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Marketing Internationally and Export/Import Practices

Marketing Internationally and Export/Import Practices
- Compare and contrast domestic and international marketing.
- Identify considerations for importing or exporting a product.
- Recognize the documentation needed to export goods.

- Post your response to the following: Consider the marketing mix. How does the marketing mix differ in the domestic and international environments? How is it the same? Should international marketing managers standardize the marketing mix? Why or why not?

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Marketing Internationally and Export/Import Practices

Compare and contrast domestic and international marketing.

Research shows that, Domestic Marketing takes place in one's own country while Global or International Marketing occurs abroad. "There should never be 'one marketing plan' in a company. The difference is between the target markets. There should never be a cookie cutter style marketing campaign. Any successful firm should first obtain success locally, then venture overseas. Coca Cola and Proctor & Gamble does well at being a global brand. For a global/foreign market they could have a few approaches:

* Advertise as a foreign product - there is novelty in such for some countries. For example by default, many would assume a French wine has better quality. If it is something that the country perceives Americans to do better - stick with that approach.

* Joint Partnership with a Local Firm - that way it can be considered a 'local product' and try to find a firm that has already established credibility

* Licensing - they could just sell the rights to your product to a foreign firm. The problem lies that they aren't obligated to maintain the quality standards that you may perceive necessary, and therefore hurt brand image.

International marketing takes place when a business directs its products and services toward consumers in a country other than the one in which it is located. While the overall concept of marketing is the same worldwide, the environment within which the marketing plan is implemented can be dramatically different from region to region. Common marketing concerns?such as input costs, price, advertising, and distribution?are likely to differ dramatically in the countries in which a firm elects to market its goods or services. Business consultants thus contend that the key to successful international marketing for any business?whether a multinational corporation or a small entrepreneurial venture?is the ability to adapt, manage, and coordinate an intelligent plan in an unfamiliar (and sometimes unstable) foreign environment.

Businesses choose to explore foreign markets for a host of sound reasons. In some instances, firms initiate foreign market exploration in response to unsolicited orders from consumers in those markets. Many others, meanwhile, seek to establish a business to absorb overhead costs at home, diversify their corporate holdings, take advantage of domestic or international political or economic changes, or tap into new or growing markets. The overriding factor spurring international marketing efforts is, of course, to make money, and as the systems that comprise the global economy become ever more interrelated, many companies have recognized that international opportunities can ultimately spell the difference between success and failure. "The world is getting smaller," concluded E. Jerome McCarthy and William D. Perreault Jr. in Basic Marketing. "Advances in communications and transportation are making it easier to reach international customers. Product-market opportunities are often no more limited by national boundaries than they are by state lines within the United States. Around the world there are potential customers with needs and money to spend. Ignoring those customers doesn't make any more sense than ignoring potential customers in the same town."

While companies choosing to market internationally do not share an overall profile, they seem to have two specific characteristics in common. First, the products that they market abroad, usually patented, are believed to have high earnings potential in foreign markets. Second, the management of companies marketing internationally must be ready to make a commitment to these markets. This entails far more than simply throwing money at a new exporting venture. Indeed, a business that is genuinely committed to establishing an international presence must be willing to educate itself thoroughly on the particular countries it chooses to enter through a course of market research."

- Identify considerations for importing or exporting a product.
- Recognize the documentation needed to export goods.

IMPORTING is the transportation of goods into one country and out of another. The term under the customs laws requires that the goods be brought voluntarily into this country, into the proper port of entry, and with an intent to unload them. If customs officials determine that an article has been imported into the United States, it is assessed a duty under customs laws, unless clear evidence is proved to the contrary. To be imported within the scope of the tariff laws, the goods must be from a country subject to our tariff laws and the goods must pass through the custody and control of the customs officials and into the custody and control of the importer.

EXPORTING is the practice of sending or carrying merchandise to a foreign country for trade or sale. International business is a potentially lucrative area for many businesses, but the small business owner should be aware that establishing oneself in a foreign market is a complex, time-consuming task. Many small businesses in the United States have dramatically improved their financial fortunes by pursuing exporting opportunities, but the vast majority of enterprises that have been successful in this regard did not enter the world of international trade until they had fully researched both their own exporting capabilities and various business conditions in the target market(s) abroad. Indeed, consultants point to a wide range of factors to consider when assessing your company's readiness to expand its business beyond America's borders. These include company export readiness, potential foreign markets, product distribution options, legal factors, operating costs and profit margin, financing resources, and exporting alternatives (such as joint ventures or off-shore manufacturing facilities).

Exporting is sometimes thought of as a practice that is largely the province of large businesses and international corporations, but exporting can also be helpful to a small business in a variety of ways. A small business that establishes its products in the international marketplace can increase sales and profitability, enhance its domestic reputation, reduce its dependence on domestic markets, reinvigorate the sales potential of existing products, stabilize seasonal market fluctuations, sell excess production capacity, and increase awareness of possible foreign competitors.

Of course, exporting is not a risk-free venture. Expanding a small business's operations into foreign markets may require the development of new promotional materials, assumption of increased short-term debt as a result of new operational and administrative costs, re-assignment of personnel, and adjustments in product functionality and appearance to meet the commercial and social standards of the environment in which the business hopes to establish itself. But many business analysts contend that, as the lines between domestic and international markets continue to blur, small businesses that remain ignorant of exporting do so at their peril.

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This solution provides detailed explanations regarding marketing internationally and export/import practices.