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International Marketing

In the current dynamic business environment, organizations utilize the

opportunity to expand from the local market scope and expand their operations globally.

As a result of globalization, the world's economy is now integrated and there are no

longer any international borders. This has resulted in a mushrooming effect in global

business transactions occurring in the technological advancement era. Currently, both

small and large scale firms gain unprecedented entry into the international market. At

the same time, enterprises can engage in their production activities across the borders

and acquire global suppliers, enhancing marketing efficiency and reducing production

costs. Globalization of markets boosts economic growth and prosperity by facilitating

international business cooperation, which serves both customers and enterprises.

However, it brings along newer challenges and more complex market activities in the

international market scope.

Besides the transforming global economy, the international trade platform is

additionally modified by technological advances. Therefore, the traditional techniques to

globalization is currently less effective to cope with the current affairs in international

markets for the twenty-first century. Global enterprises have the mandate to research

the contemporary threats, market gaps, and the necessary technology and their impact

on market entry and growth strategies. The companies calibrate and implement

approaches different from previous ones that reflect a paradigm shift in the international

market.
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Trends in International Marketing

International marketing involves firms developing marketing mix approaches and

implementing them on an international scale. According to Doole et al, (2016), the

crucial goal of business entities is to acquire a competitive edge by focusing on the

evaluation and implementation of global marketing. The marketing teams are therefore

equipped with adequate knowledge and skills in complex market evaluation strategies,

business ethics, media coverage, and government regulations. Since the late 1990s

marketing scholars researched global emerging markets. A case study on the research

on the economy of China by the World Bank reveals that the country has transformed

from a centrally oriented to a market-based economy. The county’s GDP has

significantly grown with a ten percent average each year. China has become a crucial

trading partner for countries in the East Asian region, America and Sub-Saharan Africa.

Market complexity has been attributed to various factors in the emerging trends

in the global market. The World Trade Organization has resulted in a rise in economic

integration and gradual limitation of market barriers. Various developing economies

have reduced the regulations on protected companies and have leveled a market field

for international competitors. For example, the USA and Cuba normalized their relations

which were isolated for more than 60 years enabling US companies to trade with the

market in Cuba (Agarwal & Wu, 2018).

Contrary, the global market is faced with significant challenges across countries.

Emerging political conflicts and security issues negatively impact the international

market as countries such as Venezuela are falling under populist leadership. The Trans-

Pacific Partnership (TPP) formed in 2016 was a trade agreement between 12 countries
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that border the Pacific Ocean intending to foster trade and deepen economic ties

among these nations. The withdrawal of the US from the Tans-Pacific Partnership in

2017 had an adverse effect on the global market (Biegon, 2020). The result of such

headwinds in market globalization is a regressive change in the political climate.

The advance in technology and innovation has facilitated the production of new

goods and services from various countries. As firms embrace the Internet in their

marketing strategies, the global marketplace has been transformed into a borderless

world. Products and information are traded freely across countries and businesses can

reach out to global potential customers. According to Schu et al, (2016), internalization

speed and traditional business activities are significantly transformed by electronic

commerce. Additionally, enterprises are adopting complex data-capturing technologies,

social media, and client relationship management to build business prototypes, explore

market gaps, and develop advanced marketing tactics. Incorporating technology in firms

requires international marketers to develop current methodologies to improve their

knowledge of brand management and positioning techniques. However, innovation

comes with the risk of increased counterfeit products in the global market.

