Standardization of Offerings and Marketing Interactions in International Marketing Strategy - Essay Example

? Table of Contents Introduction 3 Socializing 3 Globalization 4 Competition 5 Marketing 6 Human Resource 8 Conclusion 9 References 11 Introduction In this globalizing world the competition is not limited to one state or country it has gone global as companies operate internationally in different countries and economies tackling all the economic challenges that they face in order to achieve their goals and visions. The globalization of the world has though created much of an ease but alongside has given many of the challenges of intense nature. Operating in different economies and different situations companies realized that when they standardize their offerings and their marketing interactions there is a high probability of high performance inevitably. The standardization of the marketing interaction sets a bench mark upon the company by the company itself as it will market in a standardized and planned manner irrespective of the economic conditions prevailing in different markets. The offers that the company make to the customers should be globally available to all of the customers around the world. This will set standard for the company as to operate with more efficiency as the target market that they are covering does not restricts to a single economic conditions but the company will be operating internationally and thus will have to perform accordingly. Companies when operating internationally are competing internationally at the same time. Companies faces much intense and severe competition when operating internationally as the quantity of competitors increase and so do the level of competition. Standardizing the offerings and marketing interactions strengthens the brand around the world and thus enforces a self-level of standardization so as to maintain the company image and brand worth. World is now a global village. The businesses operates around the globe. Multinational way of operation is encouraged and almost every business is aiming to go global. When the business is multinational it faces many things. The diversified market, customers, products, laws and regulations, work force and many more (Hamilton & Wood, 2009). Due to this globalization, one of the major factor is the diversified labor that is available to the businesses. Socializing The world is going global with intervention and advancement of technology. Technology has removed many of the barriers and economic boundaries thus enabling companies to operate internationally. Consumers and potential customers are easy to reach. Access to different parts of the world is possible with much ease. In this modern era the scope of the business is limitless as there are a range of opportunities for the businesses to avail and in order to fully utilize the resources the businesses need to be socially active so as to determine the possibilities and opportunities on timely basis and get advantage out of them. There are many platforms where a business can publicize and advertise on the social networks provided by the technology. Social interactions is essential so as to remove the barriers and make the new possibilities utilizable in a sense that benefits the most. The social networking of a business is crucial for its growth as it creates the brand worth and highlights and make people aware of its products hence providing an effective source of marketing (Holden, 2004). Social media is transforming the way business is carried out. A recent study by the Internet Advertising Bureau UK found that nearly 80% of consumers would be more inclined to buy more often in the future because of a brand's presence on social media. Social media is one of the major source to market every kind of product. Companies make websites and share their links on social networking websites so as to make their advertising more effective and beneficial. The social websites has millions of users and hence millions of potential customers for the businesses which advertise their products on those websites. It is the advancement of the technology that made social networking much easy and thus created many opportunities so as to benefit from them by using them effectively. Globalization Globalization has impacted the operations of the companies to such extent that companies faces much intense competition and thus operate in accordance to the level of competition and enhances their operations. The easy access to the markets of the world have made it much more beneficial for the companies to operate effectively in different economies, but on the other hand enhanced the level of competition that they faces. The operations of a company is not limited to a single economy but companies now expand their operations to the global level and try to reach every corner of the world. Although the possibility for the companies to operate in every economy of the world is low but man has achieved it and those who have not achieved it yet are on the way to do so as they have reached potential customers and can provide their products. The limitation of the resources have restricted the companies to operate globally but in many cases the restrictions have been tackled and overcame as there are much examples of the companies that are operating internationally such as Coca Cola, Toyota, Dell, Microsoft, IBM, PepsiCo, etc. When the company expands its operations and access the global market it needs to focus upon many important factors that can be beneficial for the company (Kotabe & Helsen, 2010). The company has created a brand worth and has its recognition at a particular place and it needs to carry it towards the global markets. The market conditions in differ in the different parts of the world (Alden, et al., 1999). Technology has no doubt made the access to the international markets easy but to capture the market and gain recognition in different markets is up to the company and its brand. Companies realize their worth through their brands and thus approach to the potential customers with much of brand value. The brand value of the company is of utmost important for the company and each company needs to focus on empowering their brand so as to get global recognition. In empowering the brand, companies try to achieve more than their potential and thus performance of the companies