Going International Reasons For The Internationalization Of Business Marketing Essay

A basic theory needs to be clarified before any discourse, that is, this is of "International Marketing". Many scholars have attempted to describe what "International Marketing" is discussing. Matching to Czinkota and Ronkainen (2007), "international marketing" reveals the actions of enterprises to plan, price, promote and guide in the process of goods and labour moving into more than one country to be able to gain revenue. The North american Marketing Connection (AMA) generalized the explanations of "International Marketing" as a multinational activity concerning implementing the build, pricing, campaign and allotment of thoughts, products and services in order to attain business goals.

Internationalisation being an inevitable craze, has gained vast recognition in the current business community. The progress of method of communications and electric business has managed to get easy for growing amounts of companies to truly have a global existence (Knight & Kim, 2009). As worldwide companies are expanding at an unprecedented tempo, businesses have to positively take part in international marketing. The reason behind different business organizations going international may vary greatly. The drive is dependant on specific developmental requirements and affected by various factors. Whatever the complexities are, international marketing is executed by enterprises basically from the concern of a standard strategy, namely, seeking competitive border in a maximum range.

The direct purpose of enterprises to operate their business internationally is to broaden overseas market segments, seeking new customers for his or her products and services. As today's market is have a tendency to be saturated, companies feel need to bring their commodities into broader market segments. Only in this manner can they develop their businesses further and make it through the fierce competition in business world.

The development of output requests companies to internationalise. Over the past decades, the world trade system has been steadily proven and completed, establishing in motion the procedure of economic globalization. The economical developmental level and science & technology being increased, the marketing department and expansion should be deepened. Therefore, the conversion from domestic market division into cross-national department is enhanced. For the purpose of promoting trade, multinationals need to arrange their production and marketing across different countries through worldwide resources allocation (Jones & Khanna, 2006). Business organizations can obtain sources of better quality and lower price. Subsequently, the development cost is reduced and more gains are obtained.

The center competitiveness is the foundation of success for corporations without which they cannot have any advantage over their competitors. Through expanding marketplaces overseas, companies will have the opportunities to acquire new techniques, management strategies and understanding customer requirements in order to create central competitiveness (Kotler, 2000).

The information an organization would use prior to making a decision

The key to success in international business is based on the version to a constantly changing and new environment. The internationalised marketing environment is a lot more difficult and changeable, which is caused by various issues such as political, economic and communal factors. Therefore, business organizations must add great importance to prospects influential guidelines and formulate strategies consequently. Enterprises owners should have an excellent command over such track record information to be able to run a fantastic international business.

Political and legal factors

Managers of any multinationals should acknowledge the fact politics imposes a great effect on financial activities. The politics environment of market is an issue of both significance and complexness. The regulations and attitudes of a government towards overseas businessmen reflect its basic thoughts about increasing national interests (Craig & Douglas, 2005). Because of this, enterprises have to be politically sensitive and never ignore any slight factors. Furthermore, a good understanding of the regulations regarding international business will avoid unnecessary deficits and risks. Before stepping into an abroad market, enterprises should try to assess the politics and legal environment of the related to country.

International marketers should comprehend the government composition of the target country as well as its plans towards foreign businessmen. Evidently, suffered friendly procedures will be advantageous to the long-term development of multinationals. The steadiness of government structure and guidelines will directly influence the marketing strategies of international organizations (Johansson, 1997). Because of this, a sound research of the political climax of the prospective country is beneficial to strategy making of international organizations before any big steps. However, a fact must be identified that no countries will tolerate international companies endlessly penetrating their market and current economic climate, especially when the target country seems that foreign businessmen do not consider its developmental requirements. Such nationalism is greatly influential on international marketing nowadays, which instructs international marketers to take into consideration what contribution they will make to the overall economy of the mark country.

Apart from political factors, the legal system of the target country is also crucial to understand, because it is tightly linked to if the international business could run successfully. Many countries have made specific laws and regulations, like the standards for control, restrictions on advertising, to protect local market segments and create employment opportunities (Schuster & Harris, 2009). Besides, there are international monetary rules designed to regulate relations between nations in order to maintain a stable international marketing environment and promote international marketing activities. To use international business well and easily, international businessmen must be very familiar with related laws and regulations not only to avoid disputes but also protect their business lest any unfavourable situation arise.

