International Business Management
Q.5 Discuss the international marketing strategies. How is it different from domestic marketing strategies?
Ans:- International marketing can be defined as marketing of goods and services outside the firm’s home country. International marketing has the following two forms of marketing: •
Multinational marketing.
Global marketing.
Multinational marketing is very complex as a firm engages in marketing operations in many countries. In multinational marketing, a firm visualises different countries as one market and build their brand or service according to the business environment of the foreign countries. Global marketing indicates the integrated and coordinated marketing activities across many different markets. Taking into account the various conditions on which markets vary and depend, appropriate marketing strategies should be devised and adopted. Like, some countries prevent foreign firms from entering into its market space through protective legislation. Protectionism on the long run results in inefficiency of local firms as it is inept towards competition from foreign firms and other technological advancements. It also increases the living costs and protects inefficient domestic firms. The decision of a firm to compete internationally is strategic; it will have an effect on the firm, including its management and operations locally. The decision of a firm to compete in foreign markets has many reasons. Some firms go abroad as the result of potential opportunities to exploit the market and to grow globally. And for some it is a policy driven decision to globalise and to take advantage by pressurising competitors.
1. Segmentation
Firms that serve global markets can be segregated into several clusters based on their similarities. Each such cluster is termed as a segment. Segmentation helps the firms to serve the markets in an improved way. Markets can be segmented into nine categories, but the most common method of segmentation is on the basis of
Ans:- International marketing can be defined as marketing of goods and services outside the firm’s home country. International marketing has the following two forms of marketing: •
Multinational marketing.
Global marketing.
Multinational marketing is very complex as a firm engages in marketing operations in many countries. In multinational marketing, a firm visualises different countries as one market and build their brand or service according to the business environment of the foreign countries. Global marketing indicates the integrated and coordinated marketing activities across many different markets. Taking into account the various conditions on which markets vary and depend, appropriate marketing strategies should be devised and adopted. Like, some countries prevent foreign firms from entering into its market space through protective legislation. Protectionism on the long run results in inefficiency of local firms as it is inept towards competition from foreign firms and other technological advancements. It also increases the living costs and protects inefficient domestic firms. The decision of a firm to compete internationally is strategic; it will have an effect on the firm, including its management and operations locally. The decision of a firm to compete in foreign markets has many reasons. Some firms go abroad as the result of potential opportunities to exploit the market and to grow globally. And for some it is a policy driven decision to globalise and to take advantage by pressurising competitors.
1. Segmentation
Firms that serve global markets can be segregated into several clusters based on their similarities. Each such cluster is termed as a segment. Segmentation helps the firms to serve the markets in an improved way. Markets can be segmented into nine categories, but the most common method of segmentation is on the basis of