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Table of contents
2.Evolution of marketing theory
3.Various barriers for multinational
6.Globalization and its impact on behaviour
7.Global marketing segmentation
8.Multinational and global business
International marketing is a growing field. Multinational companies worldwide are seeking individuals with language and cross-cultural experience to complement their business skills to expand their business. A success international marketing operation based on the well-planned implementation of strategies such as technology, capital, knowledge at an international level(Jackson 2012). Multinational like BP, SONY and COSTA requiring a skill set and knowledge which extraordinary from common business management to tackle and understanding multinational operation, regulation, understanding of various multinational local customs and laws and conducting transecting in various currency in a successful manner. When international companies make decision and strategies they need to consider the essentials factors such as particular country’s politics, economy, social, technology, legal and ethnic. International marketing managers they need extraordinary skill level to analyse and implement strategies which suit to relevant country to deliver best for the company.
Evolution of marketing theory
Last five to six decades marketing theory has gone through a series of evolutionary stages before arriving at the marketing concept. Even though international marketing has been challenged because of theoretical and methodological short comings and evolution. The concept of international business wider, and the objectives determined on the basis of promotion of international business activities, to identify the barriers in promotion of international business and recognize the favourable factors which are useful for promotion of international business and analyse and interpret the perceptions of respondents regarding difference issues of international finally offer a suitable suggestions to strengthen the existing international business.( Jackson 2012)Concepts of marketing has changes significantly over 60 years of period. The product pioneer concepts dramatically changed into modern era customer orientation, customer focus and service etc. The latest era call social marketers believe the growth and sustainability of a business is based on the relationship between particular business and their consumer to long term survival.
Various barriers for multinational
International market entry has too many barriers and difficult regulation that influence a company to make entry decision in foreign soil. When international companies make entry decision and strategies they need to consider the essentials factors such as particular country’s politics, economy, social, technology, legal and ethnic.
International marketing managers they need extraordinary skill level to analyse and implement strategies which suit to relevant country to deliver best for the company.
This is tool or scale is used by the businesses to identify the external marketing environment factors that can play a major role on an organization to enter different region or country. This is a very critical process for the companies to enter a new market. Politics, economic, social, technology, legal and environment of a country are major external factors when enter a foreign soil. The government policy, stability, tax labour law and standard of livings are considered as a pollical factors of a country. The economic factors such as interest rates, exchange rate wages working hours and economic growth have major impact on new entry. Multinational companies should consider social factors like cultural aspect, population, health and safety when move to foreign soil especially company like Costa mainly deal with food service. Now a day’s technology plays major role in the international market entry system. Technology such as internet and social medial minimise the barriers as well as merge different segment or group. Legal factors such as accounts and audit systems are another key point for a foreign company to consider when they enter foreign market to invest huge capital. According to marketing evolution, society is the vital factor for the long-term growth of companies. This is very must for the company to use adequate safety measure to protect environment (better waste management) to protect local community.
Consumer behaviour has major impact on whole business and market activities. This is very significant to all the companies to know the long process from sales point to disposable of a goods or service as well as their feedback either positive or negative (Solomon,2009). Psychological, social, personal and culture are the four most influence in the consumer behaviour. Consumer behaviour is a research and observation of a group, society’s respond to a goods or service marketed by a company to make future decision. This is a study of people’s decision on buying a company product along with psychological, personal and social influence.
Consumer behaviour has play significant role to decision making about a product or service when, where and what to buy-how often buy-how they use it. So, in the international marketing consumer behaviour play significant role to decide a market. The latest technology and social media influence and shifted major changes on consumer behaviour apart from cultural and other social factors.
Globalization and its impact on behaviours
Last two to three decades the major impact on consumer behaviour is globalization. Through globalization and technology such as internet and social media has shifted consumer behaviour to single brand, lifestyles and patterns apart from other social factors. This shift makes international business entry much easier and effective. This shift has reduced the barriers on the international marketing. Globalization has provided more choices for the consumers on less price all over the world. This has changed consumers buying behaviour and anticipation.
