Brief summary of the elements that must be taken into account in the development of a global marketing strategy.
The dynamics of the world economy implies that companies must seek market opportunities around the world, large companies seek business globally, and marketing strategies must be consistent with this reality.
International marketing is "marketing applied to other cultures or to different realities outside our environment", and therefore must take into account multiple factors in the development and introduction of products.
When a company seeks to position itself internationally and compares the activities to be carried out in its base of operations with those that must be carried out in a different environment, it will find that the success factors are not always the same; the competitive advantages of a product may vary in relation to the competition, people's preferences and tastes vary in terms of brand notions, preferences, level of consumption or simply the way to approach the consumer must have some special characteristic.
International. Each international market is different and the rules that apply in one market may not work in another.
The characteristics of the markets that are faced must be taken into account to adequately reach the new consumer, no matter where in the world they are.
FACTORS TO BE TAKEN INTO ACCOUNT IN INTERNATIONAL MARKETING AND ENTRY INTO FOREIGN MARKETS:
- Culture: The differences in the cultural environment and the values of the societies generate the first problem of international marketing. Understanding the customs, habits and preferences of societies is a guarantee of a successful approach to foreign markets. When the own values are confused with the values of the companies with which it seeks to establish a commercial relationship, products or services can be introduced in an inappropriate way and with the risk that consumers do not understand what is offered to them. Trade restrictions:It consists of identifying the tariffs, import quotas, legal restrictions and taxes that apply to companies in different countries. A cost analysis related to the legal and tax part will be essential to determine the feasibility of introducing products in international markets. Monetary controls and financial stability: A key factor is determining the security of investments. It is important to identify the degree of monetary risk, the level of exposure and financial vulnerability of the country where you plan to invest.
It is necessary to observe factors such as the stability of the foreign currency, government discipline in its expenses, degree of indebtedness, etc. The most important case today is the Argentine, where there are many doubts about its ability to respond to its obligations.
- Property and Personnel Restrictions: States often place great importance on the issue of property and people's participation. In many occasions the entrance of foreign companies is favored in exchange for jobs or participation in business.
A classic example of a property restriction was presented when the Government of India asked Coca - Cola for the technical formula of its recipe to allow it to operate in its country. Coca - Cola preferred to exit the Indú market in exchange for protecting its technological secret.
Other important factors are:
- Religion and customs Political and legal stability Internal competition and local acceptance
DOMESTIC OPERATIONS AND INTERNATIONAL OPERATIONS:
The following table summarizes the domestic operating conditions compared to the international ones:
| Local operation | International operation |
| Cultural Knowledge | Cultural Learning |
| Common values. | Different values |
| Ease in gathering information. | Difficulty in collecting information. |
| Stability in business | Risk to be calculated |
| Ease of communication | Communication learning |
In general, international entry should start from a calculated risk, where companies should seek to collect as much information as possible in order to seek the highest level of knowledge possible in order to successfully access international markets.
Generally, investing abroad implies taking higher risks under the promise of higher profits, where international expansion is a guarantee of maintaining acceptable levels of growth for those who invest in companies.
