The International Market and International Market Strategies - Coursework Example

Marketing Strategy Introduction The growth and development of the different companies highly depends on the nature of the prevailing market. There can be a domestic market and an international market as far as production of the goods and services is concerned. What differentiate the two markets; domestic and international are the strategies implemented in each one of them and the kind of players existing in each market (Zeithaml et.al, 1985, p. 33). The domestic markets consist of domestic firms which have strategies that only enable them to only engage each other in the domestic market while the international firms have more diversified strategies and firms in play making the market more complex and competitive (Varadarajan, 2010, p. 120-121). More than ever, firms are today engaging in ways of developing crucial market strategies appropriate for tackling the prevailing international markets so as to continue remaining competitive and effective in the production of the various goods and services. A Market is an external force that affects growth and development of a company that is the reason why different production plans highly depend on prevailing markets (Urbonavicius, 2007, p.71). Marketing is a core function of any particular organization and for this reason different companies highly consider the 4Ps when developing the different marketing strategies. Today, the overall market highly influences the functioning of the different firms from production and processing to distributions of the different goods and services. For a firm to be able to undertake its production when appropriate, it has to carefully assess the forces of demand and supply in the market and the nature of the existing market in a certain region. This way, a firm is always a step ahead of its rivals in the market and carefully utilizes its resources. Nevertheless, globalization has led to expansion of various operations by different domestic organizations to other parts of the world (Teece, 2009 p. 172). This has not only led to emergence of a global economy but has also resulted into evolution of more intensified competition and rivalry among different firms (Bradley, 2005, p. 8). Globalization has reduced the aspect of distance and firms are able now to readily access the different markets of the world. Today, products by the different firms are being reshaped even before reaching the maturity stage (Sharma, 2013 p.121-122). For the different large organizations of the world, the war is a little bit intensified with every firm embarking in developing key marketing strategies to outshine their rivals. This clearly articulates how the well being of the large firms in the international markets is dependent on the key market strategies these firms have implemented (Bradley, 2005 p.9-10). The international market and International market strategies The international market is a market that comprises of the different large firms of the world competing in a free and fair ground. The strong ones survive the market but the weak ones are driven out of the market. International marketing involves different firms coming up with market mix decisions to suit their products across the national boundaries (Doole and Lowe, 2008 p.5). In today’s world, the international market have become more complex forcing different firms to establish different manufacturing and processing facilities in different locations in different countries of the world such that production undertaken is different (Doole and Lowe, 2008 p.5-6). In a nutshell, International marketing involves firms operating in a number of foreign nations where variables such as prices of goods and services, advertising opportunities and infrastructures differ (Doole and Lowe, 2008 p. 6). The reasons why the different firms move to international markets vary from one organization to another ranging from the need to exploit the international market to the need to pressure the competitors (Akkaya, n.d. p. 6). For these firms to accomplish their in the international market they adequately develop and adopt different international market strategies. International marketing strategies are crucial for the survival of any particular global organization in the foreign markets. International markets are different from the domestic markets in terms of the size of the market, behaviors of the respective buyer as well as marketing practices involved. Today, firms are therefore devising strategies that are adequate in targeting the entire global market (Akkaya, n.d. p. 5). Competing globally is a strategic decision that has to be made by management since it affects the firm not only in its operations but also in management. Decision making processes and development of key marketing strategies to enable the large firms compete globally has been difficult to pursue (Akkaya, n.d. p 6). How well a firm performs in the international market is highly determined by the kind of decisions made by the management and the market strategies developed and implemented by the particular firm in the market. Factors dictating global markets Environmental factors Issues of sustainable buying and selling have been integrated in the production operations of major organizations of the world. Further, issues of environmental degradation and recycling of waste products have always been an agenda to most of the senior management of the global organizations of the world (Lee & Trim, 2008, p. 218). In today’s world there is room in the market for products and services that are environmental unfriendly (Hallstedt, 2008, p. 4). Different global organizations have therefore adopted different production strategies to suit the market. The different strategies involve market researches by the various organizations (Lee & Trim, 2008, p. 219). Currently, the motor industry has been highly influenced by the environmental factors. Different designers and car manufacturers from all over the world have engaged in continued operations of developing hybrid cars that are environmental friendly (Lee & Trim, 2008, p. 219). Large corporations such as Ford are today producing automobiles that are of the hybrid genre. Such cars can either be powered by petrol, diesel or even electricity and in this case solar energy (Lee & Trim, 2008, p. 219-220). In places like the US and in the UK, car buyers are quite interested in the environmentally friendly cars with fewer emissions. Technological factors The continued growth and advancement of the technology has not only led to evolution of more quality products but has also reshaped the tastes of the different customers in the market. Every customer now wants to buy products that have the best quality and at a lower price. The mobile phone firms and automobile corporations of the world have in the recent past found themselves in a tight spot on issues of quality and price (Lancaster, 1966, p. 136-257). Quality and price are definitely attributable to the efficiency of automobile products such as cars and products such as mobile phones. Automobile companies such as Ford have embarked on production of hybrid cars that require less maintenance (Lee & Trim, 2008 p. 219-220). Mobile companies such as Samsung and Nokia have in the recent past made tremendous efforts in developing new phone designs to cater for the expanding new tastes by different customers in the market of mobile phones which are more technologically advanced. On the other hand, International computer companies such as Apple Company and Dell have as well have to time and again develop complex and sophisticated computers and other accessories such as iPads that generally suit the today’s market which has been highly influenced by the technological advancements. Political factors These are the different laws and policies existing across the different countries of the world and their effect on operation of the international companies. There are different laws and policies in different countries of the world that can positively or negatively impact activities of global firms. Policies such as the greening policies that have