Extending a business overseas requires changes in marketing strategies to suit different consumer groups. The following factors must be considered when expanding overseas:
- Language and cultural differences.
- Legal differences.
- Political environment.
- Economic environment.
- Infrastructure.
Strategic & Operational Implications of International Marketing
What are the Strategic and Operational Implications of International Marketing?
+
Strategic Implications:
At a strategic level, international marketing fundamentally impacts a company's long-term direction, competitive posture, and resource allocation. Key implications include:
- **Market Selection & Entry Modes:** Deciding which countries to enter and how (exporting, licensing, joint ventures, FDI, etc.), which carries different risk, control, and investment levels.
- **Standardization vs. Adaptation:** Choosing the extent to which the marketing mix (product, price, promotion, place) should be standardized globally or adapted to local conditions, cultures, and regulations.
- **Global Positioning & Branding:** Developing a consistent brand identity and competitive positioning across diverse markets while allowing for local relevance.
- **Competitive Landscape:** Navigating a more complex competitive environment with global rivals, local players, and varying market structures.
- **Organizational Structure:** Potentially restructuring the marketing department or the entire company to manage international operations effectively.
Operational Implications:
On a day-to-day basis, international marketing requires significant adjustments to operational processes:
- **Logistics & Supply Chain Management:** Managing complex shipping, customs, warehousing, and distribution networks across borders.
- **Marketing Communication Execution:** Translating and localizing advertising campaigns, managing different media landscapes, and navigating cultural nuances in messaging.
- **Pricing & Payments:** Setting prices in different currencies, dealing with exchange rate fluctuations, managing various payment methods and credit risks.
- **Distribution Channel Management:** Building and managing relationships with foreign distributors, agents, or setting up own sales channels, each with unique challenges.
- **Legal & Regulatory Compliance:** Adhering to diverse local laws regarding product standards, packaging, labeling, advertising, privacy, and business practices.
- **Market Research:** Conducting research in varied environments with different data availability, research infrastructure, and consumer behavior patterns.
