Management Of International Marketing - Myassignmenthelp.Com

Question: Discuss about theManagement Of International Marketing. Answer: Introduction: In this study the discussion will take place on the Unilever Company and the other tools that will be discusses are evaluation of the company , its market research, applications, market influence, strategic value, international and national policies of the company that are used for the marketing of the business organization(Cateora, 2008). The company is a global firm so the marketing is also takes place on a global context. It will cover the planning and implementation of the planning. The main purpose of this study is to learn that the international marketing plays vial role in the company and its promotion. It not only influences the business but also the marketing strategies of the company. It is playing a vital role as it provides a platform to the company s that they can make an international operations and functions (Terpstra, Foley and Sarathy, 2012). In order to release the products in the new market, the company like Unilever has to make many efforts. The efforts and the strategies can be taken after analysing the internal and the external environment of the country in which the company wants to expand its business. It is also required to analyse the environment of the company itself. Both the analysis can help the firm to take better decision in terms of international marketing (Malhotra, 2008). WHY: Product standardisation: Product standardisation is important for the company like Unilever because it is difficult to adapt the culture and the needs of the people in the international market. This is because every country has different choices and culture thus standardisation in the products helps the company to take similar initiatives in order to release the products everywhere (Czinkota and Ronkainen, 2013) Benefits of standardisation: Similar strategies to be followed: standardisation is the technique in which the strategies that needs to be practices or followed by the company remains similar at every place irrespective of the difference in the culture and the destination (Hollensen, 2015). Economies of scale: similar strategies and products over the globe results in similar production at large amount (Peter and Donnelly, 2011). Less cost: economies of scale results in less per unit cost for the company (Cateora, 2008). Similar marketing techniques: the company need not to make many efforts in thinking and implementing about the different marketing strategies or different market (Santos and Laczniak 2005). Internal environment analysis of the company: Internal analysis of the company can be done by SWOT analysis. The strength and weakness part of SWOT analysis helps in determining the internal strength and weakness of the company. SWOT analysis: Figure: 01 SWOT analysis (Armstrong, Kotler, Harker And Brennan, 2015) Strength: Strong brand image: The Company has a very strong image. The positive image of the company helps the firm to penetrate in the new market easily (Czinkota and Ronkainen, 2013). Range of product mix: Unilever is the company that serves the customers with wide range of products such as the grocery items, household items, beauty products range etc (Santos and Laczniak 2005). The company targets all the customer segments with its products This wide range of product serving by the company helps the company to achieve higher customer base and ultimately the market share (Papadopoulos and Heslop, 2014). Weakness: Imitable products: The products that the company deals with are very much imitable. Dependence on retailers: Unilever is the company that supports the other companies to sell their products (Tse, Lee, Vertinsky and Wehrung, 1988). Competition: the company faces a lot of competition from the other companies like PG, Nestle etc. Opportunities: As the company is expanding to the new market, it has the opportunity to expand its products range at the same time according to the choices and the requirements of the market. Variations in the food products can be brought up by the company to serve the new market. (Zeritin et al. 2014) Threats: The biggest threat for the company is the saturated industry and the competition prevailing in the market. Major competitors for the company are PG, Avon etc. (Europa.eu 2017) Marketing mix: 4ps Figure: 02 Marketing mix(Terpstra, Foley and Sarathy, 2012) External environment analysis: PESTLE analysis: USA Figure: 3 PESTEL Analysis(Armstrong, Kotler, Harkerand Brennan, 2015) Political environment: As far as the political environment of the company is concerned, it has been analysed that USA is the country with stable political environment. The company like Unilever has to be under the regulatory of the Food and Drug Administration (Mattila, 2000). If the company has to conduct the business in USA, it has to comply with all the rules and regulation given by the administration. After the election in 2016, Trump has made changes in the