For even the most accomplished U. Not surprising when you realize just how few US Not surprising when you realize just how few US companies actually venture abroad. Already, small and medium-sized companies account for 98 percent of U.
The markets are huge in terms of population, in countries such as China and India. The purchasing power of consumers and businesses in many countries is also significant enough for American firms to want to compete in these markets. However, international marketing is not without pitfalls, and U.
Identifying a True Market Need A key to success in business is offering products and services for which customers have a compelling need. The customer has a problem that needs to be solved, and the product or service provides the solution in such an effective way that its benefits are not difficult to communicate.
Identifying the true needs of large numbers of people in a foreign country is not easy. Not having lived in their culture experiencing their day-to-day lives, American marketing executives can err by assuming that what people in other countries want or need exactly matches the wants and needs of American consumers.
Dilution of Brand-Name Power Due to the Internet, movies and other forms of entertainment, American culture and the corporate symbols of that culture--brand names--are well known across the globe.
The American companies can be perceived as attempting to take over the position long held by local companies, causing resentment. Cultural Nuance Consumers are influenced to purchase products by marketing messages delivered through the media, including print media such as magazines.
Humor is often used in commercial messages to get the consumer to pay attention. But what is considered extremely funny in one culture can be perceived as confusing or insulting in another.
To produce effective advertising requires more than accurate translation of the message from one language to another. It requires a deep understanding of the culture, customs, morals and even religious views that predominate in that country. What motivates consumers to buy products varies from country to country.
Communication Style Business executives from different countries can encounter several barriers to effective communication besides obvious language differences. The traditional pace of business negotiations can be different. Americans sometimes want to hurry negotiations along, whereas in some other countries emphasis is placed on building relationships before a business deal is seriously considered.
Executives from other countries may place a higher value on things such as facial expression instead of just the words that are being said. Distance and Time Even with technologies such as video conferencing, executives in other countries may prefer to establish relationships on a personal level.
For a smaller American company, this can mean a significant investment in travel costs and having key executives out of the office for extended periods. Time zone differences can make it difficult to coordinate projects where collaboration is required.
Executives on the West Coast of the U. Finding Reliable Partners American firms often establish relationships with distributors located in the countries whose markets they are seeking to enter. They hire sales reps based in those countries. They may engage local marketing and public relations firms to assist them.
Because the American firm might have no prior experience in that country, finding people who are trustworthy and competent can be a challenge.Dr. Paurav Shukla Marketing 1 1 The Scope & Challenges of International Marketing Dr.
Paurav Shukla 2 Objectives The changing face of Business The scope of the International Marketing task Self – reference criterion (SRC) The increasing importance of global awareness The effect of protectionism The Keiretsu system 3 How to measure organization’s success?
The challenges that they face are in terms of dilution of brand name power, communication style and the problem in time and distance. The company can also have problems in finding reliable business partners who are competent and trustworthy.
Key challenges in International marketing research are market multiplicity, data collection, communication, adaptation, inadequate response, infrastructure problem etc. The Challenges of International Marketing BY Jay Fankam Baker College Abstract Regardless of the success of your company on a national scale, to engage yourself in a successful venture outside of your borders requires several critical elements that one must acknowledge and apply with great care.
In international marketing, marketers generally have to deal with at least two uncontrollable elements as domestic and international environments. The major forces from the international markets are represented by political, legal, economic, social/cultural, technological and environmental factors.
International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to marketing identification, targeting, and decisions internationally (See also Local Marketing).