enhance. There are much examples in which companies achieved high performance when they standardized their offerings and marketing interactions. The Coca Cola Company is the most befitting example of attaining high performance when marketing and offering in international markets. Coca Cola started in United States and went global and now in every corner of the world coke is available. The brand worth and the image of the company enhanced when it went global as when company started competing internationally with every other beverage brand it needed to make its product stronger and better than any other product available in the market and thus the company achieved excellence in its products primarily due to the high performance that it gained by taking its products to a whole new level and competing internationally. Competition The performance of the company is triggered by the intensity of the competition that it faces. If the company is operating in the local region then the intensity of the competition shall not be much as compared with when it is operating internationally. The intensity of the competition determines the performance of the company. Companies are always trying to get the competitive advantage over their competitors by using various means. Marketing strategies, price wars and many more strategies are adopted by the companies when they face competition and in the desire to achieve competitive advantage over other and to outrun their competitors companies depend mainly upon their performance. It is the performance of the company that leads the competition and take the company to the next level. When companies operate globally the market expands and companies has to face many competing products which include the local products and the international products. The Coca Cola Company faces competition in United States with the local beverages such as Dr. Pepper and on the other hand it faces a fierce competition with Pepsi Co. which is operating internationally. The competition level of the company tends to enhance the performance of the company when the company is trying to compete with huge competitors it will compete and survive only when the company’s performance is enhanced. When companies move toward globalization they need to market their products to the whole world and tends create value of their brand. The company is known by its products and quality of their products. When the company starts its operations globally then it need to expand its operations and thus in order to maintain the quality needs to perform better so as to achieve maximum market around the globe (Mooij, 2000). The offerings that company make to the customers can differ from economy to economy but the main standard of the company shall hurdle from it as the market will be segmented according to the product range and thus management of the company shall only be satisfying the segment demands and shall not seek any improvement unless the standard is set. When company offer same to all of its international market then it should provide same quality product to the international market and the market is expanded and is not restricted or limited by the product range. When the market expands the performance of the company is mainly targeted as it is the performance of the company that shall lead to the products providing quality and covering the market. When the market expands the intensity of the competition increases as there are much more competitors competing in the international market as compared to the competitors competing in the local market. Standardization of the offerings will increase the performance of the company automatically as if when the performance is not enhanced the company shall not be able to survive. Globalization has brought the world together. But there are different economies which are accessible. Every economy has its currency and so when trading in different economies the exchange rate difference occurs. The cheaper source looking organization will go the under developed countries and make their production units there as the property will be of low value and their environmental laws will not be that much strict (Sheth & Parvatiyar, 2001). But to maintain its global recognition it has to maintain its environmental standards. It will hire labor from there as it would be cheap. The exchange rate difference make the source cheap as the currency of under developed countries is depreciated as compared to those of the developed countries. Marketing The marketing for the companies that are operating at the global level is intense as they are focusing on much more items as compared with the marketing in the local market. Marketing at an international level is intense and required much experience and demands the enhancement of performance as if not provided then the marketing will fail and shall ultimately lead to the failure of the product. The marketing of the product is crucial as it is the marketing that creates the image of the product and raises the demand of the product in the market and when it is done at an international level it becomes more important as now the market is huge and the customers are much increased and are of different nature. Identifying the customers in market is of utmost important as these will be targeted when marketing is done and carried upon. After the indemnification of the customers the company shall seek to depict and covey its product to the customer. When the customers are of wide variety then the company shall need to make their product satisfy every the need of the customer and thus they will create the demand of the company’s product (Wang et al., 2013). Marketing is a complex task of utmost importance to the company and for its products. Marketing plays a vital role for the success of the product and for the progress of the company. International marketing is much more complex and more important as in it the product in marketed on the international market. When companies go beyond its economic boundaries the perspective is wide and so do the customer range and the market perceptions. International marketing focused upon understanding the phenomenon and the culture of the new market and how it will impact the operations and the products of the company. The study of the economic conditions that shall be prevailing in the market and how the company shall