Emerging markets have witnessed significant growth over a period of years

compared to advanced economies. Therefore, business entities focus on their global

approaches in foreign investments and exports. Emerging economies in the top five

2019 reports include China, India, Indonesia, Philippines, and Egypt while advanced

markets are Japan, the USA, and Mexico. Through e-commerce, these emerging

markets particularly India and China have created a paradigm shift in business activities

as well as the establishment of a revolutionary international marketplace. Harvard

professor Khanna coins the phrase ‘institutional voids’ that explains the challenge

prevalent in emerging markets. The daunting drawback for firms in the emerging

economies includes the absence of intermediaries like market research entities to

effectively connect traders (Khanna & Palepu, 2010). Marketing managers need to learn

and understand ways to work with these voids to achieve success in the international

markets

Figure 1
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Image of Emerging Market Economies

Focus Economics (2018). Emerging Markets Economic Outlook 2018 and 2019.
Retrieved from. https://www.focus-
economics.com/sites/default/files/wysiwyg_images/focuseconomics_emerging_economi
es_aug_2018_0.jpg
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Challenges in International Marketing

The rise in globalization and the adoption of advanced technologies have significantly

impacted the ways to do business and marketing. Business entities are facing twenty-

first-century challenges from these transformations. Marketing leaders are therefore on

the verge of finding solutions to these challenges to maintain a competitive advantage in

the global market.

Cultural differences in the international market remain one of the factors that pose a

great challenge to global companies. A firm venturing into the global market should

understand the cultural differences and the effects on international marketing. The key

components of international culture include religion, education, and language. Parties

involved in marketing activities should understand the language and level of literacy in

their target market. An example of a marketing advert that created a debate on ethical

issues is an Australian ad on tourism aired in 2006 that contained the phrase “where the

bloody hell are you?” The advert was banned in Britain as it was against the county’s

ethics (Terspstra et al, 2012). The choice of words is essential when formulating

marketing adverts to prevent the violation of values in the target country.

The dimensions of varying cultures are explained in Hofstede’s cultural theory. Hofstede

recognized six distinct categories in a culture which include, power distance, femininity

versus masculinity, uncertainty avoidance, individualism, indulgence versus restraint,

and short-term versus long-term orientation. The power distance element of Hofstede's

cultural dimensions describes the extent to which organizations and individuals

recognize and embrace a country's or an organization's unequal allocation of power and

status.  For example, The United Kingdom receives a score of 35% in this category,

implying that hierarchy is not well respected. Other countries, such as China and Asia,

have a different culture that shows high respect for leaders.

In the category of individualism, members of society are not overly reliant on one

another in their day-to-day occupations. Members in a collectivist society, on the other

hand, are more likely to rely on one another. To make informed selections, marketers

must evaluate a country's individualism or collectivism. Marketing in an individualistic

culture should target individuals in their advertisements. Contrary, in a collectivist

culture, a marketer must strive to build personal ties with clients to gain their confidence.

Masculinity explains the degree to which a community honors and measures the

accomplishments of groups or individuals. The level of competition among several

actors in the economy or an organization is measured by this component. In regions

with high masculinity scores, the marketing team must develop a marketing messaging

strategy in a way that persuades consumers that the product is the best in their

countries. People in a predominantly male country place a high priority on quality.

The indulgence category represents how well people can manage their appetites and

urges as a result of their formative experiences. Considering, the ability of the people

involved to manage their wants, this component might be classified as low or high. A

low score for this dimension indicates a weak ability to manage one's impulses,

whereas a high score indicates that the party concerned has a strong power to control

one's desires. Germany, for example, has a 69 percent indulgence score compared to

the UK's 40 percent. As a result, it could be asserted that the Germans have a higher
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proclivity for cynicism and pessimism than the Britons. Firms have to be culture-

sensitive to prosper in their globalization agendas.

Market competition has increased in firms that operate on the Internet to access the

international market. The world is transformed into a global market through the internet

with the impact of the internalization of businesses, especially small and medium-sized

enterprises. The application of internet technology on global marketing sales and

advertising activities has a direct impact on various internationalized entities. In the

current informative era, emerging firms have the quest on gathering information to

improve their market share and sales from a global perspective. These firms are

therefore exposed to more international competitors who can easily access their

information through the internet. Marketing teams have an option to seek local partners

who already have the necessary knowledge of the market and audience in the target

country. The marketing partners help in market diversification in each country.

