Describe in 3 or more paragraphs: techniques an international marketer should use to enter an existing international market; the marketing mix (all 4Ps) tactics you should employ to enter an existing market; and approaches for minimizing long-term market entry losses.
The first step for a marketer to enter the global market would be identifying the choice of a market entry strategy. Controlling marketing programs worldwide, challenging task of designing, and implementing are the next step. Other marketing mix factors, as they apply to global markets are product, promotion, place and price (4Ps). There are five strategies that match with reference to product and promotion which all depends on the firm adapts or extends its products. In one of the three ways, a product may be sold globally: (1) Either using the product in the same form as existed in the home market or (2) with some modifications or (3) it can be totally a new product. Extension of the product: in product extension strategy, same product would be sold virtually in other countries examples for such products include Coca-Cola, Gillette razors, Wrigley’s gum, etc. Adaptation of product: In a product adaptation strategy, modifying the existing product according to the preferences of the country (weather condition) or preferences of the consumer such as changing the color, flavor, and packaging. An example of such product adaptation strategy is Maybelline’s makeup, which is adapted in labs formulaically to adapt the skin types locally and weather. The invention of a new product: To satisfy common needs across the country, companies can invest totally new products. For example, Black and Decker created a portable lighting which is a new product developed and sold the products across Europe, America, and Australia.
For the product extension and product adaptation strategies around the world, an identical promotion message could be used. For example, Gillett used the common message in all their advertisements. In message adaptation, for a standardized product in the promotional strategy include, varying approaches for the promotion would be used to account for the differences in culture, customers, to suit the language. Simple rule for the global companies for the promotional strategies include standardizing the products and promotional strategies whenever possible and adapting if required. Distribution through the layers of agents, wholesalers, and retailers. Pricing strategy should consider the cost accounted for transportation, insurance, taxes and tariffs.