essay on international marketing

Essay on International Marketing

Here is a compilation of essays on ‘International Marketing’ for class 11 and 12. Find paragraphs, long and short essays on ‘International Marketing’ especially written for school and college students.

Essay Contents:

• Essay on the Problems and Challenges Faced in International Marketing

Essay # 1. Meaning of International Marketing :

International marketing refers to the buying or selling of goods and services beyond the boundaries of a country. When a country crosses its national frontiers to market its products it is indulging in international marketing.

Marketing activities carried on by a marketer in more than one country may be termed as international marketing. In simple words, when two different countries exchange the products and services with the motive of business trade, the process is called International Marketing.

Understanding of international marketing is easier if one has good knowledge of the concept of marketing. As per the definition by the American Marketing Association. ‘Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to greater exchanges that satisfy individual and organisational objectives.’

This definition can be extended to define international marketing too. Thus “International marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.”

If we examine this definition, we realize that only the word Multinational has been added to the definition of marketing given by American Marketing Association. By adding the word ‘multinational’, it implies that marketing activities undertaken in several countries are known as international marketing.

In other words, we can say that international marketing can be defined as ‘marketing carried on across national boundaries’.

Essay # 2. Nature of International Marketing:

Generally the nature of domestic marketing and international marketing is the same.

However, there are some differences as given below:

1. Protective Nature:

International marketing is protective by nature. Each country has its own sovereign political entity. Therefore, in international marketing, there may be a number of restrictions. These restrictions are mainly to protect domestic industries from foreign competition and to restrict trade in the specific commodities.

2. Competitive Market:

International marketing is competitive in nature. In international market the exporters have to face three tier competition, i.e.- (i) from local manufacturers, (ii) from manufacturers of own county, and (iii) from manufacturers of other foreign countries. Therefore, international market is more competitive in comparison to domestic market.

3. More Risk:

There is a greater degree of risk involved in international marketing than in domestic marketing. When trade is made between two far distant countries either by road or sea, then the risk element of accident is there. The sea voyage calamities and other unforeseen accidents are taken in consideration. The damage is also possible in loading and unloading.

Besides the above, greater degree of risk is involved in international marketing than in domestic marketing, the reasons being longer time period involved due to longer time in transit and the longer credit period involved, large volume and high value of transactions and comparatively less knowledge about the reputation and credibility of foreign firms.

4. Different Legal Systems:

Each country has its own legal system and very often the legal systems operating in different countries differ from each other. Some of the countries follow English Common Law while others follow the Civil Law. Some of the European countries and some Muslim countries are having their own legal system.

This difference in the legal system among different countries increases the difference in the legal system among different countries increases the difficulties of businessmen. The existence of different legal systems makes the international marketing more difficult in nature, as firms are not sure as to which particular system will apply to their transactions.

5. Different Monetary Systems:

Monetary system and exchange value of each country’s currency are different from that of the other. The monetary system of each country is decided by the government of that country and the exchange value of the country’s currency is determined by the forces of supply and demand.

6. Credit Oriented:

Generally, international marketing is credit oriented. Developing countries prefer to buy goods from those countries which offer liberal credit facilities i.e., period of payment should be long and interest charged should be low. There is sufficient difference even between two advanced countries in the approach towards supply of goods and payment duration.

7. Problem of Market:

In international market, their fashion, customs, tradition, religion, government policy, customer’s beliefs etc., are likely to be totally different. It is necessary to know about it in advance.

8. Controlling Nature:

Another feature of international marketing is its controlling nature. Developed countries control about 75% of world trade. Developed countries have made great strides in industrial and technological fields. They have created a name for themselves in international marketing due to their new and modern products.

9. Political Nature:

International marketing is political in nature. There is virtually no trade between those countries which are not having cordial relations. Political motives of the countries play an important role in international trade. Normally developed countries prefer to import goods from those countries which buy their manufactured products.

Essay # 3. Transition from Domestic Marketing to International Marketing:

International marketing is different from domestic marketing in many ways. Therefore, the decision to enter international market should be based on economic factors, as the risks and complexities associated with foreign trade are higher in comparison to domestic trade. Therefore, while entering to foreign market all factors.

The complete involvement and firm determination is the key factor to success in international marketing and it is based on the basic economic necessities of the corporate firm. Increase in sales volume, higher profit, and saturation of demand in domestic market, social responsibilities, and product life cycle, technical changes etc. are some main reasons while made a firm to go for export business.

Besides this, the factors which influenced a non-exporting firm to go in for export trade can be classified as under:

1. Characteristics of Corporate Firm:

If the firm predicts no future market potential for its products or services in the local market, it motivates the firm to go for the export trade. The characteristics of the firm are studied to evaluate the weaknesses, strengths, opportunities and threats regarding foreign trade. It includes the analysis of- (i) Characteristics of product—product life, demand, production capacity etc. (ii) Analysis of financial resources, (iii) Existing market of product and its growth potential and (iv) Potential of export market. On the basis of these factors, final decision regarding export is taken.

2. Recognition of International Market Conditions:

It includes- (i) Export potential (ii) Market opportunities and (iii) Government policies and assistance to promote export. Management of the firm has to recognise these export market conditions and decide about the firms to go in for international marketing.

3. Management’s Expectations:

The management’s decision to go in for export market is always taken by keeping in mind the potential of business in the international market. Therefore, the management’s expectations about the export business is always in positive side.

Essay # 4. Importance of International Marketing:

Foreign exports make a significant and necessary contribution to the economy and the country’s development particularly in underdeveloped countries. It provides a sound base for the country’s economy. The rapid progress of underdeveloped countries in the industrial field is mainly due to their exports. Today most business activities are global in scope.

Finance, technology, research, capital and investment flows, production facilities and marketing and distribution etc., have global dimensions. Today, global marketing is essential not only for the realisation of the full potential of a business, but even for the survival of the business. A company that fails to go global may lose its domestic business to international competitors with lower costs, greater experience, and better products.

Foreign trade is regarded as an engine of growth and the consequent need for both public and private sectors of business to understand the nature of international marketing has occurred for number of reasons. The most influential factor has been the remarkable growth in communications and transportation. Trade barriers have broken down and customs tariffs have been greatly reduced. Trading blocks have emerged.

Some of the major trading blocks are listed below:

(i) AFTA (Asean Free Trade Area).

(ii) EU (European Union).

(iii) NAFTA (North American Free Trade Agreement).

(iv) ASEAN (Association of Southeast Asian Nations).

(v) APEC (Asia-Pacific Economic Cooperation).

(vi) OPEC (Organization of Petroleum Exporting Countries).

The European Union comprising 25 countries across Europe has eliminated barriers to trade and allowed free movement of goods, people and capital. Similarly, the North American Free Trade Area comprising USA, Canada and Mexico with population of 390 million allows free trade between USA, Mexico and Canada. The ASEAN group comprises ten countries of South East Asia—Thai land, Malaysia, Singapore, Indonesia, the Philippines, Brunei, Vietnam, Myanmar, Laos and Cambodia—a market of 500 million population.

Similarly there are other trade groups, for example, SAARC comprising of India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan and Maldives. Around 63,000 multinational companies with nearly half a million affiliates and subsidiaries have come up in last four decades and account for over a third of global trade. The importance of international marketing has grown several fold in the context of the global changes.

In addition to these factors, there are several reasons for a business firm to go international.

Important reasons for going to international market are as under:

1. Domestic Market Constraints:

Demand constraints in the home market compel many companies to expand the market beyond the national boundaries.

The following are the main constraints in the domestic market:

(i) Small Domestic Market:

If the size of the domestic market is very small, companies look forward to markets of other countries to achieve the economies of scale. For example, many Japanese companies in electronics and automobile sectors go global because the size of the domestic market is small.

Therefore, when the production is in excess of domestic demand, the company tries to enter the international market. In export marketing, there is a huge potential to increase sales. Generally, the export orders are always huge in export business in comparison to domestic market. Huge sales volume also increases the volume of profit.

(ii) Due to Recession:

If there is recession in the domestic market, companies may not be able to sell full production in the home market. Sometimes there is excess production capacity in the country which the companies are not able to utilise fully, because of their inability to sell in the domestic market. Recession in the automobile industry in India in 1990 encouraged several Indian auto component manufacturers to explore foreign markets.

(iii) Sale at Saturation Point:

The markets for a number of products tend to saturate in some developed countries. This often happens when the market potential has been almost fully tapped, and when the population in some of the developed countries would saturate or decline. Such trends have very adverse effects on certain products. For example, the fall in the birth rate implies contraction of market for several baby products. To overcome such problems in the domestic market, companies look for international markets.

(iv) Growth in International Market:

Growth in international markets causes the growth in demand for some products, attracting the manufacturers of these products towards international market. Many Indian software companies entered international markets when the international demand for software products was first getting underway. Cipla, an Indian pharmaceutical company, entered Africa with its HIV treatment drugs as there exists a vast market for its products.

(v) Change in Demand in Domestic Market:

Sometimes, excess production capacity arises because of changing demand in the domestic market. As domestic markets switch to new and substitute products, companies making such products, develop excess capacity and are compelled to enter foreign markets. In some cases, the domestic market may be completely closed but the company may be producing for international markets. For example manual washing machines are totally outdated in the United States, but such machines are popular in underdeveloped countries.

(vi) Economics of Large Scale Production:

Another type of domestic market constraint arises from the scale economies. The technological advances have increased the size of the optimum scale -of operation substantially in many industries making it necessary to have foreign market to take advantage of the scale economies, in addition to home markets.

2. Government Policies and Regulations:

Government policies and regulations also motivate the firm to go to international market. Government may impose certain restrictions on further growth and capacity expansion within the domestic market in order to achieve certain social objectives. But there may not be any such restrictions on making investments in foreign countries or the restrictions may be relaxed even in the domestic market, provided the additional production is only for exports.

In such a situation, a firm may contemplate export operations. Many governments give a number of incentives and other positive support to domestic companies to export and to invest in foreign countries. Similarly, several countries give a lot of incentives to attract foreign investment. For example, in India, units established in the Export Processing Zones (EPZs) and 100% Export Oriented Units (100% EOUs) get excise and other tax benefits and have to export their production compulsorily.

New foreign trade policy announced on 31st August, 2004 for 2004-09 by UPA Govt., proposes to set up Service Export Promotion Council to help the services including non I.T. services like entertainment, medical, tourism, accounting and financing. Also a new scheme named ‘Serve from India’ will be initiated. Besides setting up of free trade warehouse zones through which service exports will be encouraged.

3. Increased Productivity:

Increased productivity is essential for the ultimate survival of a firm. This itself may lead a company to increase production and then export to foreign markets.

Moreover, due to technological developments, some companies have to spend a lot on research and development. To meet the cost of research and development, larger markets become necessary and exports become unavoidable. Foreign markets constitute a large share of the total business of many firms. IBM, for example, sells more computers abroad than at home. International sales account for more than 80 per cent of Coca Cola’s operating profits.

4. Counter Competition:

Many companies enter foreign markets to counter competition. The strategy of counter-competition is to penetrate the home market of the potential foreign competitor so as to diminish its competitive strength and to protect the domestic market share from foreign competitors.

5. Relative Profitability:

International business could be more profitable than the domestic. The price realised in export markets may be relatively higher than the home market. This is so, for example, in the case of readymade garments and jewellery. In some cases, export incentives provided by the government may make exporting more profitable than domestic market. Thus by international marketing, the overall profitability of domestic business can be improved.

6. Reducing Business Risk:

A diversified export business helps the exporting firm in mitigating the risk of sharp fluctuations in the business activity of the firm. When a firm is selling its product in a number of markets, a downward trend in one market may be partially or fully counter balanced by a rise in sales in other markets in the domestic country or in overseas countries. Secondly, geographic diversification also provides momentum to growth inasmuch as a single or a few markets will have only limited absorptive capacity. Thus sales in international market may reduce the business risks.

7. Control Inflation and Price Rise:

On several occasions, governments allow import of goods to increase the supply and control prices. Whenever domestic prices increase, normally imports are allowed to increase the supply and control the prices. When imported products are available in the domestic market at lower price, domestic producers also reduce their prices. Without imports, there is no pressure on domestic producers to reduce their prices. The lack of imported product alternatives forces consumers to pay more, often resulting in inflation.

8. Product Obsolescence:

Every product has its own life cycle and is to die as soon as the cycle (innovation, growth, maturity and obsolescence) is over. Some products (which are generally used by well-to-do people) may become obsolescent in domestic markets, but there may be markets for such products in the foreign countries.

There are so many products which have reached a stage of obsolescence in developing countries yet they can be sold easily in underdeveloped or undeveloped countries. Thus, the firm producing a product that has become obsolete in domestic market may take a decision for its export in market where it can be sold easily.

In addition to the above mentioned factors, the following factors are also responsible for the need for International Marketing:

1. Unequal Distribution of Natural Resources:

There is no equal distribution of resources among various nations of the world. For example Arab countries have oil in abundance whereas Britain has coal and iron in large quantities. In addition, the climate for agriculture is also different in all countries. In this condition, every country produces goods or services favourable to its climate and natural resources and do the marketing in foreign countries and, in exchange, gets back other requirements. In nutshell International Marketing has become necessary because of inadequate distribution of resources.

2. Advantages of Specialisation:

In every country, in addition to natural resources, human skill and technology are also different. So every country specialises in producing goods and services according to their skill and technology and exports them to foreign countries and in exchange imports the needed products. For example, Switzerland has specialised in watch making while Brazil in producing coffee.

3. Technological Development:

Countries of the world have been divided into developed, developing and underdeveloped, according to their technological development. Developed countries by way of international marketing sell the technology to developing and underdeveloped countries. In India the technology is developing and technical education is increasing. USA, Australia and many other countries are attracting Indian technicians by way of making the control easy on passport and visa.

4. To Create Research Opportunity:

Every country is trying to make the research base more powerful to face international competition. Indian scientists have done remarkable progress in the field of space through International Marketing and has got seventh place in the world. India is self-reliant in the field of missiles and satellites. Many researches of Ayurvedic medicines have created opportunities for International Marketing.

5. Economic Development of a Country:

International marketing is a dynamic force in the development of a country.

(i) Rapid Economic Growth:

International marketing helps a country to earn necessary foreign exchange required for its economic development. The export helps a country to improve its level of development. Foreign exchange can be utilised for the rapid growth of the country. The developing countries require science and technology for their economic development. Their import bills are quite high and need to be financed by exports.

(ii) Profitable Use of Natural Resources:

There are certain countries which possess an abundance of a particular natural resource as others have less of it. International marketing helps best and profitable use of such products.