international trade policies of the country. Trump has focuses on changing the way the country is doing business with the international market in order to enhance the economy and thus these changes affect the normal functioning of the company in USA. Economic factors: Economy of the country is very stable in terms of earing and the purchasing power of the country. As far as the FMCG industry is considered, the industry is also growing at very fast pace and at the same time experiencing tough competition. USA is considered feasible in terms of economy to invest by Unilever but competitors strategy is must to analyse (Uniliver.com, 2016) Social factors: Social factors of the country involve the demography and the choice and demands of the people(Hill and Westbrook, 1997). Now a day people believe in buying the products with low price and high quality. Unilever has to make the pricing strategy in such a way so that more and more people can afford to buy the products. Technological Technological factors: as far as the technological factors are considered, it has been analysed that in USAs market, it is necessary to be automated(Tubadji, Osoba and Nijkamp, 2015). The more automated company attracts the customers as the people in USA are very much techno friendly. Environmental factors: Sustainability is the key to success for the organizations these days. The policies of the USA government regarding the use of sustainable resources and the process are very tight and needs to be followed by the companies especially in FMCG sector (Belch and Belch, 2004). Unilever is the firm that has to deal with such policies and have to be sustainable in their process it will harm the environment at its minimal. Legal factors: The major legal factors that has affected the US and UK business is BREXIT. Trump has talked with UK regarding the free trade between the US and UK just after BREXIT. This free trade will definitely help the companies like Unilever to set up its business and expand its business in USA with new products development. (Unilever.com, 2017) Strategies to enter the global market: There are five types of products and communication strategies that acne be used by Unilever in order to expand its business. Products and communication extension: This is the strategy in which the company can use the standard communication techniques to make the people aware about the products globally (Armstrong, Kotler, Harker And Brennan, 2015) Product extension and communication adaptation: It is the strategy that results is customization of the communication method used for international country which is very different from the home country communication method. The same products are marketed with different communication strategies in different areas (Hill, 2008). Product adaptation and communication extension: It is the case where the company needs to market different products with the standard communication strategy irrespective of the place (Broderick And Pickton, 2001). Product and communication adaptation: If the international country has different physical and cultural environment then the organization has to choose the strategy of dual adaptation. In this case, the countrys product and the countrys communication strategies are used for communicating about the product. (Wilson and Gilligan, 2012). Product invention: It is the most innovative strategy that is used by the company in order to invent the products that can fulfil the common needs of the customers at global level. (Hill, 2008). In case of Unilever is USA, the company should select the strategy of dual adaptation strategy because the culture and the physical environment if USA and UK is very different in nature (Hollensen, 2015). Context of international market: Language: Language is the factors that affect the business in the international market. As far as Unilever is considered, it has been analysed that the company operates with the strategy of localization everywhere(Armstrong, Kotler, Harker and Brennan, 2015). The company is basically based at UK but it hasto expand its business overseas and it cant be done with a single language communication everywhere. Unilever hasto make the changes in its communication from UK English to US English as there are many differences in the same (Broderick and Pickton, 2001). As both the places have English as the vernacular language so it is not that much difficult for the company to deal with the US market. Legal factor: As discussed earlier there are many legal factors that affect the company to expand the business in international market. The free trade practices that have been discussed between UK and US after BREXIT may help the company to easily conduct the trade practices (Gur?u, 2008). Media: Media refers to the mediums that are being used to communicate with the international market. As far as the country like USA is concerned, the country is very much technologically active so advertisingand promotion of the products can be done with the help of digital