Lyeux

International Professional Marketing

International professional marketing was born out of the acceptance that people around the world do not have the same needs. Though many multinational companies have brands that are duly recognized all over the globe, and have a constant marketing mix patronized by the global audience, these companies still oftentimes develop certain marketing mixes made specially for a certain target audience. Such marketing mix can only be arrived at by taking into account the regional differences of the target audiences, such as cultural and geographical differences.

International professional marketing dictates that businesses must recognize that the fact that there exist differences in values, customs, languages and currencies that will inevitably cause some products to be fitting only to particular countries. They should act on these differences while keeping in mind the requirements of the global market. The potential of offshore markets aside from the possibilities in the marketing environment at home should be analyzed with proper caution to be able to determine applicable marketing mixes for each scenario.

The unfamiliarity of some locations is the biggest hindrance in the finding of relevant market information for international professional marketing purposes. The prospective market size, scale and kind of competition, price, promotional differences, product differences as well as barriers to trade have to be scrutinized alongside the cost-effectiveness of the different types of available transport. Both short-term and long-term goals should be taken into consideration as well as the level of investment required to be able to reach the desired result of increased and ample return.

Two questions should be answered before a firm engages itself in exporting activities.
1. Is there a market for the product?
2. How far will it need to be adapted for overseas markets?

The product must have the necessary characteristics that will make it satisfactory to the market such as size, shape, design, performance and even color. Because a product no matter how good or effective it is will be a sorry loss if there is no market to accept it. International professional marketing helps firms determine what product is acceptable for each particular country market a firm wants to target.

Standardization
Standardization is in effect when a company is selling a standard or uniform product among all of the target markets in which the said product is being offered. Low fixed costs due to the fact that the said costs are being allocated over a large quantity of output are the primary benefit of standardization. Other benefits of standardization are increased profits and simpler supplying processes. There are various barriers that make standardization not easy. Such barriers should be pinpointed to be able to determine the proper adjustments to the marketing mix.

Common Barriers to Standardization and their Related Product Characteristic
1. Product – tastes and habits differ between markets
2. Price – consumers have different incomes
3. Place – systems of distribution vary widely
4. Promotion – Consumers’ media habits vary, as do language skills and levels of literacy.

Differentiated marketing is the opposite of standardization in which a company offers different marketing mixes tailored to the needs of its target markets by the use of different overseas segments.

International professional marketing argues with standardization with the claim that successful adaptation of marketing mixes that meet the demands of local markets brings the greatest and fastest success to dominance in the international market.

The firm’s view of its offshore markets and the level of its commitment to meeting the demands, wants, and needs of its overseas consumers is the biggest factor in the dilemma of having to choose a fitting standardization – differentiation marketing mix.

General Approaches to Determine Standardization-Differentiation Ratio
1. Polycentrism – the process of establishing subsidiaries which are decentralized from the parent company, with each having their own marketing policies and objectives which may slightly vary or totally vary from that of the parent. Each subsidiary is responsible for adapting to the market on which it is part of.

2. Ethnocentrism – views offshore operation to be almost or totally immaterial. Plans for offshore operations are developed only at home and very little research on foreign markets is done. No real attention to differences in markets is being given and a standardized marketing mix is comprehensively being applied.

3. Geocentrism – adaptation takes place wherever necessary and standardization happens wherever possible. Hence adaptation is only used whenever standardization is impossible.