(iii) Increase in Employment Opportunities:

In an effort to increase the export, many export-oriented industrial units are established on the one hand, and the existing units produce more to get exportable surplus on the other. This generates new opportunities for employment and increases the existing level of employment. Moreover, new markets are surveyed for exporting the goods and so many other persons are also engaged directly or indirectly in the export trade. Employment opportunities can also be explored by entering new areas for exports.

(iv) Role of Exports in National Income:

Exports play an important role in the national income of the country which can be increased to a sizeable extent through organised export marketing. Shares of export income in the national income of some countries are Hungary 43%, Netherlands 42%, Japan 11 %, Canada 21 %, Belgium 42%, Germany 19% and England 17%. This shows the contribution of exports in the national income of a country.

(v) Increase in the Standard of Living:

International marketing improves the standard of living of the countrymen in the following ways:

(a) The imports of necessary items for consumption can be made which may help improve the standard of living of the people.

(b) Exports increase the employment opportunities which, in turn, increase the purchasing power of the people.

(c) Exports are responsible for the rapid industrialisation of the country. New items are produced for consumption in the domestic market. It increases the level of standard of living.

(d) In order to face the competition in the international market, the producers improve the quality of the product by using the latest technology. Moreover, cost of production is also reduced due to large-scale production and use of improved technology.

(vi) International Collaboration:

International marketing results in international collaboration. Developed countries fix their import quotas for different countries and for different commodities. A country can export various commodities to these developed countries to the extent of its quota. In order to settle certain common issues some countries form a group or a common platform to discuss various issues concerning their international trade and take decisions jointly. In this way, international trade leads to international collaboration.

(vii) Closer Cultural Relations:

International trade brings various countries closer. Better trade relations are established among the countries. Government and non-government trade commissions or trade representatives visit other countries from time to time. The local representatives and other related persons come into contact with foreign representatives and come to know their habits and customs.

Apart from this, exporting firms open their selling depots, agencies or manufacturing units abroad. Their employees also come into contact with the persons of the countries of their posting. In this way closer cultural relations among various countries develop.

6. Helps in Political Peace:

The economic relations between two countries help improve their political relations. Various countries having different political ideologies import or export their products. Russia imports food grains from America, though they have a different, rather opposite political ideologies. Thus, to some extent, international trade helps maintaining political peace in the world.

To sum up, it is now undisputable that export trade contributes to the national economy, national exchequer, and individual exporting firms and maintains international economic, cultural and political relations among various countries.

Essay # 5. Factors Influencing International Marketing :

There are two types of factors influencing international marketing:

1. Internal Factors:

The internal factors may include the strength of a business organisation to operate in an alien country. Its knowledge about the customer’s wants and needs in that country. The investment capacity of the company to pursue its goals to make the product as per the requirements of the customers. It may have to evaluate its production capacity and strength to withstand the competition in that country.

2. External Factors:

The external factors which influence the international marketing decisions of a Business Organisation can be:

(i) Economic Environment

(ii) Social and Cultural Environment

(iii) Political Environment

(iv) Legal Environment

(v) Physical Environment

(vi) Demographics Environment

(vii) Technological Environment, and

(viii) Business Environment.

(i) Economic Environment:

In different countries the economic conditions are different.

It depends on the following factors:

(a) Population growth rate

(b) Rate of economic growth

(c) Money supply, inflation rate, price rise

(d) Growth of transport, banking system and means of communication

(e) Rate of growth of human efficiency, and

(f) Growth of business and industry.

A business organisation is an economic system of a larger environmental system. It includes current stage of economic development, income distribution patterns, stages of business cycle, inflation, interest rates etc. Economic factors are one of the most important factors to be considered for formulation of international marketing strategy. Many variations in marketing systems originate in straight forward economic differences.

If the growth rate, speed and market condition are not favourable, then the market structure is adversely affected. The second important thing regarding marketing system is the changing element. If economic standard is now considered the marketing activities of a progressive society will be quite different from that of stagnant society.

In the context of economic environment the third factor which affects the marketing system is geography. In geography we study the conditions which affect natural resources of that country, climate and transportation. Geographical conditions also affect the living standard of people.

(ii) Social and Cultural Environment:

Social and cultural factors both affect the international market environment. Socio-cultural trends often reflect the impact of changing economic and technological conditions. An international marketing mix can only be effective as long as it is relevant to a given culture. It may call for modification of the product, introduction of a new promotional strategy or new distribution channel.

If a firm enters foreign markets without due regards to local customs and traditions, it may commit serious blunders. Culture being a major force of a country or region, it should be thoroughly understood, specially, in terms of the values and social practices of nation concerned.

Social structure, i.e., traditions, methods, customs etc., have a basic influence on economic development, industrial output and distribution factors. Social backwardness, immorality, rigidity and other social factors influence them negatively. Caste, religions, customs, conflicts etc., keep people at specified low level and they live in total darkness. The nature, behaviour, trend of human beings change very slowly.

In the context of marketing, the word ‘culture’ does not refer to classical music, art and literature, but to social institutions, values, life styles, beliefs and behaviour. Culture includes everything a person needs to know as a member of a society but does not include the basic drives with which one is born. Culture is also the total way of life and thinking pattern is passed from generation to generation.

(iii) Political Environment:

The political environment of a country plays a vital role in influencing the market. Price, size of market coverage, advertisement etc., influence the market. The market policy has to be decided on this basis. The industrial development or growth depends on free/controlled policy adopted by the country. This indicates that the political factors play a vital role.

The political situation is likely to be different in different countries. The market strategy is also likely to be different. In the regulated market, government rules over the market and the resources are diverted as per the directions of government. The welfare aspect is more important than profitability. Uplifting the rural social welfare and other development aspects are important. The political factors widely influence the market and other factors are also important with this in the strategy of marketing.

(iv) Legal Environment:

The legal aspect is very important in international marketing. Every business firm operates business within the jurisdiction of legal system. The commercial and legal laws existing within a country influence not only the marketing mix but also the environment within which a business operates.

Producers and exporters must be careful in regarding their activities in foreign markets. If they do not get the legal registration of their company in foreign then there is a provision of heavy fine also according to their laws. To avoid any trouble in future the exporter in foreign countries must study and obey the laws of that country before appointing agents, distributor and other persons etc.

Sale agreements made in foreign country are equally important for both seller and buyer. These agreements include cost of product, place of delivery of goods, credit conditions, payment conditions etc.

(v) Physical Environment:

The physical environment consists of natural resources including minerals, animal population etc. Accordingly, marketers must adapt their strategies to environmental differences in terms of availability of natural resources, varying climatic conditions and ecological considerations.

Today the world is facing many serious problems i.e., global warming, destruction of forests, air and water pollution etc. Therefore, all the countries have introduced some rules and put many restrictions in this context. It is very important to have the knowledge of these changes in regarding International Marketing.

(vi) Demographics Environment:

International market structure is influenced by the demographic structure of the country. Size, age group, size of family, birth and death rate, sex ratio, growth of population etc., affect the marketing strategy.

The size of population is different in different countries. India and China possess high population. Russia, Japan, Australia have low population. When population increases, the demand rises, market expands, demand for food, clothes and other things develops. Then the marketing strategy has to be developed in such a way as to adjust with this situation.

(vii) Technological Environment:

Science and technology are fast changing. These types of factors obviously affect the market. For example, manufacture of cotton cloth has decreased. Factories have stopped the production of cotton cloth and started producing mix fabrics which are in demand. Now, due to growth of science and technology messages are broadcast through satellites. The use of Television, Radio, Computer, Internet etc., has increased. Its adverse-affect lies on gramophone and film industry. Many industries develop due to on-going research.

(vii) Business Environment:

Environment plays a vital role in the conduct of business operations in international markets. Environment assumes- critical importance as no two countries have similar environments and different business strategies are to be adopted for different business conditions. As the environment affects firm’s strategies and tactical decisions, it becomes very important for the firm to have in-depth knowledge of the domestic, foreign and global environments.

When a firm decides to enter international markets, it faces two major decision problems- (a) Which market (b) to select, and (c) how to enter into those markets. Both these decisions are greatly influenced by the environmental forces. Firms select those countries as their target markets which have sufficient market potential. Market potential in turn depends upon geographic, economic and cultural environments of that country.

Arthur Median has identified following factors which influence business environment :

1. Social Factors:

i. National legal regime

ii. Political situation

iii. Financial system

iv. Marketing infrastructure

vi. Language, and

vii. Climate.

2. Economic Factors:

i. Commercial policy variables, e.g., tariffs, quotas, licensing, non-tariff Barriers

ii. Currency restrictions, and

iii. Internal demand management policies and instruments.

3. Competition:

i. Competition vis-a-vis producers in the importing country,

ii. Competition vis-a-vis exporters from the competing countries, and

iii. Competition vis-a-vis other exporters from one’s own country.

4. Logistics:

i. Availability of required type of transport (sea, air, freezer space, etc.)

ii. Costs of transportation.

i. Political risks

ii. Commercial risks

iii. Acts of God, and

iv. Acts of enemies, pirates, thieves, etc.

Essay # 6. Problems and Challenges Faced in International Marketing:

International marketing is becoming very complex and challenging in the context of globalisation of markets. Many different problems and challenges have emerged due to cultural diversities, different languages, tastes, and fashions, consumption functions of the consumers and also due to incomplete knowledge about foreign markets. The companies engaged in international marketing are facing many important and interesting facts.

Some of these varied facts have forced firms to frame new strategies for their domestic markets. Here the words of Kotler are appropriate – “Marketing in domestic market gets first priority in comparison to foreign market if size of the market is really large one, as per the opinion of big companies.”

The officers of these companies need not learn laws and languages of foreign countries, need not learn about complexities of exchanges in foreign currencies, need not engage themselves in political and legal uncertainties and at the same time need not direct their products according to wishes of international customers. In short, domestic marketing is more safe and simple.

The Problems in International Marketing :

Many problems are involved in international marketing.

Some important ones are explained below:

1. Cultural Diversity:

Customs and traditions as well as racial and religious diversities affect the markets, but their effects cannot be measured appropriately. How these problems will affect the demand for the products, is hard to visualise. Therefore this constitutes the main problem in international marketing.

2. Failure of Markets in Accepting the Products:

A large number of countries in the world are not prepared to accept one-sided growth of trade in international marketing (i.e., exporting raw materials and importing manufactured items). Most of the countries prefer the products manufactured in their own enterprises in the country.

3. Failure to Enter Potential Advantageous Market:

There is a growing trend to form small trade groups in the context of international marketing due to adverse individual and political interests in the world such as European Economic Community, American Free Trade Association and Association of South East Asian Nations (ASEAN) etc. These trade associations create many important obstacles on the way of free trade and International Marketing. These trade associations have free trade among member states, but object on doing free trade with non- member countries.

4. Difficulty in Understanding the Principle of Competitive Economy, in Right Spirit:

Many countries have framed certain rules and adopt certain processes in commercial matters so as to regulate and control their imports and exports. This brings complexity element in international marketing.

5. Self-Sustained Economy:

Developing countries are adopting development process rapidly and are ready to prove their capability and ability at international level. The willingness on their part to create self-sustained economy can create problems in international trade and marketing.

6. Differences in Languages:

The failure to understand differences in languages in correct manner, brings complexity in International Marketing. The message of producer reaches the consumer in best way through the language of consumer. But differences in languages create problems in the process of communication.

7. Diversity in the Nature of Advertisement:

The nature of advertisement also changes due to differences in cultural matters like customs and traditions. The diversity in the nature of advertisement makes international marketing complex one, because different advertisement policies are to be framed for marketing of product in different countries.

Thus it can be concluded that International Marketing has to face many problems such as lack of proper identity of language and culture in foreign markets, political and legal constraints, lack of proper information regarding marketing research, undesirable competition, and failure to understand the importance of retail sellers for distributing the products in foreign markets etc.

Challenges in International Marketing :

According to Philip Kotler, under-mentioned challenges are being faced in international marketing:

1. Changing Environment:

Marketing is affected by the environment around it because changes in social, political and other factors have bearing on the economic behaviour of persons living within the boundaries of that country. Changing environment brings dynamism in the objectives of marketers and they have to act accordingly.

2. Proper Cost of Production and Communication:

A firm entering foreign markets should study different aspects minutely regarding that market. These aspects may relate to economic, social, political and cultural environment and see to it how that market will be adopting its products. Acquaintance with the tastes of every market is also necessary to frame proper marketing policies.

3. Burden of Foreign Loans:

Most of the developing and small countries are under the grip of foreign debts, due to which it is becoming difficult for these countries to make payment of their interests too. Examples of such countries are Indonesia, Mexico and Russia. Foreign indebtedness proves a big obstacle in international marketing because such countries do not permit import of goods so very easily.

4. Technological Piracy:

A firm, whose plants are established abroad is always worried regarding stealing of its techniques of production and have to face competition openly or tacitly. Such a trend is usually found widely in the fields of machinery, medicines, electronics and chemical industries.

5. Political Instability:

Many countries are under the grip of high indebtedness, hyper-inflation and mass unemployment. Political instability arises due to these factors. This tendency is risky for foreign firms as these firms face the risk of nationalisation, limited profits and self-liquidation, which create obstacles in international marketing.

6. Corruption:

Corruption is spreading like cancer in all countries. It is specifically seen in international trade. For example, under Foreign Corruption Act 1977, there is a ban on American managers on giving or taking of bribes. But the same ban is not levied on the competitors of other countries. This is a great challenge in international marketing.

7. Tariffs and Other Commercial Obstacles:

Nowadays most of the governments charge high tariffs on imported goods to protect their own industries. They resort to invisible trade obstacles too, for example, reducing slowly important inspection trends and permits regulations as well as desiring expensive product adjustments. Due to such practices, international marketing is becoming challenging for the marketers.

8. Red-Tapism and Bureaucracy:

Many firms put different rules and regulations on foreign firms in the matters of trade- for instance, they can lay emphasis on joint ventures in which domestic partner will have more share in profits or can ask foreign firms to serve national interests in better ways. Domestic firm can also put a ban on the transfer of technology or profit which will become a big challenge in international marketing.

9. Problem of Foreign Exchange:

More indebtedness and economic as well as political instability bring a fall in the value of domestic currency. Foreign firms dealing in a country want payments in hard currency in their rights regarding repatriation of profits. But this alternative is not available in many markets of the world. This creates adverse effect on international marketing.

Some Suggestions to Overcome the Problems and Challenges in International Marketing :

The marketing manager should be well-acquainted with foreign markets in international marketing and should have full knowledge concerning its limitations and underlying assumptions. If any marketing is affected by social, economic and cultural characters of foreign markets, then these factors should also be kept in mind by the manager as these have a tendency to influence foreign environment.

The firm can think about reducing its dependence on any one market. The customers of a company may go for foreign products and they may need international services to meet their requirements. Global firms can attack the market of a company by presenting better quality products at low prices.

