Market research gives businesses essential information on customers, competitors, and market. Most businesses claim to understand the value of this research because they are using this information to sell their product to their clients.

Market research is just as important for international business. And even more so…

Your success in foreign markets will depend on your international market research. It is especially important during your business planning phase.

Reasons For International Business Planning

There are two main reasons to be very thorough when researching your international markets. During this planning phase you need to learn:

The Difference In International Market Research

The difference between domestic and international market research is the importance of the smallest details and the differences in the smallest details can influence your success.

Different cultures respond differently to your product, your marketing, your business. This implies more than simple interest in your product. Some markets may actually use your product differently than you expect. You need to know exactly how each of your markets respond to your product, your company, your marketing.

Cross cultural communication differences will influence everything you can think of and more. If you are not intimately familiar with the cultures you are targeting plan for surprises.

Schedule More Time For International Business Planning

This is why it is essential to have a strong international market research strategy. Here is what to do:

Market Research For Online Businesses

International web marketing allows you to jump into sales faster than ever before. In fact, if you have an online business you might even get non-domestic sales without doing anything in particular to sell your products abroad. But don’t make the mistake of not implementing good international business practices.

You can easily set up a new market research strategy in parallel with your current business.

Once you start getting sales inquiries internationally, start researching those new markets. This will allow you to see your potential international business opportunities.

Remember, you can’t rely on analyzing your online international sales alone. Only by researching your market can give you the whole picture.

Continuous Market Research

It’s important to actively carry out your market research continuously throughout all of your online sales and marketing efforts. This is key to developing your business internationally.

Internet can be an easy solution and an essential part of your expansion plan… only if you do sufficient international market research. Don’t simply put your order page up and sit back.

You will learn how to develop your markets internationally, and what to not do. That is why market research is so important and is one of the foundations for successful international business.

Are you committed to speeding up your international sales cycles?

Learn how to combine cross-cultural marketing tools and international sales strategies for faster sales.

Join us on the International Sales Road Map.

Would you like to develop your international business? Are you a beginner at international sales and marketing? Read the Beginners Guide Discover Your International Business.

International Marketing

Guided by :Dr.Jelsy joseph

Director,Dept of management studies&research

KARPAGAM UNIVERSITY,COIMBATORE

International marketing refers to MARKETING carried out by companies overseas or across national borderlines . Companies must consider language barriers, ideals, and customs in the market they are approaching. International marketing is simply the application of marketing principles to more than one country. At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe.

Elements of the international marketing mix:

The â??Four Pâ??sâ? of marketing: product, price, placement, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. Ultimately, at the global marketing level, a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan. Unless a company holds the same position against its competition in all markets (market leader, low cost, etc.) it is impossible to launch identical marketing plans worldwide.

Product

A global company is one that can create a single product and only have to tweak elements for different markets. For example, Coca-Cola uses two formulas (one with sugar, one with corn syrup) for all markets. The product packaging in every country incorporates the contour bottle design and the dynamic ribbon in some way, shape, or form. However, the bottle or can also includes the countryâ??s native language and is the same size as other beverage bottles or cans in that country.

Price will always vary from market to market. Price is affected by many variables: cost of product development (produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and much more. Additionally, the productâ??s position in relation to the competition influences the ultimate profit margin. Whether this product is considered the high-end, expensive choice, the economical, low-cost choice, or something in-between helps determine the price point.

How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market. Using Coca-Cola as an example again, not all cultures use vending machines. In the United States, beverages are sold by the pallet via warehouse stores. In India, this is not an option. Placement decisions must also consider the productâ??s position in the market place. For example, a high-end product would not want to be distributed via a â??dollar storeâ? in the United States. Conversely, a product promoted as the low-cost option in France would find limited success in a pricey boutique.

