Part 1: Interpret trends and market development
Analysis of trends and developments (3 marks)
The international market is incredibly diverse; this provides business managers with untapped potential and a big range of profitable opportunities in the market. However, this diversity may make international marketing operations quite complicated, requiring the coordination of a variety of processes to be successful. In most cases, the basic marketing principles apply to all markets around the world. The difference is that you need to be able to apply those principles in environments that could be significantly different to what you are used to dealing with. Many of the issues international marketers face are outside of their direct control, so they need to be prepared to employ their strategies to cope with unfamiliar situations and problems.
The first stage of the process, analysis, involves collecting qualitative as well as quantitative data about the products and potential customers. This information is adapted by conducting extensive market research using techniques such as surveys, audits, observations and can be compared with data that have been collected in the past. This information should be compared and contrasted against the Companies objectives as well as resources to determine whether or not there are any essential opportunities to expand into newly available markets.
Currently, different nations are linked by international trade more than ever before in history. The global economy has benefited significantly from the ever increasing growth of international trade. Many organisations have become dominant forces in the world economy and have made huge profits by expanding their operations into as many places as they can.
However, international trade has also raised many issues that require consideration. Different countries and economies are now more reliant on each other than they ever were in the past. For example, recession or crisis in one country can have a significant negative impact on other nations throughout the world. The closer the trade linkages become between nations, the greater the impact on the global economy.
Comparative international market information (3 marks)
Marketing is an ongoing business approach that consists of various distinct stages; analysis, planning, implementation and control. An understanding of the fundamentals of marketing is essential if your international marketing activities are to be successful. The information is generated by conducting an extensive market evaluation using techniques such as surveys, audits, observations, also, it can be compared with data the collected in the past. This information should be compared and contrasted against the businesses objectives and available resources to determine whether or not there are opportunities necessary to expand into new markets (Samiee & Chabowski, 2012).
In case the competitive advantage is identified during the analysis stage, the marketing strategy moves on to the planning stage. Planning involves creating strategies that can implement to achieve results in the target market. The company should consider both the short-term strategies and long-term objective in the planning phase, paying significant attention to comparing the risks with the potential rewards. Once you have developed a well-defined marketing plan, the organization can begin the implementation stage. The success and failure of the implementation stage rely almost entirely on the work that has been done in the analysis and planning stages. If your plans are realistic, well thought out and based on sound analysis, the implementation stage should result in success for your business.
Part 2: Interpret competitor market performance
Analysis of existing and potential competitors (3 marks)
Advanced Auto Parts, Inc 6443 Iron Bridge Road Richmond, VA 23234 uses the slogan Slogan or Motto, “We're Ready in Advance”. Advanced Auto Parts, Inc. the company provides customers with automotive products and services, which include diagnosing vehicle problems and doing repair work. It is perhaps the Mission of Advance Auto Parts to provide personal vehicle owners and enthusiasts with the vehicle related products and skill that fulfil their wants and needs at the right price that is affordable to customers. Our friendly, knowledgeable and professional staff will help inspire, educate and problem-solve for our clients.
The key competitor of Advances Auto Parts Inc is AGCO Corporation 4205 River Green Parkway Duluth, GA, USA 30096. It uses the Slogan or Motto, “A World of Solutions for your Growing Needs”. AGCO is the leading manufacturer and distributor of agricultural facilities such as replacement parts, tractors, hay tools, sprayers, forage equipment, as well as implements. However, its brand names include AGCO, Challenger, Fendt, Gleaner, Hesston, Massey Ferguson, RoGator, Spra-Coupe, Sunflower, Terra-Gator, Valtra, and White Planters. Profitable growth by superior customer service, innovation, quality as well as commitment enables the company to compete in the market.
A company must build its strategic and operational goals and then choose the "Key Performance Indicator"(KPIs) that best reflects those objectives. For instance, if a software company's goal is to have the fastest development in its industry, its primary performance indicator may be the measure of revenue year-on-year. The company's KPIs will be stated in its yearly report. Also, KPIs will often be industry-wide levels, like "same store sales", in the retail sector.
