Targets of PR and Marketing in international business.

International marketing is the application of marketing principles in more than one country, by companies overseas or across national borders. International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to marketing identification, targeting, and decisions internationally.

 

According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives."

 

It can be difficult for a small or medium-sized corporation to build an international marketing plan, because they generally don’t have the experience or budget to launch the campaign. By partnering with another group or hiring marketing experts with knowledge of foreign markets, smaller companies can build their cultural research and implement more successful campaigns.

 

Whether a company chooses to partner with another foreign agency or hire an inside international marketing representative, the most important in building a successful international marketing campaign is the research they conduct. Research will inform the company's marketing mission as they proceed, allowing them to maximize their potential in new markets.

 

Once research is completed and a market is chosen, experts should examine and modify a brand's marketing strategy so that it fits their target demographics. Hiring representatives from the country will help to ensure that all cultural differences are handled appropriately and with sensitivity.

 

For an emerging international brand, establishing partnerships and networking with other companies in the country are essential for success. Partners within a target market help new companies establish themselves in markets where they would otherwise have gone unnoticed.

 

Finally, it is important to review an international marketing strategy on a quarterly basis. Even if a company sends representatives to travel to the foreign market, it is much more difficult to keep a finger on the pulse of an overseas marketing campaign. This means that results need to be tracked extremely closely, and tweaks should be made regularly to help a product gain the appropriate foothold for success.

 

Companies operating in international markets function in a highly competitive environment and require strategies that differentiate their products and enhance their perceived value, while reducing production costs. Traditionally, many such companies have confined much of their value adding activities to their home countries.

Alternatively, they may duplicate some value chain activities such as production and sales and service in individual countries. Companies operating internationally face conflicting pressures. They need to offer their product at competitive prices, and at the same time, tailor it to suit local needs. To bring down prices, they may be forced to standardize the product and operate from a single location.

Customization of products to suit local preferences does not allow for standardization or location of the manufacturing unit in just one region. Customization raises a firm's operating costs. To cater to specific and special needs of local customers, the firm may have to set up similar facilities in several countries and modify product features.

 

Pressures from local competition for customization and price competition from international competitors with low-cost production bases pose a challenge to international companies. These companies have to choose between standardizing products, manufacturing at a low-cost location and passing the cost advantage to customers, and setting up plants in different countries for customizing products, regardless of the high costs that may be involved.

Such companies have to frame a strategy that strikes a balance between these conflicting demands. For example, when choosing a location, they have to consider various aspects like labor costs, tax rates, infrastructure, distribution systems, patent laws, suppliers and government support. They should also identify the extent to which customers are willing to pay for customization.

International Business and International Marketing discusses these and other similar challenges that arise when a company attempts to go beyond its home markets and compete globally.