That is why a company has to think how to face the challenge of these foreign companies. Firm may also search the potential foreign markets, where it can earn more profits in comparison to profits earned in domestic markets. A firm needs a large number of consumers in order to take advantage of large scale production.

Therefore, it can be concluded that a company should frame its international marketing policies in such a way that these satisfy the consumers in the best possible way. As far as it is possible, marketing activities must be done with more than one country because if there is any risk in one market, that can be covered by selling goods in other markets.

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94 International Marketing Essay Topics

🏆 best essay topics on international marketing, ✍️ international marketing essay topics for college, 📌 easy international marketing essay topics, 👍 good international marketing research topics & essay examples.

• Marketing Analysis for Nestlé: Nespresso Segmentation & More
• Nestle International Strategy: Marketing Analysis
• The Role of Internet on International Marketing
• Uppsala Model in Internationalization Decisions
• Zara International Marketing Strategy
• Nando: International Marketing Mix Strategy
• Globalization’s Impact on International Marketing Strategies
• National Culture and Aesthetics in International Marketing This paper examines the importance of national culture and aesthetics for international businesspeople, describes using demonstrations effect and analyzes American marketers’ work.
• Nike Inc.’s International Marketing Strategies The paper has examined Nike’s key international marketing strategies, namely, the use of technology and customer segmentation.
• International Marketing Strategies of Zalando and Asos The essay implement various theoretical concepts, including high- and low-context nations and Hofstede’s cultural dimensions framework, to analyze Zalando and ASOS strategies.
• Mercedes Benz Company’s Marketing Plan for the UAE The paper is a marketing plan for Mercedes Benz. The main objective is to increase the market share of Mercedes Benz in the UAE.
• The Coca-Cola Company’s Strategic Plan in Pakistan Coca-Cola is the most prominent foods and Beverages Company in terms of growth and global market in this industry.
• Samsung: The Global Marketing Offering the wide product line that addresses the needs of many different target groups is the main idea of Samsung’s global strategy.
• Global Marketing: Adaptation vs. Standardization Global marketing is a complex process that must take into account various cultural, legal, and socio-economic aspects to work successfully.
• Cross-Cultural Marketing and Hofstede’s Model This paper examines the effect of culture and the importance of cross-cultural analysis on international marketing, with a focus on Hofstede’s model of cross-cultural analysis.
• SPAR International Company: Marketing Plan SPAR International is the world’s biggest food retailer. The work outlines goals for the development of the brand, along with the marketing mix of strategic recommendations.
• Starbucks: An International Strategy The current paper discusses the case of Starbucks. It is one of the companies most known for its consistent and large-scale international success.
• A US Diapers Firm’s Entry into the Brazilian Market The Brazilian market entry of a U.S. manufacturer of disposable diapers requires particular attention due to the differences in conditions between the two locations.
• Amazon Inc. in the Context of International Business Economics and Markets Amazon can focus on the different ways that products can be used to attract buyers in South Africa. Promotions using social media and TV advertisements can be implemented.
• International Business: Amazon.com Marketing Strategies This term paper focuses on the marketing strategies of Amazon.com and how it has contributed to its continual growth in the competitive e-Commerce.
• Market Entry Strategy on Example Wal-Mart This research is aimed at discovering the entry strategy that shall be employed by the company in entering into this market where it is already saturated.
• International Marketing and Marketing Communications Marketing communications are messages and related media used to communicate with the target market. It involves advertising, sales promotion, personal selling, and public relations.
• Starbucks Company’s International Business Strategy In realizing its future internationalization agenda, Starbucks can consider venturing into more partnerships in the foreign markets and directly compete with existing retailers.
• Globalization Influence on Product Development This essay presents a critical analysis of the marketing strategies as they apply to the international marketing efforts of firms in the context of globalization.
• Spotify and South Korean International Market This paper recommends South Korea as an ideal international market for Spotify – a music streaming company. The analysis based on macroeconomic factors.
• Norrona Company’s International Marketing Plan This paper presents an international marketing plan that will help Norrona exploit the market opportunity presented by a foreign market – South Africa.
• Lidl Expansion to Norway and Mexico Lidl, a Germany-based international discount retailer, is considering entering another country’s market. It has narrowed its choices down to either Norway or Mexico.
• The International Marketing Planning Theory Application International marketing operations are geared towards achieving an organization’s objectives while operating across the globe.
• Internationalization on Example of Sony Company This essay focuses on one of Sony’s daughter companies, Sony Computer Entertainment, especially on the production and internationalization of gaming consoles called PlayStation.
• The Hydraloop Water Recycler’s International Marketing Hydraloop H600 water recycler is a water recycling system created by Hydraloop Systems and produced by the Technologies Added factory.
• Marketing Communication Strategies: Domestic and International Markets The essay explores the similarities and differences of the international and domestic marketing communication strategies that are used to market voice-activated braking systems
• Automotive International Marketing in Turkey The study is about international marketing and focuses on the appropriate implementation of communication mix within the automobile industry. The area of study was in Turkey.
• International Marketing: H&M Enters Brunei This paper critically examines Brunei’s marketing environment, company competition level, and entry strategies.
• Rule of Law and Ethics and International Marketing Currently, the attention of the world community is attracted by the rapid development of the “new industrial countries” of Asia, Africa, and Latin America.
• International Marketing Plan of Progresso Soups in Santiago, Chile This report presents an international business proposal for the expansion of the GMI company through the marketing of Progresso soups in Santiago, Chile.
• Analysis and Strategy in Global Marketing The paper examines the various strategies used in global marketing. It starts with an introduction then outlines Porter’s five forces model in the industry competition.
• International Markets and Its Opportunities An organisation should increase its value than rivals through stocking more resources and distinguishing its capabilities.
• International Business Management and Marketing This paper considers essays on international business, trade, and investment, financial markets, international HRM, and other articles related to this question.
• Rolls-Royce Motor Cars in Singapore The Asian market is the perfect economic destination regarding population growth and financial potential. That is the reason why Rolls-Royce chose Singapore to open its filial.
• Nova Energy Drinks Company Nova Energy Drinks company explores new potential opportunities of moving to an international arena, penetrating two foreign markets in South America: Argentina and Venezuela.
• Pret a Manger Company’s Foreign Entry Mode Selection The purpose of this paper is to develop a profound strategic plan for international market entry for Pret A Manger.
• International Marketing: Personal View The international managers have the obligation of adhering to the international policies to ensure that their businesses run smoothly.
• International Marketing: A Case Study of Sanctuary Spa (UK) Global marketing principles and possibilities are precise and realizable; therefore, the worldwide marketplace cannot be compared to the home economy.
• A Ceviche Business in the Chinese Market In my business model, I plan to introduce ceviche to the Chinese. This paper gives an in-depth SWOT analysis of the introduction of ceviche to Chinese cuisine.
• International Marketing of Coca-Cola When it comes to entering the IFCD market, Coca-Cola will have to overcome many barriers and market risks to be successful.
• Impact Confections Company Expanding Outside the US Expanding a company to the international market results in increased employment and healthy financial development.
• International Green Marketing in British and Romanian Firms The main idea in green marketing is to promote one’s product or operation, so that one’s consumers will know that the company and its products are environmentally sustainable.
• The Importance of Understanding Culture in Marketing When products are being exported across countries’ borders, managers should know the customers’ needs, which are often dictated by the cultures where the consumers reside.
• McGraw Hill Publisher: The International Marketing Analysis The report is an analysis of the role of marketing concepts, and implications at local and international levels that ensure the company succeeds in promoting products and services.
• Apple Incorporation: International Marketing This paper tells that the four functions of the management theory are a key aspect in determining the short and long-term success of any business.
• Anheuser-Busch InBev: International Marketing for Success This paper has used Anheuser-Busch InBev to illustrate how businesses can move from operating in a small domestic market to dominating global markets through international marketing.
• Mercury Shoes Company’s New Opportunity in China The Mercury Shoes company has to promote better operational plans to aim the 10 million unit annual sales. China has no injuries from the hit of the global recession.
• Environmental Factors Affecting Global and Domestic Marketing Decisions So the main potent of the marketing strategy must be in providing business travel solutions at the lowest possible prices.
• “Beware the Pitfalls of Global Marketing” by Kashani Kashani addresses some of the problems that he believes to be characteristic of the global marketing environment.
• Advertising Effectiveness in International Marketing In international marketing, advertising is one of the main tools that a firm can use to gain a competitive edge over other firms.
• National Office Machines and Nippon Cash Machines Merge The merging of National Office Machines from the United States and Nippon Cash Machines from Japan brings two different cultures together with contrasting marketing strategies.
• Sprout&Co Firm’s Entry Mode and Internationalization Given the nature of the business, Sprout&Co plans to adopt a licensing and franchising entry strategy into the international market since it offers numerous benefits.
• Potential Issues of Expanding into Foreign Markets The expansion of business abroad is a profitable event and a positive aspect in the context of business development. However, it is necessary to take into account many risks.
• International Marketing News The international market is now facing division, with the governments putting much concern on supporting households and businesses that price regime.
• CarryMore Company’s Internationalization Before the decision to expand its presence abroad, the company was a purely domestic enterprise. It means that CarryMore was limited by exclusively British market orientation.
• Marketing Mistakes Affecting International Marketing Marketing mistakes can affect international marketing in that they can cause destroy brand reputation, increase costs associated, and lowers the market share.
• McDonald’s in Hong Kong and Taiwan The difference between McDonald’s in Hong Kong and Taiwan manifests itself in non-obvious aspects of the housing issue and attitudes towards marketing.
• Swipr Software Company’s Entry Into China Swipr is a software company that runs a microblogging platform. This paper aims to study the viability of the company’s entry ambitions into China.
• Multinational Agricultural Manufacturing Companies’ Standardization & Adaptation The most popular approaches that multinational companies use to serve their customers from various countries are standardization and adaptation.
• Furbo Dog Nanny: International Marketing This paper explores the global pet monitoring industry, with an emphasis on the segmentation and differentiation of Furbo’s strategies for expanding operations in Australia.
• Reasons for Companies to Enter Foreign Market The purpose that guides a particular company’s strategy building is the financial benefits an enterprise expects to obtain from specific interventions’ successful implementation.
• The Fresh Direct Firm’s Entry into the Chinese Market FreshDirect is one of the organizations that has been striving to introduce innovative food delivery services. It has strong changes at entering the Chinese market successfully.
• Multinational Enterprises’ Choice of Modes of Entry There is no “one shirt fits all” strategy when it comes to figuring out the best mode of entry (MOE) into foreign markets by multinational enterprises (MNEs).
• Multinational Enterprises’ Global Strategy Adjustments A global strategy is based on the assumption that the consumption and production patterns of goods and services are homogenous worldwide and countries are interconnected.
• The UK Juicers Company: Internationalization Theories This paper seeks to analyse the UK Juicers Company in correspondence with the theories of internationalization which include economic, learning and network.
• The Disney Difference: Making Magic Happen This essay provides information on the Disney Difference and their impact on corporate, competitive, and functional strategies.
• Brasil Foods Company’s International Strategy There are three main international strategies that companies can undertake to achieve higher prosperity and profitability.
• International Expansion Strategies to Consider It is more beneficial to expand a business internationally. However, this comes with an array of challenges that might discourage some entrepreneurs from doing it.
• International Marketing: New Level of Business Global trade increases sales and profits and puts the name of the brand on the worldwide market, which makes it extremely attractive for domestic businesses.
• Expanding Ultima Foods in China Ultima Foods is a Canadian food company that owns two brands of dairy products. The country selected for expansion is China, and it is known for its a growing economy.
• Global Marketing Strategy Development Benefits This paper examines the various marketing strategies that are essential for the success of any company within the global market.
• Yogurtland and Micromax: Marketing Strategy To expand, the company has to apply product standardization with the elements of adaptation. The company has to use a global strategy as its primary method to achieve success.
• International Marketing Management: Advertisement Strategies and Global Market Advertisers in the world or global market encounter limitations, which include media and products that are unique as well as the language, that are also unique in every market.
• Internationalization of a Bicycle Company: India & the US The need for internationalization of companies began when firms saw the necessity to increase their export efforts due to the declining domestic consumptions.
• Factors and Principles of Successful Multinational Marketing Description of a successful marketing strategy in a multinational market and competition of products of the same characteristics.
• The Coca-Cola Company in Sub-Saharan Africa This paper discusses the origin of the Coca-Cola Company and the company’s scope of the market in Sub-Saharan Africa.
• International Marketing – Impact of Globalization This paper seeks to identify the impact of globalization in international business and how companies can fully utilize the concept in order to attain their objectives
• FruitRich Private Limited’s International Marketing International marketing plan for the promotion of a new juice brand FruitRich Private Limited, which produces natural fruit juices with various flavors.
• Gender Symbols Usage in International Family-Oriented Marketing The concepts of social structuring and the formation of gender symbols are considered to be the central issues of family-oriented marketing developing on the international level.
• Marketing and Research & Development in India The paper reviews the article tilted Dow Chem to Turn Pune Unit into R&D Hub provided by the India Supply Chain Council.
• Multinational Companies’ Marketing in Vietnam Entering the Vietnam market is a rather controversial decision due to the presence of the factors such as corruption and bureaucracy.
• Market Globalization and Global Marketing Pitfalls Customization is fraught with several outcomes that may inhibit the further advancement of a company in the global economy.
• “The Globalization of Markets” Book by Levitt Levitt predicted a range of trends that would occur in the global market, including the need to appeal to different types of customers.
• International Marketing: Global Corporation vs. Company A global corporation needs to be capable of addressing the issues that emerge in the context of a particular culture when promoting products and services to diverse audiences.
• Vehicle Exporting: From United States to Mexico The purpose of the given executive business plan is to demonstrate the underlying ideas, market features, and business approach of exporting vehicle or auto parts from US to Mexico.
• Global and Multi-Domestic Marketing Approaches There is a need for aggressive managers who can innovate and initiate skills that are important in navigating the pressures that affect the growth in company sizes.
• International Market Development at Edutot Japan International markets differ in terms of legal systems, economic status, language, religion, and culture. The legal system affects the operations of a company.
• Local Cultures in Globalisation and International Markets Globalisation and international markets condition the great importance of the creation of a unique approach that will be able to consider local cultural peculiarities.
• The Wiggles Company in the International Markets The Wiggles company is a well-known brand that will continue being successful in the childhood entertainment industry as they have significant business concepts.

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This essay topic collection was updated on January 8, 2024 .