After product research, development and creation, promotion (specifically advertising) is generally the largest line item in a global companyâ??s marketing budget. At this stage of a companyâ??s development, integrated marketing is the goal. The global corporation seeks to reduce costs, minimize redundancies in personnel and work, maximize speed of implementation, and to speak with one voice. If the goal of a global company is to send the same message world wide, then delivering that message in a relevant, engaging, and cost-effective way is the challenge. Effective global advertising techniques do exist. The key is testing advertising ideas using a marketing research system proven to provide results that can be compared across countries. The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized. Market research measures such as flow of attention & flow of motion and branding moments provide insights into what is working in an ad in any country because the measures are based on visual, not verbal, elements of the ad.

Advantages of international marketing

                   Product Issues in International Marketing

Product Need Satisfaction.  We often take for granted the â??obviousâ? need that products seem to fill in our own culture; however, functions served may be very different in othersâ??for example, while cars have a large transportation role in the U.S., they are impractical to drive in Japan, and thus cars there serve more of a role of being a status symbol or providing for individual indulgence.  In the U.S., fast food and instant drinks such as Tang are intended for convenience; elsewhere, they may represent more of a treat.  Thus, it is important to examine through marketing research consumersâ?? true motives, desires, and expectations in buying a product.

The International Product Life Cycle (PLC).  Consumers in different countries differ in the speed with which they adopt new products, in part for economic reasons (fewer Malaysian than American consumers can afford to buy VCRs) and in part because of attitudes toward new products (pharmaceuticals upset the power afforded to traditional faith healers, for example).  Thus, it may be possible, when one market has been saturated, to continue growth in another marketâ??e.g., while somewhere between one third and one half of American homes now contain a computer, the corresponding figures for even Europe and Japan are much lower and thus, many computer manufacturers see greater growth potential there.  Note that expensive capital equipment may also cycle between countriesâ??e.g., airlines in economically developed countries will often buy the newest and most desired aircraft and sell off older ones to their counterparts in developing countries.  While in developed countries, â??three partâ? canning machines that solder on the bottom with lead are unacceptable for health reasons, they have found a market in developing countries.

Branding.  While Americans seem to be comfortable with category specific brands, this is not the case for Asian consumers.  American firms observed that their products would be closely examined by Japanese consumers who could not find a major brand name on the packages, which was required as a sign of quality.  Note that Japanese keiretsus span and use their brand name across multiple industriesâ??e.g., Mitsubishi, among other things, sells food, automobiles, electronics, and heavy construction equipment.

 

PROMOTIONAL ISSUES

Promotional objectives.  Promotional objectives involve the question of what the firm hopes to achieve with a campaignâ??â??increasing profitsâ? is too vague an objective, since this has to be achieved through some intermediate outcome (such as increasing market share, which in turn is achieved by some change in consumers which cause them to buy more).  Some common objectives that firms may hold:

Legal issues.  Countries differ in their regulations of advertising, and some products are banned from advertising on certain media (large supermarket chains are not allowed to advertise on TV in France, for example).  Other forms of promotion may also be banned or regulated.  In some European countries, for example, it is illegal to price discriminate between consumers, and thus coupons are banned and in some, it is illegal to offer products on sale outside a very narrow seasonal and percentage range.

Language issues.  Language is an important element of culture.  It should be realized that regional differences may be subtle.  For example, one word may mean one thing in one Latin American country, but something off-color in another.  It should also be kept in mind that much information is carried in non-verbal communication.  In some cultures, we nod to signify â??yesâ? and shake
our heads to signify â??no;â? in other cultures, the practice is reversed.  Within the context of language:

Writing patterns, or the socially accepted ways of writing, will differs significantly between cultures. 

Pricing Issues in International Marketing

Price can best be defined in ratio terms, giving the equation

resources given upprice  =     â??â??â??â??â??â??â??â??â??â??â??â??â??â??â??                goods received

This implies that there are several ways that the price can be changed:

Reference Prices. Consumers often develop internal reference prices, or expectations about what something should cost, based mostly on their experience. Most drivers with long commutes develop a good feeling of what gasoline should cost, and can tell a bargain or a ripoff.

