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Multinational Marketing
Term Paper ID:27723
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Essay Subject:
Examination of the multinational environment, and strategies that must be employed by companies wishing to be successful in this environment.... More...
5 Pages / 1125 Words
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Paper Abstract:
Examination of the multinational environment, and strategies that must be employed by companies wishing to be successful in this environment.
Paper Introduction:
A company must do more to define its market in a multi-national marketing environment than to decide to be a multi-national company. Defining its market as domestic on the one hand and foreign on the other is insufficient and ignores the real differences that exist between countries. Within the U.S., a company defines its market both broadly and narrowly, considering first a national perspective and then regional issues when they apply to a product. Similarly, a company needs to have a sense of itself as being in a multi-national marketing environment and also address regional and national issues when they apply. The company needs to account for the changes taking place in the world market environment and to develop a global strategy which entails on the one hand an overall strategy and on the other the flexibility to adapt to the requirements of speci
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Within the U.S., a company defines its market both broadly and narrowly,considering first a national perspective and then regional issues when theyapply to a product. Hamel and Prahalad (1985) point out that though this isaccepted, there is little existing information that can serve as a guidefor managers to know how to accomplish these tasks in the unfamiliar globalenvironment, whether as a multinational or as a truly global concern. In order to have an effect, marketers need to identify the key socialand physical environmental features of the information, shopping,purchasing, consumption, and disposition situations for their products.Some aspects of these situational environments may be blocking behaviorscrucial for the marketing success of the firm's product. The situationinvolves social stimuli and physical stimuli that may have an effect onconsumers' cognitions, affect, and behaviors. There are strong arguments for taking a global view. If, on the other hand, they can fully exploit scale benefits at home and their international export markets are dissimilar, U.S. Purchasing involves a transaction and thetransfer of funds. They note that in the global marketplace, the goal is world branddominance: Those who define international competitiveness as no more than low- cost manufacturing are aiming at the wrong targets. The marketer then has a wide variety ofstrategies from which to choose in order to effect the desired change(Peter and Olson, 199 , 322-324). Consumption involves the use of the product or service. Thesesituations are relevant for different products and services and can helpmarketers make decisions about developing strategies. Business Horizons, 62-73.Hamel, Gary and C.K. Similarly, a company needs to have a sense of itselfas being in a multi-national marketing environment and also addressregional and national issues when they apply. The company needs to accountfor the changes taking place in the world market environment and to developa global strategy which entails on the one hand an overall strategy and onthe other the flexibility to adapt to the requirements of specific regionsor countries. Information acquisitiontakes place through information contact and communication, from reading abillboard while driving to watching a television commercial. If you define your market too broadly and there arenational and cultural differences within that region, you will haveundercut your effort badly from the beginning. For the marketer, there are certain specifictypes of situations that are of considerable import, and five genericconsumer behavior situations can be identified -- the information,shopping, purchasing, consumption, and disposal situations. In the information acquisition stage,there are social and physical aspects of environments involved, placeswhere consumers acquire information relevant to a problem-solving goal.The information acquisition situation involves word-of-mouth communicationsand physical stimuli such as signs in stores or labels on the product,either of which may affect consumers' cognitions, affect, and behaviors(Dychtwald and Gable, 199 , 62-68). The first step is to identify key aspects of the social andphysical environments in consumption situations. These processes apply in the global marketplace as well as in thedomestic. (July-August 1995). Boston: Irwin. Prahalad. Consumer Behavior and Marketing Strategy. executives can safely adopt the traditional, country- by-country, multinational approach. One ofthe reasons for this is that most managers do not understand what globalcompetition is, and so the first step is to learn the meaning of the termand the nature of the competition. The situation itself helps determine what sorts of actionmight be effective and helps identify the environment in which theseinfluences should be placed. If the company defines its market too narrowly, it will miss theopportunity provided by a broader view. (Hamel and Prahalad, 1985, 139) Marketers analyze environmental influences and the effects ofsituations. Theyrecommend learning how the global game is played and then identifying thetarget. (Hamel and Prahalad, 1985, 142)What the authors recommend is finding the proper mixture of competitiveweapons and strategic objectives to serve the specific needs of thespecific company, and they note that this is what successful globalcompanies have done. These marketing situationscan be seen as constituting a cycle. Harvard Business Review, 139-148.Peter, J. Marketers can analyze andclassify situations according to the variables involved -- physicalenvironments in which the situations are set, behaviors and affectivestates exhibited, and so on. A company must do more to define its market in a multi-nationalmarketing environment than to decide to be a multi-national company.Defining its market as domestic on the one hand and foreign on the other isinsufficient and ignores the real differences that exist between countries. organizations should "go global" when they can no longer get the minimum volume needed for cost efficiency at home and when international markets permit standardized marketing approaches. Marketers seek to controlcertain aspects of the consumers' information environment and the ways inwhich consumers receive and process information. Do you really have a global strategy? (199 ). A second argument holds that world products offer customers thetwin benefits of low-cost and high-quality incentives for customers indifferent countries to set aside culture-bound product preferences: According to both of these arguments, U.S. (Jan-Feb 199 ). Disposition is the disposal of the product at a later time, once it hasbeen used and is no longer wanted or needed. One argument that has been offeredemphasizes only the scale and learning effects that transcend nationalboundaries and provide cost advantages to companies selling on the worldmarket. Marketingstrategies may then be developed that can modify this environment in orderto stimulate, facilitate, and reinforce the desired behaviors on the partof the consumer. Information acquisition situations include physical and social aspectsof environments where consumers acquire information, and the behaviors ofimportance are information contact and communication. Those who fail to identify the strategic intentions of their global competitors cannot anticipate competitive moves and often shoot behind the target. Paul and Jerry C. Olson. Defining the market toobroadly is also not a good idea because it misses the subtleties anddifferences which might determine whether a product is truly successful ornot and whether it reaches all the consumers in a given market or missesmany of them because they have been lost in the large-scale mix the companyis trying to reach. Shopping isanother marketing situation that may follow from information acquisition,and it involves store contact and product contact from window-shopping tocomparing products in the store. The broader view opens the companyto a consideration of the wide variety of market opportunities in differentcountries, and sometimes to the fact that a regional view might betterserve the needs of a product than would a concentration on one country.There are certain economies of scale possible for marketing to a largermarket, and too narrow a definition can be very costly with both excessivecosts up front and limited returns in the end. Portrait of a changing consumer. ReferencesDychtwald, Ken and Greg Gable. There is athreat of foreign competition that occupies managers today, and too oftenthe response they make to this threat is misdirected and ill-timed.
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