The overarching role of international marketing: Relevance and centrality in research and practice

• Published: 18 May 2021
• Volume 52 , pages 1429–1444, ( 2021 )

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• Saeed Samiee 1 ,
• Constantine S. Katsikeas 2 &
• G. Tomas M. Hult 3  

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Classic business literature asserts the central role of marketing as foundational to the existence of organizations, and further notes that marketing must permeate all areas of a business enterprise. Leveraging this premise, we examine marketing scholars’ contributions to the international business (IB) literature – specifically notable works in exporting and market entry. Despite the overarching role of marketing in business, our systematic examination of published works in JIBS identified only 11 marketing contributions among the top 100 most frequently cited publications. More recent Web of Science data for the most cited contributions since 2015 demonstrate a decline in the number of international marketing (IM) and IB-related contributions by marketing scholars. Our goal in this editorial is to re-emphasize marketing’s critical importance and centrality in IB research, especially with reference to its dominant role in such areas as exporting and market entry decisions, customer acquisition, and relationship management. This special issue is intended to highlight IM and to motivate more contributions by IM scholars, as well as to call for greater integration of marketing thought in IB research.

La littérature classique en management affirme le rôle central du marketing comme fondement de l'existence des organisations, et souligne en outre que le marketing doit imprégner tous les domaines d'une entreprise. Nous appuyant sur cette prémisse, nous examinons les contributions des chercheurs en marketing à la littérature du commerce international (IB – International Business ), plus spécifiquement, les travaux importants portés sur l’exportation et l’entrée sur les marchés. Malgré le rôle fondamental du marketing dans les affaires, notre examen systématique des travaux publiés dans la revue JIBS n'a identifié que 11 contributions liées au marketing parmi les 100 publications les plus fréquemment citées. Les données plus récentes sur le Web of Science liées aux contributions les plus citées depuis 2015 montrent une baisse du nombre de contributions relatives au marketing international (IM – International Marketing ) et au IB par les chercheurs en marketing. Dans cet éditorial, notre objectif est de souligner à nouveau l’importance critique et la centralité du marketing dans la recherche en IB, notamment par rapport à son rôle dominant dans les domaines tels que les décisions d’exportation et d’entrée sur les marchés, l’acquisition de clients et la gestion des relations. Ce numéro spécial a pour but de mettre en valeur le IM, de stimuler davantage de contributions de la part des chercheurs en IM, ainsi que d'appeler à une plus grande intégration de la pensée marketing dans la recherche en IB.

La literatura empresarial clásica reivindica el papel del marketing como primordial a la existencia de las organizaciones y además nota que el marketing debe permear todas las áreas de una empresa. Apalancándonos en esta premisa, examinamos las contribuciones de los académicos de marketing a la literatura de negocios internacionales – específicamente los trabajos más destacados sobre la exportación y la entrada del mercado. A pesar del papel global del marketing en los negocios, nuestro examen sistemático de los trabajos publicados en JIBS identificamos sólo 11 contribuciones de marketing entre las 100 publicaciones más citadas. Los datos más recientes de Web of Science de las contribuciones más citadas desde el 2015 demuestran una disminución en el numero de contribuciones relacionadas con marketing y negocios internacionales por parte de los estudiosos de marketing. Nuestra meta con este editorial es hacer hincapié a importancia fundamental del marketing y su centralidad en la investigación de negocios internacionales, especialmente con referencia a su papel dominante en áreas como la exportación y las decisiones de entrada al mercado, la adquisición de clientes y la gestión de relaciones. Esta edición especial busca resaltar el marketing internacional y motivar más contribuciones de académicos de marketing internacional, y también hacer un llamado a una mayor integración del pensamiento de marketing en la investigación de negocios internacionales.

A literatura clássica de negócios afirma o papel central do marketing como fundamental para a existência de organizações e, além disso, observa que o marketing deve permear todas as áreas de uma empresa. Aproveitando essa premissa, examinamos contribuições dos acadêmicos de marketing para a literatura de negócios internacionais (IB), especificamente trabalhos notáveis em exportação e entrada no mercado. Apesar do papel abrangente do marketing nos negócios, nosso exame sistemático de trabalhos publicados no JIBS identificou apenas 11 contribuições de marketing entre as 100 publicações mais citadas. Dados mais recentes da Web of Science para as contribuições mais citadas desde 2015 demonstram um declínio no número de contribuições de marketing internacional (IM) e relacionadas a IB por acadêmicos de marketing. Nosso objetivo neste editorial é reenfatizar a importância crítica e centralidade do marketing na pesquisa em IB, especialmente com referência ao seu papel dominante em áreas como exportação e decisões de entrada no mercado, aquisição de clientes e gerenciamento de relacionamento. Esta edição especial tem como objetivo destacar o IM e motivar mais contribuições de acadêmicos de IM, bem como pedir uma maior integração do pensamento de marketing na pesquisa de IB.

经典的商业文献断言市场营销对组织存在有着基础的中心的作用, 并进一步指出, 市场营销必须渗透到商业企业的所有领域。 利用这一前提, 我们研究了市场营销学者对国际商务 (IB) 文献的贡献, 特别是在出口和市场准入方面的著名作品。 尽管市场营销在商业中起着举足轻重的作用, 我们对JIBS发表的作品的系统检查发现, 在最常被引用的前100篇文章中只有11篇是市场营销的贡献。最新的Web of Science数据 (自2015年以来被引用最多的数据) 表明, 市场营销学者对国际市场营销 (IM) 和与IB相关的贡献数量有所下降。 我们这篇社论的目标是重新强调市场营销在IB研究中的至关重要性和中心地位, 尤其是参考市场营销在出口和进入市场决策、客户获取以及关系管理等领域的主导作用。 本期专刊旨在突出IM和激发IM学者做出更多的贡献, 并呼吁将市场营销思想与IB研究有更大的整合。

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INTRODUCTION

Marketing is the raison d’etre and the force that drives organizations. Among the many axioms advanced by Peter Drucker, the father of modern management, are that the purpose of a business is “to create customers”, and that an organization has only two functions: one role relates to marketing (i.e., innovation) and the other is marketing (Drucker, 1954 , p. 37; Trout, 2006 ; Webster, 2009 ). Drucker further observed that only innovation and marketing produce results (i.e., revenue streams); the rest are costs (Cohen, 2013 ). Product innovation is a key marketing strategy component and an important means of creating and keeping customers, and, hence, a central element of a successful competitive strategy. This marketing-based view is also shared by other management thought leaders. Ted Levitt ( 2006 , p. 129), for example, notes that “the entire corporation must be viewed as a customer-creating and customer-satisfying organism.”

The “marketing-based” position held by seasoned management opinion leaders underscores the “overarching” role and centrality of marketing as a philosophy that should drive virtually all organizations. In fact, McKenna ( 1991 ) takes this notion even further by claiming “…successful companies are becoming market driven, adapting their products to fit their customers’ strategies” (p. 66). Adopting market orientation and becoming a market-driven organization, in turn, require marketing to “permeate” all aspects of organizational decision-making, inclusive of international business activities, before a product is produced or externally sourced. Parenthetically, since marketing represents the interface of all businesses with their customers, it should be expected to play a central role in published academic works in business, including international business (IB) – the focus of attention in this editorial.

Many studies have examined research themes covered in IB journals. One such effort surveyed academic publications in the six leading IB-related journals, and identified and classified 112 articles with at least 20 citations each for the 1996–2006 period (Griffith, Cavusgil, & Xu, 2008 ). Collectively, with over 22% of the most-cited publications, marketing was identified as having the largest number of publications. 1 In keeping with business thought leaders’ position on the purpose of an enterprise, one would expect a higher proportion of (1) internationally oriented marketing topics and/or (2) published works on other topics, such as IB, that actively include marketing in some meaningful way. Surprisingly, much of the published research in IB excludes marketing considerations. As an example, in examining foreign market entry and expansion modes [e.g., foreign direct investment (FDI)], the ultimate goal – beyond the theoretical lens in use, efficiencies, drivers, order of market entry, and resultant models and theories – is to gain or create new customers and/or better serve current customers in markets worldwide. Such an approach constitutes a marketing-centric view of FDI.

The IB literature has demonstrated that firms engaging in FDI invest more in research and development (R&D) and innovation (e.g., Anand & Kogut, 1997 ); however, the IB literature is not explicit about why firms invest in innovation in the first place. 2 A marketing-centric view (e.g., Ellis, 2000 ; Knight & Cavusgil, 2004 ; Leonidou & Katsikeas, 1996 ) does not imply a necessity to include marketing in every (e.g., market entry) project. Rather, it consists of a researcher mindset that conceives of and fine-tunes research projects in light of the ultimate purpose of an organization (per Drucker, Levitt, and McKenna) when marketing is not an explicit aspect of the study. The business worldview from within the marketing discipline is that marketing permeates the entire organization (including innovation). IB scholars recognize the integrated nature of marketing across various firm activities in specific sectors (e.g., in the services industry per Rugman & Verbeke, 2008 , p. 409), however, creating and serving customers necessitate the broadening of this perspective across all industries, as predicated in marketing. Stated differently, framing marketing as a single value chain function, or adopting a strictly downstream view of it inhibits richer and more meaningful customer-centric, as well as increasingly more realistic conceptualizations of critical activities and decisions in IB (cf. Takeuchi & Porter, 1986 ). Among other downsides, the narrow conceptualization of marketing functions as downstream activities in the value chain undermines marketing’s true role and influence in shaping strategy formulation. Global strategy decisions envisioned and designed by the C-suite inherently involve a very significant level of marketing content, without which a sound global strategy is not possible.

Concurrently, Buckley ( 2002a ) voices concern that international marketing (IM) has neglected the proximal issue of globalization in studies of IM strategy. This concern is in line with the broader criticism that IM has also largely abandoned strategy issues (Kotabe, 2001 ). Indeed, the marketing discipline can be criticized for failing to fully embrace the influences of international and global dimensions across the many critical strategy pillars inherently thought of as marketing’s intellectual domain. An examination of research priorities published by the influential Marketing Science Institute (MSI) demonstrates the discipline’s relative inactive posture in IM/IB. In all, the 2020–2022 MSI Research Priorities report includes four internationally oriented topics among 126 research questions listed. 3 It is thus not too surprising that IM scholars have paid only scant attention to research opportunities at the intersection of IM strategy and globalization, which, in turn, has limited our understanding of the crucial role that marketing plays in establishing, developing, and sustaining effective business operations across markets worldwide. In parallel, we assert that investigations of globalization should also include marketing strategy considerations.

IM CONTRIBUTIONS TO JIBS

To develop a better understanding of the contributions of marketing scholarship to the IB literature and, more specifically, to the Journal of International Business Studies ( JIBS ), we examined all highly cited articles published in JIBS since the journal’s inception. We rank-ordered all articles by their total citation frequencies using the Web of Science (WOS) database. We identified 11 marketing articles on topics generally considered to belong to the marketing domain among the top 100 most-cited JIBS publications (Table 1 ). 4 We further observed that scholars with marketing ties have also made highly cited general IB contributions to the literature. Overall, it is evident that marketing scholars have made significant contributions in JIBS to the extant IM and IB knowledge. However, it is also apparent that the most highly cited IM publications in JIBS were published in the 1982–2002 period. This pattern raises a question about the relative impact of IM, as measured by WOS citation frequencies, in JIBS published works. We thus examined the most-cited JIBS publications since 2015 (Table 2 ). The data indicate that, in contrast to pre-2015, fewer marketing studies have been among the top 100 most-cited articles published in JIBS as of late. In addition, fewer contributions on broader IB topics are by authors with close marketing ties.

Despite the centrality and importance of marketing in business, the influence of IM scholars and IM publications in the broader IB discipline via the field’s leading journal has been on the decline. The marketing theme of this special issue of JIBS builds on business and management thought leaders’ (e.g., Drucker, Levitt) view regarding the purpose of a business enterprise; that is, we start with the premise of the critical importance of marketing to all facets of business and leverage broad-based agreement about the declining role of marketing in IB research as well as broader IB contributions by marketing scholars in JIBS . Our overarching objective in this issue is to motivate relevant and rigorous research that advances IM and, in turn, IB thought on an ongoing basis, beyond the confines of this special issue. If one subscribes to Drucker’s vision about the purpose of a business, then IM should be better integrated into and represented within IB publications, notably within JIBS , the leading and most highly cited journal in IB. To this end, our goals in this essay are to (1) highlight the role of IM within IB, (2) detail the many critical roles of marketing in today’s business enterprise, and (3) introduce the marketing contributions in this special issue.

THE ROLE OF IM WITHIN IB OVER TIME

Beyond Drucker’s view of the purpose of a business, IB at its core is inherently intertwined with marketing. For centuries, individuals and firms have sought to expand sales through exporting, which constitutes the most common foreign market entry and international expansion mode; for many firms, therefore, export marketing has defined IB. Indeed, all exporting is strictly rooted in marketing (see, for example, Anderson & Gatignon, 1986 ). 5 This view is implied in the broader perspective of export development, which emphasizes internal and external triggers to exporting (cf. Cavusgil & Nevin, 1980 ; Wiedersheim-Paul, Welch, & Olson, 1978 ), both of which are export marketing centered. Some scholars view all international market entry forms as essentially marketing driven (e.g., Douglas & Craig, 1989 ). Indeed, many early contributors to foreign market entry and the export development process are closely associated with the marketing discipline (e.g., Bilkey & Tesar, 1977 ; Cavusgil, 1980 ; Czinkota, & Johnston, 1981 ; Katsikeas, 1996 ; Samiee & Walters, 1991 ). Over time, some firms continue to reap the benefits of increased sales and profits via export marketing, whereas others, recognizing the broader and longer-term potential of global markets, have sought to establish different forms of engagement in markets abroad. For example, international leasing and licensing (i.e., limited-term rental contract of an asset) as means of foreign market entry or expansion constitute marketing activities, but they are often viewed as activities related to, for example, market expansion and operational strategy (e.g., Contractor, 1985 ; Ricks & Samiee, 1974 ). It may be that the role and critical importance of IM is widely recognized by IB scholars. However, making marketing’s presence more explicit in IB research can result in framing issues such that corresponding research findings will yield greater marketplace and marketing relevance, in line with Drucker’s and Levitt’s views on the purpose of business. In short, regardless of entry mode or a firm’s structural configuration, market expansion and increased sales via (in)direct marketing internationally is central to IB. Such a view highlights the centrality and critical role of IM activities, while emphasizing the significance of IM contributions to the broader IB field.

Interest in and focus on scholarly research in IM began to intensify during the 1980s, and empirical investigations of IM problems and challenges facing firms have received heightened research attention for decades. Initial scholarly research in IM was limited, though there is noteworthy work on export market entry triggers as well as motivations and explanations for internationalization decisions (Ford & Leonidou, 2013 ). Since this early research, IM scholars have amassed a growing, multifaceted, and well-developed body of knowledge. Despite these advances, however, the growing importance and relevance of IM remains underappreciated and understudied (Day, 1996 ). As an unfortunate outcome of this, IM topics in the top IB journals are sparse (cf. Griffith et al., 2008 ), and a current survey of several leading marketing and IB journals reveals a relative paucity of scholarly work on IM issues. 6 Given IM’s centrality to all enterprises, the primary purpose of this special issue is to reinforce IM’s broad-based importance, with a particular focus on IM in the broader IB context.

