- Challenges and benefits that multinational marketing groups represent for international marketers
Multinational marketing groups bring to light dissimilarities in culture, language, partnerships, and legal matters, and each of the challenges must be well addressed to enhance success in multinational marketing (Jaideep 2015). Multinational marketing always engages multiple languages. Language in marketing is more than just words; however, communication across different cultures is challenging, and transnational groups that fail to do the due diligence pose to represent a challenge to international marketers. Legal laws, systems, and regulations differ from one country to another, and this can be a barrier for international groups. Partnerships pose to be another challenge global marketer’s face since multinational groups forming partnerships overseas may have a higher possibility of failing. The outcome may be positive or negative.
Multinational marketing groups can source cheap labor force due to their ability to function in many organizations. They have access to lower tax rates due to their autonomy capacity. Their access to many large markets than the international groups has the opportunity to open up a business anywhere with the potential of benefits returns.
- Free trade area and common market
A free trade area is a region in which a group of nations have signed a free trade arrangement and maintain no or little barriers to trade in the form of quotas or tariffs between each other. On the other hand, a common market refers to a formal agreement where several countries form a group whereby each nation adopts standard external tariffs. The two market options have an impact on the small scale business operation locally since it cannot form a venture.
- Compare the Growth success and potentials of India and China, with the advantages and disadvantages of each.
Generally, China’s commerce is six times bigger than India’s, the contemporary difference being China does the hardware while India does the software. The structure and nature of growth in the two nations in terms of GDP can be investment-driven or consumer-driven. In India, the investment share of GDP is higher than the average level of the industrialized world, while China, the investment accounts for above 40 % of GDP. China seems not to be developing quickly as India? India has made a more advanced step in investing in business education and technology through internal sources, while China has undertaken the practice in the Chinese tradition. India put more emphasis on technology, though most of the industries are still old-fashioned the existence of cheap labor compensates for the system inefficiency (B2B International 2020). China, on the other hand, has a more holistic plan that suits the social and philosophical tradition of the country. China has a central focus on being the best, investing in industries, export market, and involves partnerships to have an effective marketing strategy. However, the downturn in the export market may affect China. India has the disadvantage of the fact that it has to deal with bureaucracy for it to thrive in the near future, and the heavy reliance on cheap labor may be an undermining factor when the labor sector rules shift.
- How is China’s marketing strategies abroad similar to and different from those of Americans firms
China’s marketing strategy is similar to those of American firms since it relies on the importation of goods to attain returns, while the significant difference is that partnership is a substantial venture for the nation and relies on the export of produced goods. China has a growth strategy that relies more on trading rather than domestic demand (National Research Council et al. 2010).
- Discuss the benefits to MNC of accepting the global market concept. Explain the three points that define a global approach to international marketing
The chief aim of multinational organizations is the discipline imposed by enterprise procedures. Companies plan with an outline for studying marketing prospects and issues as the base for information synchronization. The process of MNC is essential and must put the company’s resources and objectives into consideration. The second point to consider is the readiness to new levels of financial commitment, human resources, and determination to remain in the market to ensure investments return. The third point is the significance of planning towards the end of success. Thus, economies of scale in marketing, firm goals, objectives, resources, and personnel define a global approach to international marketing.
- Why do companies change their organizations when they go from being an international to a global company?
Companies opt to assume a global perspective since the shift meets new competition, thus the need to restructure and re-organize their management and planning organization. The global competition calls for effective product quality design to meet the varying consumer demands globally, and acquire new strategies to fit in the modern marketing level.
- Discuss product alternatives and the three marketing strategies; domestic market extension, multi-domestic market, and global market strategies.
A marketer has three viable product alternatives when approaching a new market; to sell a product that is presently sold in the same market, to adopt the same products sold in the existing market, or to develop a new standardized product for all exchanges. In a domestic extension strategy, companies extend like products sold effectively in the home country to other parts of the world without any alterations. In a multi-domestic market strategy, companies adopt new approaches to sell the same products and cater to consumer needs in different nations. In the global market, strategy companies adopt standardized products for all markets globally.
