Discuss about the Challenges in Global Market for International Marketing.
This report is discussed about the international experience outside the organization. It is critical for a local company to experience and expand its business in the international market. This report supports the argument that it is critical for the company to expand its business in the global market. To support this statement, arguments will be presented in the report. Basically, international marketing is the function of marketing in more than one country by the companies across the national borders. International marketing is based on the expansion of company’s marketing strategy in more than one nation. For entering in the global market, company needs to understand the culture, environment, behavior and attitude of the consumers (Cateora. 2008). It is the most important point to understand by the company that how the product and service will be perceived by the consumers of another country. International marketing is not an easy task as local marketing.
Challenges in Global Market
There are number of problems faced by the companies while entering into global market. Because of these problems, organizations consider in entering global market as a critical process. There are some points that prove experiencing global marketing are a critical process:
Cultural diversity: Ever country is different and the norms and cultures are also different in each country. It is not easy for the local company to launch its product in the international market. Company may find differences in the need, behavior, habits, languages, buying and consumption pattern, preferences of consumers. Social and cultural differences are the real challenges for the companies. Compared to local market, it is a difficult task to understand the behavior of consumers. Marketing strategies like marketing mix, segmentation, product design, distribution pattern, and pricing need more information and practice to understand consumer behavior. Along with this, promoting the product in the global market is also a challenging task because there is difference in the languages in religions in different countries. That’s why company needs to understand culture and social environment of the countries to be success in the global market (Jaideep, n.d.).
Tariff barriers: There are certain rules and regulations imposed by the government of foreign country for importing and exporting of goods and products. It includes taxes and duties such as custom duty, antidumping duty etc. International markets sometimes earn more profit from these duties. Sometimes, these duties are imposed to protect the products and goods of foreign countries which restrict the marketing activities in international market. It becomes a big challenge for the local companies who are trying entering in the global market. Along with this, a change in the rates of duties and tariffs for different products creates problems for the marketers.
Political environment: There is a big difference in the political environment of every country. System, democracy and directorship are different in all countries. Along with this, every country has different ecosystem such as market economy, mixed economy, command economy and political instability in the environment. These are some real challenges that companies have to face while entering in the global market. Governments in the foreign countries have different rules, policies, philosophies, and priorities (BMS, 2013). Companies need to understand those policies and regulations if they want to be success in global market. They need to adopt and follow those philosophies for the success in the international market. Apart from this, there is a great difference in economic policies of different countries such as fiscal policy, agricultural policy, import policy etc. these policies have direct impact on the international marketing. Companies need to pay attention on political and legal environment while entering in global market.
Challenges in ethics and norms: Ethics means the moral principles, norms and standards which impact the behavior of any company and consumers. In different countries, there are different persons following different ethics and morals. It is the most important task for the companies to understand the norms and ethics of the consumers. Consumers have different taste and preferences according to their ethics. There is no certainty of consumers mind. By understanding the behavior of consumer, companies will be able to satisfy the customers (Taylor, 2015).
Difference in currency units: There are different currency unit in different countries. This creates problem for the marketers to convert the currency according to different countries because there are fluctuations in the exchange rates. There are also difference in the monitory policy and regulations. It may create a big challenge for the local companies to enter in global market.
Production and cost limitations: There is a difference between the cost of labor and production in different countries. The resources and labor are available in the international market but the costs of those resources are very high and different from the local market. It may create a big challenge for the companies because it creates a big difference in the cost and may be unaffordable for the companies.
ifference in marketing infrastructure: Every country has different infrastructure and pattern for marketing. It is important to understand the market infrastructure for those companies who are entering in the global market. The availability of marketing facilities and nature of market is different in every country. For example, in one country there is medium of promotion is advertising and in another country this medium may be not so developed. Such type of differences creates challenge for the marketers and they have to adopt new strategies for different countries (Caligiuri & Tarique 2012).
Distance problem: The matter of distance is creates problems of marketers. It is a real challenge for those products which are fresh and perishable. For making arrangement of exporting and importing for these products becomes a big problem for the companies because it involves time and risk. In such type of product, there is a need of careful segmenting and proper selecting of markets by the companies.
Administrative rules and policies: There are administrative policies or bureaucratic rules in every country. These rules sometimes create problems in exporting and importing and make marketing harder for the marketers. Some countries have some complex and lengthy procedures for exporting importing which companies have to face.
Terrorism: Terrorism and racism is worldwide problem facing by every country in the world. People in the world live with the fear of terrorists’ attack which can be happen in anywhere in the world. The terrorism activity is an obstacle in the international trading.
Difference in the climate and whether: Due to geographical diversities, there is difference in the climate and whether in different countries. It impacts on the marketing activities of the companies. It is challenging for a company of different whether to do marketing in different climate (Aaker, 2011).
Other challenges: Along with these problems and challenges, there are also many other challenges companies can face while entering in the international market such as change in global warming, economic crisis across global, natural changes in climate, difference in whether, difference in marketing methods and standards etc.
From the above discussion it has been identified that entering in the international market and experiencing the global market outside the organization is a critical task. Company has to face many challenges and problems related to culture, marketing strategies and behavior of consumers. This report has been discussed about the international experience outside the organization. From the analysis it has been concluded that it is critical for a local company to experience and expand its business in the international market. This report has given supports by the points for the argument that it is critical for the company to expand its business in the global market. It can be concluded that if a company wants to be success in the international market, it should do a proper market research to understand the international market.
Cateora, P.R. (2008). International Marketing (13th). NY: Tata McGraw-Hill Education
Jaideep, S. (n.d.). Top 9 Problems Faced by International Marketing. Retrieved on 17th September 2016 from https://www.yourarticlelibrary.com/marketing/top-9-problems-faced-by-international-marketing/48739/
BMS, (2013). What are the Special Problems in International Marketing. Retrieved on 17th September 2016 from https://www.bms.co.in/what-are-the-special-problems-in-international-marketing/
Taylor, B., (2015). Key challenges facing international market researchers. Retrieved on 17th September 2016 from https://www.languageconnect.net/blog/market-research/key-challenges-facing-international-market-researchers/
Aaker, D., (2011). Five challenges making marketing. Retrieved on 17th September 2016 from https://hbr.org/2011/10/five-challenges-facing-marketi
Caligiuri,P.& Tarique, I, (2012). Dynamic cross-cultural competencies and global leadership effectiveness. Journal of world business, 47, 612-622.