RESEARCH IN IM

A recent survey of the IM literature published in the top six IB/IM journals during the 1995–2015 period identified 1,722 published works (Leonidou, Katsikeas, Samiee, & Aykol, 2017 ). The knowledge structure on which this body of scholarly work indicates that many of the developments in IM thought are driven by 14 key knowledge nodes identified in Samiee and Chabowski ( 2012 ). 7 It is evident from the results of the investigation by Samiee and Chabowski ( 2012 ) that, in terms of knowledge base, IM has much in common with IB. A relatively high proportion (approximately 40%) of key sources used in IM research are also commonly cited in IB research, including Hofstede ( 1980 , 1991 , 2001 ), Porter ( 1980 , 1985 , 1990 ), Williamson ( 1975 , 1985 ), Buckley and Casson ( 1976 ), Bartlett and Ghoshal ( 1989 ), Nelson and Winter ( 1982 ), Penrose ( 1959 ), and Pfeffer and Salancik ( 1978 ). Of the 26 most influential works in IM, serving as foundational knowledge for the 2004–2008 period, the majority (18) were published in outlets not specifically designated as marketing-related (Samiee & Chabowski, 2012 ), thus demonstrating IM’s shared knowledge and close relationship to IB. Key IM knowledge nodes serving as the foundation of IM scholarship during this period appear in Table 3 .

IM research has evolved across numerous themes, with some areas receiving disproportionate scholarly attention over time (Leonidou et al., 2017 ). Foreign market entry and export marketing are among the oldest topics of interest for IM researchers, and these remain relevant and important. Collectively, origin-related research topics likely constitute the most popular IM theme among IM researchers and potentially the most researched area, with hundreds of publications (e.g., Kotabe, 2001 ; Papadopoulos, el Banna, Murphy, & Rojas-Méndez, 2011 ; Samiee & Chabowski, 2021 ). 8 Origin-related research – or more specifically, the country-of-origin line of research within IM – can be traced back broadly to Dichter ( 1962 ) and, more specifically, to Schooler ( 1965 ). Although the concept was applied strictly to customer product choice, it can and has been applied to other facets of IB (e.g., liability of foreignness). Beyond marketing, explicit recognition of business problems associated with nonlocal origins of firms began to emerge in the IB literature in the 1970s. For example, Buckley and Casson ( 1976 ) refer to the political problems of “foreignness,” and Boddewyn and Hansen ( 1977 , p. 550) note that “American companies were faced with handicaps due to their foreignness.” Although IB challenges related to nonlocal origins of products and firms seem intuitive, international marketers’ close proximity to markets and customers afforded them the opportunity to recognize the issue much earlier than appears to have been the case in the broader IB discipline. We highlight this issue to point to how IM and IB can and should leverage each other for a more comprehensive analysis and rapid advancement of the field.

RESEARCH OPPORTUNITIES GOING FORWARD

Much of the intellectual capital in IM works has been devoted to various aspects of buyer behavior (Kotabe, 2001 ; Leonidou et al., 2017 ). This trend is not surprising given that, in general, a large majority of MSI research priorities ( 2020 ) are focused on customer-related issues (including three of the four internationally oriented themes out of the 126 research questions posed). Among international themes, one research question pertains to gaining global perspectives on prioritizing customer value at all touchpoints during the omnichannel customer experience; another theme seeks to understand whether customer behavior is the same or different in emerging markets; and a third issue addresses ways in which firms might integrate consumer-focused strategies globally. A sharp focus on the buyer and, more specifically, the consumer and his/her behavior highlights an ongoing emphasis on behavioral issues within marketing at the expense of advancing other equally salient issues in need of development. As a result, some important IM research areas are not receiving sufficient scholarly attention. To this end, 25 years ago, Day ( 1996 , p. 15) noted that “studies of cross-cultural differences in buyer behavior or the effect of country of origin do not suffice when the big issues needing answers are about global competitive interactions, global new product development and launch practices, sharing of market insights across borders, or the coordination and integration of multicountry operations.” An overemphasis on the buyer behavior aspects of IM, frequently via experiments, has indeed curbed scholarly efforts to advance IM and the exploration of “big issues”: for example, the short- and long-term effects of radical shifts in the external environment and competitive structures on various aspects of marketing strategy, notably, global supply chain management, innovation, and global product development activities, among others. In general, innovation can be related to and affect any facet of an enterprise’s operations (e.g., processes). The key innovation concern within marketing has centered on product breakthroughs and service delivery, as well as how firms can adapt to a changing landscape often marked by disruptive technological developments. Nevertheless, studies of global innovation or R&D can benefit from cross-fertilization, with significant advances in this area within marketing.

Despite the decades-long practice of international outsourcing by firms, few IM researchers have explored this critical area (e.g., Kotabe & Murray, 1990 ; Swamidass & Kotabe, 1993 ). As a result, scant research is available within this important area to shed light on IM practices [e.g., innovate vs. import (buy) new products; make vs. buy] that can facilitate enhanced IM performance. To this end, a fourth research priority identified by MSI ( 2020 ) is the global supply chain impact of the pandemic (p. 11). Sourcing considerations, such as exporting and importing, are by nature customer-centric and marketing-based. Nevertheless, much of the research in the area is conducted within other disciplines (Buckley, Doh, & Benischke, 2017 ). The importance of a focus on the bigger picture, including the organization, human capital, capabilities, innovation, and metrics, has been stressed in marketing (Moorman & Day, 2016 ). Behavioral components should continue to play important roles in advancing marketing (and IM); however, these topics need to be examined within the context of organizational priorities and not strictly limited to consumer-based studies.

Given the commonality of direct and indirect international involvement across firms and industries, a host of new and exciting challenges related to customers, suppliers, and relationship management are raised. Today’s global marketplace is characterized by disruptive external forces, intense competition from a multitude of foreign and indigenous companies, and heterogeneous customer behavior shaped by differences across a range of host-market conditions, notably culture. Technological advances create marketplace opportunities and novel business models and segments (e.g., social media, collaborative consumption/shared economy, product cocreation), while undermining long-established global brands, product/service markets, and business patterns and processes on a global scale. For example, local and international ride-hailing services such as Ola and Uber competing with long established global car rental firms; collaboratively developed HD DVD losing the industry-wide format war to the technologically more advanced Blu-ray by Sony shortly after its debut which, in turn, lost popularity as the market shifted to streaming services; photorefractive keratectomy developed in the U.S. essentially undermined the Russian-born radial keratectomy; and MP3/FLAC and streaming services largely replaced tangible music CDs developed through an R&D joint venture between Philips and Sony. Concurrently, new technologies are promoting new forms of interaction for businesses and customers that transcend national boundaries (e.g., social media; short message service-SMS; online reviews; using proprietary consumer data via artificial intelligence activated voice recognition to drive host-market demand, as is the case with Amazon’s Alexa or Google Assistant). Concurrently, innovative breakthroughs and rapid dissemination of information have given rise to intellectual property theft on a global scale, undermining marketing strategies, global brands, and distribution network relationships and their management, while requiring all firms to canvass markets globally to identify potential abuses and to assert control over their intellectual property. 9

Although the Internet and information technology (IT) continue to have a significant influence on customers and businesses (e.g., exporters, importers, concept-testing, global marketing strategy planning), a citations-based review of the IM literature revealed that IT-related topics did not constitute a knowledge base in IM (Samiee & Chabowski, 2012 ). This finding was corroborated by Leonidou et al. ( 2017 ), who noted that less 4% of IM-related academic articles reviewed included various facets of Internet connectivity. In addition, a literature review of 29 academic journals addressing the Internet’s impact on relational approaches to foreign market entry identified only 94 published articles, constituting approximately 3% of all the articles reviewed (Watson, Weaven, Perkins, Sardana, & Palmatier, 2018 ). IT has transformed how firms enter and manage markets globally to varying degrees in ways that are often not self-evident. In addition, IT's ubiquity and intangible nature make its detection and true impact on IM difficult, thus leading to a growing knowledge gap. The paucity of IT-motivated IM research uncovered by these reviews demonstrate the need to incorporate various facets of IT in more IM projects, including initial online export/import information gathering, marketing research, market entry and development, and export customer acquisition by both manufacturers and channel intermediaries. Furthermore, a research focus on cross-border e-commerce, especially as a means of internationalizing the scope of smaller firms’ marketing, is underdeveloped. It is surprising that, while origin-related buyer behavior topics remain popular, almost no effort has been made to explore how origin affects choice in online and, in particular, international e-commerce contexts (e.g., Ulgado, 2002 ). Buckley ( 2002a ) rightfully identified e-commerce as a frontier in IM research nearly two decades ago. Firms allocate significant amounts of financial resources to adopt promising technologies to improve their marketing performance, yet little research has been devoted to assessing the performance impact of digital tools (e.g., customer relationship management software) in terms of establishing new cross-border relationships or maintaining existing ones. Although IM has generally ignored such impactful areas of research as the influence of the Internet in global marketing, the IB literature, and more specifically international management, has also been shortsighted with respect to its limited pursuit of pertinent Internet-related research topics (e.g., international human resource management, global strategy development, management of global collaborative ventures and partnerships) (Chabowski & Samiee, 2020 ).

Social media influence both the demand and the supply side of exchange. On the supply side, firms are engaging people by allowing them to participate in cocreation and product development processes. Enterprises are increasingly engaging the public in idea generation via social media (e.g., Dell IdeaStorm, LEGO World Builder), new product development, and start-up capital (e.g., Quirky, Kickstarter). The degree to which firms engage social media audiences internationally (including both global and local social media sites) for one or more aspects of cocreation, and the influence of such activity on multinational corporations’ competitiveness across markets, remain unexplored. Examining the extent to which customers from around the world participate in knowledge development processes and help firms improve their existing products and/or create innovative ones also remains a fertile research area (Bayus, 2013 ; Prahalad & Ramaswamy, 2004 ).

Equally important research issues on the demand side also warrant research attention. For example, customers located in distant parts of the world use social media, but the impact of such engagement, and the positive or negative ripple effect it creates in or across social networks with respect to local and global brands, has received insufficient research attention (McAlexander, Schouten, & Koenig, 2002 ). Furthermore, the extent to which various customer segments rely on and ways in which they use social media across markets remain unexplored. This knowledge void, in turn, impacts the development of effective international cocreation strategies on the supply side. Relatedly, the global ubiquity of the Internet and social networks has made these media a major target for cybercriminals. Regular revelations of firm and customer data breaches are bound to have a consequential impact, not only on firm image and the customer engagement process, scope, and depth but also on demands for greater privacy and protection by customers and governments. Thus, IM research should explore the impact of, for example, cross-national privacy regulations on the efficacy of relationship development and management as well as online marketing processes.

Globalization has transformed the way business relationships are formed, managed, and evaluated, and customer engagement is likely to play a prominent role in business-to-business contexts. Business relationships are complex, interpersonal, and interdependent, and relationship marketing efforts can make a difference in promoting common goals and facilitating joint activities that create value for both partners; value that each company could not achieve outside the relationship or with other partners (Palmatier, 2008 ). In an international context, companies need to manage their cross-border relationships more skillfully to address geographic separation, cultural distance, administrative (e.g., currencies, legal jurisdictions) and economic (Katsikeas, Samiee, & Theodosiou, 2006 ; Leonidou, Samiee, Aykol, & Talias, 2014 ; Samiee, Chabowski, & Hult, 2015 ) differences between local and foreign markets, and increased levels of risk and uncertainty inherent in international operations (Johanson & Vahlne, 2009 ; Katsikeas, Skarmeas, & Bello, 2009 ). How does the international environment affect the activities, strategies, structures, and decision-making processes of companies with respect to their business relationships? How can companies manage their overseas business relationships as value-bearing assets? Are cross-border business relationships part of a value-creating network that delivers superior value to the end customer? What is the role of international relationship building and management in overcoming the liability of foreignness? Likewise, the roles of overseas business partners (e.g., distributors, suppliers) in knowledge development, innovation, and goal achievement are relevant and important areas that require research attention.

The fit between IM strategy and international relationships also deserves ongoing research attention. How can companies ensure that their different suppliers and partners abroad are well-aligned with their IM strategy? Strategy standardization offers significant economies of scale in value-adding activities (e.g., R&D, production, marketing), facilitates the development of a consistent corporate/brand image across countries, enhances coordination and control of international operations, and reduces operational and managerial complexity, whereas adaptation is based on the premise that variations between countries necessitate adjustment of the marketing strategy to the idiosyncrasies of each local market. The contingency approach suggests that the appropriateness of the selected IM strategy – typically positioned between the two standardization–adaptation extremes – should be evaluated based on its alignment, or fit, with dominant factors in the international environment, as fit facilitates enhanced performance outcomes (Katsikeas et al., 2006 ). Despite long-standing traditions in these areas, sensemaking in some overarching topics is needed. For example, the pursuit of a market orientation strategy demands sensitivity to local market conditions and IM strategy adaptation. Given the importance of market orientation for many firms, there is a need to better understand how market orientation influences IM strategy. On the one hand, market and customer orientation demand more localized or adapted IM strategies. On the other hand, a high degree of IM strategy standardization seemingly impedes a high degree of market orientation. How do firms reconcile their IM strategy and market orientation efforts? Moreover, how do customer relationships in particular and business relationships in general interact with the perennial issue of adaptation or standardization of IM strategy? Do overseas business relationships help the company determine which specific strategic elements are feasible or desirable to standardize or adapt? If so, under what conditions, and to what degree? To what extent is cocreation possible and appropriate under each IM strategy scenario?

In addition, the assessment of performance in international market operations is an issue that requires particular attention in the IM literature. The relevance and importance of IM resources, strategies, and actions is reflected in the extent to which these favorably influence firm performance outcomes achieved via international market operations and, in turn, contribute to organizational performance. However, there are a large number and wide diversity of IM performance measures employed in the literature, which makes the development of a coherent cumulative body of knowledge in the field particularly challenging (Katsikeas, Morgan, Leonidou, & Hult, 2016 ). Scant attention has been given in IM as to how performance should be conceptualized and operationalized, and studies commonly do not provide a definition or any justification for the assessment of performance that is adopted and for the specific measures used in the context of foreign market operations (Katsikeas, Leonidou, & Morgan, 2000 ; Leonidou, Katsikeas, & Samiee, 2002 ). Given that performance is inherently a multidimensional construct, it is essential that IM researchers be selective in choosing specific performance dimensions, and justify their choice on the basis of some theory-based logic, conceptual framing, and/or for pragmatic reasons. Performance assessment in international market operations should be in line with the theoretical perspective(s) adopted in the study. For example, empirical research grounded in the resource-based view and/or the dynamic capabilities perspective, which underpins much of the strategy-related and competitive advantage work in IM, requires a competitor-centered assessment of performance outcomes; that is, individual performance aspects and items need to be assessed in relation to competition in the foreign market targeted by the firm’s IM strategy (see Katsikeas et al., 2016 ).

