What are the 5 most important decisions in international marketing?
International distribution is an understandable consideration for many companies. After all, new markets equate to untapped opportunity. According to the US Department of Commerce, more than 300,000 US-based companies were participating in export activities last year. With 98% of those companies categorized as Small to Medium Sized Enterprises (SMEs), international distribution isn’t just a game for big players. No matter the size of the company, the challenge – as always – is in how to do it right. Show In the course of our businesses, we’ve spent time in more than 60 countries. We’ve worked with distributors, manufacturers, retailers, marketers, and sales teams in consumer goods categories like automotive, food, hardware, and sports, as well as industrial products. Along the way, we’ve taken note of how US brands succeed – and fail – in other countries. We’ve seen European brands take on new markets in Asia as well as Latin America. And we’ve studied the entry of international brands into the US market. From the front lines, we’ve built a personal database of what works and what doesn’t. During a recent trip to Cuba, we started talking about the common themes that often led to failure or success for companies looking outside their home markets. We believe there are lessons to be learned from both. Here are five common decisions that often lead to failure in international distribution…
Photo: Innocent The most successful international companies take a much more thoughtful approach to their global distribution goals. Here are five decisions that catapult their growth...
Getting international right has enormous benefits. Red Bull quickly outgrew its Austrian market and thoroughly executed a global strategy with local implementation by understanding each market. UK-based Innocent Drinks became Europe’s top smoothie producer by addressing local market needs. Nutcase Helmets leveraged their European business to fuel domestic growth. WD-40 built a global distribution model that now results in more than 50% of sales outside their home market and accelerates multi-country growth of new products. We cover more in our Going Global Podcast below. While going global has probably never been easier, it’s still not easy to get it right. We believe that success rides on making conscious choices. We urge clients to take the time to research the markets, vet the opportunities, prioritize, and define a global distribution plan before taking the leap. Mike Irwin is an advisor, mentor, operator, and strategist. Drawing from his past as a startup co-founder/President, executive officer of a $1+ billion market cap company (WD-40), public company CFO, VP Marketing, global chief strategy officer, head of sales, and board member, Mike uses his diverse background to help companies grow sales, improve profitability, and scale up. He serves as an advisor, consultant, fractional or interim CEO/GM/MD, and on boards of directors. Follow him at BottleRocketAdvisors.com, get in touch at [email protected] or connect on LinkedIn. Tim Forrest is the #1 food marketing and channel expert in the US. With 20 years as an industry-leading innovator, he’s an in-demand advisor, author, consultant, and speaker on issues related to creating and growing food companies in the US and abroad. He’s worked with one third of the Fortune 50 including clients such as Borden, Hershey, Keebler, M&M Mars, Smithfield, and Tyson. He serves as an advisor, consultant, investor, and on boards of directors. Follow him at TimForrest.com, get in touch at [email protected] or connect on LinkedIn. What are the major international marketing decisions?SIX MAJOR DECISIONS IN INTERNATIONAL/ GLOBAL MARKETING. Export - sell the product outside. ... . Embargo- trade with particular company.. Exchange control- the currency coming into a different country is limited.. Quota- limit on imports from a foreign country.. tariff - tax on imported goods.. What are the 5 features of international marketing?International Marketing - Characteristics. Broader market is available. ... . Involves at least two set of uncontrollable variables. ... . Requires broader competence. ... . Competition is intense. ... . Involves high risk and challenges. ... . Large-scale operation. ... . Domination of multinationals and developed countries. ... . International restrictions.. What are the 5 important components of market?The 5 areas you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE.
What are the five important decisions a company has to make before entering the international market?International Marketing Decision. Those firms planning to enter the global markets have to decide on following key decisions:. International Markets Decision:. Market Selection Decision:. Market Entry Decision:. Marketing Mix Decision:. Organisation Decision:. |