Reasons For International Marketing – Market Dimension
An additional dimension of international marketing management is that of multinational marketing management. This is essentially the problem of coordination and integration of the firms many national marketing programs into an effective multinational programs. A defined system of multinational business operations as opposed to the alternatives of independent national companies is preferred in that the division and the transfer of know how in international operations enables the whole to be greater than sum of its parts.
A practice result of these differences is that one needs to acquire competence as an international marketing in a specific foreign country and distinctly different from that demanded by domestic marketing management. The international marketing, foreign marketing and multinational marketing.
- International marketing entails marketing across national boundaries
- Foreign marketing involves marketing within foreign countries
- Multinational marketing is concerned with co-ordaining marketing in multiple markets.
These are the three aspects of international marketing management. It should be forced to be noted, however, that the concerned of the multinational firm is not a broad sturdy of domestic marketing in many nations but only these aspects that affect its own operations.
Reasons For International Marketing Abroad
Despite the demands on the competence sophistication time, money and extra care for a successful business abroad, people have continued to embrace marketing abroad. Reasons that this have been adduced by several authors in this field;
- While a product can be near the end of its life cycle in the domestic a growth market abroad.
- In some products lines competition in foreign markets may be less intense than what is domestically. (of course of sometimes the reserve is true).
- If the firm has excess capacity, it can produce for foreign market at a favourable marginal cost per unit. This favourable cost situation applied whether the foreign prices is a full cost price or an incremental cost price.
- Geographical diversification, (that is going international) may be a more desirable alternative than product line diversification. A notable example of this is coats west Africa Thread Co. Ltd, Lagos. The company still specializes in the production and marketing of a very narrow product line, sewing thread (crown). Coats only diversification efforts have been to expand its market coverage internationally in the West Africans Coast, both in production and marketing. This diversification has been sufficient to keep the company going over the years.
- World markets offer great potentials to markets. For some industrial and consumer goods and services, markets outside the country. Examples are detergents, soaps, plastics, serving materials and medical services.
International Marketing Management
Having examined the environmental variables that are crucial for the management of international marketing, our major task now moves to the management aspect. Knowledge of the environment is essential. But it is not the only capacity that international marketers must possess. They must also know how to manage marketing in those environments.
It is necessary that before considering the challenging task before an international marketing manager, his personality be looked into. What kind of person is needed for this work. This is a difficult question to answer. However, there is a general agreement on a few basic requirements, these are;
- The international marketing manager must known his company, intimately so that decisions made are indeed company’s decision.
- The international marketer must be a skilled marketer able to perform with technical competence.
- The international marketer needs to be sensitive to foreign cultures and acquire an understanding of them. This cultural empathy is necessary in personal and business relationships as well in decision making concerning marketing to those foreign environment.
Beyond these broad requirements though, job specifications, vary from company to company. The following example of advertisement seeking to recruit people for international marketers positions gives us some idea of the peculiar specification.
International Market Manager
- Responsibilities will be to develop short and long term plans, identify and develop new business opportunities. In foreign markets study acquisitions and generally exists with the development of new products and/ or extension of present operations – Spanish, English bilingual.
- Responsibilities will includes executive level decision making supervision of market research, public relations and advertising, and proposal inputs. Responsible for the complete sales and marketing department.
- Responsibilities include developing international market plans and strategies for the new products and program.
- Responsible for the sales of all systems, products and services of the divisions in Latin America, the middle East, Africa, Australia and the Far East. Must be capable of setting up distributor networks, providing sales support, heading in pricing, contracts, advertising and sales promotion.
The above advertisement extracts show some of the range of responsibilities a person may encounter in international marketing. Responsibilities as many according to geographic coverage, number of functions performed and the level in the corporate hierarchy. In some cases too, language skills are desired. The main emphasis in all, however, is on competence in international markets.