Strategic Approach to Entering Foreign Markets

Topics: Marketing, Marketing research, Marketing strategy Pages: 12 (4305 words) Published: May 8, 2013
Strategic Approach to
Entering Foreign Markets

Module: International Marketing Management

International marketing - marketing of goods and services outside the country of deployment of the company's head office (Cant et al, 2007). Multinational marketing is a complex form of international marketing, which relates to organizations conducting marketing operations in many foreign countries. Multinational firms include Nestle, Unilever, Shell, Exxon and Coca-Cola. These companies own the trademarks, well-known around the world as well as perform extensive international operations. Large multinational organizations often allocate company resources across national boundaries, although related to a particular country in terms of ownership and senior management (Cant et al, 2007). Fundamental differences between marketing to internal (in the national market) and international, including export, does not exist. In both cases the same principles. However, due to the specific external international trade cannot be specific to foreign country markets, especially the economic, political, legal, social, and cultural environment of a country must be borne in mind particularly in international trade. What also need to be taken into account are international agreements, trade practices and customs. The sequence of the main tasks of the following: the study of international marketing environment, preparing a decision on whether to enter the foreign market, the choice of specific markets, the development of methods to market, the formation of the marketing, development of marketing (Kotler and Armstrong, 2010). The emergence and development of the concept of international marketing as a kind of marketing activities were 60-70 years of the twentieth century. It was at this period was the necessary prerequisite for the restructuring of the market on an international scale, based on the principles of marketing (Pickton and Masterson, 2010), which has proven in the previous period to be effective as an effective system of corporate governance and a means of competition in the national markets. In modern conditions of the economic aspects of society, which is characterized by further increasing competition in world markets, more complex and diversified, both technological and organizational models of production, emergency information saturation and communication, effects of foreign economic activity, as well as the economic activity in general, as closely linked to the objectives and methods of marketing tools. And its international aspects significantly updated, thanks to the further internationalization of the world economy, the expansion of international trade, a more dynamic and massive movements of capital and labour (Boone and Kurtz, 2012). According to Kleindl (2008), international economic relations are becoming more and more visible part of the economic activity of enterprises and organizations. There is interest to participate in the economic, industrial, scientific and technical cooperation with partners from other countries. In these conditions, a growing number of manufacturing workers, small businesses and government agencies in need of objective information on the world market, its structure, organization and technology commercial operations. For many businesses, the study and application of international marketing is necessary because of the increasing openness to foreign markets and to improve their relationships with these markets. Most companies would prefer to work on a sufficiently large domestic market, as in this case, the conduct of business would be easier and safer. However, the influence of several factors pushing companies to enter the international market. 1. Domestic market of the company can be attacked by global companies offering better or more shower products. 2. Some foreign markets offer the possibility of higher returns. 3. To achieve economies of scale necessary to expand the market for the company. 4....
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