International Marketing Strategies: A Comprehensive Guide
What is Marketing?
Marketing is a business administration technique that allows us to anticipate the structure of demand in a chosen market, promote and distribute products or services that satisfy it, and stimulate needs. Its function is to guide and enable the relationship between a company and its environment, organizing communication and interaction between businesses and potential buyers.
Marketing Activities
- Market research
- Communication
- Commercial planning
- Sales organization
- Distribution
Strategic Marketing (Study)
- Identification and analysis of desires
- Development of product characteristics adapted to desires
- Benchmarking, research, market analysis
Operational Marketing (Action)
- Implementation of an action plan to create and develop demand
- Development of a marketing plan
- Product and image testing
Globalization and Internationalization
Globalization
Globalization is driven by factors such as ICT and information technology development, new technologies at the industrial and business level, and the rise of global economic powers.
GILT
GILT stands for Globalization, Internationalization, Localization, and Translation.
Key Factors for Internationalization
- Evolution of average turnover and number of employees
- Business structure
- Internationalization of companies
- Countries/areas of origin of exports and imports
- Evolution of exports and imports
- Foreign and foreign investments
Key Performance Indicators
- Turnover: measures the volume of activity
- Rate of profitability
- Working capital requirements or cash flow
Strategic vs. Operational Marketing
Strategic Marketing
Strategic marketing focuses on the long-term vision, defining the company’s mission, vision, and values, and giving direction to the business. It involves setting objectives for 12-36 months, defining the product/service and target audience, and understanding the market.
Operational Marketing
Operational marketing is responsible for designing and executing the actions of the marketing plan to achieve the objectives defined by strategic marketing.
Marketing Mix and the 4 C’s
Marketing Mix (4 P’s)
- Product
- Place
- Promotion
- Price
4 C’s Marketing
- Customer
- Cost
- Convenience to buy
- Communication
National vs. International Marketing
While the basic concepts and analysis tools are the same, national and international marketing differ in the perspective from which problems and complexity are analyzed.
International Marketing
International marketing involves planning and consolidating the marketing of products and services to clients and consumers located in more than one country.
Decisions for International Marketing (4 P’s)
- Product: Adapting the product to different markets
- Price: Setting prices in foreign markets
- Distribution: Deciding on distribution channels
- Communication: Adapting advertising messages and media
Factors Influencing International Marketing
- Physical distance
- Psychic distance (cultural and societal differences)
Reasons for Internationalization
- Growing international competition
- Brand image and competitive positioning
- Follow-up of multinational life cycle
Marketing Evolution: 1.0 to 4.0
- Marketing 1.0: Product-centered
- Marketing 2.0: Customer-centered
- Marketing 3.0: Human-centered
- Marketing 4.0: (Beyond the scope of this document)
International Trade Organizations
WTO (World Trade Organization)
Established in 1995, the WTO deals with the rules governing trade between countries, aiming to ensure smooth and free trade flow. Its functions include administering trade agreements, providing a forum for negotiations, and resolving commercial disputes.
ICEX
ICEX is a Spanish public business entity promoting the internationalization of Spanish companies and attracting foreign investment.
Porter’s Five Forces and Environmental Analysis
Porter’s Five Forces
This framework analyzes the competitive intensity of an industry and its long-term profit potential by considering five forces: competitive rivalry, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers.
Macro-environmental Factors
These are external elements that influence a company but are beyond its control, such as technological, economic, political, and legal factors.
Micro-environmental Factors
These are elements within the company’s immediate environment that it can influence to some extent, such as suppliers, competitors, and distributors.
Internal and External Analysis
Internal Analysis
Identifies a company’s strengths and weaknesses, focusing on controllable variables within the commercial system.
External Analysis
Studies the current situation and potential changes in the environment to identify opportunities and threats.
PESTEL and SWOT Analysis
PESTEL Analysis
Assesses the main external elements that will influence a project or company, considering political, economic, socio-cultural, technological, environmental, and legal factors.
SWOT Analysis
Observes the environment and identifies internal strengths and weaknesses, as well as external opportunities and threats, to develop strategic plans.