marketing methods and social media marketing of the company (Mulhern, 2009). Culture: Culture is the most important factor that affects the consumer behaviour of the place. Americans are very much optimistic in nature andthus it is easy to convince them to buy a particular thing by portraying the products with positive attitude and nature. The customers at America are very much dynamic and their love for convince food is eternal. They love to eat food products that can eliminate their hunger in minutes and that can be easily available. Thus the companies like Unilever can easily expand its business to USA with introducing the packaged food materials first. (Hill, 2008). Production cost: As far as US is concerned, it has been analysed that the country is the 3rd largest in the world with high population thus it act as the great market for the companies to expand their business. It has been analysed these days that USA is becoming the place to manufacture as it is providing the facilities at lower cost that is as low as china. There are several benefits that can be enjoyed by the company if it produces at USA (Gur?u, 2008). The first benefit is that it has a very fast market. The produce can be easily reached to the customers hands with faster research and development and distribution network. The next benefit is the high efficiency of the labour. It has been analysed that the labour is very much efficient at America and thus it can be easy and even cost effective to have high quality and less quantity labour (Luo and Tung, 2007). In terms of currency, US are considered as the country with stable economy and thus there is no fluctuation in the currency. This also male s the production process easier for the companies. If Unilever star their products ta USA only, it become easy for them to distribute in the local market rather than importing the products and thus the cost of overall production and distribution can be reduced (Czinkota and Ronkainen, 2013). Stages of international marketing: This is the process that needs to be followed or the stages that needs to be faced by the company if it wants to expand its business overseas. No direct marketing: It is the stage where the Unilever does not involve itself in the foreign market but tries to sell the products indirectly to the foreign market(Malhotra, 2008). There can be many ways such as selling the products to the foreigner etc. Infrequent foreign marketing: This is the stage where the company market or sell the products in the foreign market which are surplus. This can be done to see the response of the foreign market. After BREXIT, the free trade between US and UK will make it easy for Unilever to conduct such marketing (Broderick And Pickton, 2001). Regular foreign marketing: It is the stage that is about the regular marketing at international level. In this stage, the company takes serious steps to market its products to the international market with the objective of expansion (Anderson, Narus and Narayandas, 2009). Unilever has to deals with some of the middle men in US in order to take suchserious steps so that its products can be reached to that country. International marketing: it is the most crucial phase as at this time, the company concentrates in the international market and develop its production unit in the new market. Unilever is the firm that general operates at this stage in international market (Peter and Donnelly, 2011). Global marketing: This is the final stage that is achieved when the company is filly established in the foreign market. At this stage, the company does not restrict its strategies because of national borders but treat the whole market as one global market and make the strategies solely on that basis (Hollensen, 2015). Campaign execution: Campaigning is the technique that can be used to market the products in the new market. Unilever has to execute the campaign in the new market of USA so that people can be aware presence of the company and the products in the market. The company has to take decisions over the agencies with which the company has to deal with. There can be three types of agencies: (Gur?u, 2008). Local market agencies: These are the market agencies at the host country such as the agencies in local market of USA in this case. Unilever should choose Epsilon as its marketing agency at local level. This is because it is one of the best agencies in the USA marketing industry. In terms of revenues and in terms of business growth, the company is moving at a very fast pace (Wilson and Gilligan, 2012). Integrated Marketing Communication: Steps of international integrated marketing communication: Market research: This is the first step that needs to be followed by the company in order to research about the market conditions of USA. The above discussion about the country suggests that the country is very feasible to expand the business for Unilever (Wilson and Gilligan, 2012). Goals: The marketing gaols for the company at this point are that, it has