Marketing Strategy for Establishing Presence in Emerging Markets

International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

The first recommendation for this firm is to adopt a global policy and try and explore new markets so that market growth and market share can be expanded. In case of a firm entering an international market, it requires to analyze the nature of the market and suitably form its marketing strategies in alignment with its business strategy and decide whether it is more beneficial to adopt a global approach or use a strategy that is customized to suit the needs of the local customers.

Doing business in such different countries ask you to be flexible and need to be able to adapt quickly to the local demand and cultural differences. Your strategy has to be adapted to the ethical standards, cultural norms, but also the way the business is going locally. In others world, the company has to localize its distribution and marketing strategy to the requirements of the local market.

Business environments across the world have been experiencing numerous and rapid dynamics, forcing business enterprises to look for more intelligence before entering such markets. The need to start businesses in foreign markets is created by variety of factors which includes saturation of local markets and availability of attractive opportunities in foreign countries.

Firms should look out for global market opportunities to expand their business into various markets and also to estimate the demand for products and services in various economies. There are many markers that could indicate favorable opportunities for companies to export, invest, source or partner in foreign markets, and these could be promising mixtures of circumstance, locations and timing (Cavusgil et al. 2014). Firms can carry out a global market opportunity assessment to analyze a market’s suitability to the firm. There are six tasks for the global market opportunity assessment. Firstly is the organizational readiness to globalize. This could gauge a firm’s preparedness to conduct international business with an initial assessment, which includes its financial resources and management’s commitment. Secondly is the suitability of products and services for foreign market. Products that sell well in the domestic market might not be suitable to sell in other markets, so firms need to determine how

International marketing is an exceedingly difficult and challenging activity for a multinational corporation (MNC) marketer. According to Cateora, Gilly, and Graham (2013), “international marketing is the performance of business activities designed to plan, price, promote, and direct flow of the companies goods and services to consumers of users in more than one nation for profit” (p. 10). International marketing strategies and its efficiency assists in the expansion of an organization. The development of global markets was established by the needs of the consumer. Marketing strategies are extremely important to a firm when they decided to move out of the domestic arena. Accepting and applying

There is a tendency for international corporate-level strategies to be substituted for global marketing strategies; namely, multi-domestic strategy to concentrated marketing, global strategy to standardized marketing, and transnational strategy to differentiated marketing. However, the borderline lies as the former focuses broadly on firm’s operations while the latter narrowly involves factors within the marketing mix that directly influences the customer behavior. Although this distinction is used to promote accuracy across the paper, there will be

In the emerging era, every industry must be considered a global industry. Today, globalization is no longer an option but a strategic imperative for all but the smallest firms. The following framework and set of conceptual ideas can guide firms in approaching the strategic challenge of casting their business lines overseas and building global presence:

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

Furthermore, the government is willing to make the country more liberal. In this intent, Brazil is a part of the Common Market of the South, Mercosur which has founded Common External Tariffs (CET) for Argentina, Brazil, Paraguay and Uruguay, concerning a growing number of products. In the geographic area of Mercosur, the tariffs are also eliminated, and factors of production (labour or capital for example) can move freely. These CET apply for equipment goods at rates included between 0% and 14%[ http://www.septimanie-export.com/fr/fiches-pays/bresil/acces-au-marche] (numbers given for the tariffs applied on the CIF[ Cost Insurance Freight] price of goods). This is a big opportunity for Ikea, because reduced tariffs would reduce prices on their imports to Brazil if they set up one or more outlets there.

Location is the most important factors for business success for international business. The world offers different locales, opportunities and risks as the companies try to create value from increasing sales or acquiring competitively useful assets.

Income segmentation is a longstanding practice in categories such as cars, clothing, cosmetics, financial services and travel. However, income does not always predict the best customers for a given product. In this case, boost is affordable by middle class income group, as the price is above the average of the normal drinks such as bubble milk tea which is most popular drink and the major competitors of Boost. Furthermore, each generation is profoundly influenced by the times in which it grows up.

It is not hard to conclude that researching and understanding the result of an emerging market’s economic development is the most important factor for an international marketer to do and to understand. While, designing a marketing campaign solely based on the economic development research can also sometimes be misleading, because of the culture differences between countries. As a matter of fact, the culture of a country a lot of times shapes the purchasing pattern of a country’s consumers. Thus, it is important for an international marketer to adjust their marketing plan to

Entering a foreign market can be delicate for a business. There are different steps to entering a market abroad, and there are different strategies to look at, as they all vary. There is no single approach to enter all forms of international business. Many benefits come from expanding a business globally. Making the move into foreign markets will increase the size of an organization, their profits, and the overall global economy. A company must determine trade barriers, the different risks associated with their entry, and develop a strategy (Hill 2008).