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Fast changing intertiol marketing scerio

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  29 Nov 2016 12:00 AM GMT

Dr B K Mukhopadhyay

It is a reality that today world trade has assumed an importance hitherto unknown to the global community. The modern marketer or mager cannot mage a business without looking at the global are where economic transactions take place even if a marketer decides to confine his own business within the tiol borders. The fact now is: while in the past trade was undoubtedly conducted intertiolly, but never before did it have the broad and simultaneous impact on tions, firms and individuals that it has today.

In over three decades, world trade zoomed from $200 billion to almost $ 0 trillion. Clearly, the global ture of modern economics influences one’s decisions in any case.

Straightway speaking Intertiol Marketing is the application of marketing principles to satisfy the varied needs and wants of different people residing across the tiol borders. Such a process necessitates undertaking the marketing activities in more than one tion. It is often called as Global Marketing, i.e. designing the marketing mix (viz. Product, price, place, promotion) worldwide and customizing it according to the preferences of different tion people. Actually, the foremost decision that any company has to make is whether to go intertiol or not - a company may not want to globalize because of its huge market share in the domestic market and do not want to learn the new laws and rules of the intertiol market. Still, there are ample reasons that attract the organization to be global: - increased economies of scale; comparatively the existence of high-profit opportunities in the intertiol market compared to the domestic market; expanding the market region; elongated life of the product; as well as tapping the comparatively less tapped intertiol market.

In the specific sense intertiol business essentially covers intertiol transaction of economic resources as well as intertiol production of goods and services, and as such the broad forms of business intertiolization cover trade, technical collaboration and investment. Intertiol marketing is simply the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as intertiol marketing and global marketing, which is a similar term. For the purposes of this lesson on intertiol marketing and those that follow it, intertiol marketing and global marketing are interchangeable. That is to say, intertiol marketing is a simple extension of exporting, whereby the marketing mix is simply adapted in some way to take into account differences in consumers and segments. It then follows that global marketing takes a more standardised approach to world markets and focuses upon sameness, in other words the similarities in consumers and segments. Keegan nicely stated that ‘the intertiol market goes beyond the export marketer and becomes more involved in the marketing environment in the countries in which it is doing business.’ True - intertiol Marketing is the performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one tion for a profit and intertiol marketing is simply the application of marketing principles to more than one country.

What is more, trade growth on a global level has consistently been outperforming the growth of domestic economies in the past few decades, as a result of which many new countries and firms, especially in the emerging economies, have practically located it as highly desirable to become major participants in the intertiol market. Global marketing (marketing on a worldwide scale reconciling or taking commercial advantage of global operatiol differences, similarities and opportunities in order to meet global objectives as defined by the Oxford University Press) has thus emerged as number one - more so since the emergence of computers and internet has reduced the world to a global village where producers and customers can just log onto the internet to interact and exchange goods and services.

On a broader vision: not in India alone, intertiol marketing has emerged as a targeted area of highest priority among the progressive tions globally. Intertiol business expanded at a jet speed in the current decade - reasons mainly being rapid growth in technology, coming up of supportive institutions, openness of the different economies as well as increase in competition. Even minnows like Myanmar are now making a foray into the energy sector in particular. Not only this, even a latecomer like Bangladesh has emerged to be a tough competitor in the field of readymade garments (for which sector even Russia also is now interested to learn) making full use of its competitive advantage (a country has a comparative advantage over another if in producing a commodity it can do so at a relatively lower opportunity cost in terms of the foregone altertive commodities that could be produced) in the are of cheap labour. The EU’s interl market is all about removing barriers to free movement of goods and services, people and capital. Organizations are also there to encourage the removal of barriers to free global trade.

It is beyond any shade of doubt that openness of economies has been gaining ground - described as total foreign trade (exports plus imports), as a proportion of GDP, and as such the degree of openness of an economy plays the domint role. Openness of the goods market refers to free exchange of commodities across tiol boundaries showing and indicating greater interaction with the global market. Side by side, openness of the factor market also deserves attention - labour and capital have more freedom to choose between domestic and foreign assets. In fact the MNCs are moving their operations with greater ease around the world in search of lower costs. For example, workers can move freely from one country of EU to another without facing much restriction.

The fact is that for both the developed as well as the developing world, marketing high has not only been considered from the point of view of being an integral component in the context of economic development, but as a rich gold-mine as well (earning foreign exchange which is described as claims on a country by another held in the form of a currency of that country). If one knows the technique to explore, then the resource is meant for one, of course, in a transparent way also. Reaping adequately from modernized, highly fluid and fast-changing global business/commercial environment does depend on its abundant tural/ human/ technological/ fincial resources as well as crucially on the very ability to undertake expanded task of adapting to befitting marketing strategies.

What is more, the very magement functions in the sphere of intertiol business differs widely from those engaged in domestic business - mainly visible in areas like accounting and fince, personnel, marketing and production. For example, multitiol companies operate in many countries simultaneously and the different units are linked through common ownership responding to common strategy (although the degree of integration varies from case to case). During the last five decades, MNCs have registered a phenomel growth. The trend is all set to continue provided the reputation risk factors (as normally experienced in countries like Chi) are adequately taken care of.

turally, the challenge is to create exportable surplus (trade surplus referring to an excess of export receipts over import payments as compared against trade deficit which means an excess of import expenditures over export receipts measured on the current account and also known as merchandize trade deficit) and at the same time producing goods/ rendering services at the least comparative cost - so as to get a strong foothold on the intertiol market in the face of intense competition.

Filly, the difference between domestic marketing and intertiol marketing should not lose sight of in as much as in the former case the business remains confined to the political region’s jurisdiction where rules and regulations as imposed by the government are same, while in the latter case once the trade starts across the border rules and regulation of the host country are replaced by the other government. That is to say a new set of rules come into play, which, in turn, becomes binding and as such the situation becomes more complex.

In domestic marketing, the company can have the same policies and strategies while intertiol marketing requires different strategies in the promotion of their products. As every country has its own laws on business and a company that aims at entering into business in another country must first know about them. Since consumer tastes and preferences may also differ so marketing strategies must be formulated to cater to the needs of different consumers.

Domestic marketing deals with only a single market while intertiol marketing deals with several different countries and markets. Domestic marketing deals only with one set of consumers while intertiol marketing deals with different types of consumers with different tastes. Intertiol marketing calls for time and effort, not to mention its being very risky too in as much as intertiol market is very uncertain and a company must always be ready for changes that may suddenly occur. And turally, it requires a higher level of commitment to succeed in an intertiol market. Clearly, domestic marketing is the production, promotion, distribution, and sale of goods and services in a local market while intertiol market is the production, promotion, distribution, and sale of goods and services in a global market. Comparatively, domestic marketing is less risky and easier to conduct while intertiol marketing is more risky and more complex. Not only the existing challenges, but the ture, volume of challenges also galore indeed!

As such although both use all the basic marketing principles, intertiol marketing is more challenging and requires more commitment from the company because of the uncertainty and differences in laws and regulations in the global market while domestic marketing deals only with the laws and regulations of one country.

(The Writer, a noted Magement Economist, an Intertiol Commentator on Business and Economic Affairs and Principal, Eminent College of Magement and Technology, Kolkata, can be reached at m.bibhas@gmail.com)

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