International Market Entry and Development - Research Paper Example

 Table of Contents Introduction 2 Market Research Process 3 Product Adaptation & Approaches to Promotional Strategies 4 Strategic Marketing Planning Process 5 Challenges to Global Product Management and Branding 6 Conclusion 7 References 8 Introduction In today’s era of globalization, strong competition in business has equally assisted as well as called for a progress in terms of internationalizing the establishments or organizations irrespective of its extent of operation (Wood & Robertson, 2000). The phenomenon of globalization is unquestionably taking place in wide shapes throughout the globe. Those organizations, commonly in the field of international business, mostly discover themselves to be completely ill-equipped for the surroundings they plan to enter into and uninformed regarding the probable hazards that are concerned in the course of action. This deficiency in groundwork is quite apparent in the decisive factors that are functional to differentiate the international markets in comparison to one another so as to decide on to enter the market of appropriate countries. The countries that are chosen for actions in the international business are mostly dependent on the factors of immediacy or personal choice in comparison to factors such as size of the market, pace of progress or convenience (Cateora & Ghauri, 2000). Choosing an appropriate country is given vital importance owing to the unfeasibility of trying to enter all the states and nations in a global context. This also involves monetary and supply limitations as well as the massive amount of probable hazard occurring from choosing a market that is poor (Alon, 2004). Market Research Process It is extremely crucial to conduct a thorough market research while entering in a new international market in order to assess the possible hazards in the foreign market. Failing in understanding the problems would result in implementing correct decisions for incorrect problems. International markets are new to the marketer so, there are high possibilities of misinterpreting the problems in the new foreign market. Therefore, it can be understood that it is quite essential to carry out a research that is investigative in order to gain a proper understanding of the market situations and problems (Zainbooks, n.d.). The research procedure for business will involve a four step procedure. In the first step, the objectives of research regarding the size of the structure of the market and the concept of the product in the new market are determined. The structure of the market involves the market size and the development stage among others and the concept of the product would involve that how the product is identified in the new market. This also involves ascertaining the potential of the market for the specific product along with the approach of the customers towards the product. The second step deals with structuring or designing a proper research plan where the objectives of the research should be decipher into particular information requirements. In the third step, the research plan is implemented and to conclude in the final step the findings and the details are evaluated as well as interpreted (Zainbooks, n.d.). Product Adaptation & Approaches to Promotional Strategies While entering a new foreign market, it becomes necessary for the product that is to be introduced to adapt itself according to the new foreign market. This essentially means to modify the product so that it mirrors the characteristics of the new market. This is important as the consumers are different in the foreign market. This would also prove advantageous as this alteration will help in accommodating it among the consumers and would also ensure prolonged penetration. There are few adaptations that become compulsory for a product while entering a new foreign market. These include the government regulations, cultural essentials such as whether the product is suitable for the consumers, technological considerations such as infrastructure and finally the standards regarding measurement e.g. volume, length and weight among others (Monterey Institute of International Studies, 2010). A suitable and appropriate instance in this context is the decision of BMW to enter the Indian market after the announcement of the new automobile policy in the year 1993 by the government of India. The company has always aimed at presenting products with a degree of differentiation in different countries. Owing to this reason the company produced its models locally as a step towards product adaptation (Jafri, 2007). The promotional strategies of a company are altered too according to the new foreign market. It depends on the company to come to a decision whether to keep the same promotion strategy that is being used in their home market or alter it according to the new market. There are few global organizations that employ an advertising theme that is uniform in all the countries where they operate. This helps in identifying and relating the product easily by the consumers. At times, a company might have to alter the colors in order to keep away from the taboos considered in different countries. At times the communication adaptation is employed which means that a company completely settles in adapting their publicity messages according to the local market. Media