to make the people of USA aware about the new product development of the company and has to develop the brand image of the firm as well (Hill, 2008). Effective message: The market segment that has been selected for the new food products range is mostly the working people of the country. The message that can be given to them through the marketing camping is eat tasty and be healthy (Gur?u, 2008). Selected media: The medium that have been selected to market the products are advertising and personal selling (Wilson and Gilligan, 2012). Budget: Activity Amount Marketing agency fees $1 million Brochures and pamphlets $1 million Hiring cost $10,000 Media cost $3 million Other expenses $50000 Total cost $3060000Approximate Execution: Execution of the marketing plan can be done with the help of the marketing agency that has been discussed earlier (Wilson and Gilligan, 2012). Evaluation: The evaluation can be done by matching the gaols with the actual results or the outcomes of the marketing campaignthat can be calculated by the customers response and feedback as well as by the sale volume of the products. (Hollensen, 2015). IMC tools: Figure: 4 IMC Tools (Armstrong, Kotler, Harker And Brennan, 2015) Advertising: Advertising can be done with the help of various medium such as television or radio. Social media is also used as the medium for advertising (Terpstra, Foley And Sarathy, 2012). Direct marketing: It is the tool that helps n directly contact the customers by the executives of the company to make them aware sabot the product or the new launch (Peng, Wang and Jiang, 2008). Internet marketing: this is the best tool that can be used in the USA market. This is because the customers in USA are very much techno friendly (Broderick And Pickton, 2001). Sales promotion: Sales promotion can be done by using the techniques such as supplying the samples to the stores or distributing the samples to the customers on the road show (Gur?u, 2008). Public relations: This is the most important tool of IMC. This tool can be used by calling or inviting the new channels or other media partners to telecast the launch of the products and the company in USA (Wilson and Gilligan, 2012). Personal selling: Personal selling is the very effective option to sell the products directly to the customers so that immediate feedback can be received (Broderick And Pickton, 2001). Why Sales Force: Benefits of sales force: Sales force is considered as the important part of communication mix in USA. This is because there are many benefits that are associated with sales force of the company. The efficient sales force helps in making strong bond in the international market and thus results in strong alliances. Sales force of the company also helps in making direct contact with the customers. This is very beneficial in taking the immediate feedback of the customers on the products experience. There are many other benefits of incorporating the sales force ta the international market such as effective communication, response, clear information etc (Terpstra, Foley And Sarathy, 2012). Challenges: Difficult to deal with the people in international market Hiring local sales force is difficult for the company Designing the sales force: Unilever Select the activities that needs to be conducted under the sales programme(experience) Select the skill sets required to complete the tasks. Math the skills sets from the activities that needs to be conducted Training of the sales force regarding the same skill sets.( well trained peoples ) (Cateora, 2008) Recruiting marketing and sales personnel: Recruitment is the process in which the candidates have been selected according to the match of the skills possessed by the candidates and the required skills for the job. (Hollensen, 2015). Advertising for the job vacancy (Advertising on Web sites and the Newspaper) Short listing the applications (around 20 applications are collecting ) Interviews (Around 15 peoples) Selection (Two ware selected ) Releasing offer letters ( Letter will be realising after one week of the selection) Motivation of sales personnel: Some of the techniques that can be sued to motivate the employees are: Incentives (based on display and merchandising, Productivity (volume and values ) Bonuses ( Based on performance) Employee engagement programs ( Twice a year ) Evaluating and controlling sales representative: Evaluation of the sales representative can only be done by matching the set targets and the achieved targets by the representative (Broderick And Pickton, 2001). RBV model: Resource based view is the model that is used to analyse the resource capabilities of the company. VRIO and VRIN are the subsets of this model that are analysed in order to identify the competitive advantage and resource capabilities. Figure: 5 RBV Model (Armstrong, Kotler, Harker And Brennan, 2015) VRIN of Unilever: Value: In terms of value, the company and its products are very valuable as the company serves the market with all the essential products (Terpstra, Foley