NAME- ASHIMA AGGARWAL
The most fatal and prevalent commercial mistakes that entrepreneurs and companies make are marketing or market related. One of the leading venture capitalists, who has looked at thousands of business plans and helped to launch many firms, says there are two reasons why companies fail. The first is lack of sales, and the second is lack of everything else. A startup business or new product or service usually fails because the firm does not satisfy enough customers, or does not do it better than the competition. Every company venturing into a new international market has to tread very carefully. In a bid to rush into uncharted territories, they often commit grave errors which prove very difficult to undo later on. Some of these errors are absolutely unwarranted and provide no logic as to why the best marketing companies across the world committed them.
We can define marketing blunders as follows-
A blunder that results from offering an inappropriate product or service that has negative economic impact on the firm or from how the product/service is offered is known as marketing blunder. This occurs when a product or service offered does not meet societal needs or cultural norms.
SOURCES OF INTERNATIONAL MARKETING BLUNDERS
1. INABILITY TO READ CULTURAL CUES PROPERLY :
Multinational companies sometimes fail to read the cultural foundations as they move from country to country selling their products. They feel that the strategy which had delivered them success in other countries and their home turf would be replicated in most of the countries and but sadly this is not so. Examples:
Procter & Gamble blundered, when it launched the “cheer” laundry detergent in Japan, overlooked the fact that Japanese wash their clothes in cold water and advertising campaign that Cheer washed clothes at all temperature seemed rather meaningless.
2. LAUNCH OF THE PRODUCT AT THE WRONG TIME:
Sometimes the product is launched at a wrong time. Timing is one of the critical elements in the launch of a product. Timing is one of the critical elements in the launch of a new product. Most firms understand this and also recognize that various culture recognize time differently. Plus the economic and political conditions within the country can also affect the product adversely. Consider this example- Reebok launched its high priced shoes in the face of a growing recessionary trough in the Indian economy. Ignoring the fundamentals of the economy was one of the main reasons of the company doing badly.
3 .COMMUNICATION PROBLEMS:
This is one of the nagging problems that international marketers face. There can be severe repercussions that ill planned and under researched communication can do to the products. Example- A McDonnell-Douglas ad for its aircraft in India showed a model wearing a turban in the style of Pakistan, not India.
3. FAULTY PROMOTIONAL METHODS:
Sometimes the method of promotion that is adapted is faulty in itself. For example, in India, Reebok tried to promote its shoes by signing the sports stars for endorsing the shoes, notable among them being Baichung bhutia, the Sikkim’s footballer. However football in India is not a mass popular sport except in Bengal and it did not have much effect on the sales.
5. IGNORING RACIAL, NATIONAL AND RELIGIOUS SENTIMENTS:
The ignoring of racial and religious sentiments can also backfire badly for companies. For example- when Pepsodent was launched in SE Asian countries, its teeth whitening property was positioned as “Wondering where the yellow went”. It was taken as a racial slur.
6. INABILITY TO READ THE MARKET FORCES:
The inability to read the different forces that operate in the market is the most common cause of the failures of products. Most of the MNC’s that rushed in India misread the size of the market. The Indian middle class...