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Many domestic companies face the decision of expanding internationally knowing the new challenges that come with this decision. There are many important aspects that marketers need to consider and plan at the time to start international expansion. The international planning process is very interesting and varies between different organizations. Also, if planning is not performed on an excellent level, organizations will most likely fail. Planning would allow organizations to be more flexible and organized at the time to face international expansion. Some of the general elements that marketers need to consider for international planning include stakeholder expectations, situation analysis, resources and capabilities, corporate objectives, marketing strategy, and implementation and control. The complexities of the international marketing environment cause a major difference for companies competing in international markets. By expanding, the company has many more organizations and people who have a stake in how they conduct their business. This means there are many more stakeholders whose differing expectations have to be managed. The ability of a company to pursue a chosen marketing strategy is determined to a large degree by the aims and expectations of the stakeholders. They directly or indirectly provide the resources and support needed to implement the strategies and plans. When talking about stakeholders, marketers need to consider shareholders, customers, host government, prospect employees and pressure groups in the intended country as well as in the home country. Organizations need to understand the importance of different expectations and the power that stakeholders have to influence a business strategy. Since there are a large variety of people involved in stakeholders, there is also a large variety of expectations which leads to internal conflict. To emphasize, shareholders usually want a high return on their investment and may expect the firm to find countries with low production costs, but the workers in these countries want an adequate wage on which to live. In many cases, this factor may determine success or failure of a company expanding overseas. International pressure groups are very delicate subjects for marketers. With the help of the internet, pressure groups have eyes everywhere. Pressure groups are not only existent on the country that a business is intended to operate or to offers product and services but in their home countries. The role of pressure groups in global markets tends to be to raise awareness of issues of concern. This fact can limit an organizations operations or force big strategic changes (Doole & Lowe, 2008). As the international business environment becomes more competitive, dynamic and complex, there is a greater need for marketers to be aware not simply of their immediate situation, but also of the possible impact of changes taking place in surrounding areas. Organizations should perform situational analysis in order to develop a clear understanding of each individual market and evaluate the significance that they have for the organization operations. One of the most common ways organization use situational analysis is evaluating past trends. On the other hand, many factors that need to be considered are unexpected events that might occur. Situational analysis also helps developing contingency planning. This allows organizations to be prepared for unexpected changes, and be more flexible at the time of adapting to a foreign market (Doole & Lowe, 2008). One example of an organization that failed to perform a situational analysis with a marketing campaign includes the Indian division of Cadbury-Schweppes. The company suffered
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Organizations need to understand the importance of auditing not just the most obvious company weaknesses but also the strengths. opportunities. customers did not appreciate cheap prices. marketers should perform a SWOT (strengths. managers feel tempted to believe that their organization possesses the right capabilities to successfully move overseas. From South Koreans perspective. Wal-Mart products were low quality and were not able to offer status or sophistications. By performing jointventures with Chinese businesses. Frequently. Cadbury India was forced to apologize. Wal-Mart had no choice but to exit and fail in that country. One example of an organization that has experiment success and failure in international markets without changing their main strategy and competencies refers to Wal-Mart. 2012). At the time of implementing their everyday-low-prices strategy in other nations. Arguments over Kashmir took India and Pakistan really close to a nuclear war and using this situation was not adequate to market a product. Wal-Mart has had multiple reactions. which are often taken for granted. The advertising caused a national protest. 2012). therefore. Wal-Mart planned their entrance to China. product or market and focus upon what action should be taken to exploit the opportunities and minimize the threats that are identified in the analysis. companies tend to plan thinking only in short-term profits in order to get credibility MBA 512: Marketing Management Cesar Uauy Page 2 of 5 . After realizing that. British colonial rulers where the ones who in 1947 drew boundary lines between India and Pakistan and those lines where the ones in question between these two nations. This will lead to a clearer and effective evaluation of the resources that are available or show what must be acquired to ensure the necessary actions are performed (Keller & Kotler. weaknesses.embarrassment around the world and irritated a large portion of the Hindu society by running a newspaper advertisement comparing one of the company’s products to the warzone in Kashmir. customer and brand loyalty may be much stronger in certain markets than others. Organizations need to stay as realistic as possible when performing this task. Cadbury’s British roots may have made the advertisement even harder to swallow. The only thing that Wal-Mart had to change was the specific way services were offered like smaller packaging or selling fresh meat (Farhoomand. be carried out separately on each area of the business by function. and products which may be at the end of their life in the domestic market may be ideal for less sophisticated markets. Indian politicians were shocked at the very mention of sharing the territory and exposed nationwide protests. This strategy allowed Wal-Mart to realize that their capabilities would be a success in China. In South Korea. To make sure nobody missed the point. Another negative aspect of this advertising campaign was marketers launched the campaign on August 15th. Sometimes. companies do not have much control. After learning that lesson. 2002). In order to prevent that to happened. After the huge controversy. which is the Independence Day in India. At the time of analyzing and responding to global external forces. carried out a detailed situation analysis and made an evaluation of the organization’s capabilities. and threats) analysis and evaluate how the results fit in the intended region of business. Wal-Mart was able to test the waters and study the Chinese environment. Once an organization has identified stakeholder expectations. the overall goals to be pursued can be set. the advertising creators laid the ‘too good to share’ catch-line over a map of Kashmir. This example shows that organizations moving overseas must perform situational analysis and see how their operations would impact internal and external environments (Cozens. SWOT analysis should. For example.
