spread risks exposure, broadens market...show more content...
– barriers can be entry (tariff/non tariff)/exit (profit,dividends+capital, taxation) в†ђ which remaining
overseas market should be avoided because competitors (domestic and foreign) are already well
established? – help to determine whether market should be included/not because of their potential
competitive reaction. Also include entering a market n prevent others entering the market, entering
the market where competition already exist–confronting them and entering market where
competition doesnt exist. The latter strategy designed to build market share and gain experience by
attacking competitive markets in other countries at a latter stage.
4. Market responsiveness в†’ what are firms competitive advantage in OS market в†ђ which
remaining OS market are not large enough to justify the marketing effort that will be necessary to
gain a satisfactory market share? – can we gain market share despite the competition? в†ђ Which
remaining OS market are unlikely to respond to those marketing activities that are considered
necessary to establish the g/s in the marketplace effectively? – will the market prevent/allow firm the
achieve its objtvs? в†ђ Which remaining OS market prohibit forms of presence that the firm
consider as optimal and can afford when entering a new overseas markt? в†ђ Which remaining OS
market are unattractive bcos of costs and problems of reaching them from home

Multiple Choice Questions 1.The United States has many successful trade relationships. Four of
these relationships account for a tremendous volume of trade. All of the following countries are
among the top four producers of trade for the U.S. EXCEPT: A)Canada B)Mexico C)Japan
D)France E)China 2.For every dollar the United States invested in the economic development and
rebuilding of other countries after World War II, hundreds of dollars returned in the form of
purchases of U.S. goods and services. The primary plan after World War II used to rebuild and
reinvigorate war ravaged countries was the: A)Eisenhower Plan B)Marshall Plan...show more
content...
B)protection of an infant industry. C)protection of a home market. D)the need to keep money at
home. E)to encourage capital accumulation. 14.Randall Smithe–Jones believes that protectionism is
the only way to save the United Kingdom from outside competitors. He has seen small business
after small business go bankrupt because cheaper foreign goods have been more popular. The UK
has just started a cell–phone manufacturing industry and Smithe–Jones' company is one of the first
to try their hand at cell–phone manufacturing. Which of the following would probably be the
argument that Smithe–Jones would use to persuade his government representatives that protectionism
is still needed in the U.K.? A)Protection of an infant industry B)The need to keep money at home
C)Conservation of natural resources D)National defense E)The industrialization of a low–wage
nation 15.Section 301 of the Omnibus Trade and Competitiveness Act authorizes the U.S.
government to _____________ and ___________against specific foreign trade barriers judged to be
unfair. A)suppress and attack B)educate and substantiate C)investigate and retaliate D)market and
dominate

International Marketing Essay

Recommended

Recommended

More Related Content

Similar to International Marketing Essay

Similar to International Marketing Essay (17)

More from Cheap Paper Writing Services

More from Cheap Paper Writing Services (20)

Recently uploaded

Recently uploaded (20)

International Marketing Essay