Global market and segmentation
Segmentation is new market strategy which divide market into different categories such as consumer, organization and national who they are identical or similar on requirements than execute plan to target them. Through regular data collection and analysis companies discover the market and product to execute plan. This is very effective, and cost reduce approach in the marketing sector to manufacture or produce large quantity. Through this process companies identify the huge and new market and deliver less cost product to the consumers. Both consumers and business have benefiting through segmentation. Demographic, geographic, behavioural and psychographic are for major segmentation on target market. When they target age, gender, family and size basis it is call demographic segmentation. When companies target based on region, state and country it is known as geographic segmentation. People who they divided because of their attitude or behaviour comes under the behavioural segmentation. People’s life style, activities and interest-based customers products market is call psychographic segmentation. What types of segment company going to target and how execute strategy planning is vital for every company in the international market.
Multinational and global business
Companies who they have business more than one country apart from their size is call multinational companies. In other word companies have their business activities more than one country either physical presentation or through technology base platform like eBay is call multinationals. Multinational companies have both positive impact such as cheap labour, huge market, low-cost product and job creation and negative impact such as threat to local business and loss of jobs. Globalization and technology such as internet social media plays major role in the growth of multinational companies.
BP (BRITISH PETROLEUM)
British petroleum company is a UK base multinational oil and gas company incorporated in London. This was found in 1908 with the first discovery of oil in Iranian soil. Company has transformed coal to oil, oil to gas through innovation and investment to generate future fuel, the same time protect our environment into a lower carbon future. British petroleum has investing and generating huge amount of money to innovation towards future fuel as well lower carbon world. This is the very impressive act by multinational companies like BP, the huge investment towards lower carbon world to protect its society as well as promote its businesses in the sustainable manner. Multinational companies if they want sustainable result in their business growth it’s their duty to protect society, to build a goodwill between community and company which we analysed in the marketing evolution.,
Sony one of the biggest technology company in the world. They are pioneer in the colour television and tape recorders in 1970. Their mission is to be a company that inspires and fulfils your curiosity. ground-breaking new excitement and entertainment in ways that only Sony can. Everything we do, is to move you emotionally. The main objective of Sony international ltd, is to develop a new technology which can contribute towards the improvement of our society, they will also aim to increase their productivity and the product performance and services to make them sustainable and to access high quality concept. Their prime goal of their business is improving business in global basis the same time protect their relevant society and environment through innovation that’s helps society. Still they are global leader in the technology market. Sony is a global brand to target every segment without any barriers through their goodwill and innovation capability.
Costa coffee is a British multinational coffee shop founded in the 1971 by Costa family produced quality coffee for specialised Italian coffee shops in the UK. Its owned by White bread a British company. In UK one of the fastest grown coffee shop chain and have shops around 34 countries plc one of largest operators of hotels, restaurant and coffee shops. Costa UK’s favourite coffee shops having 2400 shops in UK and 1400 in 34countiees.making great coffee is an art with the 40 years of experience. As a responsible global brand Costa constantly striving reduce their impact on the environment. Whenever they can recycle, uses sustainable materials technologically smart machinery and renewable energy. This is the secret formula of the Costa coffee brand. They promote their brand as well as society and environment. Like all other multinational companies Costa travel along with their responsibility to protest their local society This is the main success of the multinational companies. These companies play leading role to protect their society to find a sustainable growth in the business.
In the international marketing there are too many key factors plays vital role to provide sustainable growth to multinational companies. Pestle, consumer behaviour and culture are the big players to decide the growth of a multinational company. Data collection and analysing the data and finding than executing the right strategy is a challenge in the international business. Companies who they have better understanding, and better strategy have leading role in the international business. According to Geert Hofstede, the effects of a society’s culture on the values of its members so companies must adopt to local culture to deliver best for the stake holders. Companies who they have better vision and mission in executing strategy to promote business playing leading role in the international business. The most essential characteristic of any successful international business is implementing a global way of thinking. If this is the main thought process behind a company’s decisions, the rest of their international marketing strategies can be implemented with ease.
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