When company has decide to involve in international marketing, they have to do study and analysis of market potential in the country they interested to do business so that they can decide the level of involvement they would like to commit. There are 4 phases of international marketing involvement; which are no direct foreign marketing, infrequent foreign marketing, regular foreign market and international marketing. In no direct foreign marketing stage, the company may not actively involve in international marketing.
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But yet there are still have possibility of the product to sell in oversea through the distributor or wholesaler without the knowledge of the producer. The next stage is infrequent foreign marketing, where company may involve in the international marketing infrequently depending when there are temporary surplus of the production. Company has no intention to maintain the international demand and only focus in domestic demand.
When only there are surplus of product after distributing the domestic market then only the company would sell to oversea market. The next level is regular marketing. In this stage, the company has the intention to do international marketing and has permanent production capacity allocate to international demand. Company may has own sales subsidiaries in the foreign market. However the sales of the company still depend to the domestic market and the sales in foreign market is just a bonus for the company.
For example, Proton the Malaysia national carmaker also setting up sales subsidiaries in Europe market and Proton major sales are still come from domestic market and also Proton production plant are only in Malaysia. The final level is international marketing, where company fully involved and committed in the international market. The company not only setting up sales subsidiaries but the production plant in the foreign country. For example Toyota the Japan carmaker not only has production plant in Japan but they also build production plant in US when they expand their business in US.
These stages of international marketing involvement indicate the level of involvement that the company would like to involve in the international market. Company may not necessary have to follow the process and stages by stages when entering international marketing. This is depending to the market potential and the capability of the company to decide which stages they would like to go. Define and discuss the idea of global orientation. Expand business globally is common today in order to expand sales and gain profit.
However there are a lot of obstacles in doing business in other countries due to macro factors such as political, economical, social and cultural and technological issues. So it is important for company to understand the idea of global orientation. Global orientation is defined as a means of operating by which a company acts as if all the company’s markets in a company’s scope of operations including the domestic market were approachable as a single global market, with the company standardizing the marketing mix where culturally feasible and cost effective.
In order to do businesses in global market, company has to have global way of thinking. The design of the product and the name of the product must be globally accepted. So product standardization is also an important issue for company to go global. Example of company that applied the idea of global orientation is Coke the carbonated drink company. Coke is a globally accepted brand and the product is standardizing around the world with some differences due to different taste and preferences in different countries.
Coke is a multinational company that operates its operation around the world and also has production plants in foreign countries. Coke treat the all the market as a single global market and doing global marketing strategy planning. To expand to global market it is important for company to think global as well as cope with the macro factors such as political, economical, social and cultural and technological issues in order to achieve global acceptance of the products.