be able to tackle those challenges that the new market has to offer is analyzed under international marketing. It the utmost important source in deciding where and when the product should be placed in the market and how the product shall be able to survive in the market. It elaborates the opportunities that will be available to the company and the threats that the company needs to shield. Giving a detailed information about the markets around the globe in which different economic conditions prevail and combining and presenting it and reporting to the required authority is a tough job. When international marketing is done the performance of the company increase as the complexity of the international market requires and demands high performers (Levitt, 1983). The company that is operating in the international market or is about to go in the international market then the management of the company should be highly capable of handling the operation of the company in the international level. Marketing interactions that the company offer can be different in different economies when the company is operating internationally. The needs of the customers can be different in different part of the world and thus same product can be used to satisfy different needs of customers in different parts of the world. the utilization of the product changes in different economies and people perceive the same product differently thus it is the role of marketing that gives the detailed information regarding the perception of the customers and how the perception can be changed or utilized by the company in an effective manner (Cova, 2005). For example, The Coca Cola Company recently entered the market of Africa and they made changes in the quantity of their drink according to the requirement and perception of the people there. Africa is underdeveloped and people there are hardly able to fulfill their necessity needs, they would prefer to have water over a bottle of coke and thus focusing upon the perception of the people of Africa The Coca Cola Company introduced small bottles there as it was of less price so people would be able to buy their product. Whereas in United States peoples’ perception to Coke is entirely different and being the developed economy people could easily afford the product and thus The Coca Cola Company has introduced Coke in many size ranging from 200 ml to 2.25 liters. Nokia, for example, operates in the whole world. It uses its labor from china and other developing countries as the labor is cheap and implement its quality standards and make the products. Thus reducing cost to its minimum level. Then it launches it product in the different parts of the world. In every economy its product’s perception if different. Nokia Lumia, for example, is used as an everyday product in developed economies such as USA, Europe and England, but in under developed economies it is uses as a luxury product such as Bangladesh, Nepal, and Pakistan. To sustain the global presence Nokia has to fulfil the demands of its wide diversified consumers. Nokia produces each type of phones which fulfill the need of its consumers, who ranges from the lower class to the top class businessmen of the world. As the consumers are differentiated so is the marketing technique. The targeted consumers are marketed according to their need (Nokia, 2013). Human Resource When going international the marketing techniques that are required and needed are of such nature that only the qualified and expert human resource can only provide the required information and analysis. The human resource is thus proved to be the most valuable resource for the company. The increasing phenomenon of international economy, market and globalization has not only removed the trade barriers but also the national and cultural barriers that has allowed the free movement of the individuals along with the multinational organizations to the regions different than that of their own. Therefore diversified workforce has become a critical issue for the organizations. In considering performance of the company human resource is one of the highly affecting factor that determines the performance of the company (Parry & Tyson, 2008). In operating global there is a wide availability of human resource that is much diversified as workers from all around the world is available for the company to hire especially from the economies from where the segments of the businesses are. In order to standardize the offerings of the company the human resource must be trained accordingly so the service that they provide and the products that are produced are up to the international standards and there shall be no difference between the products that are produced in one economy by the company and that produced in other economy. Thus better the human resource better the performance of the company and when the company in operating internationally then the human resource is trained with global standards and thus will benefit the company in terms of improving the performance of the overall company. Conclusion The standardization of the offerings and marketing interactions is the priority of the companies that are operating internationally as they have the vision of recognizing and strengthening of their brand and company image. The international market is competitive and fierce competition is faced by companies where they compete on national and international level. The quantity of competitors and the intensity of the competition inevitably required the enhancement of the performance of the company. The demand of operating international is of high performance as the operations gets complex and maintaining the international operational level along with the image of the company it is required to perform at high level so as to compete. The intensity of the competition along with the globalization of companies offers diversity of market, customers and workforce which is beneficial only when properly utilized and the companies that offer standardization hence are capable enough to realize the resource potential and hence increase their performance. References Top of Form Top of Form Bottom of Form Top of Form Top of Form Top of Form Top of Form Top of Form Top of Form Top of Form Top of Form Bottom of Form ALDEN, D. L., STEENKAMP, J.-B. E. M., & BATRA, R. 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