While the overall concept of marketing is the same worldwide, the environment within which the marketing plan is implemented can be dramatically different from region to region.
Sales takes this process one step further, and can be characterized as the process of fulfilling the needs of customers with a satisfactory product or service, consummated by the exchange of money.
Commercial transactions are the ultimate goal of international trade and, indeed, trade of any kind. The pattern of international market development often follows a series of stages: Domestic-market establishment The domestic market is often an appropriate place to test products and fine-tune performance before tackling the complexities of international trade.
It can also give a good indication of performance.
This may be the case for a Canadian software company, for example, that has developed a product specifically for a foreign market. Export research and planning When companies begin trading abroad, they often target a country similar to their own in language, financial structures, legal and economic systems or culture.
For example, Canadians entering the international marketplace usually address the U. Before venturing into an unfamiliar market, companies should prepare themselves properly. By analyzing how successful the proposed product or service may be in a potential market, the exporter can narrow the target markets down to three or four.
A well-researched marketing plan can give the potential exporter the confidence to commit to exporting. Another advantage to undertaking appropriate international-market-research and planning activities is that by creating a written document, potential problems and weaknesses can be identified more easily.
This enables exporters to foresee potential challenges prior to making the investment of time and money that will be required for successful export-market development.
A graduated strategy enables the novice exporter to acquire practical experience in a market without incurring unnecessary or unmanageable risk. Developing markets in phases enables the exporter to monitor their progress and make any necessary changes as they progress along the path to export success.
During this stage, the exporter should use initial shipments to become familiar with the mechanics of exporting documentation, distribution channels, transportation and collectionsto get to know the customer target group, to determine what product modifications may be necessary and to learn about regulations that might affect the business.
This is also the stage at which to revise the initial plan. Expansion of international sales If initial sales have been good, planning for larger orders and expanded activity should follow.
This stage is usually accompanied by intensified market research, more aggressive participation in international trade shows and other marketing activities and greater emphasis on strengthening networks and contacts in the target market.
The firm may enter negotiations with potential local partners to strengthen its position in the market in win-win business relationships. Investment abroad If sales are brisk, profits encouraging and opportunities promising, the company may choose to expand its presence in the target market.
The target market may serve as a stepping stone to adjacent markets and become a focal point for a larger trade strategy. This final stage carries additional ramifications and responsibilities, beyond those of a company that is based elsewhere simply operating remotely in a foreign market.
For instance, the investing company must take into account the impact on and interaction with the community and all other stakeholders—employees, local government, the environment, legal and tax compliance, transparency, public image and sustainability.
All of these impacts must be managed seriously and carefully as a corporate citizen, with strong corporate social responsibility as a policy that should be demonstrated at every opportunity. About the author Author: Focused on improving the customer experience. A Content chef; words, images, some code and a healthy serving of web analytics.
View all posts by Jacob Varghese Related stories.The international branding process of firms from developing countries is an area of scarce research. This paper is an attempt at filling this research gap by looking at the internationalization of emerging market companies from a branding perspective.
Social Mobility in China: Class and Stratification in the Reform Era by David S. G. Goodman “[S]tudies have revealed a high level of intergenerational transfer of class and social status, privileged and otherwise.”.
A shorter version of this article, titled “A Counterproductive Cold War With China: Washington’s 'Free and Open Indo-Pacific' Strategy Will Make Asia Less Open and Less Free,” was published in Foreign Affairs..
The author is indebted to Ryan DeVries and Alexis Dale-Huang for their assistance in the preparation of this essay, and to . Featured. McKinsey Global Institute Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy.
Even more than in start-up situations, evolutionary thinking is vital when entering and developing international markets.
David Arnold examines modes of market entry, marketing entry strategies, and how international marketing strategy should evolve over time.
A market entry strategy is the planned method of delivering goods or services to a new target market and distributing them there.
When importing or exporting services, it refers to establishing and managing contracts in a foreign country.