also becomes an issue for consideration as media needs to be customized internationally as the availability of media differs depending on countries (Armstrong, 2008). For instance BMW uses the similar name for its brand across the world and also have positioning as well as images that are consistent in different countries (Yip & Et. Al., 2011). Strategic Marketing Planning Process Strategic planning looks further than the present scenario of the business and elucidates the future scope and position of the company. The strategic marketing planning process involves analyzing the customers, analyzing the competitors, analyzing the company’s strengths, opportunities, weaknesses and threats in the new foreign market. Analyzing these factors will help in framing the marketing objectives, analyze the marketing mix and analyze the activities for promotion (Henderson, 2000). A company chooses a specific market to enter into and the mode of entering the market is a choice among many options such as acquisition, organic growth or strategic alliance. The entry mode is based on few factors. Firstly, the intensity of competition in the new market, secondly hazards in the investments of green field in relation to organic growth, thirdly accessibility of resources needed for organic growth, fourthly is the prospect for suitable value addition and lastly, benefits of rapid entry (Ray, n.d.). The other modes of entering the foreign market are exporting, joint ventures, equity as well as non-equity modes, licensing and wholly possessed subsidiaries. For instance, in the late period of 1950, BMW entered the United States by way of exporting. 85% of the motorcycles that were powered by boxer twin were exported (Motorcyclespecs, n.d.). These strategies along with IPO, merger & acquisition and overseas venture are considered as various strategies of growth as well as expansion (Ace, n.d.). Challenges to Global Product Management and Branding Handling and designing a portfolio of product in the global market is quite a challenge. While conditions of the market might permit alterations in individual characteristics of the product, the lines of product as well as the products need to be handled for the best possible effect regionally, globally and locally. Global as well as regional products need to use the utmost best practices across the borders (Czinkota & Ronkainen, 2007). Conclusion In this research paper the various aspects of international marketing have been discussed with special emphasis on entering a new foreign market. It is quite important for a company to conduct a research before entering a new market as that decides the nemesis of the company in that market. It is also important to take into deliberation the other aspects in this context which have been already discussed in this paper. For a company, success involves abiding by these aspects in international marketing. Entering a new market has few challenges which must be dealt thoughtfully by the company. References Ace, (No Date). Growing Your Business – Growth and Expansion Strategies. Business Resources. Retrieved on August 20, 2011 from http://www.ace.sg/site/Page.aspx?id=00000000-0000-0000-0000-000000013421 Alon, I., (2004) International Market Selection For A Small Enterprise: A Case Study In International Entrepreneurship. S.A.M. Advanced Management Journal, 69 (1), pp. 25-33. Armstrong, (2008). The Global Marketplace. Deciding on the Global Marketing Program. Retrieved Online on August 20, 2011 from http://140.114.53.170:8080/StudentProject/NTUTProject/Projects/Others/AKMAI8_IRCD/content/Chapter_15/Assess/IM/armstrong_mai08_im_15.doc Cateora, P. R. & Ghauri, P. N., (2000) International Marketing. European Edition Maidenhead, McGraw-Hill Publishing Company. Czinkota M. R. & Ronkainen I. A., (2007). International Marketing. Cengage Learning, 2007. Henderson, C, (2000). The Strategic Marketing Plan. Asia Market Research. Retrieved Online on August 20, 2011 from http://www.asiamarketresearch.com/columns/market4.htm Jafri, S., (2007). The Ultimate Driving Machine. Scribd. Retrieved Online on August 20, 2011 from http://www.scribd.com/doc/36227102/BMW-Strategy-1 Monterey Institute of International Studies, (2010). Global product Development. Global product Strategies. Retrieved Online on August 20, 2011 from http://www.google.co.in/url?sa=t&source=web&cd=1&ved=0CBgQFjAA&url=http%3A%2F%2Fglobe.miis.edu%2FGM09--Product.ppt&rct=j&q=global%20product%20strategies%20ppt&ei=FWVPTu-RKuXbrAeZweiLBg&usg=AFQjCNFR-uI-hF3l5WAImLExMLNJe-8Dxg&sig2=A2fvyci_KmFCfG_wmRvPEQ&cad=rja Motorcyclespecs, (No Date). BMW Brand Motorcycles. Bikes. Retrieved Online on August 20, 2011 from http://www.motorcyclespecs.co.za/bikes/bmw.htm Ray, K.G., (No Date). Mergers and Acquisitions. Phi Learning Pvt. Ltd. Wood, V. R. & Robertson, K. J., (2000). Evaluating International Markets. International Marketing Review, 17(1), pp. 34-55. Yip, G. S. & Et. Al., (2011). How To Take Your Company To The Global Market. Victoria University of Wellington. Retrieved Online on August 20, 2011 from http://www.vuw.ac.nz/~caplabtb/m302w07/YIP.DOC Zainbooks, (No Date). International Marketing Research Process. Framework For International Marketing Research. Retrieved Online on August 20, 2011 from http://www.zainbooks.com/books/marketing/international-marketing_18_international-marketing-research-process.html Read More