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International Marketing Theories - Essay Example

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As the world comes closer and markets for products expand, the need for international market becomes strong. International marketing is the process of identifying the needs of the vast number of customers who vary in their culture, tastes, origin, ethnic background, societal values…
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International Marketing Theories

Download file to see previous pages... The theory that is most applicable for companies that produce fast moving consumer goods is Quelch and Hoff who suggest that it is better for companies to achieve economies of scale by concentrating on the total demand of a number of countries; this can help them achieve a higher learning curve through an accumulated experience. Companies like Procter & Gamble have concentrated their detergent production for example in fewer plants thus taking advantage of lower costs because of economies of scale. But, like products many companies can also use a global communication approach by standardizing the product and also the promotion technique at both ends. Same ads can be used to target similar markets, thus economies can be achieved if expensive commercials are used. And we see popular examples like Lux which is truly an international brand name and the same premium position that its focus is. Similarly as products grow in their life cycle national brands also go global. These global brands capture the global customers as its market in the sense that it really sees the customers similarity and wipe out any differences that it may see to target then with a single stick. ...Download file to see next pagesRead More
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