Reference prices are more likely to be more precise for frequently purchased and highly visible products. Therefore, retailers very often promote soft drinks, since consumers tend to have a good idea of prices and these products are quite visible. The trick, then, is to be more expensive on products where price expectations are muddier.

Marketers often try to influence people’s price perceptions through the use of external reference pricesâ??indicators given to the consumer as to how much something should cost. Examples include:

CULTURE OF INTERNATIONAL MARKETING

Culture is part of the external influences that impact the consumer. That is, culture represents influences that are imposed on the consumer by other individuals.

The definition of culture offered one text is â??That complex whole which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by man person as a member of society.â?Â  From this definition, we make the following observations:

Culture has several important characteristics: 

 (1)  Culture is comprehensive.  This means that all parts must fit together in some logical fashion.  For example, bowing and a strong desire to avoid the loss of face are unified in their manifestation of the importance of respect. 

 (2)  Culture is learned rather than being something we are born with.  We will consider the mechanics of learning later in the course. 

 (3)  Culture is manifested within boundaries of acceptable behavior.  For example, in American society, one cannot show up to class naked, but wearing anything from a suit and tie to shorts and a T-shirt would usually be acceptable.  Failure to behave within the prescribed norms may lead to sanctions, ranging from being hauled off by the police for indecent exposure to being laughed at by others for wearing a suit at the beach.

 (4)  Conscious awareness of cultural standards is limited.  One American spy was intercepted by the Germans during World War II simply because of the way he held his knife and fork while eating. 

(5)  Cultures fall somewhere on a continuum between static and dynamic depending on how quickly they accept change.  For example, American culture has changed a great deal since the 1950s, while the culture of Saudi Arabia has changed much less.

 CONCLUSION

If the exporting departments are becoming successful but the costs of doing business from headquarters plus time differences, language barriers, and cultural ignorance are hindering the companyâ??s competitiveness in the foreign market, then offices could be built in the foreign countries. Sometimes companies buy firms in the foreign countries to take advantage of relationships, storefronts, factories, and personnel already in place. These offices still report to headquarters in the home market but most of the marketing mix decisions are made in the individual countries since that staff is the most knowledgeable about the target markets. Local product development is based on the needs of local customers. These marketers are considered polycentric because they acknowledge that each market/country has different needs.

                                  

 

 

 

 

 

 

 

1.    Why can’t I get a marketing job in an FMCG company?

FMCG companies are the pinnacle of cutting edge marketing. Their brand managers learn a rigorous approach to their marketing from careful and detailed market research, product development and through to mass marketing and advertising. It is certainly a highly skilled discipline where most marketers are generally “grown”.

Job seekers wanting to move into this industry find that they are “locked out” of this opportunity with any of the major international FMCG firms such as Procter & Gamble, Unilever and Heinz.

To get into FMCG, you need to do this as a university graduate; and even here, you would need to be in the top group of your university year.

 

2.    I have 15 years as an accountant/IT programmer/lawyer. Why am I having so many problems getting a job in marketing?

The benefits of a marketing team are not well understood by people from different disciplines. This is certainly apparent from the number of applications we receive from people outside of the marketing and communications disciplines who apply for positions where marketing experience is required.

For someone to move into marketing from another discipline, it is unlikely that any recruitment firm can assist them. They are best leveraging their industry or company experience to get an internal transfer to the marketing team. Taking up some studies in marketing as well does show a sincere interest rather than a fleeting one.

 

3.    What is the difference between marketing and communications?

We define marketing under Kotler’s 4 P’s; which are Product, Price, Place and Promotion. Most industries split their marketing positions into a number of different roles. Product Marketing uses market research and insights, manufacturing and product development as well as pricing. Place (ie: distribution) is often with Trade Marketing, Channel Marketing or even sales. Promotion includes all ways of contacting the target customer ranging from traditional avenues such as advertising and direct marketing through to PR, interactive solutions and events. These roles usually fall under Communications.

