International and Strategic Marketing - Research Paper Example

INTERNATIONAL AND STRATEGIC MARKETING By International and Strategic Marketing Introduction International marketing has already become an indispensable element of daily business routine. Thousands of organizations seek to use the opening globalization opportunities and to expand their business frontiers – here, international marketing research turns into the key to sustained global success. Today, successful international marketing research is the basic source of information for businesses that want to craft effective product promotion strategies and timely respond to global market changes. This information provides the critical basis for effective decision-making in daily operations and makes it possible for every firm to preserve its profitability and competitiveness in a highly turbulent global market environment. However, the relevance and objectivity of marketing information largely depends on how well organizations can craft their international marketing strategies and account for the differences between countries. The more open and welcoming foreign countries become to products and services from all over the world the more urgent is the need for the companies to explore the marketing implications of numerous diverse countries and territories. Culture, religion and language, economic differences and target groups differences influence the quality and effectiveness of the international marketing research: the example of differences between the United States and the United Arab Emirates sheds the light on how international marketing research can work in globalized business conditions. International marketing research and global implications for business That international marketing research is changing under the pressure of globalization and rapid integration of markets is hard to deny. Since the middle of the 1960s, numerous companies sought to enter international markets and to establish themselves in the areas that had been inaccessible to them before. The slow pace of business growth in domestic markets led firms to believe that international market and product positioning would give them a form of competitive advantage over domestic firms; as a result, they tried to define what markets were worth being entered and what they had to do to adapt to the new conditions of international business activity (Douglas & Craig 1989). Today, the integration of international markets into a complex system of global business relationships goes in line with the growing diversity of product and service attitudes. The removal of barriers under the influence of globalization and increased consumer mobility require that companies can successfully integrate various marketing strategies across several different countries and adjust their global strategic solutions to the specific needs and requirements of international consumers. In this sense, international marketing research is expected to shed the light on how geographical, cultural, economic and social differences work in the global marketing contexts and what directions firms must choose to meet their international marketing goals and objectives. Going global: International marketing research through the prism of countries To begin with, international marketing research is usually defined as “market research conducted either simultaneously or sequentially to facilitate marketing decisions in more than one country” (Kumar 2000). The process of international marketing research requires that companies study numerous market characteristics, including culture, language, climate, and economic conditions, and use this information to develop effective international marketing strategies and take relevant marketing decisions. Here, the two most important aspects become obvious: on the one hand, international marketing research must concentrate on the most important aspects of product promotion and study the differences between the host and the target markets, to help firms produce and market the product that meets specific target customer needs; on the other hand, the international marketing research itself must be conducted and take place in conditions that account for these differences and make it possible for marketing researchers to explore in-depth attitudes of potential customers toward the future product. Here, the following aspects and differences are of the major importance: culture, climate and race, religion, language, and economic differences. These are the elements any international marketing research must explore, to guarantee the success of the product or service in the international markets. The example of the United States and the United Arab Emirates is notable in the sense that UAE is fairly regarded as one of the most attractive market expansion targets in the Middle East. Moreover, the U.S. and UAE display significant cultural and economic differences, which must be taken into account in any international marketing research. Young (2010) is correct in that Muslim consumers in the Middle Eastern countries present huge prospective to businesses around the world, but this potential cannot be successfully realized unless businesses can fully understand and embrace the unique Middle Eastern values. “While there are vast and colorful differences among the populations surveyed, we identified behavioral trends and insights that would be valuable to marketers in developing meaningful relationships with this emerging global constituency” (Young, 2010). As a result, international marketing research in different countries will differ, depending on the degree to which these countries are dissimilar in terms of their culture, religion, climate, geographical position, economic conditions, social prejudices, and target consumer groups. The more differences countries reveal, the more complex the international research will be, to reflect the existing disparities and to anticipate possible complications in the process of promoting products and services in the international markets. Cultural differences are, probably, the first most important aspect of international marketing research and element that produces significant influence on how the international marketing research is being conducted. Here, the evaluation of Hofstede’s cultural criteria will not only help to design a more effective marketing strategy but will also work to enhance the efficiency of the international marketing research. Professionals in marketing research working in the United Arab Emirates will need a good knowledge of the Middle Eastern culture, mentality, traditions, values, and attitudes, to be able to extract and process the most relevant marketing information. It should be mentioned, that UAE is a federation of several Arab monarchies is one of the richest countries in the Middle East. Islam and Muslim traditions exert serious influence on the country’s economic, social, and cultural development. Through the prism of Hofstede’s cultural dimensions, the UAE is characterized as the country with significant power distance scores, collective thinking and commitment to the common goals, high importance of masculinity, low uncertainty avoidance and high context culture (Morato 2008). All these aspects have far reaching suggestion for conducting international