Organizational structure poses a significant challenge in multinational companies (MNC)

while penetrating the global market. The firms are faced with a hurdle in their ability to

integrate new sections in the organization structure and within the value chain. Serving

the global market requires intensified specialization in the structure of the firm because

it must undergo official and complex strategies along the value chain. The firm’s

structure alone cannot lead the business to produce goods and services more

effectively than its market rivals. It requires necessary systems and strategies as

discussed later in the McKinsey 7s model of organization structure.

McKinsey 7S Model

The McKinsey paradigm is a planning and management paradigm that considers the

alignment of interrelated 7S elements: structure, strategy, systems, style, staff, skills,

and shared values when analyzing a company's internal environment. Hard elements in

the organizational structure include strategy, structure, and system. Most enterprises

have a divisional structure representing a particular geographic location. Global

businesses have formal hierarchical channels of communication that ensure entities

observe the required standards in information transmission. The strategy involves the

objectives of the business aimed at attaining a competitive market edge over the long

term. A corporate may opt to increase its sales by expanding its international market for

its products.

Significance of Global marketing

The process of creating a significant global market involves the overall increase in

global trade. International trade includes the distribution of goods and services, labor,

and capital across a country’s borders. Globalization brings a pure international market

close to reality providing numerous benefits. Remote regions that were formally

inaccessible are well served through advanced technologies such as the Internet. Firms

can standardize their products and market them to the international market due to the

conflux of tastes and preferences. From a contemporary practitioner perspective,

different international companies have attained a global marketing scope with abundant

benefits.

Royal Dutch Shell

Royal Dutch Shell is an international company that explores, refines, and markets

petroleum products and by-products around the world. The company’s UK-based

branch Shell Transport and Trading Company Plc and Royal Dutch Petroleum

Company in Holland constitute 40 percent of the company’s shares. The company is

one of the giant players in the petroleum sector and global marketing in Britain since the

late 1800s. It has gained a market share in more than 140 countries and has over 100,

000 employees globally.

The company has experienced various risks involved within the country’s borders and

international market which include social instability, terrorism, civil unrest, and piracy.

Such challenges have induced policymakers to develop strategic approaches to

formulate control principles that are critical for Royal Dutch while choosing a target

country.

As Royal Dutch Shell Company faces stiff competition to access the global market, it

adopts advanced technological support, operational proficiency, and excellent delivery

services to gain a competitive edge in the international market. The core strategy of this

firm is to improve central expansion projects. Royal Dutch Shell has invested three-

quarters of its capital into these projects. Similarly, the company has formed an equal

joint contribution with ExxonMobil firm and ventured into oil fields in Holland. The

company considers joint ventures to control the global market.

Walt Disney

Walt Disney Company established in 1920 is dominant in the global entertainment

industry. The company started its operations in the United States and has since
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expanded its market all over the world. The company’s products are sold in over 180

countries through both partnership and direct distribution. Walt Disney had accumulated

108 television channels viewed by almost 500 million households in 166 countries (Walt

Disney, 2012). Similarly, the company has built parks and resorts in various major cities

including Paris, Florida, Tokyo, California, Shanghai, and Orlando.

The company has faced challenges in the economic environment such as the recent

European crisis that reduced demand for products in the affected regions hence

reduction in sales and profit. Despite the challenges, the company has maintained its

market in the emerging market economies including China, India, and Brazil. The rapid

economic growth in these emerging economies improves the purchasing power of

clients and therefore an increase in demand for Disney entertainment products.

A bottom-up planning framework is used to establish the company's marketing

strategy. In this situation, the business affiliates create their own marketing goals and

objectives for the firm to achieve local innovation. Disney Company portrays itself as a

professional entertainment corporation with high-quality products in the global market.

To maintain a competitive advantage, it segments its market and maintains the

excellent quality of its products. The company's international marketing efforts are

focused on expanding market share by introducing new brands, executing marketing

campaigns, and providing competitive rates. In international markets, the firm adopts a

market-differentiated pricing technique to set prices of products. This entails employing

a pricing strategy that considers market characteristics like demand levels as well as

industry considerations like competitiveness in each market location.

