Marketing Strategies by Multinational Companies
While discussing the International Marketing we have given due importance to International Marketing environment because the main reason of variations in the strategies followed by MNCs in different countries is due to the differing environments in various countries.
To study in detail about any organization’s strategies in various countries it is very much essential to understand the concept of International Marketing. So, before going for comparison between marketing strategies followed by any multi-national organization we have covered in detail the concepts of International Marketing & Marketing Strategies.
A study of international marketing should begin with an understanding of what marketing is and how it operates in an international context.
A definition adopted by the AMA (American Marketing Association) is used as a base for the definition of international marketing given here: international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of' ideas, goods and services to create exchanges that satisfy individual and organizational objectives.
This definition is not completely free of limitations. By placing individual objectives at one end of the definition and organizational objectives at the other, the definition stresses a relationship between a consumer and an organization. In effect, it excludes industrial marketing, which involves a transaction between two organizations. In the world of international marketing, governments, quasi-government agencies, and profit-seeking and nonprofit entities are frequently buyers. Companies such as Boeing and Bechtel, for example, have nothing to do with consumer products. The definition thus fails to do justice to the significance of industrial purchases.
Nontheless, the definition does offer several advantages. In several ways, it carefully describes the essential characteristics of international marketing. First, it makes it clear that what is to be exchanged is not restricted to tangible products (goods) but, can include concepts and services as well. 'When the United Nations promotes such concepts as birth control and breast feeding, this should be viewed as international marketing.
Second, the definition removes the implication that the international marketing applies only to market or business transactions. International non-profit marketing, which has received only scant attention, should not be overlooked. The marketing of governments & of religion underscores this point. Governments are very active in marketing in order to attract foreign investment.
Third, the definition recognizes that it is improper for a firm to create a product first and then look for a place to sell it. Rather than seeking consumers for a firm's existing 'product, it is often more logical to determine consumer needs before creating a product. For overseas markets, the process may call for a modified product.
In some- cases, following this approach may result in foreign needs being satisfied in a new way (i.e., a brand new product is created specifically for overseas markets). Mazda, for example, understands that it is no longer adequate to simply adapt a Japanese car to the U.S. market, and its product strategy involves designing a car to meet U.S. buyers' desires. Mazda's widely acclaimed Miata was conceived and styled in Southern California and was engineered and built in Japan.
Fourth, the definition acknowledges that "place" (distribution) is just part of the marketing mix, and that the distance between markets makes it neither more nor less important than the other parts of the mix. Thus, it is improper for any firms to regard their international function as simply to export (i.e., move) available products from one country to another.
Finally, the multinational process" implies that the international marketing process is not a mere repetition of using identical strategies abroad. The four Ps of marketing (product, place, promotion, and price) must be integrated and coordinated across countries in order to bring about the most effective marketing mix. In some cases the mix may have to be adjusted for a particular market for better impact. Pepsi Co Inc.'s Frito Lay Division for example, has created a new Dorito chip for the British market. and the chip differs in both taste and texture from the American version. In other cases, however, a multinational marketer may find it more desirable to use a certain degree of standardization, if the existing market differences are somewhat artificial and can be overcome. As in the case of washers. although Italian consumers once preferred front-loading machines while French consumers insisted on top-loading models, Whirlpool Corp. was able to use the more standardized models to break down national traditions.
Meet Amarendra Bhushan, A leading Strategic Human Resource Consultent, MBA from American university of athens, greece, also editing The European journal of NRI finance magazine TRIBUNE). As one of the leading article writer, and corporate hotel professional. Advisor to various organizations and hotels. He is an elected member of south Indian hotel and restaurant federation. Now staying at city of Athens Greece. Amarendra bhushan Dhiraj Athens, Greece PH-0030-6947667507 abdhiraj@mail.gr
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