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International Marketing - Essay Example

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Summary
This research will begin with the statement that there is a large extent of attraction of developed markets for such brands of emerging markets. The paper then analyses the reasons behind the attraction of developed markets for the brands of emerging markets as well as emerging countries…
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International Marketing

Download file to see previous pages... This essay discusses that successful saturated penetration of a brand in the domestic market always motivates the brand to look forward to the international market. Current picture of global market shows two types of international expansion of successful domestic brands of any country in the World. Marketers from developed countries are looking forward to the emerging markets like India, China, South Korea, South Africa etc and seeking opportunities to expand their business operation there. Brands from emerging markets are trying to step forward to the developed countries like USA, Japan etc to start their business operation there. If we take the example of well known brands such as Samsung and LG, they started business in emerging market and successfully penetrated on the domestic market of South Korea and after that diversified globally in to the developed market like USA and as well as emerging markets like India and China. Indian successful brands like Tata, Bharti Airtel, Lenevo, and Kohinur have achieved some level of success in the global market specially developed markets. Globalisation of any country has opened the door for the domestic Players to diversify in the foreign market and welcome the foreign players to start operation in that country. Earlier, the production giants of developed countries started diversification in the emerging markets of developing countries for low-cost skilled labour, low operation cost, and enough resources i.e. raw materials. US companies like General Electric started operation in China and Coca-Cola started in India and they became successful in these emerging market. Similarly, the evidence of reverse case also there like Tata Steel diversified to Europe and acquired Corus, the so called leading steel giant (Breslin, 2003, p.13-18). Market Selection vs. Market Attractiveness There are plenty of theory and model to analyse the international market selection. Market attractiveness is a measurement scale which qualitatively measures a market for the demand of a particular product or brand. It always catalyses the market selection process towards a global market. Mostly applicable and effective theory of market selection is PESTLE analysis. It says that business environment of any country depends upon its six major components. These are Political: It represents how the government represents the economy and a certain business i.e. the way of representing and the extent. Political factor of a country represented by certain areas like taxation policy, labour law, trade restrictions, tariffs and govt. stability. So, market attractiveness towards foreign investors will be high if the entire areas of political environment are business-friendly. Economical: Economical factors are influenced and comprised by the economy of a country, and the World economy. These ...Download file to see next pagesRead More
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