Research Paper Help on Challenges of International marketing

Challenges of International marketing

Executive Summary

International marketing has its core mandate in ensuring the direction of a firm’s resources to ensure that needs of customers are identified and met in international markets. These will include all activities that are geared towards generating a smooth and easy flow of all that is necessary to identification and fulfilling of customers’ needs. Instead, there are challenges to international marketing and this paper identifies three pertinent ones; challenges arising from newer communication and information technologies, new players in the global economy and cultural differences challenges which have been covered to show how exactly they impact international marketing and possible remedies offered. The paper in a few words looks into the main concerns in the three challenges that were identified and the gist of the matter is brought to the fore. Improved communication has changed the way marketers are to communicate and the amount of information their target audience is dealing with. Competition from new entrants from developing nations is identified and the challenges it creates for international marketing on both sides. Finally, cultural diversity in the global economy and what it means is highlighted. A brief discussion is given with a conclusion. The paper offers four recommendations for adoption as the challenges are faced.

Introduction

International marketing as a concept covers economic actions that are geared towards identifying and fulfilling the needs/requirements of foreign markets with the intent to meet their current and future needs with maximum efficiency (Gherasim & Gherasim, 2014). Risko & Wiwczaroski (2014) identify companies that have an international presence as those that have activities that are done abroad; aims foreign markets, or considers foreign needs and changes.

Gherasim & Gherasim (2014) identify international marketing broadly as the activities which direct the flow of commodities to their customers in various countries. Global customers’ needs are identified and met through international marketing which involves, “identifying consumer needs and desires, producing goods that provide a differential advantage of marketing, communication of information about them, their distribution and international trade in one or more ways of transactions”, define Gherasim & Gherasim (2014). Also, international marketingis the presentation of business actions intended to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit (Risko & Wiwczaroski, 2014).

International marketing as a facet of marketing has preoccupied advertisers around the world since the advent and growth of multinationals (MNCs) and companies with global operations. Although that has occurred over a period of time, international marketing has witnessed an increased interest with awareness of it becoming more heightened than ever before (Paliwoda, 2012).  The actions of marketing in eras gone by are quickly changing with changes being witnessed too in the world/global marketplace and in marketing practices since, whenever changes take place, information is sought to try and quantify that change so as to respond to it accordingly (Paliwoda, 2012).

The paper will seek to look briefly at three challenges that the researcher is convinced are of urgency to the international marketer and that are yet to be fathomed. These will be the challenges that have been brought about by improvements in the communication and information technologies that allow for ease of communication; the shift of global dominance from traditional players to the entry into global trade and commerce by companies and firms from emerging economies and the challenges that are inherent in globalization, the distinctiveness of cultural identities.

Challenges of International marketing

Communication and Information Technology (IT) Challenges

The last few years has witnessed tremendous changes in the way the ordinary person communicates in most parts of the world. There has been an increase in information and information media, which has offered a plethora if opportunities and challenges to international marketers on how best to reach target audiences. First and foremost, Paliwoda asserts, this will require acknowledging the role of the greatly improved communications process that brings to the fore and to various countries developments in one country, whether these developments be in commercial innovations, economic changes, or political demands and these are spread more quickly than ever before, and to all parts of the world simultaneously (Paliwoda, 2012).

Every marketing endeavor is superseded with information to direct marketing activities and just like any other, international marketing orientation has the need for modern concepts of economic activities in accordance with what are required and specific demands of foreign markets in order to meet their current and future needs with maximum efficiency (Gherasim & Gherasim, 2014). The need for knowledge of international marketing occurs when it have to be realized, to sell and promote goods and services to consumers and users in other countries.

This presupposes that the knowledge used at least remains static for a while but instead, what is being witnessed is the opposite. By the time an effective strategy is being implemented for an effective international marketing venture, the advent of tools such as the internet, social media and such like avenues have empowered the common consumer with fast and reliable channels that share information as it evolves, which happens to be so incessant nowadays. Communication strategies are critical to firms of all sizes, whether small-to-medium enterprises or recognized multinationals and especially, the sudden increase of social media as a communication tool can be critical for firms engaging in cross-cultural communications (Cavusgil & Cavusgil, 2012).