Economic factors

Prominent of the necessary information a global business organization must obtain is the economic climax of the mark country. The monetary environment of the target country functions as the most crucial factor influencing the differentiation of international marketing strategies.

Understanding the developmental stage of a country is before the id of potential market (Hewett & Bearden, 2001). For instance, developing countries provide an economy made up of both modernized and backward formation. Therefore, marketing strategies must be very adaptable in markets of those countries. In various phases of development, the income of people may vary to a huge magnitude. Thus, consumers will have specific requirements for products, which will immediately or indirectly impact international marketing. In terms of circulation, large scale-retail business such as hypermarkets, big shopping centres are suitable for highly-developed countries, while small-scale or family-style ones such as convenient stores are better for undeveloped countries. Viewing from the consumer markets, marketing strategies for developed countries should emphasize the style, features and development. In comparison, consumers in less developed areas would pay more attention to the function and price.

The economic structure is also ideal for international business organizations to get market opportunities. The research of the nation's economic composition serves as female basis for firms to select target markets. In a few countries, overall economy is governed by traditional agricultural habits. There will be exceptional opportunities to go into such market. Some countries are loaded in natural resources and so require complex devices and transportations tools. Other highly developed countries are strong in industry and capital. They may need massive amount raw materials and labour extensive products. Therefore, due to the huge consumer market, those highly developed countries are the main targets for international marketing.

Population is another important determinant of international online marketing strategy. The total number of people in a land directly constitutes the market and indicates the probable of the marketplace (Radford & Hunt, 2008). For instance, the explanation for Japanese corporations constantly increasing global market is right in its small inhabitants and high production. The only way to endure is to get markets overseas.

The income, to become more specific, the disposable income of an nation's citizens reflects the purchasing ability of its market. Consumers with more income have a tendency to require more products with higher quality. Likewise, only those with high income and abundant savings will be likely to buy commodities apart from daily essentials. Such information will succeed for international marketers to choose the types of products to provide for the mark country.

Social and social factors

Culture is a system of communication, the sum of lifestyles. Culture brings with it many specifications and key points, which enhance the survival and development of users of the population. International marketing as a interpersonal management activity, is undoubtedly influenced by social and culture factors. To gain the recognition of and become accepted by consumers in a goal country, international markers are appreciated to acquire a comprehensive understanding of the characteristics of concentrate on culture and culture.

The educational level immediately impacts life frame of mind, purchasing behavior and reaction to campaign, etc. of the prospective country. Consumers of higher educational level have a more robust ability of identifying products and have a tendency to go after high quality. Comparatively, in those countries where the educational level is low, goods should be simple to operate and repair.

Religious beliefs and regional customs also should not be ignored before joining a foreign market. In the process of creating and packaging products, entrepreneurs must take into consideration the tastes and taboos of the target region. Respect and trust is shared in this exchange.

The difference in principles also concerns in international marketing (Ross et al. , 2008). Some nations uphold simplicity, while others prefer luxuries. Some enjoy turning up their wealth, while some hide their position. Such different prices impose effects on consumption style and the quality of products.

The benefits associated with conducting business overseas

The execution of international marketing is beneficial for business organizations to seek new advantageous marketplaces. In some companies, the marketplace has been saturated. There may be very exceptional chance to grow their production scale if they limit consumer market of their own country. The only way to break through is to develop overseas markets. Combined with the expansion of international market segments, multinationals may possess the possibility to utilize preferable factor conditions for the same type of product (Hitt et al. , 2008). For instance, the political situation is very stable in a few countries where in fact the labour cost is low, technical workers are good, individuals have strong purchasing capability. Besides, such countries are willing to provide excellent environment for foreign business. Without doubt, multinationals will not hesitate to focus on them. By the utilization of favourable conditions, cross-national corporations will stand to get very much.

