Multinational Marketing Involvement – Nigerian Market
One of the international marketing manager’s tasks is designing marketing programmes. Another and probably the most distinguishing is the coordination and integration of all these national programmes into an effective, synergistic, multinational marketing activities. Realising that the multinational firm is not just a collection of national companies management may not be satisfied with only good marketing programmes in each market.
Management should seek the synergistic advantage and economies of scale through its international marketing. These would increase its profitability and strengthen its competitive position in foreign markets. The complementary nature of foreign marketing international and marketing cannot be ignored, though they are quite different in nature. The first can be likened to the performance of traditional marketing management job though complimented by having to performed in many national environments. International marketing management is more of an organisational task. A successful firm needs good performance in both area though differently skills are needed in each area. Terpstra draws a clear line between foreign and international marketing thus.
There is critical different between carrying a foreign marketing (through such a subsidiary) and bring an international marketer. The difference is critical to both the country where the investment is made and the company making the investment. The host country gains little if the contribution of the foreign firm is only an initial inflow of capital, which gradually offset by the inflow of dividends. Of course, if capital is scarce nationally when the investment is made, foreign money may be welcome first for itself.
In addition to capital however the host country generally desires management and operational contributions, not least of which are in the marketing area for instance, new products or a marketing orientation leading to greater efficiency and consumer satisfaction in short, the foreign intrude would do well to bring in something that is not available locally and this contribution should be continuing in order to justify the firms continued presence as a foreigner.
The host country or concerned group within it want to know in effect, what have you done for me lately? The case below drives home the difference that can be used to drive home the difference between foreign marketing and international marketing.
In the 70’s a Nigerian textile company decided to get into the American market. The executives felt uncertain and inexperienced in this kind of venture, so they decided to buy some American companies to get instant market position and know-how. In the first years of its ownership the only change in the American companies operations was the addition of an America financial man or controlled to the staff.
In this regard, we do not see the Nigerian firm as an international marketer as no marketing functions were being carried on internationally. The only international transfers here were investment naira to America, driving to dividing to Nigeria and perhaps some financial Nigerian headquarters. After a few years, the Nigerian parent company began to add its products to the American product lines and to the transfer of the marketing know how to its subsidiaries only at this time did it become a true international marketer.
The multinational marketing manager coordinates all the company’s international marketing activities in diverse international markets. He is also responsible for coordinating as well as integrating all the national programmes into an effective synergistic activity. This is perhaps his most distinguishing task. The management of multinational cooperation can not be satisfied merely with good marketing programme in each market. Management here seeks the advantage of synergism and economies of scale through its international marketing. These advantages increase its profitability and strengthen its competitive position.