And Sarathy, 2012). Rare: the company cannot said to be rare as there are many competitors in the market. (Gur?u, 2008). Inimitable: the products of the company can be imitated easily (Hollensen, 2015). Non-substitutable: substitutes are also available in the market for the company products. Understand: It is very much important to understand the culture and the attitude of the people in USA in order to sell the products to them. The USA customers are very much intelligent in buying things and the sales force has to be prepared with the knowledge of the products and the bard before interacting with them(Terpstra, Foley and Sarathy, 2012). Noise: It is the important part of the communication or the marketing process. This means making the products and the brand popular among the customers before entering the market (Hollensen, 2015). Competition: Competition is the major issue that exists for the companies like Unilever. Thus, it is mandatory for the company to deal with this competition and to innovates its processes in order to be different in the market (Terpstra, Foley And Sarathy, 2012). Conclusion: It has been concluded from the research that USA is found to be the country which is very much feasible to expand the business of Unilever. PESTLE analysis of the country suggests that the factors like political, economic, social etc. Affect the expansion of the business in the new country and USA provides the great environment for the company like Unilever to set up the new business. The strength and the weakness of the company is also analysed to develop the international marketing strategies. Part 2 of the report suggests about the contextual factors that affect the strategies that needs to be implemented in order to launch the company and the new products in USA. References: Anderson, J.C., Narus, J.A. and Narayandas, D., 2009.Business market management: Understanding, creating, and delivering value. Pearson Prentice Hall. Armstrong, G., Kotler, P., Harker, M. And Brennan, R., 2015.Marketing: an introduction. Pearson Education. Belch, G.E. and Belch, M.A., 2004.Advertising and Promotion: An Integrated Marketing Communications Perspective,(6 Th. New York: NY: mcgraw-Hill. Broderick, A.AndPickton, D., 2001.Integrated marketing communications. Financial Times Prentice Hall. Cateora, P.R., 2008.International Marketing 13E (Sie).Tatamcgraw-Hill Education. Czinkota, M.R. and Ronkainen, I.A., 2013.International marketing.Cengage Learning. Czinkota, M.R. and Ronkainen, I.A., 2013.International marketing.Cengage Learning. Gur?u, C., 2008. Integrated online marketing communication: implementation and management.Journal of communication management,12(2), pp.169-184. Hill, C., 2008. International business: Competing in the global market place.Strategic Direction,24(9). Hill, T. And Westbrook, R., 1997. SWOT analysis: it's time for a product recall.Long range planning,30(1), pp.46-52. Hollensen, S., 2015.Marketing management: A relationship approach. Pearson Education. Jaggi, B. And Low, P.Y., 2000.Impact of culture, market forces, and legal system on financial disclosures.The International Journal of Accounting,35(4), pp.495-519. Luo, Y. And Tung, R.L., 2007. International expansion of emerging market enterprises: A springboard perspective.Journal of international business studies,38(4), pp.481-498. Malhotra, N.K., 2008.Marketing research: An applied orientation, 5/e. Pearson Education India. Mattila, A.S., 2000. The impact of culture and gender on customer evaluations of service encounters.Journal of Hospitality Tourism Research,24(2), pp.263-273. Mccort, D.J. and Malhotra, N.K., 1993. Culture and consumer behavior: toward an understanding of cross-cultural consumer behavior in international marketing.Journal of International Consumer Marketing,6(2), pp.91-127. Mulhern, F., 2009. Integrated marketing communications: From media channels to digital connectivity.Journal of marketing communications,15(2-3), pp.85-101. Papadopoulos, N.AndHeslop, L.A., 2014.Product-country images: Impact and role in international marketing. Routledge. Peng, M.W., Wang, D.Y. and Jiang, Y., 2008. An institution-based view of international business strategy: A focus on emerging economies.Journal of international business studies,39(5), pp.920-936. Peter, J.P. and Donnelly, J.H., 2011.Marketing management: knowledge and skills: text, analysis, cases, plans. Plano: Business pub., INC. Terpstra, V., Foley, J.AndSarathy, R., 2012.International marketing.Naper Press. Tse, D.K., Lee, K.H., Vertinsky, I.AndWehrung, D.A., 1988. Does culture matter? A cross-cultural study of executives' choice, decisiveness, and risk adjustment in international marketing.The Journal of Marketing, pp.81-95. Tubadji, A., Osoba, B.J. and Nijkamp, P., 2015. Culture-based development in the USA: culture as a factor for economic welfare and social well-being at a county level.Journal of cultural economics,39(3), pp.277-303. Wilson, R.M. and Gilligan, C., 2012.Strategic marketing management.Routledge.