- Characteristics of an innovation accounting for different diffusion rates
Pennings (2012, discusses characteristics of an innovation where differential diffusion can occur as follow. Relative advantage- the benefits and advantages accrued from adopting a change. The relative potential of the innovation counts before adoption
Compatibility- how suitable the innovation fits into a companies or person’s needs or current system. A change that is likely to be compatible with one’s lifestyle or the company is likely to be assimilated.
Complexity- the level of challenges the adopter is facing with the innovation, the more complex or more challenging the innovation, the less likely the innovation to be adopted.
- Discuss stages of the Evolution process in the marketing process with a particular country for each stage
The initial stage is the birth of marketing- the stage involved mass production of goods in the 20th century and shifting goods in a bulky way; hence marketing came to existence to move goods along. The sales era involves the stage where the salesmen came to existence; men would actively pursue sales and communicate with customers to purchase the products even if they did not want to purchase it. The marketing era, selling of goods that the customers wanted, came to be an option for any company rather than communicating to customers to buy pointless goods. The relationship marketing stage occurred during the 1990s when the salesmen began to take value in some sales, altering their sales strategy from one product only to establishing a relationship between the consumers and company. It is during this stage that customer’s comments began valued. The societal marketing stage is the stage where the customer’s desires were put at the core of companies’ campaigns, establishing ultimate customer-focused approaches. The final step is the digital marketing era, the current state formed due to technological influence, and the use of the internet paved the way for small enterprises to thrive.
- Why international marketing research generally broader than domestic research
The scope and breadth of international marketing research are broader since it is management whereby the marketing firms set principles on how to market the goods to other nations. It calls for a standardized global strategy to international markets and focuses on similarity in consumers and segments. The department has to gather all necessary information such as the political stability of a nation, taxation rates, cultural attributes, and geographical factors, thus covering a broader scope than domestic market research.
- Differentiate between the private and family ownership and decentralized and a committee decision making
Private ownership refers to the scenario when a company or property is owned by a group of persons or organizations that are not part of the governing body of the nation. Family ownership refers to a business, organization, or property is owned by one or few families; the majority of the possession lies within the family.
In decentralized decision making subordinates have the power to contribute to individual choices with higher rank management, thus making the most critical decisions. Committee decision refers to decisions made by a distinct group of members with endorsement by a group.
- Discuss three cultural change strategies a foreign marketer can pursue cultural congruence strategy, which involves marketing products that are similar to the one in the existing market, to lessen resistance. For instance, Windows invented a tablet that is closely similar to IPad but has more innovations to compete against the IPad. The foreign marketer can opt to use the unplanned change strategy when a new product is introduced to the market, hoping for consumer acceptance since no other product is similar to it. For instance, when the first computer was invented, no other machines existed to compare with it. Finally, a foreigner can adopt a planned change strategy, where a new product is developed to overcome some cultural aspects of resistance.
References
B2B International. (2020, February 5). The growth debate – China & India | B2B international. https://www.b2binternational.com/publications/growth-china-india-research/
Pennings, A. J. (2012, October 23). Diffusion and the five characteristics of innovation adoption : Anthony J. Pennings, PhD. Anthony J. Pennings, PhD. https://apennings.com/characteristics-of-digital-media/diffusion-and-the-five-characteristics-of-innovation-adoption/
National Research Council, Policy and Global Affairs, Board on Science; Technology; and Economic Policy, & Committee on the Competitiveness and Workforce Needs of U.S. Industry. (2010). The dragon and the elephant: Understanding the development of innovation capacity in China and India: Summary of a conference. National Academies Press.
Jaideep, S. (2015, April 15). Top 9 problems faced by international marketing. Your Article Library. https://www.yourarticlelibrary.com/marketing/top-9-problems-faced-by-international-marketing/48739