New Players in global economy

Further, extant literature that influences current marketing practices has long hinged upon information and knowledge that has concentrated international marketing by identifying trade as occurring within Europe and from Europe to US/Japan (Paliwoda, 2012).  The current scenario and the trends being witnessed in the world markets has seen the rise of international trade from predominantly China to the rest of the world, Europe to the developing countries and most recently from the developing countries to the USA and Europe and these has seen need for substantial international marketing practices from these new frontiers to the established marketing frontiers and vice versa.

As earlier identified, for decades, the global marketplace was dominated by firms in the Triad countries – Western Europe, United States, and Japan but that has ceased and the reality is firms facing a crowded marketplace with new players from afar witnessing widespread participation by firms from a large number of countries (Cavusgil & Cavusgil, 2012). This has yet to receive commensurate coverage in identifying ways of information and knowledge acquisition to communicate these new shifts. Firms are therefore challenged with the inability to fashion international marketing campaigns that can identify with consumers who have a multiplicity of products to choose from and a myriad of information sources as directed towards them by the various players.

Cultural Differences Challenges

Finally, there is the emergence of what can be termed as cultural obstacles. Initially, products came from established multinationals but this has ceased to be the case. Emerging players, especially in the newly developing countries have come up with equivalent products. This has more or so substituted foreign products which have to be responsive to domestic products that are more tailored to their domestic markets. Those companies that have sought to evolve with this new trend have been forced to offer a consistent product delivery to their once erstwhile foreign consumers with products, packaging, and marketing that is appropriately adapted to meet the specific needs of each particular market, accompanied with pricing practices more suitable to these foreign market’s situation with extensive overseas marketing, and with reliable distributors, for them to ensure successful foreign activities (Paliwoda, 2012).

The diversity that is the global market portends social and socio-cultural differences which have new challenges of their own for international marketers and businesses and the challenges in international marketing lie in whether to adapt to the specialties’ of the desired foreign market or to follow the standardized strategy (Risko & Wiwczaroski, 2014).  It should be further stressed that, to be triumphant on foreign markets, it is critical to be familiar with the differences and similarities of foreign markets and foreign cultures and all efforts should be dispensed to recognize that geographical closeness does not automatically mean cultural closeness (Risko & Wiwczaroski, 2014). 

Conclusions

The challenges that face international marketing are numerous but the report covers only three that were predetermined to be yet to be fully understood. Communication and information technology challenges, new players in the global economy and cultural differences challenges were the ones deemed necessary for further exploration. The advent of new communication media has enabled ease of flow of information that has both opportunity and challenges for the international marketer. Necessary adoption is a must and there is no other way unless failure is to be courted. As for the shift in the composition of the group of actors in the global economy, these new actors are formidable rivals. What was found out was that consumers still demand for traditional brands, so the international marketer from established brands should respond appropriately while the marketer for the newer brands know where their opportunities/challenges are in this relation. Finally, cultural diversity has to be embraced to ensure that products remain responsive in the needs of those particular markets that require their special needs to be met. Companies that will be responsive to these challenges should increase their capabilities to data acquisition that should translate to being more responsive to their domains of operation and also to recognize all inherent opportunities and challenges that come their way. In this regard, their budgets for research and development will need a commensurate increase.

Recommendations

It is recommended for the challenges identified from the covered spheres, international marketers should:

  • Acknowledge the changing tides in international marketing and from where these changes are emanating from
  • Forging of alliances with other global players in the marketing field to capitalize on synergies that may arise out of such alliances
  • Embrace new frontiers in communications and information technologies that have been adopted by target audiences
  • Have an open policy in information creation and acquisition to keep in tune with the rapidly changing quantity and quality in knowledge. In this case, Research and Development need substantial increments.

References

Cavusgil, S., & Cavusgil, E. (2012). Reflections on international marketing: destructive regeneration and multinational firms. Journal Of The Academy Of Marketing Science, 40(2), 202-217.

Gherasim, D., & Gherasim, A. (2014). Internal Marketing versus External Marketing. Economy    Transdisciplinarity Cognition, 17(2), 108-113.

Paliwoda, S. (Ed.). (2012). Perspectives on International Marketing-Re-Issued (RLE International Business) (Vol. 29). Routledge.

Risko, T. C., & Wiwczaroski, T. (2014). From Domestic Marketing through International Marketing to Intercultural Marketing. Economic Affairs: A Quarterly Journal Of Economics, 59(3), 439-447.