Corporate Communications, on the other hand, are less about the product but more about the company as an overall brand. This includes job functions such as PR, crisis management, internal communications.  The diagram below identifies how this fits in the overall scheme of things:

 

4.    What are the pros and cons of interim marketing?

O’Connell Marketing Recruitment are a little biased in this regard. We focus on permanent marketing recruitment as we want to help further the marketing careers and growth of our candidates and provide excellent people for our clients.

Interim marketing, we feel, is a lifestyle choice, but it is not a choice which facilitates growth. You will certainly be very well paid (especially in the Netherlands where hourly and daily rates are extremely high compared to counterparts in the UK). You will have more flexibility of when you work in a good market, however when the economy turns, you are the first to go. Interim marketers of more than 2 years experience are less likely to be “accepted” back into a permanent position as companies are concerned that you will now be too independent and not so easy to manage. Interim roles often do not challenge the freelancer – companies look for people who can just come in and do it – so the learning curves tend to be less. Companies are less interested in investing in your future, due to the limited time you work with them.

 

5.    How can I get an international marketing job?

With the growing centralisation of marketing campaigns and product offerings, there are more and more international and pan-European marketing positions than ever before. English tend to be the common language for this, so you certainly need a business level of English to be considered for any such roles (as well as a track record in large corporations). The more international your experience to date, the more likely that you will be selected for an international position. If you haven’t ever lived and worked outside your home country, you are less likely to be considered for an international position.

The exceptions for this are in the areas of highest demand (see Q 6 for an explanation of this)

 

6.    Which international marketing and communications positions are currently the most in demand?

Before the current economic crisis, internal communications would have been at the top of the list in growth in demand. This is a very specialised market place where potential candidates have a background in perhaps more general communications but have a passion for communicating to an internal audience. These roles are on the growth path as more and more companies are internationalising and need to communicate their direction internationally. Because of the writing element in internal communications positions, there is a strong leaning for native English speakers as they are more likely to also have excellent written skills. During the current economic downturn, however, internal communications positions have been one of the most scarce.

Interactive marketing professionals are currenlty in high demand. Their knowledge and passion for all there is to know about Web 2.0 is highly sought after. It’s not just the skill, however. The ability to fit into a matrix multinational corporation is just as important as well. We have seen young interactive marketers command premium salaries and move quickly in their career.

Public Relations professionals for PR agencies are always in demand. The biggest challenge is that, it doesn’t matter which country the agency is located, they need PR professionals from that country with excellent native written skills. So for Spanish PR professionals in the Netherlands, there is very low demand, but extremely high demand within Spain.

Why this gap? PR Agencies are reluctant to recruit candidates who have not already worked within an agency environment, so immediately narrow their pool of potentials. Candidates coming from agencies want to try “client side” or even set up their own freelance operation to “go it alone”. If you’re in your native country, have excellent writing skills and great personal communication style and want to make a move into a PR agency, you certainly have a chance.

 

7.    Why are their so many international or pan-European marketing positions in the Netherlands?

The international and pan-European positions in the Netherlands certainly stand out from the local positions as they are normally advertised in English. There are probably even more similar positions in the UK, but given that the language there is in Enlgish, both local and pan-European positions are not so distinguished.

The Dutch government give financial incentives to companies to set up businesses in the Netherlands. It is certainly an attractive destination as the workforce is well educated and multi-lingual, English is widely used and the country is centrally located.

The international mindset of the Dutch (“we’re from a heritage of traders”) also creates an environment for international business.

 

8.     What is the difference between B2C and B2B marketing?

B2C or consumer marketing is focussed on the research and promotion of products or services based on population trends (ie: lifestyle or demographic) where as B2B marketing has more definable target markets of companies and businesses.

 

9.    Which companies do marketing and communications people have the most challenging time?

The more a company is focussed on technology or sales, the lower the voice is of marketing.

 

10.    Will an MBA hel
p my career?

Not necessarily. Some companies do require a professional to possess an MBA. However, in recent research conducted by O’Connell Marketing Recruitment, we found that only 23.1% of Chief Marketing Officers had an MBA. A large number of CMO’s only have a Bachelor’s degree.