Comparison of international business performance (3 marks)
A set of quantifiable performance measures that a company or industry uses to gauge or compare performance regarding meeting their strategic and operational goals. KPIs vary between businesses and industries, depending on their priorities or performance criteria, also referred to as "key success indicators (KSI)". Our number 10 example is not an example of world comparative marketing and international marketing analysis, on the other hand, an illustration of how a high-quality structure – international and global – can help organisations succeed. Moreover, Coca-Cola used that mixed tactic effectively in the earlier days and is nowadays followed by every company, from Mercedes-Benz to Frito-Lay to Procter & Gamble to McDonalds.
Nevertheless, Companies identify and assess current capabilities and resources to determine the areas for improvement or exploitation within international markets. Companies identify under-performing products or services within international markets for re-development or withdrawal. The companies should confirm the strength and current competitive position of the business within global markets.
Part 3: Identity the target market
3.1 Approaches to determining and describe the total market (3 marks)
Set of characteristics that identify a target group of a population or a market segment. Used in the formulating market target strategies, it includes demographic, geographic, psychographic and behaviouristic. Determine readiness to market products or services internationally. Goods and services must be satisfied domestically before considering international marketing.
Determining the readiness to the market entry involves analysis of available financial resources of an own organisation, economic conditions within potential global markets, existing competitors, international standards for product or service, knowledge of international laws, conventions and culture. Again, companies list potential global markets for further investigation. Companies identify information sources for information for selection of international markets.
Target market regarding prospective users/consumers (3 marks)
The three levels of product are augmented, actual and core product. Products can be classified as either consumer goods or industrial goods. The dimensions of the product target markets are the width (product lines), length (brands under the product lines), depth (variations, sizes, flavours) and consistency (how related – production and distribution. The four stages of product life cycle are introduction, growth, maturity and decline of the target market as well as customer behaviour.
Nevertheless, products can be modified through the feature, quality and style modification. Branding is one of the main ways in which organisations identify their products. The packaging of a product is often as important in determining the product's success as the product itself. However, marketers have a significant legal and ethical responsibility to ensure that the goods and services they sell will meet expected performance criteria and not harm the targeted consumer.
Marketing strategic options and targeting strategy (3 marks)
The marketing strategy may involve product promotion. Though advertising can be a powerful marketing tool if used properly, it cannot create the desire for unwanted product or product class. Advertising can be broken down into product and institutional advertisements, and each of these categories can be sub-categorised into informative, persuasive and reminder advertising. The promotion decision process consists of seven steps: identify the advertising target, develop advertising objectives, establish an advertising budget, decide on an advertising message, develop a media plan, create the advertisement and evaluate advertising effectiveness.
Advertising agencies can help a client to make wise decisions n each stage of the promotion decision process.Moreover, publicity is non-personal stimulation of demand for goods, services or business units by generating commercially significant news about them in mass media, or by obtaining a favourable presentation of them on radio, television or any other media. Public relation is another marketing strategy, seen as a vital part of maintaining the organisation's image and of communicating its message to its client, investors and the general public. Roles of public relations include the public image, outreach events, media relations (games/achievements), social media and handling emergencies in the target market.
Part 4: Profile the target audience
4.1 Demographic data and psychographic descriptions (3 marks)
The components of a physical distribution system are order processing, materials handling, warehousing, inventory and transportation, is influenced by demographics/population. Physical distribution provides customer service by ensuring that the right product gets to the right place at the right time ant to the right client. The systems concept of physical distribution state that what is best for the entire company is more important than what is best for any single activity; distribution activities have inherent cost trade-offs; as well as a firm can have a total value orientation.
Managing physical delivery system entails the management of all activities that deal with the movement of finished products from the manufacturer to the finals consumer or buyer of different age group. Physical, demographic data is a valuable marketing tool because distribution activities have the significant impact on customer service.
Meeting organisational requirements (3 marks)
The target customer engagement is more active in international marketing. By setting multiple communication channels, a company can better engage with fans and customers at a local level. However, that is not to say that global marketing is less effective when it comes to customer engagement the tactics are just different. However, it is clear that global marketing tends to produce a higher level of engagement than global marketing.
Ultimately, the selected marketing approaches must fit the organisation's vision, mission, brand policy and operational structure. Impotently, a company must reach a comfortable, functional size before adopting a global marketing strategy. Whether a company opts for international marketing or global marketing is, after all, company management's decision.
Reference
Samiee, S., & Chabowski, B. R. (2012). Knowledge structure in international marketing: a multi-method bibliometric analysis. Journal of the Academy of Marketing Science, 40(2), 364-386.
