International Marketing Strategy Failures
INTERNATIONAL MARKETING STRATEGY
An international marketing strategy involves developing and maintaining a strategic fit between the international company's objectives, competencies, and resources and the challenges presented by its international market or markets (Terpstra, V. and Sarathy, R., 1997). As such, the international strategic plan forges a link between the company's resources and its international goals and objectives in a complex, continuously changing international environment.
In deciding to go abroad, the company needs to define its marketing objectives and policies. What proportion of foreign to total sales will it seek? Most companies start small when they venture abroad. Some plan to stay small; others have bigger plans.
THE REASONS WHY MARKETING STRATEGIES FAIL IN INTERNATIONAL MARKETS:
1. Inability to leverage ideas to all countries
Companies entering more and more countries in search of new markets are likely to face increasing difficulty in continuously monitoring and controlling their international operations. These firms must monitor not only the constantly changing marketing environment, but also changes in competitive intensity, in competitor product/service quality strategies, in supply chains, and in consumer expectations.
2. Picking the wrong partners
There is a list of difficulties in building alliances; a main limitation is picking partners who do not have the right bundle of capabilities to help reach the local market.
Joint ventures involve a foreign company joining with a local company, sharing capital, equity, and labor, among others, to set up a new corporate entity. Joint ventures are a preferred international entry mode for emerging markets.
Joint ventures could constitute a successful approach to a greater involvement in the market, which is likely to result in higher control, better performance, and higher profits for the company. In one example, British Petroleum PLC established a joint venture in Russia, under the name
An international marketing strategy involves developing and maintaining a strategic fit between the international company's objectives, competencies, and resources and the challenges presented by its international market or markets (Terpstra, V. and Sarathy, R., 1997). As such, the international strategic plan forges a link between the company's resources and its international goals and objectives in a complex, continuously changing international environment.
In deciding to go abroad, the company needs to define its marketing objectives and policies. What proportion of foreign to total sales will it seek? Most companies start small when they venture abroad. Some plan to stay small; others have bigger plans.
THE REASONS WHY MARKETING STRATEGIES FAIL IN INTERNATIONAL MARKETS:
1. Inability to leverage ideas to all countries
Companies entering more and more countries in search of new markets are likely to face increasing difficulty in continuously monitoring and controlling their international operations. These firms must monitor not only the constantly changing marketing environment, but also changes in competitive intensity, in competitor product/service quality strategies, in supply chains, and in consumer expectations.
2. Picking the wrong partners
There is a list of difficulties in building alliances; a main limitation is picking partners who do not have the right bundle of capabilities to help reach the local market.
Joint ventures involve a foreign company joining with a local company, sharing capital, equity, and labor, among others, to set up a new corporate entity. Joint ventures are a preferred international entry mode for emerging markets.
Joint ventures could constitute a successful approach to a greater involvement in the market, which is likely to result in higher control, better performance, and higher profits for the company. In one example, British Petroleum PLC established a joint venture in Russia, under the name
References: * Ramaswamy V.S and Namakumari S.,Marketing Mnagement 3RD Edition (2005) Macmillan India. * Isobel Doole and Robin Lowe, International marketing Strategy 5th Edition(2008), Cengage Learning EMEA * H. David Hennessey and Jean-Pierre Jeannet, Global Account Management (2003), John Wiley&Sons Ltd. * Keith Lewis and Matthew Housden, An Introduction to International Marketing (1998), Kogan page.