Economics of International Marketing

Economics of external MarketingGibbie Yapsen Handadilla (DBM)Student ID 1409012060Brian Junaldo Honoris (DBM)Student ID 1409012075ObjectiveWe make this report in army to do a deep research on global grocerying and understanding on the importance of international merchandisingAcknowledgementWe would like to give thanks EASB for letting us to write this report and to a fault Ms. Roszana for guiding and teaching us through this module and this report. Without their help, we may not reach this point.Introduction global marketing refers to marketing activities coordinated and integrated across multiple country markets. (Jonny K. Johansson 2000) multinational marketing often used in some big companies. worldwide marketing itself has big impact on worlds economy. In this assessment, our aim is to critically analyze on economics of international marketing.Questions to be answered on that point atomic number 18 4 (four) questions that we will discuss on this reportEvolution to Interna tional MarketingElements of International MarketingAdvantages and Disadvantages of International MarketingEconomics of International TradeEvolution to International MarketingBecause of todays globalization, international marketing has become really popular. There are many changes or we flush toilet say evolution within companies around the world and also in international marketing. There are some stages in international marketing for those who are globalizing.Domestic MarketingAs we can see from the word domestic which means inside a cross country. At this stage, companies marketing scope is precisely within one country. Usually, companies at this stage are only influencing local markets. They normally seldom to pay attention in the worlds market change or other foreign market competition.International MarketingFrom the domestic stage, evolve to the next stage which is international marketing. International marketing is to a greater extent or less the same with the domestic mark eting. At this stage, companies ready their factory to manufacture product in their own country but they focus their marketing into some particular countries. For example, FN beverage manufacturer from Singapore, the manufacturing happens in Singapore but their market isnt only in Singapore but in other countries such as Indonesia, Malaysia, Thailand, etc.Global MarketingThere are only few companies which get to this level. At this stage, the marketing scope is much bigger than international marketing stage. The reason is that in global marketing, companies have their manufacturers spread all around the world, thats why it is called global.Elements of International MarketingThe elements of global marketing is what they called marketing mix. Marketing mix is slightly 4 Ps, product, price, place, and promotion. The next following paragraphs are about 4 Ps and the definition.First of all, product is usually what comes in mind to companies. Without product, the others are not diverge nce to follow. Companies are needed to make products which satisfy the customers needs. For example, many beverage companies are competing in satisfying their customers by producing new products which their customers needed.Secondly, pricing is needed as the second 4 Ps. Price is always affected by the demands in every market. With good pricing, the affection from the products will attract customers. Thats why pricing is one important element in international marketing.Next, locating the skillful place to lead astray the products is so much important. One cannot cheat something expensive in a poor country. So one needs to locate the right place to sell the right product as well. By evaluating the customers demand of a particular place then place the product there.Finally, promotion is the last thing to make it succeed. afterwards we manufacture the product, give the right price, place it in the right market, promoting the product is needed to let people know that one already st arting to sell the product. Of course, with the correct promotion will get you bigger attraction from the customers.To amount of money up, there are 4 elements of international marketing and they are product, price, place, and promotion. Each of the elements substantiate the others. So, in order to succeed in international marketing, these elements are needed as the base of it.Advantages and Disadvantages of International MarketingAdvantagesInternational marketing is the process of oversea advertising of the products that a company sells. International marketing provides a host of benefits to a business, from helping to broaden the customer base to improving the reputation of the brand. reason these advantages can help businesses of all sizes to plan their international sales strategies and to focus their customer service efforts.The first advantage of international marketing will be brand reputation. By doing international marketing, a company can get brand reputation which depe nds on the companys product. If the company can sell good products around the world, the brand reputation will arise, and people will recognize it more.The next one will be market expansion. It is the most intelligible advantage because company who does international marketing will expand their market scope from local to international. With market expansion, company may know well about other people demands and can evaluate other competitors so they can improve the products and learn more.The last one is global networking. Just like before, by going to the global market, company can know new customers and new demands which can be used to improve the products.DisadvantagesThe first one will be the cultures. Different cultures can be a problem for some local companies which are new to global markets. They need to adjust the culture with others. For example, instant nutrient company. They cannot sell pork flavored-food to host country which mainly are Muslim.The next disadvantage is t he government law. For some countries which have a strict law, companies may realize difficulties when trying to sell their products there. Some country banned Marijuana, but some other country allow Marijuana to be in market. That will be one example for companies to sell marijuana in some strict countries.Lastly is marketing mix. Company might have to develop a entirely diverse marketing mix for its product in host country than in firm country which will incur cost. Which means in home country will incur cost for host country. Like host country will get tax for import goods from home country.Economics of International TradeInternational trade is the swap of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant piece of land of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in new- made centuries. It is the presupposition of international trade that a sufficient level of geopolitical peace and stability are prevailing in order to allow for the peaceful exchange of trade and commerce to take place between nations.Trade is not a modern invention. International trade today is not qualitatively different from the exchange of goods and services that people have been conducting for thousands of years.Before the widespread adoption of currency, people exchanged goods and some services through bartering or trading a certain quantity of one good or service for another good or service with the same estimated value. With the emergence of money, the exchange of goods and services became more efficient.Developments in transportation and communication revolutionized economic exchange, not only increasing its volume but also widening its geographical range. As trade grow in geographic scope, diversity, and quantity, the channels of trade also became more complex.Internation al trade today differs from economic exchange conducted centuries ago in its speed, volume, geographic reach, complexity, and diversity. However, it has been going on for centuries, and its fundamental characterthe exchange of goods and services for other goods and services or for money remains unchanged.RecommendationIn doing international marketing, we must trouble about the elements of the international marketing first, especially for business managers or professionals. Learn about the pros and cons so that one can make decision rightfully.ConclusionTo sum up everything, there are a lot of points in this report. There has been a lot of evolution through international marketing. There are also some important elements in international marketing as well as the advantages and disadvantages that we may get from international marketing. Therefore, as an international business professional, we have to examine everything first and then we can make a good decision.Referenceshttp//en.wiki pedia.org/wiki/Global_marketinghttp//www.scribd.com/doc/86216521/INTERNATIONAL-MARKETING-EVOLUTION-TO-GLOBAL-AND-INTERNATIONAL-MARKETINGscribdhttp//www.indiastudychannel.comhttp//www.marketingteacher.com/what-is-international-marketing/http//www.marketing-schools.org/types-of-marketing/international-marketing.htmlhttp//toolkit.smallbiz.nsw.gov.au/part/21/103/473http//smallbusiness.chron.com/advantages-marketing-internationally-61158.htmlhttp//www.translatemedia.com/international-marketinghttp//cindyking.biz/4-success-elements-for-international-business-development/http//www.referenceforbusiness.com/small/Inc-Mail/International-Marketing.htmlDeclarationBy signing this declaration, the group has agreed to the appraisal of this report________________(Name / Signature)________________(Name / Signature)Page 1 15