As a result, the business charges different prices for the same commodity to

handle the problems posed by each market's distinct characteristics, and also to

achieve marketing goals such as market penetration. Uniformity and adaptability are

hallmarks of Disney's foreign communication initiatives. To promote its international

brands, such as the ESPN sports channel, Disney Company uses standardized

advertising. It does, however, adjust the majority of its advertisements to the

requirements of each market. Because the organization operates in markets with many

cultures and languages, global communication adaption is critical in this scenario. In

foreign markets, these variances frequently render standardized communication

obsolete.

Coca Cola Company

Coca-Cola is a global leading brand of non-alcoholic beverages with an empire of

over 200 countries. The company is renowned for its large market share, high customer

loyalty, and strong brand image. Coca-Cola invests heavily in international marketing,

product promotion to engage its customers. Due to the affordability of its product, the

company targets general consumers. The company adopts a marketing mix to increase

the potential returns from international marketing.

Coca-Cola Company combines several components to solidify its product brand and

increase sales. Market mix involves positioning a product and deciding on the

appropriate time, price, and location to sell it. The 4Ps of the marketing mix include

Price, product, place, and promotion. Price is a crucial component in marketing because

it indicates the company’s financial position and progress. The closest competitor in the

international is Pepsi. Competition between the two companies is intense due to

relatively low prices that favor average customers. Coca-Cola Company adjusts its

prices to create an impact on the entire market by gaining a competitive advantage over

Pepsi. Coca-Cola Company has a variety of products having about 500 brands and

3900 beverage options. Popular brands include Sprite, Coca-Cola, Fanta, Diet Coke,

Minute Maid among others. The company has an extensive market system. Its products

are available in Africa, The Pacific, Eurasia, Latin America, Europe, and North America.

Coca-Cola Company invests in product promotion due to the stiff competition in the

beverage industry. In 2016, the marketing expenditure was at 4 billion dollars while in

2018 the expenditure grew to 4.1 billion dollars (Anik, 2020). The company has

developed a large global brand from its effective value chain management. The value

chain involves all business activities from production, sales, and after the sales

services.
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References

Agarwal, J. & Wu, T. (2018). Emerging Issues in Global Marketing: A new perspective.

Springer, Cham. Available at https://doi.org/10.1007/978-3-319-74129-1

(Accessed 27 June 2021).

Anik, K. & Habiba, W. (2020). MARKETING MANAGEMENT PRACTICE OF Coca-

Cola. Available at

https://www.researchgate.net/publication/340719956_marketing_management_p

ractice_of_coca-cola (Accessed 27 June 2021).

Biegon, R. (2020). US Hegemony and the Trans-Pacific Partnership: Consensus, Crisis,

and Common Sense, The Chinese Journal of International Politics, Volume 13,

Issue 1, spring 2020, Pages 69–101. Available

at https://doi.org/10.1093/cjip/poaa001(Accessed 27 June 2021).

Doodle, I., Lowe, R. and Kenyon, A. (2016) International Marketing Strategy:

Analysis, Development, and Implementation. 7th ed. Hampshire: Cengage

Learning.

Khanna, T., & Palepu, K. (2010). Winning in Emerging Markets: A Road Map for

Strategy and Execution. NHRD Network Journal, 3, 75 - 75. Available at

https://www.semanticscholar.org/paper/Winning-in-Emerging-Markets%3A-A-

Road-Map-for-and-Khanna-

Palepu/801c71e13a5cbcadf6256bd1e770809fc8192b58 (Accessed 27 June

2021).
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Schu, M., Morschett, D. and Swoboda, B. (2016).Internationalization speed of online

retailers: A resource-based perspective on the influence factors. Management

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Terpstra, V., Foley, J., & Sarathy, R. (2012) International marketing. Naper Press.
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Walt Disney. (2012). Annual Financial Report: FY 2012. Walt Disney Company.

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