been implemented by different nations of the world may influence the products being sold by a particular global firm. The motor industry has been among the most affected industry. Both developing and developed countries of the world have in the recent past banned importation of cars and other automobiles with high emissions of carbon dioxide which is a major cause of global warming (Lee & Trim, 2008, p. 224). Some other market regulations such as the ones resulting from trade blocks and trade zones are likely to influence the market of the different products of the different international organizations (Eichengreen & Irwin, 1995, p. 1-24). For example trade blocks such as European Union, North America Free Trade Zones (NAFTA). European Union trade block has policies that indicate that all good from other countries which are not member states should be taxed. On the other hand, North America Free Trade Zone (NAFTA) also advocates for taxation of products from non-member states and at the same time providing a no-taxation policy on the products from the member states. Such policies may dictate how a market operates and how products of the different international companies perform in such market. Socio-economic factors These include factors such as economic growth rates of the different countries of the world, individual personal income and lifestyle, population demographics as well as religion and cultural factors. Economic growth rates arise from the Gross Domestic Product (GDP) of the different nations. It is from the GDP that a country’s economy is viewed as more developed or less developed. The growth of the economy adequately affects the prices of the different products. In this case therefore, the production activities of the global firms are dictated by the economic development of the different nations of the world since the market of a certain product will from developed nations to developing nations. Different levels of income and lifestyles of different individuals are also likely to influence market of the different products. The level of income and lifestyle of a person are attributable to a person’s cost of living (Lee & Trim, 2008, p. 222-224). Cars and accessories such as mobile phones are likely to be influenced by level of income and personal lifestyles. Individuals with high income levels are able to sustain high costs of living and are likely to own more than one car while individual with low income level are only able to sustain lower costs of living surviving with only one car (Lee & Trim, 2008, p. 224). Population demographics such as age and gender also tend to influence the market of various company products. There are certain types of cars for example that are more associated with masculine character. Cars such as Hammers and Toyota Pick-Ups are more purchased by men than women. There are also types of phones that are not appropriate for the elderly members of the world’s population. Mobile phones such as Samsung S6 for example are not adequate for the elderly members of the society. They have quite sophisticated applications that are difficult operate. Religion and cultural factors adequately affect markets of both national and international products (Lawan & Zanna, 2013, p. 521). International companies are therefore forced to be more sensitive in the production of various products since religion and cultural factors vary from one region of the world to another. Market of the various products may therefore vary from one country to another. A good example is Barbie Doll by Mattel Inc; it continues to do well in the American and European markets but its launch in Hong Kong failed following the difference in religious and cultural factors. Decision making processes and information systems in Global Organizations The decision making process in large international companies of the world is normally decentralized. A decentralized decision making process entails different firm branches making their own independent decisions on matters of production, distribution and even the marketing strategies to implement for a smooth run of activities. The different branch managers are therefore the final say to the changes to effect in that particular branch. A decentralized decision making process makes the different independent firm branches independent of one another and therefore functions as single entities and on their own. It is quite advantageous since the decision making process is much faster and better since it encounters little bureaucratic process and cheaper since functions such as production are never delayed by the entire decision making process. Reduced bureaucratic process also improves the overall organizational communication (Guerini 2006, p. 2). Product lines are treated as quite separate divisions and are therefore able to respond adequately to the demands of the market (Zabojnik, 2002, p. 2-3). It also enables the firm become more flexible since it can undertake separate production lines in the different parts of the world while at the same time being able to adequately supervise them and not forgetting the fact that a decentralized decision making process has room for additional thoughts from either the production managers or the marketing managers. This provides room for the subordinate staff to acquire leadership skills necessary to run the organizations as executives. Decentralized decision making processes by the global firms is quite advantageous and bears disadvantages if mishandled by the subordinates who have been trusted with the power of making decisions at the branch level. For this reason therefore, there is need for an integrated information system that holds the entire organization together regardless of where the branches are located (Akoka, 1977, p. 14). The senior management is in this case able to foresee whatever takes place in a branch and provide necessary advice to the branch managers for the well being of the firm. The branch managers on the other hand also liaise with the senior management before undertaking crucial projects at the branch level so that the entire management is fully aware of what is taking place. The information systems also enable the senior management to properly channel the needed resource to the different branches in the different locations of the world. In a nutshell, the integrated information systems holds the entire organization together such that the organizations continues to be one despite the different operations being undertaken in the different branches of the organization situated in different locations of the world. This has been so following the change of the global market in the 21st century that has left many firms of the world struggling to make themselves more competitive (Gunasekaran and Ngai, 2004 p.269). Today, different large corporations of the world have come up with information systems which are real time. This means that whatever takes place in one of the many branches of the firm reflects on the control accounts in main headquarter without delay. Development of such information systems has been influenced by the advancement of the technology. Large companies of the world such as Apple Company use such information systems to control both production and sale of its respective computer and tablet devices all over the world. A real time information system also enables the organization receive real time information regarding the different products in the different markets. This way the firm is able to adequately control the production. This information is also vital for the growth and expansion of these firms since firms rely on markets to expand their operations. Therefore, a firm may choose to expand its operations in a certain part of the world and avoid other parts of the world depending on the market dictates in play. For example, in the case of Mattel Inc, the company may choose to continue expanding its operations in Europe and America and avoid the Chinese market. Bibliography Akkaya, Fatih, M. (n.d.). “Global Marketing Strategies”. Pp. 1-44. [Pdf]. Available at [Accessed 24 October, 2014]. Akoka, Jacob. 1977. 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