CONTRIBUTIONS TO THE SPECIAL ISSUE

The call for papers for this special issue has been received with much enthusiasm, as demonstrated by the large number of submissions covering a wide range of IM topics. Accordingly, manuscripts accepted for inclusion in this issue represent the diversity of submissions, with each making a unique contribution to the IM body of knowledge. The first article focuses on the sharing economy (SE), which is a timely and important issue that influences business operations across industries worldwide. Kozlenkova, Lee, Xiang, and Palmatier’s meta-analytic effort examines the effects of value-based (i.e., utilitarian, social, hedonic, and sustainability value) and governance-based (i.e., trust) factors on SE participation and investigates their relative effectiveness under different global contingencies (i.e., economic/competitive, cultural, societal, technological, regulatory, and demographic factors). Based on 55 empirical articles, with 60 independent samples from 15 countries, representing 123 correlations across 26,377 customers during the 2009–2019 period, the findings suggest that hedonic value exerts the largest effect on SE participation, followed by trust and utilitarian value, while social value and sustainability have the smallest effects. The analysis reveals a complex pattern of global contingency effects that firms should consider when advancing their entry strategies, formulating governance mechanisms, and evaluating promising markets. Kozlenkova et al. integrate their key insights into three tenets, reflecting the most important and surprising findings. These tenets are grounded in the vitally important roles of inequality, the hierarchy of needs, and governance mechanisms that can serve as a platform for establishing an emerging perspective of global SE participation.

Marketing metrics represent another critically important topic that has received little research attention in IM or IB. Sound managerial decisions and marketing strategy are based on quantitative measures, including outcomes (Moorman & Day, 2016 ). In their contribution to this special issue, Mintz, Currim, Steenkamp, and de Jong focus on metric use in marketing decisions across 16 countries, using a cultural perspective. The authors leverage a rich dataset containing more than 4,300 marketing decisions in more than 1,600 firms across 16 countries. Respondents chose from 24 general metrics pertinent to marketing (12) and financial (12) decisions, plus 6 metrics specific to each of 10 marketing mix decisions. The findings indicate that, for all markets combined, an average of 9 metrics are used per marketing decision. With nearly 12 metrics per decision, South Korean managers use the highest number of metrics, while Japanese managers use the fewest, with approximately 4 metrics per marketing decision. China and India, each with approximately 11 metrics, are close to Korea and are heavy users of marketing metrics, whereas France and the United States, with nearly 6 and 7, respectively, are moderate users of metrics in decision-making. Importantly, satisfaction, awareness, and return on investment are the three most commonly used metrics across markets. In addition, the study finds that metric use is affected by both firm and country culture.

Business-to-business (B2B) electronic platforms (e-platforms) play a critical role in helping exporting firms reach, serve, and penetrate foreign markets. However, the IB literature is unclear about how and under what conditions firms can use B2B e-platforms to boost their export performance outcomes. Drawing on signaling theory, Jean, Kim, Zhou, and Cavusgil propose and empirically test a model that investigates how exporters’ e-platform use affects export sales performance by boosting foreign market contact (i.e., quotations from foreign buyers) and how the institutional environment and export growth strategies influence the e-platform use–foreign market contact link. Using survey and archival lagged data on a sample of 205 exporters that subscribe to Alibaba.com, the authors reveal that e-platform use enhances foreign buyer contact and, in turn, export sales performance. The findings also suggest that the positive impact of e-platform use among exporters is further boosted when they come from regions that have less-developed market intermediaries or under conditions of high institutional distance between the home and host countries. The study also demonstrates that the effect of e-platform use on a foreign buyer contact becomes weaker under conditions of high export market diversification or high product diversification.

Platform-based mobile payments have experienced significant growth worldwide in recent years, partly because they offer unique value for both customers and companies over other digital payment methods. Kumar, Nim, and Agarwal note, however, that patterns of such payment adoption grow differently across countries, with some emerging countries (e.g., China) outperforming developed ones. The authors propose a conceptual model of mobile payment adoption, and develop hypotheses using explanations from the literature on network effects and institutional theory. Based on data collected across 30 countries (17 developed and 13 emerging), the study confirms the existence of network effects and differential influences of perceived value, inertia, and cultural factors on the mobile payment adoption of innovators and imitators. The presence of significant heterogeneity both within and between countries regarding the adoption of mobile payments, which offers additional evidence of leapfrogging by emerging markets with regard to mass mobile payment use, has important implications for theory development and marketing management practice in IB.

Global brands and perceived brand globalness (PBG) research have received much scholarly attention in the IM literature (Aaker & Joachimsthaler, 1999 ; Batra, Ramaswamy, Alden, Steenkamp, & Ramachander, 2000 ; Steenkamp et al., 2003 ). Contributing to this growing literature, Mandler, Bartsch, and Han tap the potential aversion to globalization among consumers and examine sentiments with respect to branding as the basis for corporate decisions regarding the appropriateness of global branding. The authors leverage signaling theory to conduct two studies that (1) assess brand credibility on the basis of consumer PBG and perceived brand localness (PBL) across two countries (Germany and South Korea), and (2) examine the role of three moderators (perceived country of origin, category social signaling value, and category cultural grounding). The findings demonstrate that both PBG and PBL are positively associated with brand credibility across markets; a split-sample test offers a contrast between globalized and globalizing markets, and demonstrates a relationship between brand credibility and PBL in Germany but not in South Korea, where brand credibility is associated with PBG. The study reports the impact of brand origin on brand credibility and demonstrates that effect of PBL on brand credibility does not vary with the brand’s origin in Germany, but the effect is stronger for domestic brands than for foreign brands in South Korea. The contrast between consumer perceptions in globalized and globalizing markets offers fruitful theoretical and managerial implications, while raising a series of consumer and IM strategy questions that have the potential to expand the boundaries of IM knowledge.

Origin-related research and animosity with reference to consumer perceptions, preferences, and choice have played major roles in the marketing literature (Klein, Ettenson, & Morris, 1998 ; Lu, Heslop, Thomas, & Kwan, 2016 ; Samiee, 1994 ; Verlegh & Steenkamp, 1999 ). In line with this stream of IM research, Westjohn, Magnusson, Peng, and Jung contrast animosity’s effect on product judgement versus willingness to buy. The first part of their contribution consists of a meta-analysis of 43 post–Klein et al. ( 1998 ) published works focusing on animosity, involving 18 nations, to address the inconsistencies reported in the literature. The authors follow this with an examination of the contextual role of culture on animosity effects using six experiments in the United States and China. They leverage three Hofstede dimensions (i.e., collectivism, long-term orientation, and power distance), measured at the individual level. The results indicate that collectivism and long-term orientation lessen the negative effects of animosity and support the position that animosity’s effect on willingness to buy is stronger than it is on product judgments. The findings offer useful insights for managers regarding, among others, consumers’ attitudes toward brands. Although the findings indicate that product judgements are not affected by animosity, the results indicate that product sales could be affected. In addition to demonstrating cross-cultural differences, the authors find that cultural values influence consumers’ willingness to buy.

The establishment, development, and management of cross-border interorganizational exchange relationships has received considerable research attention in the IB literature (e.g., Bello & Gilliland, 1997 ; Robson, Katsikeas, Schlegelmilch, & Pramböck, 2019 ; Skarmeas, Katsikeas, & Schlegelmilch, 2002 ). The starting point for Obadia and Robson’s study is the inconsistent findings in the literature regarding the effects of cooperation on performance in exporter–importer relationships. The authors argue that the relationship of cooperation with performance in IB associations has an inverted U shape; at high levels, the performance impact of cooperation weakens greatly and becomes negative. They also find that the importer’s specific investments mediate the link between cooperation and performance, which advances the idea that relational phenomena affect exporter performance only if they foster an importer’s productive behaviors. The study also points to the role of interdependence in moderating the inverted U-shaped relationship between cooperation and the importer’s specific investments. The findings reveal that a limited increase of interdependence enhances the impact of low to moderate levels of cooperation on the importer’s specific investments.

CONCLUDING REMARKS

Overall, criticisms of IM scholarship (e.g., Buckley, 2002a ; Douglas & Craig, 1992 ; Kotabe, 2001 ) are generally well placed and to the point. Marketing and IM are pivotal to a firm’s existence and should play overarching roles in charting firms’ management and strategy. Yet IM has largely abandoned the “big picture” by focusing on microresearch and behavioral questions, notably, country-of-origin, and cross-cultural consumer behavior topics (Day, 1996 ; Kotabe, 2001 ; Leonidou et al., 2017 ).

Much work remains for IM scholars to advance the field by placing greater emphasis and effort on strategy-related topics and exploring macro-areas of business: for example, by bridging IM strategy with regard to market entry modes and globalization and addressing issues related to disruptive external change to global supply chains and e-commerce, among others. Indeed, Buckley’s ( 2002b ) position regarding the past successes of IB scholarship in exploring international market entry (the “big picture”) may seem premature if one agrees that marketing, a central concern of which is the customer and the idiosyncrasies associated with the demand-side, is largely absent from much of this success. The relative absence of “marketing” in much of the market entry literature is a call for IB and IM scholars to leverage this critical aspect of firms’ internationalization decisions. This view is consistent with Drucker’s position that “Concern and responsibility for marketing must therefore permeate all areas of the enterprise” (Drucker, 1954 , pp. 38–39). Additionally, the fact that IB and IM are close in their fundamentals, and that the IM knowledge structure significantly taps into management scholarship (Buckley, 2002a ; Samiee & Chabowski, 2012 ), further validates marketing’s relevance and centrality in the broader international business thought. Consequently, the perceived proximity of these disciplines appears to be greater than one might expect. A major strength of IB has been its ability to embrace and integrate other business disciplines from which crucial research questions emerge (Peng, 2004 ). A more marketing- and customer-centric view of IB research is also in line with this position.

There appears to be ample research opportunity to adopt a marketing mindset in IB research and to explicitly introduce marketing considerations to achieve a marketing-based view of IB activities, most notably the macro-issues, including market entry mode choice, international expansion patterns, cross-border buyer–seller relationships, and strategic alliances. Although this special issue is primarily intended to inspire and broadly direct researchers’ focus on developing IM projects that fill key knowledge gaps in IM thought, in keeping with Drucker’s and Levitt’s positions regarding the marketing purpose of all enterprises, we very much hope that this work offers pathways for general IB scholars to embrace, leverage, and contribute to IM knowledge.

The proportion of marketing articles reported by Griffith et al. ( 2008 ) is likely inflated, as two of the six journals surveyed are dedicated entirely to international marketing topics.

This issue maybe exacerbated by the use of varying terminologies across disciplines; however, despite marketing’s centrality in business, “marketing” and “consumer” or “customer” are rare terms in much IB research (cf. Anand & Kogut, 1997 ; Hejazi, Tang, & Wang, 2020 ).

MSI is a non-profit organization led by academic researchers, in collaborations with industry, aiming to address marketing issues faced by firms. Although we do not observe an ongoing internationally related research momentum in its current list of priorities, MSI has periodically addressed selective IM-related topics.

We also calculated citation per year to account for the timing of the published works; however, as Tables 1 and 2 show, among the highly cited works, the most-cited set and the order of articles remain largely the same.

This includes intracorporate export transactions involving parts and semifinished products. International firms frequently require subsidiaries to effectively compete in quality, price, and service with other suppliers, effectively marketing themselves as the premier supplier to the internal customer. Even if intrafirm export sales were guaranteed, as is the case in some firms, the final assembled product must still compete with other firms in every respect. In other words, the marketing function of intracorporate export transactions is merely pushed to the firm assembling and selling the final product.

Several journals, led by Journal of International Marketing and International Marketing Review , are dedicated to publishing scholarly IM research.

This is based on the spatial configuration generated by multidimensional scaling for works published in 34 scholarly journals (2,709 articles) in the 2004–2008 period. Other analyses (factor analysis and clustering) produced slightly fewer knowledge groups.

Estimates of the number of publications in this IM domain vary. For example, Samiee and Chabowski ( 2021 ) identify more than 482 country-of-origin publications listed in the Web of Science database, whereas Lu et al. ( 2016 ) estimate that the number of country-of-origin-related publications exceed 600.

The International Chamber of Commerce estimates the global economic value of counterfeiting to reach US$2.3 trillion by 2022. https://iccwbo.org/media-wall/news-speeches/global-impacts-counterfeiting-piracy-reach-us4-2-trillion-2022/ .

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Samiee, S., Katsikeas, C.S. & Hult, G.T.M. The overarching role of international marketing: Relevance and centrality in research and practice. J Int Bus Stud 52 , 1429–1444 (2021). https://doi.org/10.1057/s41267-021-00433-2

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32 International Marketing Strategy [Types + Examples]

🏆 top-5 international marketing strategy examples, 🌐 international marketing: definition & exploration.

• 📚 What Are the Types of International Marketing Strategies?

🔎 What Are the 4 Factors Affecting International Marketing?

📝 international marketing strategy research paper examples.

Are you trying to find some international marketing strategies for your essay or paper? In today’s globalized economy, businesses of all sizes must consider international marketing strategies to compete and thrive. Here, we’ll explore different methods and provide examples of successful implementation. That’s why you should consider checking out our article!

• Emaar Marketing Strategy for International Expansion
• Internet Influence on International Marketing
• Apple Inc.'s Internationalization Marketing Capacity
• Nissan Company’s International Marketing Strategies
• Apple Inc.'s Use in the US and Global Markets

International marketing is the methods and tactics that multinational companies employ to market their services and products in different countries. It can be in several forms: franchising , import/export, online sales, and licensing. As you enter the foreign market, it is prudent to appreciate that each country of interest comes with unique challenges because of laws, communications, and culture.

What Are the 7 Elements of International Marketing? 

