Презентации 1, 2 и 4 тем / International marketing

“International marketing” (unit 2 presentation) Grigoriev Anton, 366group

Global integration is approaching now and going to rock domestic markets, because CEOs of successful companies want to live in Hollywood, so companies try to sell their goods not only in domestic market and to occupy larger market niche – and finally increase their profit. All companies try to extend and it means a hard competition between them.

To outrun competitors you should enter the foreign market with suitable good (first), with relevant information about the market (second) and long-term strategy (3^rd). Some companies standardize a product everywhere: this way is cheap but product doesn’t fit to local tastes. Some firms customize a product to every market: in this case product corresponds buying habits of each country but this way is very expensive. And sometimes companies compromise and settle in the middle.

And as I’ve said, before a choice of strategy, company should learn about new market as much as possible. I know three different variants: Japanese, US and German ways. Japanese companies believe in getting new products to the market and then gauging the reaction to them. US companies use a product development reference to observations of present and potential customers. And German firms use product development schedules.

Some companies spend a lot of money on global research laboratories that develop products for different national markets and look at the possibilities of melding product ideas. New technologies could be very useful: for example, Internet accelerates the process of mining all markets to relevant information and Intranet unites affords of different labs.

Sometimes companies face to some problems. Some countries have big tariffs and quotas on exporting goods. It makes a trade unprofitable for international companies in this country.

Also consumer tastes and traditions are very different in different countries and product which has the best sales in one country can be dead in others. For example, company Gerber was providing a food for babies to Africa and there was the logotype on the label – smiling baby. But sales were very-very low. It was a surprise, then company Gerber knew that most of Africans can’t read English and it was a tradition to put an image of main ingredient on a label.

Also some international brands are associated with some countries and people who don’t like that country wouldn’t buy its product.