By doing foreign business, enterprises have the ability to introduce advanced techniques and employ international capitals. The foreign exchange made by international business could be utilized to acquire new devices, etc. In addition, as the competition on global market is a lot fiercer, multinationals are urged to be certified for international level, by which they are stimulated to boost their techniques and managerial level.

Developing overseas markets is also beneficial to protect export market and offer of raw materials. Some countries arranged very strict restrictions to imports by high tariffs or low quota so that they can maintain their own sectors. Because of this, it will be very hard to transfer products to the people countries. However, if factories are built inside those countries, the production and sales of products could be shielded and the export market can be broadened.

Another benefit however, not the least, through international marketing activities the communication between countries is enhanced. Establishing business in a international country will definitely entail exchanges in many aspects. The companies will have a much better knowledge of the culture in the prospective country. Meanwhile, they'll supply the image of their own country to their foreign customers through their behaviours. Multinationals have a tendency to employ local employees, which can help not only reduce human resources cost but also create occupations for the mark country (Ross et al. , 2008). This kind of win-win assistance will surely enhance the friendly romantic relationship between their countries.

The risks associated with doing business overseas

Though there seem to be many benefits through owning a business internationally, there's also great risks come along with them. In the process of managing abroad business, losses might possibly be induced by changes of market environment, production capability, sales stations, etc. Because of the complexity of overseas business in its management and environment, multinationals are met with greater and more complicated risks. Before making international marketing strategies, these hazards should be always taken into consideration.

With the development and extension, international corporations have a tendency to be dispersed geographically, making the exchanges of human resources, capital, and materials more inconvenient (Lazer & Shaw, 2000). Such dispersibility imposes difficulties for management and rules and brings about managerial and administrative hazards.

Besides, the changes of global politics and economic environment impact and restrict international marketing activities. The politics, economical and diplomatic relations directly determine enough time and space condition for international businesses. The economic gap between areas will influence the consequences and results of international marketing. Evidently, international companies are confronted with many political and economic challenges.

Lastly, cultural risks can never be forgotten. Regional social characteristics are greatly important on the design, style, and packaging of products. Lack of understanding the prospective culture may prevent enterprises reaching their management goals. Furthermore, when issues occur local people will instinctively have thoughts of rejection. Generally, people believe that their own behavior styles are superior to those of a overseas. If international businesses are too self-assured in their management structure to modify them to a overseas country, they will be very likely to suffer losses.


International Marketing refers to activities of organizations related to the executing, promotion and syndication of products and services for the purpose of obtaining sales goals. Nowadays, going international has turned into a prevailing tendency for business organizations. There are various reasons describing why corporations need to internationalize, among which the basic one is to keep a competitive advantages in the widest scope. Besides, businesses need to expand their market so as to endure and go further available world. Internationalization is also activated by the rapid development of productivity. Market department is enhanced to improve from domestic structure to a multinational one. Companies need to create their own central competitiveness through taking care of overseas business.

Before formulating international marketing strategies, businesses need to acquire some necessary information. Politics and legal factors are the base for multinational managers to make decisions. International marketers need to evaluate the political and legal climax of the mark country before taking any steps. Only through understanding of the politics and legal system of the mark country can international businesses avoid losses and hazards. Also, managers must have a good command over the monetary environment of the prospective country, including its society, residents' average income, etc. to be able to correctly position the mark consumer market. Friendly and social factors cannot be ignored. The understanding of aim for culture and customs will be helpful to avoid misunderstandings and issues.

There a wide range of beneficial aspects brought about by doing abroad business, such as increasing industry scale, minimizing production cost, launching new techniques and ideas, promoting managerial skills and boosting human relationships between countries. However, dangers also come with international marketing. The dispersibility of multinationals may create challenges in neuro-scientific management and supervision. The unpredictability of politics, economic, diplomatic relationships makes it difficult to keep up stable in operation. Cultural conflicts between nations are hard to avoid. Such hazards must be considered before utilizing international marketing activities. Overall, doing business abroad is effective but also challenging. Firms must acquire systematic marketing ideas and apply them in to the real world in order to be successful in their business.

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