International trade strategy
Involves the systematic planning of the product, its pricing, distribution, promotion, and implementation and monitoring of these activities on international markets. When entering the international market, the company has to deal with other economic, social environment and with a different infrastructure.
The objectives of international trade
Fundamental objectives of international trade include:
- additional profit,
- overcome the often adverse conditions for the development of the industry in the country,
- better use of production capacity by increasing sales of products.
Forms of international marketing
International marketing activities include:
- opening a branch abroad,
- joint ventures with a foreign partner,
- licensing and franchising,
- financing of international trade,
- bundled transactions.
Aptness of international trade strategy is verified by achievement of planned, desired volume of sales and profit. These strategies must be closely linked with the strategy of manufacturing, distribution, organizational structure, finance, technological development and adapting to the external environment.
Marketing-mix in international trade
International marketing mix strategy can be aligned in some way to international trade, if company export to countries grouped according to culture, level of economic development, applicable law, or infrastructure. Adaptation strategies of marketing mix could be set through a joint examination of the factors governing the acceptance of the product in a particular foreign market, and having in regard their attitudes toward competing products. The following are strategies for the adaptation of the product and its promotion abroad:
- the same product and promotion,
- only adaptation of promotion,
- only adaptation of the product,
- adaptation and promotion and product
- offering a new product.
- Manova, K. (2012). Credit constraints, heterogeneous firms, and international trade. The Review of Economic Studies, rds036.