Economics of International Marketing
|✅ Paper Type: Free Essay||✅ Subject: Marketing|
|✅ Wordcount: 1997 words||✅ Published: 1st Dec 2017|
- Gibbie Yapsen Handadilla (DBM)Student ID : 1409012060
- Brian Junaldo Honoris (DBM)Student ID : 1409012075
We make this report in order to do a deep research on global marketing and understanding on the importance of international marketing
We would like to thank EASB for letting us to write this report and also Ms. Roszana for guiding and teaching us through this module and this report. Without their help, we may not reach this point.
Global marketing refers to marketing activities coordinated and integrated across multiple country markets. (Jonny K. Johansson 2000)
International marketing often used in some big companies. International marketing itself has big impact on world’s economy. In this assessment, our aim is to critically analyze on economics of international marketing.
Questions to be answered
There are 4 (four) questions that we will discuss on this report
- Evolution to International Marketing
- Elements of International Marketing
- Advantages and Disadvantages of International Marketing
- Economics of International Trade
Evolution to International Marketing
Because of today’s globalization, international marketing has become really popular. There are many changes or we can say evolution within companies around the world and also in international marketing. There are some stages in international marketing for those who are globalizing.
- Domestic Marketing
As we can see from the word domestic which means inside a particular country. At this stage, companies’ marketing scope is only within one country. Usually, companies at this stage are only influencing local markets. They usually seldom to pay attention in the world’s market change or other foreign market competition.
- International Marketing
From the domestic stage, evolve to the next stage which is international marketing. International marketing is almost the same with the domestic marketing. At this stage, companies have their factory to manufacture product in their own country but they focus their marketing into some particular countries. For example, F&N beverage manufacturer from Singapore, the manufacturing happens in Singapore but their market isn’t only in Singapore but in other countries such as Indonesia, Malaysia, Thailand, etc.
- Global Marketing
There are only few companies which get to this level. At this stage, the marketing scope is much bigger than international marketing stage. The reason is that in global marketing, companies have their manufacturers spread all around the world, that’s why it is called “global”.
Elements of International Marketing
The elements of global marketing is what they called marketing mix. Marketing mix is about 4 P’s, product, price, place, and promotion. The next following paragraphs are about 4 P’s and the definition.
First of all, product is usually what comes in mind to companies. Without product, the others are not going to follow. Companies are needed to make products which satisfy the customers’ needs. For example, many beverage companies are competing in satisfying their customers by producing new products which their customers’ needed.
Secondly, pricing is needed as the second 4 P’s. Price is always affected by the demands in every market. With good pricing, the attraction from the products will attract customers. That’s why pricing is one important element in international marketing.
Next, locating the right place to sell the products is so much important. One cannot sell something expensive in a poor country. So one needs to locate the right place to sell the right product as well. By evaluating the customers demand of a particular place then place the product there.
Finally, promotion is the last thing to make it succeed. After we manufacture the product, give the right price, place it in the right market, promoting the product is needed to let people know that one already starting to sell the product. Of course, with the correct promotion will get you bigger attraction from the customers.
To sum up, there are 4 elements of international marketing and they are product, price, place, and promotion. Each of the elements support the others. So, in order to succeed in international marketing, these elements are needed as the base of it.
Advantages and Disadvantages of International Marketing
International marketing is the process of overseas advertising of the products that a company sells. International marketing provides a host of benefits to a business, from helping to broaden the customer base to improving the reputation of the brand. Understanding these advantages can help businesses of all sizes to plan their international sales strategies and to focus their customer service efforts.
The first advantage of international marketing will be brand reputation. By doing international marketing, a company can get brand reputation which depends on the company’s product. If the company can sell good products around the world, the brand reputation will arise, and people will recognize it more.
The next one will be market expansion. It is the most obvious advantage because company who does international marketing will expand their market scope from local to international. With market expansion, company may know well about other people demands and can evaluate other competitors so they can improve the products and learn more.
The last one is global networking. Just like before, by going to the global market, company can know new customers and new demands which can be used to improve the products.
The first one will be the cultures. Different cultures can be a problem for some local companies which are new to global markets. They need to adjust the culture with others. For example, instant food company. They cannot sell pork flavored-food to host country which mainly are Muslim.
The next disadvantage is the government law. For some countries which have a strict law, companies may find difficulties when trying to sell their products there. Some country banned Marijuana, but some other country allow Marijuana to be in market. That will be one example for companies to sell marijuana in some strict countries.
Lastly is marketing mix. Company might have to develop a totally different marketing mix for its product in host country than in home country which will incur cost. Which means in home country will incur cost for host country. Like host country will get tax for import goods from home country.
Economics of International Trade
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent centuries. It is the presupposition of international trade that a sufficient level of geopolitical peace and stability are prevailing in order to allow for the peaceful exchange of trade and commerce to take place between nations.
Trade is not a modern invention. International trade today is not qualitatively different from the exchange of goods and services that people have been conducting for thousands of years.
Before the widespread adoption of currency, people exchanged goods and some services through bartering or trading a certain quantity of one good or service for another good or service with the same estimated value. With the emergence of money, the exchange of goods and services became more efficient.
Developments in transportation and communication revolutionized economic exchange, not only increasing its volume but also widening its geographical range. As trade expanded in geographic scope, diversity, and quantity, the channels of trade also became more complex.
International trade today differs from economic exchange conducted centuries ago in its speed, volume, geographic reach, complexity, and diversity. However, it has been going on for centuries, and its fundamental character–the exchange of goods and services for other goods and services or for money remains unchanged.
In doing international marketing, we must care about the elements of the international marketing first, especially for business managers or professionals. Learn about the pros and cons so that one can make decision rightfully.
To sum up everything, there are a lot of points in this report. There has been a lot of evolution through international marketing. There are also some important elements in international marketing as well as the advantages and disadvantages that we may get from international marketing. Therefore, as an international business professional, we have to examine everything first and then we can make a good decision.
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