International marketing involves unique challenges and considerations. Understanding the seven key elements can help businesses create effective strategies for expanding into global markets. Here are the main components: 

• Research. It’s the beginning point of the strategy, and it is prudent to make it as elaborate as possible. So, gather as much information as possible. Ask as many questions as possible, such as, “Is the company’s merchandise or service allowed in the new country?” and “What are the requirements?”.
• Infrastructure. This is a combination of administrative details that form the armature of the strategy. These include securing the business’s domains, trademark registration , and appropriate licensing.
• Inbound Marketing. That means perfecting SEO to ensure the company optimizes the visibility of its products or services in the new market. It is crucial because buyers are tech-savvy and use the Internet for most operations.
• Outbound Marketing. These tools, from SMS to emails, will be used to push through messages for building a following in the targeted markets.
• Communication. Consider this as part of the localization efforts . The goal is to ensure the enterprise’s marketing messages are tailored to the targeted clients.
• Marketing Localization. It’s central to the company’s success in the worldwide market. It means to leverage the new market’s culture and still leverage the weight that “made in Germany,” or such attributes, carry.
• Product Localization. The merchandise or service the company is selling has to be accurately localized. In the packaging of the items on sale, formulation, labeling, and suggested application, there should be a localized touch so clients can associate with them. For example, the language should allow users to read and understand the product and its content easily.

📚 What Are the Types of International Marketing Strategies? 

In this section, we’ll explore the different types of international marketing strategies and provide insights on choosing the right approach for the business. Let’s take a closer look at them:

• Multidomestic International Marketing Strategy. This international marketing strategy is used by a firm that wants to sacrifice efficiency by focusing on responsiveness to the requirements of the new markets. It means the products are designed to meet the specific needs of targeted new clients .
• Global Marketing Strategy. The business foregoes responsiveness to the targeted new markets when using this strategy to favor efficiency. That means only minor modifications are made to existing products before introducing them to new markets.
• Transnational marketing strategy. It’s a sort of combination of the two international business marketing strategies. It entails carefully balancing efficiency with adjustments to suit the clients’ preferences in new countries. Application of this model is why most fast-food chains change their products slightly by factoring in local taste or ingredient preferences while retaining the core menus.

International Marketing Examples 

Check out the following four international marketing examples and use them to craft a new one for your organization.

• Dunkin Donuts International Marketing Management Strategy. It is a brand with over 3,200 stores across the globe. The enterprise uses a multi-domestic strategy, adopting its donuts to appeal to specific markets. It serves pork and seaweed donuts in China because these flavors are trendy locally. However, saffron is used for making donuts in India.
• Red Bull International Marketing Strategy. Red Bull employs a transnational strategy. It retains its worldwide appeal but easily localizes its products to match the targeted markets. This is why they host events worldwide, such as the Grand Prix in Indianapolis and Air Race in the UK.
• Microsoft International Marketing Management Strategy. Microsoft is one of the best examples of companies using a global international marketing strategy. Instead of tailoring its products to the respective country’s market, it markets them based on their superior quality. Variance in the new lands is not so significant to Microsoft.
• Intel International Marketing Strategy. Like Microsoft, Intel does not focus on individual markets. Instead, they focus on efficiency without varying their chip designs. The method has been very effective because the chips work with most computers worldwide.

As you craft the company’s international marketing strategy, it is crucial to understand the factors that affect them. Here is a closer look at these four main factors: 

• Domestic Factors. These are factors associated with internal affairs at the personal or country level. Good examples include the political scenarios and how the government perceives international-related ethics and trade.
• Global Factors. These factors are beyond an organization’s control but still impact its operations. They include social influences, culture, demographics, legal challenges, and political conditions.
• Organizational Factors. These are factors that influence how a business runs or its decision-making methods. They include people, systems, structures, and events under the organization’s control.
• Geographical Factors. The geographical analysis involves dividing the targeted markets based on their geography. A business can divide geography based on the aspects such as climate, language, and lifestyle. Location is also critical. An enterprise that designs home heating equipment might want to target a market that goes through extended winters.

International marketing strategies are vital for businesses expanding their reach into global markets. By exploring different approaches and examples of successful implementation, companies can gain valuable insights into how to market products and services across borders successfully. We encourage you to read our samples to learn more about this beneficial strategy!

• KeepCup Company's Marketing Campaign Plan Business essay sample: This report is devoted to a new marketing campaign of KeepCup, an Australian company specialising in reusable coffee cups that do not bring harm to the environment of our planet.
• McDonald's and Coca-Cola Ads in the Russian Market Business essay sample: McDonald and Coca-Cola have structured and positioned their commercial adverts in a manner that effectively markets their products in the foreign market environment of Russia.
• The Coca-Cola Company's International Drink Market Business essay sample: This paper analyses the international market of Coca-Cola to provide insights into how the company has operated to achieve the top position in the soft drink industry.
• Apple’s Target Market and Apple Marketing Strategy Business essay sample: Looking for 🕵️ Apple marketing strategy analysis? Apple Inc. manufactures and designs computer software products and consumer electronics 💻. This paper presents Apple’s target market and strategies concerning the 4Ps.
• McDonalds' Marketing Strategies in the UAE Business essay sample: This paper analyzes the marketing strategies of McDonald's in the UAE, its strengths, weaknesses, and opportunities, the micro-environmental and macro-environmental factors.
• H&M Company's Strategic Marketing in New Zealand Business essay sample: This marketing report covers strategic marketing for H&M within the context of New Zealand. It considers recent sector performances, risks, and opportunities for H&M.
• XYZ Inc.: International Marketing Strategies Business essay sample: The work presents a discussion of a variety of stages that a business undergoes to turn into an intercontinental business is required to understand international marketing improvements.
• International Marketing Plan for Bolton PC Company Business essay sample: The main issues addressed to enter a foreign market successfully: marketing across borders, risks, and opportunities that the company will face and country analysis.
• International Marketing: The Analysis of the Market Business essay sample: This paper discusses the important aspects that are necessary before getting into the new business venture. This analysis is vital for the purpose of expansion.
• Adventure Tours Australia: International Marketing Plan Business essay sample: In order to introduce a new product to the market it is important that a comprehensive marketing strategy be developed by considering target market, market segment and positioning.
• Emirates Airline Marketing Strategy Business essay sample: The article describes the marketing strategy of Emirates Airline, the scale of the company, the level of development and development potential thanks to well-structured marketing.
• International Marketing in the Parker Pen Business essay sample: This paper undertakes to study the international marketing strategy used by parker pen. Parker pen is a company that has gone global which sells products over 154 countries worldwide.
• International Marketing Plan for SABIC Innovative Market: Entry into the Australian Market Business essay sample: Saudi Basic Industries Corp - one of the world’s leading producers of chemicals and intermediates, industrial polymers, etc. Australia is a possibly gainful new market for SABIC.
• Golden Circle Company's International Marketing Plan Business essay sample: The Golden Circle Company is one of the Australian fine fruits and vegetable manufacturers, which produces more than 15 varieties and is one of the largest pineapple processors.
• The Aspects of International Marketing Business essay sample: Starting with market research as the basis for entering into an international market, companies need to make proper decisions on whether to go abroad, how to enter markets, etc.
• International Marketing Management Business essay sample: When a company chooses a new country to expand its business, it has to select the entry mode. For example, Exporting, Licensing, Franchising, Joint Ventures or Direct investment.
• Dominos Pizza Enterprises: Marketing Business essay sample: This paper discusses a marketing plan for Dominos Pizza Enterprises: new product strategy, key target market, pricing strategy, placement and distribution, product promotion.
• Garuda Indonesia Airlines: International Marketing Business essay sample: Garuda Indonesia Airlines has, over the years, positioned itself as one of the most competitive companies in the air transport industry in Asia.
• International Marketing in the Asia-Pacific Context Business essay sample: Marketing research is vital for any organization looking to expand into other markets. It provides insight into the market weather and environment in the Asia-Pacific region.
• Cross-Cultural Marketing Analysis Business essay sample: The cross-cultural strategies regarding marketing can be more powerful if they use the internet route as mentioned in the book "Marketing to China in China and from China."
• Dannon Company Inc.: International Marketing Mix Business essay sample: This paper provides a deep insight into Dannon Company Inc and reviews ways via which it has applied its international marketing mix strategy to support its international market operations.
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ESSAY #3 – Pricing Strategies for International Marketing

Pricing is a major decision for international businesses since it affects a firm's positioning, profitability, and shareholder value. Irrespective of the context, companies need to set their pricing strategy to recoup capital investment, make a profit margin above fixed and variable costs, limit the negative effects of elasticity of demand, match the right stage in the product lifecycle, fulfill company objectives, and differentiate themselves from competitors. In international markets, firms will also have to consider local market conditions, avoid being charged with dumping, mitigate currency risks, engage in transfer pricing between subsidiaries, transact with other governments through countertrade, and minimize the effects of price escalation.

Related Papers

Assoc. Prof. Dr. Rashad Yazdanifard

Abstract-Basically among the four Ps marketing assortment, product, promotion and price, and place or distribution channels, lone price creates income and the other three generate costs. Price, besides creating income globally, plays a major role as a strategic factor in developing competitive advantage in the market. The amount of income and promotion of a company regarding the positioning and finding a suitable position in the mind of customers are related to suitable pricing Decision making for pricing is not an easy task and many factors are affecting in this decision. This paper will review some of the challenges companies face in global pricing in their respective markets. Key words: global pricing, pricing strategy

Olawale Horlahwahley

This research work examined the determinants of pricing policy in Nigeria manufacturing firms, most firms fails to incorporate some factors such as level of competition, close substitute, financial indices, among others in their pricing decision and this may lead to several crisis in the organization such as loss of profit and this may cause winding up in the long run. To this end, the study analyzes the factors that determine the pricing decision of manufacturing industries in Nigeria and the effects of the factors on revenue and profitability. Secondary data were employed, the secondary data were gathered from the annual reports of the selected firms in the sampled periods, the study is centered on cement companies in Nigeria and purposively selects Dangote cement having about 85% of the market capitalization and 75% of the Net Asset of all the quoted cement companies in Nigeria. OLS and correlation was used in establishing the relationship among the variables used in this study. The results show that, ROE, CNA and DC have individual and combine impacts of pricing policies in Nigeria. Also, COS and INF also have individual and combined impacts on pricing policies in Nigeria while COS has the major determinants of pricing policies has individual impacts on pricing policies also ROE and INV have individual and combined impacts of pricing policy. Some of the recommendations made is this study are, Managers should pay more attention on reducing cost of productions without having any negative impact on quality, this is in relation to optimality concepts; using the minimum resources to the achieve the maximum output. Manufacturing industry should also apply, operational research to tackle their logistics problems as well as supply chain in other to reduce the distribution cost, this can be achieve by appropriate transportation algorithms and other professional scientific methods.

CENTRAL EUROPEAN BUSINESS REVIEW (ISSN 1805-4862)

Michael Neubert

This paper aims to understand how born global firms develop their international pricing strategies, practices, and models. It aims to expand the study of international entrepreneurship and born global firms by including a broader and deeper range of pricing aspects than is normally found in the international entrepreneurship and pricing literature. The paper opted for a multiple case-study research design using different sources of evidence, including four in-depth interviews with CEOs of born global firms. The case-study firms were selected using a purposive selection method. The theoretical framework of Ingenbleek, Frambach & Verhallen is used. The results suggest that successful leaders act as 'integrating forces' on two levels: by applying a structured and disciplined price-setting process with regular reviews and by mediating between corporate financial goals and the local market reality. The results support the claim that policy makers should offer insights, training and financial support to give promising born global firms the possibility to select the most efficient international pricing models and strategies. The results are relevant for entrepreneurs to understand the importance of efficient price-modelling processes and the influence of the different price strategies and price models on financial results and sales revenues.

Euro Asia International Journals

Since 1930, the year of first Exportations, Rwanda's Balance of Trade continues to be chronically Deficit due to higher Imports over Exports. The National Bank of Rwanda (BNR) reported that from 2000 to 2015, the deficit value (expressed in million US dollars) passed from-238.63 in 2000 to-1616.50 in 2015. Trade deficits are not necessarily seen as a cause for concern, nor are they seen as good predictors of a country's future economic growth; however, they also may reflect a low level of savings and make countries more vulnerable to external economic shocks, such as dramatic reversals of capital inflows. For the case of Rwanda where imports have been always dominated by consumer goods rather than capital goods, its chronic trade deficit traduces the lower the Country's strength and the lower its economic growth. Facing the gap requires increasing production, fighting subsistence production and encouraging market oriented to national and international markets through exportation. Promoting local manufacturing and Made in Rwanda in general generates internal jobs and reduces jobs transferred to foreign countries by Importations. The solution to the crisis could be found on Private Sector side but it is unfortunate that the private sector in Rwanda is still embryonic. Only Governance innovations addressing the issue by promoting Made in Rwanda can face a number of challenges in industrial and micro small medium enterprises and leads to lower deficit trade. The present research has double aims: analysing Rwanda's deficit trade and its impact on business and consumers and economic growth; and providing appropriate governance initiatives to face the gap by promoting made in Rwanda. The research used Descriptive Quantitative methods with Documentary techniques. The Data were provided by the National Bank of Rwanda. The software for data analysis was Eviews Version 8.

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World Trade Organization was created at the Uruguay round of talks in 1994. GATT (General Agreement on Tariffs and Trade) transformed into a permanent institution. The Uruguay Round negotiations started in Uruguay in 1986. The aim of this round was to promote free trade. The WTO is responsible for trade negotiations, trade disputes and handling national trade policies. WTO agreements are endowed with technical assistance to developing countries and also cooperate with other international bodies on trade related issues. The presumption is that, all members have an equal voice in the decision making process. With the increase of free trade it is crucial that World Trade Organization servers to speed up world economic activity. This cannot be done without referring to the social, cultural, economic consequences, particularly with regard to vulnerable groups. Dumping is a practice of selling goods in another country at a considerably lower price. Anti-Dumping measures are deliberate and prevent a company from selling goods lesser than the cost to force the contender out of business. Anti-dumping rules cause economic mischief by shrinking markets and excluding efficient producers, there by hoist prices for consumers.

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Essay on INTERNATIONAL MARKETING

The most important task of strategic management is to establish and maintain a dynamic interaction of the organization with its environment, designed to provide it with a competitive advantage, which is achieved by providing a product to the customer. Therefore, marketing objective occupies the position of one of the leading strategic management functions. For a number of organizations, depending on what goals they pursue and what strategy they implement, marketing is a key feature to ensure their successful operation. Moreover, companies turn to a management philosophy, according to which a company must focus its activity completely on customer needs (market driver management) and not try to make “convenient” products trying to sell it. Therefore, marketing becomes something more than just a separate function of management.

Marketing is increasingly used all areas of business activity of the company. Thus, marketing plays a special role in the strategic management, significantly beyond the scope of functions of sales and demand analysis.

Local marketing research

Today, setting new ambitious goals, every company faces many problems inherent to the market economy. The real problem of doing business has become the problem of finding effective demand. It is not enough to only produce goods, it is necessary to organize the work in such a way to make a profit from the sale of this product.

Local marketing research is a systematic search, collection, analysis and presentation of data and information related to a particular market situation, which the company faces in its country (Lipovetsky, Magnan, & Zanetti-Polzi, 2011).