The first one refers to setting standards. managers need to design programs that give clear direction for implementation. Feedback and control systems help organizations ensure that the marketing plans are not only being implemented but also help evaluate change in the international environment. For most companies the most obvious international strategic development opportunities are either in increasing geographical coverage or building global product strength (Doole & Lowe. return on investment. Once the objective has been set for the corporate and subsidiary level. the next step is to develop a detailed program of marketing strategies and activities that will achieve the objectives. the plan must be implementable. when dealing with international growth. Organizations need to be precise at the time of setting standards. The objectives must be based on realistic performance expectations rather than on a best case scenario. and control of the organizations marketing activities. by detailing individual activities of each department (Doole & Lowe.from shareholders. 2008). By considering this fact. Organizations usually distribute resources to individual subsidiaries on a top down basis. continuous evaluation. Once all of the marketing strategies have been established. explain what is expected and how performance will be measured. Agreement is reached through a process of discussion between the operating department and management levels. The question is how much they can standardize marketing strategies in different countries (Keller & Kotler. 2008). They must be achievable and relevant to each local situation. distribution and pricing strategies. and non-financial indicators such as market share. A central consideration in marketing strategy development for international markets is the predicament that all international managers are facing. the national managers need to have an achievable and detailed plan for each country. The process adopted for determining long-term and short-term objectives is important and varies significantly depending on the size of the business. These standards need to be relevant and they have to include corporate goals such as financial growth. the organizations need to consider a way to segment and target the selected international market. This system needs to be included as an integrated part of the whole planning process. The last stage of the planning process includes preparing an effective system to obtain feedback and control of the business. At an operational level. Also. With this in mind. On the other hand. Marketers also need to consider developing alternative scenarios so that realistic objectives can be set and accompanied by contingency plans in case the chosen scenario does not materialize. the nature of the market and the abilities and motivation of managers in different markets. which will take account of the local situation. the plan not only must be strategic by satisfying the organizations and marketing objectives but tactical by focusing on individual strategic business unit marketing activities in each country. special distribution is made to enable foreign subsidiaries or divisions to resource specific market opportunities or difficulties encountered in particular markets. organizations need to plan for implementations required at both domestics and international level. communications. 2012). organizations have to know how the organization will be positioned in a different international market and how organizations would add value to their product portfolio. Finally. At the time of performing control systems there are three fundamentals to consider. At this time. Detailed budgets and timescales can then be set for all areas of marketing in order to ensure that their contributions are delivered on time and within the budget. The second fundamental includes MBA 512: Marketing Management Cesar Uauy Page 3 of 5 .
organizations use a variety of techniques which include reports. When planning international expansion. Zara trains their employees to encourage feedback from customers. By understanding the stakeholders. Here. 2012). organizations determine when performance has deviated sufficiently from the plan to require corrective action to be taken either by changing the plan or the management team charged with the responsibility of carrying out the plan (Keller & Kotler. Zara is not only the number one retailer in the world but also has amazing logistics that help the evaluation and control process be smooth (Gallaugher. After each day. meetings and special measurements of specific parts of the marketing program. In order to find measurements and guarantee quick feedback of information. After that. such as cost– benefit analysis on customers. organizations need to find ways to evaluate and control operations. This planning strategy sets guidelines and help organizations be more secure and flexible when investing overseas. such as efficiency of distribution. The last fundamental of control refers to correcting deviations from the plan. An example of an organization that bases performance on feedback and control systems includes the retailer Zara. By performing situational analysis organizations can be prepared for the unexpected. customer response times. service levels and complaints. 2012). the employees are required to write a list of things they heard and find common themes. organizations can count on a progression system that can make the path clearer. In some cases. This makes Zara a flexible organization that can offer different products depending on the country of operation. organizations will have to make changes to their plans and adjust to the environment. organizations increase their chances of success when expanding overseas.measuring performance against standards. Finally. This method of control allows comparison of different aspects of the business. objectives need to be set for domestic and foreign operations. and to pay attention of their comments when they are shopping. Benchmarking is also important. By going thought this process. Once these themes are found. Once there is an understanding of the external environment and the possible situations. organizations can assess the power that external and internal forces have in strategic planning. Zara makes the changes necessary to get their customers satisfied. Instead of predicting future clothing trends like most of the other clothing retailers. Even though this process might be expensive. At this point the preparation phase is over and organizations need to implement everything planned. product lines and territories or marketing audits for a thorough examination of every aspect of marketing in a particular country. MBA 512: Marketing Management Cesar Uauy Page 4 of 5 . organizations can develop marketing strategies that would guide the organization toward the objectives.
Inc. International Marketing strategy: Analysis..co. England: Pearson Education Limited. The Guardian. 2013. (Vesrsion1. Information Systems: A Manager's Guide to Harnessing Technology. (2012). Harlow. Development. & Lowe.. ( August 20. London. L. I. 14-17. Walmart in China (2012). C. Keller. R. Gallaugher. (2012). MBA 512: Marketing Management Cesar Uauy Page 5 of 5 .NY: Flat World Knowledge.4). Retieved on January 31. and Implementation.References Cozens. (2008). From http://www.india Doole. A Framework For Marketing Management.guardian. (20 de May de 2012). P.uk/media/2002/aug/20/advertising. A. England. 24-31: Cengage Learning . Farhoomand. 2002). pag. Harvard Business Review . K. & Kotler. J.