marketing research in UAE. First, high power distance means that individuals and groups in UAE cannot run business without being in partnership or being a member of one of the ruling families – age and seniority are valued greatly and require that senior family members receive gifts as the sign of respect (Morato 2008). As a result, individuals and firms that decide to conduct a systematic marketing research in UAE must be prepared to difficulties that may face in trying to reach the senior populations and to understand their attitudes toward a product or service. Moreover, the opinions and attitudes of individuals that do not work in partnership with the ruling families may be of minor importance to the future marketing strategy. Ultimately, that UAE is characterized by high degree of masculinity, researchers may find it difficult to survey and target women in this country – as a result, marketing female products in UAE may become an idea doomed to a serious business failure. The prevalence of high context culture implies that Arabs rely on numerous implicit meanings and use a lot of body language and non-verbal language approaches to express themselves (Morato 2008). As a result, written communication and approaches to marketing research may not be the most effective way to understand the target Middle East market: here, international market researchers will need to rely on personal interviews or focus group solutions, in order to gain better understanding of the UAE markets and consumers. Religion is another area of concern for international marketers. Not only should they understand how religious beliefs in UAE impact product acceptance and attitudes, but align their marketing research strategies with the basic religious principles in the country. Islam produces a marked impact on the state and quality of marketing research, and marketing research approaches must account for the Islamic principles of doing business in UAE. For example, Islamic principles of marketing treat pricing strategies as a convenient way to manipulate human psychology and the price charged for a product or service in UAE is often lower than the one recommended on its price tag or label (Shaw 1996). As a result, those conducting marketing research in UAE must build their questions and inquiries in ways that will help to determine the most desirable price which goes in line with Islamic beliefs about business. Also, marketers in UAE must avoid using misleading information in their marketing research surveys and interviews, because Islamic laws and beliefs prohibit strictly the use of any advertising manipulations and misleading tactics (Niazi 1996). Climate and economic conditions are important considerations in international and marketing research, although they are not as important as religion and culture are. For example, given the climate conditions in the United Arab Emirates, it can be irrelevant and useless to conduct the marketing research in terms of the popularity of heating equipment; however, it would be interesting, useful, and cost-effective to survey the Arab populations in terms of their attitudes to effective air conditioning techniques. When it comes to economics, a detailed understanding of the economic conditions in UAE is required, to ensure that the marketing research is relevant and justified. UAE is an open economy with the highest GDP per capita in the Middle Eastern region and continuous striving to diversify its economic mechanisms. As a result, any marketing research will be a positive and effective activity, if it does not involve any form of manipulation and seeks to offer the Arab population a better way of spending their money. Finally, language is of primary importance for the success of any marketing research activity. “Inappropriate use of language could result in loss of market apart from turning out to be a cross cultural gaffe” (Ricks 1999). As a result, the success of even the simplest marketing research endeavors directly depends on what language marketers choose to use. More often than not, English is used as the universal means of communication between marketers and potential customers. However, statistically, most customers like to buy in their own language and it would be easier for marketers to investigate cultural product attitudes by using local language (DePalma, Sargent & Beninatto 2006). For many nations, including the Middle East, knowledge of the local language is the gateway toward understanding product and service attitudes from within. Given the relevance and importance of the Islamic culture, local language would serve the needs of marketers and, ultimately, result in the development of more effective marketing strategies for the Middle Eastern countries. As a result, international marketing research and the success of the international marketing research strategies are heavily influenced by culture and religion, language, economics, and even climate. International marketers must be prepared to align the principles of their marketing research strategies with the basic principles and beliefs of the target population, to guarantee that the information they obtain in the process of research can serve the strategic needs of the company that initiates such research. Conclusion International marketing research is conducted simultaneously or sequentially in more than one country. Marketers seeking to explore the intentions and attitudes of customers in foreign countries must be aware of the factors that influence international marketing research. These include culture, religion and climate, economic differences and language. The example of UAE suggests that the achievement of international marketing research directly depends on how well marketers can fit their marketing research systems, options and solutions in the physical and cultural climate of the target country. International marketers should be prepared to align their marketing research strategies with the specific beliefs and principles of the target population, to ensure that the information they obtain in the process of research can be readily used to meet the strategic marketing needs of the organization. References At-Twaijri, M & Al-Muhaiza, IA 1996, ‘Hofstede’s cultural dimensions in the GCC countries: An empirical investigation’, International Journal of Value-Based Management, vol. 9, 121-131. DePalma, DA, Sargent, BB & Beninatto, RS 2006, ‘Can’t read, won’t buy: Why language matters on global websites’, Common Sense Advisory, accessed online, http://www.lionbridge.com/kc_content/cant_read_wont_buy.pdf Douglas, SP & Craig, CS 1989, ‘Evolution of global marketing strategy: Scale, scope and synergy’, Columbia Journal of World Business, vol. 24, no. 3, pp. 47-59. Kumar, V 2000, International marketing research, Prentice Hall. Niazi, LA 1996, Islamic law of contract, Lahore: Research Cell. Ricks, A 1999, Blunders in international business, 3rd ed, Oxford: Blackwell Publishing. Shaw, M 1996, Civil society and media in global crises, London: St. Martin Press. Young, M 2010, ‘Ogilvy & Mather’s research defines the global rise of the New Muslim Consumer’, Zawya.com, accessed online, http://www.zawya.com/story.cfm/sidZAWYA20100524131052/Ogilvy%20%26%20Mathers%20Research%20Defines%20the%20Global%20Rise%20of%20the%20New%20Muslim%20Consumer Read More