Table of Contents
International Marketing Mix
The international marketing mix strategy involves the use of different marketing instruments to achieve positive financial results by a company operating on international or global markets. These instruments include product, price, distribution, and promotion. The international marketing mix strategy should take into account legal and socio-cultural circumstances in every country to which it is directed.
Main types of international marketing strategy
On international market marketing mix has three varieties:
- Global marketing mix strategy – is based on the assumption that on the international market there is the so-called global consumer with similar needs and preferences. Using this approach, on foreign markets companies apply identical marketing instruments and their combinations, there are no different instruments adapted for a social and cultural environment in those countries,
- National marketing mix strategy or multinational strategy – for each country company applies a separate marketing strategy adapted to specific needs and preferences of customers, their customs and traditions,
- Hybrid marketing mix strategy – involves standardization of one or more marketing instruments and at the same time adjusting others to the characteristics and conditions prevailing on the particular national market (customs, traditions, regulations, etc.,).
Different product strategies used in international markets
Product policy on the international market includes three strategies:
- Product standardization – The company introduces an unchanged product on the foreign market. Such action makes sense when the product due to its nature, has similar utility for customers in various markets. The use of this strategy is comfortable and not very expensive. An example of companies using this strategy is IKEA.
- Product adaptation – involves the adjustment of the product and its properties to the conditions prevailing on the particular market. This includes packaging, size, symbols (depending on the culture prevailing in the country concerned), color. Adaptation of the product requires a large amount of capital and experience.
- Gradual changes in the product – used in the situation where there is no danger of the emergence of competition.
Pricing policies in the international marketing mix
Pricing involves the problem of price management on an international scale. There are two basic points of view:
- usually, the company introduces separate pricing policies on foreign markets (due to differences in wealth, competition, etc.),
- The development of modern communication technology makes distant markets more similar to each other, which makes it harder to lead a separate pricing policy at home and abroad. In this case, the company carries out a global pricing strategy, when the processes of internationalization blur the differences between the various markets.
Fig. 1. The four “P” components of the marketing mix matrix
Distribution policy in international markets
On the international market distribution activities are related to the offering on the market of products in an appropriate form, place and time. The activities must, however, be adapted to other instruments of the marketing mix and change along with them. The main goal of distribution policy is to overcome spatial, temporary and ownership barriers to distribution separating the manufacturer and the final customer. International logistics plays a major role in international sales and production activities.
Promotion policy as a marketing mix instrument
Promotion policy involves transferring information to new potential buyers about the company, its products to make them buy these products. Selection and use of the instruments needed to achieve these objectives depend on factors such as:
- the objective of promotion on the international market,
- financial resources and experience in foreign markets,
- provisions of the law which regulate promotional activities in each country,
- cultural factors – e.g. language, habits, religion, symbols, associations related to the color,
- attitude to foreign products,
- competition on the foreign market,
- the company may take similar actions as experienced competitors or, if it is lacking in resources, cooperate with the participants in the distribution channel and jointly carry out promotion,
- the nature and quality of the product,
- type of customer.