International marketing strategy
|International marketing strategy|
International marketing strategy is a business plan that outlines the company's objectives, resources, and strategies for reaching international markets. It involves analyzing the external environment and internal capabilities of the company to identify the best international marketing opportunities, then developing and implementing plans to capitalize on those opportunities. This includes conducting market research, formulating international marketing objectives, creating a product strategy, developing pricing and promotion strategies, and allocating resources. It also involves monitoring, evaluating, and adapting the strategy to changing conditions in the global marketplace.
Example of international marketing strategy
- For example, an international marketing strategy for a company that is selling software could involve researching the markets in different countries, identifying the most promising markets, developing a pricing and promotion strategy, and creating a plan for distribution. The company could also consider language localization, advertising campaigns, and cultural considerations to ensure that the software is tailored to specific markets.
- Another example of an international marketing strategy could involve a company that manufactures clothes. The company could research trends in different countries, identify the most lucrative markets, develop a pricing and promotion strategy, and create a plan for distribution. Additionally, the company could consider adapting the product to different markets, creating localized advertising campaigns, and developing a social media strategy to reach a global audience.
- Finally, an international marketing strategy for a company that provides online services could involve researching the markets in different countries, creating a localized website, developing local payment options, and creating a plan for distribution. Additionally, the company could consider adapting the service to different markets, developing localized advertising campaigns, and launching a global branding campaign.
Types of international marketing strategy
International marketing strategy is an approach to marketing goods and services across international borders. It requires an understanding of the global environment and an ability to adapt existing strategies to the unique needs of different countries. There are several types of international marketing strategies, including:
- Global Product Strategy: This strategy involves standardizing products for sale across multiple countries to reduce costs and maximize efficiency.
- Local Product Strategy: This strategy involves adapting products to the unique needs of each country or region.
- Global/Local Integrated Strategy: This strategy involves combining the benefits of global product strategy with the flexibility of local product strategy.
- Market Expansion Strategy: This strategy involves expanding existing markets by targeting new countries or regions.
- Market Entry Strategy: This strategy involves entering new markets by creating a presence in a foreign country or region.
- Digital Marketing Strategy: This strategy involves leveraging digital channels such as social media and search engine optimization to reach international customers.
Steps of international marketing strategy
An international marketing strategy typically involves the following steps:
- Conducting market research: This involves gathering data on the potential target markets and understanding the needs, preferences, and purchasing behaviors of the international consumers.
- Formulating international marketing objectives: This involves setting goals and objectives for the international market that are consistent with the company’s overall strategy.
- Creating a product strategy: This involves determining which products are most suitable for the international markets and how they will be packaged, priced, and marketed.
- Developing pricing and promotion strategies: This involves determining the pricing and promotion strategies that will be used to reach the target markets.
- Allocating resources: This involves determining the resources needed to implement the strategy, such as personnel, marketing funds, and other resources.
- Monitoring, evaluating, and adapting the strategy: This involves regularly reviewing the international marketing strategy and making adjustments as needed.
Advantages of international marketing strategy
International marketing strategy offers many advantages for companies seeking to expand their reach and increase their customer base. These include:
- Access to new markets: International marketing enables companies to reach new markets that may not be accessible with their domestic marketing efforts. This gives them the opportunity to increase their sales and profits by selling their products and services in new markets.
- Expanded customer base: By entering international markets, companies can gain access to a larger customer base, potentially increasing their customer base significantly.
- Increased brand recognition: Companies can increase their brand recognition by marketing their products and services in new markets.
- Opportunity to learn new strategies: Companies can learn new strategies for marketing their products and services in international markets, allowing them to better understand the competitive landscape and develop more effective strategies.
- Cost savings: By operating in multiple countries, companies can reduce costs associated with production, distribution, and marketing.
- Competitive edge: Companies can gain a competitive edge over their competitors by entering new markets and offering products and services that are not available in their own country.
Limitations of international marketing strategy
The limitations of international marketing strategy include:
- Inaccurate market analysis: International markets differ from domestic markets in terms of culture, language, and economic conditions. Without proper market analysis, businesses may not have a clear understanding of the target market and could end up making misguided decisions.
- Language barriers: Language barriers can make it difficult to communicate with customers and potential partners in foreign markets. This can lead to miscommunication and an inability to effectively market products or services.
- Lack of resources: Many companies do not have the resources or personnel to adequately manage their international marketing strategy. This can lead to a lack of focus and inconsistency in the execution of international marketing initiatives.
- High costs: Developing and executing an international marketing strategy can be costly, especially for small businesses. This can restrict the ability of companies to reach new markets and expand their business.
- Cultural differences: Cultural differences can have a significant impact on how a product or service is received in different markets. Companies must be aware of the cultural norms in their target markets in order to effectively market their products or services.
- Doole, I., & Lowe, R. (2012). International marketing strategy (Vol. 7). Cengage Learning.
- Onkvisit, S., & Shaw, J. (2009). International marketing: strategy and theory. Routledge.
- Zou, S., Andrus, D. M., & Wayne Norvell, D. (1997). Standardization of international marketing strategy by firms from a developing country. International Marketing Review, 14(2), 107-123.