The objectives of marketing research:

Searching goal – collecting information for a preliminary assessment of the problem and its structuring;

Descriptive goal – description of the selected events, research subjects and the factors affecting their condition;

Causal purpose – check of the hypothesis of a causal relationship;

Test objectives – selection of promising options or assessment of the correctness of decisions;

Forward-looking goals – prediction of the state of the object in the future.

The principal feature of marketing research, distinguishing it from the collection and analysis of internal and external current information, is its target aim to solve a particular problem or set of problems of marketing.

Each company determines the topics and scope of marketing research according to its capabilities and needs in marketing information, so the types of marketing research conducted by various companies can be different.

Iinternational marketing reserch

The term “international marketing research” refers to the collection, analysis and reporting on clearly defined problem of the operation of companies in foreign markets. International marketing research of different depth and breadth of coverage and the underlying information base are the base for all decisions (Webster, & Lusch,  2013).

Before entering international markets and creating information marketing base, a company should collect information about the overall status and trends:

1) industry of manufacturing products,

2) countries, which are producers and consumers of these products,

3) individual manufacturers, consumers and resellers.

The study of international markets is based on the following characteristics:

1) products (industries, types of products, manufacturers, methods and forms of sales and service of products)

2) consumers (industries, types of products, manufacturers and buyers, goals and methods of consumption)

3) location of the market (region, country, territory).

On the first stage of international market research, a company should study the broadest possible segment, that is the world market of the product. It must collect information about what companies in which countries produce, trade and consume this type of product and services (Mihaela, 2010).

The similarities and the differences between local and international marketing research

Local and international marketing research are very similar, as they have almost the same goals and objectives, as well as methods of conducting research. Both types of studies provide a comprehensive study examining objects such as the market, consumers, and competitors. Local and international marketing research have the same scheme of marketing research, which involves the following steps:

• Defining a problem, objectives and methods.
• Developing research plan.
• Data collection and analysis.
• Interpretation of the results and giving them to the management of organization.

Differences between local and international marketing research is that the evaluation of the international marketing environment is carried out mainly from the standpoint of economic purchasing power of the population in various countries, the levels of its income, industrial structure, orientation of the economy (agricultural, raw materials, etc.), overall level of economic development (Levy, 2012). Nevertheless, a potential exporter or importer should explore political and legal environment of the country: stability of government, its laws in relation to the economic sphere (quotas, restrictions, confiscation of property of foreign businessmen, foreign exchange controls). This may also include the availability of market information, organization of statistics, work of customs and tax authorities. Social culture of the country should also be a subject of international marketing research. Local marketing research does not include these questions.

The steps of marketing research

Marketing research process consists of several stages.

• Defining the problem and research objectives. It is difficult to start any research before the problem is determined. Stage of recognition and definition of the problem is the first step in the process of finding solutions. Failure to comply with the tasks of sales, a growing number of unpaid bills and low turnover are the signals or symptoms of more serious problems. Researchers should recognize and identify the problems behind these symptoms. Incorrect definition of the problem can lead to wrong decisions. Objectives are derived from market research to formulate the problem. Objectives should be clearly and precisely defined, and be sufficiently detailed, it should be possible to measure them and evaluate their level of achievement.
• Definition of the objects of research.

When a problem is defined, it is possible to formulate the research problem. As a rule, the study includes a solution to one of the four objectives: to develop, describe, test hypotheses and predict. The study is carried out to develop when you need to get more information on the issue and more clearly formulate hypotheses. Research to describe the problem is held when it is necessary to describe objects such as market, define their characteristics based on statistical data. If the task of marketing research is testing the hypothesis of relationship between the independent and dependent variables, companies conduct research to identify the causes of the emergence of the problem.

• Development of a research plan. The creation of a research project is perhaps the most important step in the process of marketing research. Research project is a general plan of marketing research. It defines the requirements for a variety of data and its collection, processing and analysis. This stage includes not only the choice of certain methods of marketing research and development of specific tasks within the market research. At this stage, researcher determines the need for information, type of required information, sources and methods of its collection.
• Data collection. From the perspective of the process, there are at least three alternative approaches to data collection: by the staff of marketing service, by the specially created group or with the involvement of companies that specialize in data collection. The process of gathering information is usually the most expensive phase of the study. Furthermore, it may have a sufficiently large number of errors during implementation.
• Analysis of the data. It begins with the transformation of raw data (error checking, encoding, representation in matrix form). This allows transferring a lot of raw data into meaningful information.
• Presentation of the results. Results of the research are presented in the form of the final report and submitted to the management of the company (Shaw, 2012).

From national to international marketing

Development of international economic relations, primarily on the basis of the international division of labor, is the characteristic process in today’s global community. These are objective, stable commercial relations between individual countries or groups of countries.

Essentially, each country in addition to conducting internal trade tends to carry foreign trade, implying a complex mechanism of relations arising in the process of sale of goods and services in the international market. Development of the international cooperation significantly increases the tendency towards the internationalization of economic processes, promotes international specialization and cooperation in production, trade, exchange of scientific and technological developments.

International marketing is a response to the world of commercial processes such as growth and expansion of partnerships in the international market, increase of production capacity, quick update of product range, frequent changes in the nature and structure of the market demand, market fluctuations, increased competition, increased and improved quality of information support. International marketing provides a systematic, ongoing, active involvement in the international market at different stages of the promotion of commercial products (services) to the consumer. That is why we should distinguish the concept of “international marketing” from the concepts of “sale” and “export”, since the latter consists in the fact that sellers are limited to delivery of its products to foreign importing companies. At the same time, suppliers are generally not interested in how consumers are satisfied in these products. A distinctive feature of international marketing is a complete and clear orientation on foreign consumers, the desire to satisfy their needs and requirements.

Marketing research is a necessary condition for the success of the company in international markets at all stages of its operation and product life cycle. The better boundaries and objectives of the study are defined, the more useful received information is, and the more accurate calculations are. They help to better understand and adapt to the needs of the buyer, determine the best value for money and quality of the goods, find new customers, find a way to draw attention to your company and products. Market conditions are constantly changing, so there is a need for such work all the time, which greatly increases the effectiveness of company on the international markets (Mihaela, 2010).

There are many examples of successful marketing of companies operating in the domestic and foreign markets. Here are some of them.

Marlboro. Marlboro invented pack of cardboard with flip-top lid, which are now standard package of cigarettes not in order to demonstrate innovation or design ideas but for promotional purposes. Smokers were able to pull out cigarettes from soft packs without removing them from the pocket, so others did not see the brand. Flip-tops made smokers take the pack out of the pocket so that everybody could see it, and the new always attracts attention.

Estee Lauder. There is a beautiful legend about how Estee Lauder began selling its perfumes. The young Miss Lauder came the biggest perfume shop in New York “accidentally” split the bottle of her perfume on the floor. Buyers asked about the wonderful smell and store just had to sign a contract with Estee Lauder.

Heinz. In 1896, Henry Heinz was walking around New York and saw an advertisement of shoe store, which offered clients “21 style of shoes.” By analogy, he decided to write on their ketchup and sauces “57 options”. This number had nothing to do with the actual figures range, but Heinz liked it. And it impressed buyers.

Harley-Davidson. The most famous manufacturer of motorcycles in the world holds the first place in terms of “branded” tattoos for more than a dozen years. It all began with the fact that Harley announced impressive discounts on bikes for those who would come to buy a motorcycle with a tattoo in the form of its logo.

One of the largest tobacco companies, «R. J. Reynolds International», was able to create a special “Russian image”. The company began to produce new cigarettes, which were called “Peter I». Until now, non-standard advertising of the company emphasizes that these cigarettes are created by Russian designers specifically for Russian consumers. Company «R. J. Reynolds International» was able to show how effective PR can work in terms of the binding of marketing programs to local traditions and mentality of the target audience (Slater, & Andriopoulos, 2013).

Marketing research includes studies to support marketing activities, as well as statistical interpretation of data into information. This information is then used by managers to plan marketing activities, assess of the nature of trading environment of the company and to obtain information from suppliers. Market research use statistical methods such as qualitative and quantitative research, hypothesis testing, chi-square test, linear regression, frequency distribution, binomial distribution, etc. These methods are needed to interpret the results and transform data into information. The process of marketing research covers a number of steps, including identifying a problem, developing a plan of analysis, data collection and interpretation, presenting information in the form of a formal report. The task of market research is to provide management with relevant, accurate, reliable and valid data.

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International Marketing Strategic Planning Essay

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What is the importance of strategic planning in international marketing? Should international marketing strategy vary from country to country? Why or why not?

When speaking about the importance of strategic planning in international marketing, it is necessary to highlight the basic aim of so-called strategic planning. Thus, it should be pointed out that a marketing strategy is considered to be extremely important about the objectives international organizations are to achieve. In other words, it is obvious that marketing strategies are important to create competitiveness. In simple words, strategic planning in international marketing is significant for global market success.

I have to point out that “Much research has been done that denotes a direct correlation between profitability success and global market strategy success” (Larson, 2009, p. 4). In our days, nobody will deny the fact that business is growing fast; so, it is evident that global planning decisions seem to be essential to gain success.

Standardization, integration, and configuration-coordination are the most widespread perspectives of strategic planning. Marketing strategy decisions include business strategy decisions and product strategy decisions. The first strategy allows us to direct various business-level marketing activities, while the second one allows executing marketing activities.

Strategic planning in international marketing is essential in a modern competitive international marketplace. As far as the world is developing rapidly, therefore, business expanding and profits increasing is also growing; so, strategic planning is needed to survive.

When speaking about international marketing strategies in different countries, I must say that these differences vary, as every country has its own culture, political system, business approaches, etc. So, of course, international marketing strategies will be different. Taking into account the previous statement, one can conclude that the problems, which appear in different countries, require unique local solutions.

Can a product be priced differently for different buyers? Why or why not? What influence do governmental regulations and policies have on a company’s international pricing structure?

So, I must say that a product can be priced differently for different buyers. Of course, some persons think that different prices are mostly associated with certain differences in products’ costs. I would like to consider another point. Generally, I have to state that different prices depending upon the areas where certain products appear.

In other words, various locations determine various prices for a product. Of course, one can state that if the cost of offering seems to be fixed, any differences are possible. It is only the first impression, as it is necessary to take into account numerous aspects, including the season, the day, etc. One is to keep in mind that segmented pricing depends upon the degrees of demand.

Generally, “if different buyers have different demand curves for some commodity, a monopoly producer can profitably discriminate by charging more to those with a higher demand for the commodity and less to those with a lower demand” (Lipsey & Chrystal, 2007, p. 167).

When speaking about governmental regulations about international pricing structure, I would like to clarify some points. So, “when a government is a customer, or the marketer is confronted with strongly restrictive government regulations, the company often has only one alternative: accept the price or lose the customer’s business” (Mühlbacher, Leihs & Dahringer, 2006, p. 669). On the other hand, it is also important to understand that government policies determine whether or not to permit parallel imports. Generally, as “each country is an importer as well as an exporter, government policies must consider both consumer and producer interests, as opposed to only consumer interests” (Roy & Saggi, 2011, p. 7).

What are three examples of internal influences on consumer behavior? How do these influences affect marketing strategies? How might marketers use consumers’ values to position their product(s) or service(s)?

First of all, I would like to point out that there are three factors which influence consumer behavior. In other words, internal, situational, and social factors determine consumer behavior. Generally, the consumer decision-making process means a process we rely on to select and purchase certain goods or services. It should be pointed out that all decisions are different. It is the nature of the task, which determines a decision-making effort. Thus, there are habitual decision-making, limited problem-solving, and extended problem-solving.

Internal influences on consumers’ decision include perception, motivation, learning, attitudes, personality, age group, and lifestyle.

Perception determines the process we interpret information. When speaking about the ways perception affects marketing strategies, one is to keep in mind three factors, which are essential for perception. These factors include exposure, attention, and interpretation. So, to improve or develop marketing strategies, it is necessary to understand how consumers perceive products, brands, etc.

Motivation determines our desire to satisfy our needs, i.e., physiological, self-actualization, and other need types are to be considered when improving marketing strategies. Learning is divided into behavioral learning theories and cognitive learning theories. So, marketing strategies are to be developed according to relatively permanent changes in consumer behavior.

Emotional response, beliefs, and intentions are attitude components. These components are to be considered when developing marketing strategies.

As far as it is necessary to satisfy numerous needs of different personalities, there is a need to reason out the strategies. The same can be said about age.

Persons’ activities and interests also influence marketing strategies.

It is obvious that marketers are to take into consideration the values, tastes, and beliefs of people to succeed. When understanding the behavior of consumers, it is possible to “create products and services that provide consumers with more value. And then you can market those products and services in ways that the consumers understand. The whole point of studying consumer behavior is to motivate customers to purchase” (“Consumer Behavior: The Basics,” n.d.).

What are three examples of external influences that impact consumers? How do these influences affect marketing strategies? How might marketers use cultural influences to position their product(s) or service(s)?

When speaking about external influences on consumer behavior, there is a need to point out that these influences include organizational marketing efforts and socio-cultural environment.

Generally, the list of external influences can include numerous other points, namely, age, race, gender, education level, cross-cultural influences, sub-cultures, social status, expectations/habits/customs, etc. A consumer’s preferences in provisions, clothes are also recognized to be external factors that affect a consumer’s decision to buy numerous things. The culture the consumers live in, their interpersonal relations, social connections, and many other factors can be considered to be external influences.

Of course, all these influences affect marketing strategies. “The degree to which managers rely on external factors in implementing pricing decisions will be positively related to the level of internationalization employed by the firm” (Forman & Hunt, 2005, p. 137).

So, if marketers take into account cultural influences, their business sales will increase. Educational levels, as well as social statuses, are to be analyzed. Generally, I can conclude that cultural influences, as well as various other factors, determine the success of marketing strategies the company relies on. So, consumer’s values, expectations, hopes, beliefs, preferences, and tastes (cultural influences) seem to be extremely important.

Consumer Behavior: The Basics . (n.d.). Wiley. Web.

Forman, H. & Hunt, J. (2005). Managing the Influence of Internal and External Determinants on International Industrial Pricing Strategies .

Larson, R. (2009). Global Marketing Strategies and Implications for US Based Firms.

Lipsey, R. & Chrystal, K. (2007). Economics . Web.

Mühlbacher, H., Leihs, H. & Dahringer, L. (2006). International Marketing: A Global Perspective . Web.

Roy, S. & Saggi, K. (2011). Equilibrium Parallel Import Policies and International Market Structure. Web.

• Market Segmentation: Advantages and Disadvantages
• International Marketing Concept
• The Conscious Marketer: Example of Coca-Cola
• Shopping Networks: Pricing Strategy
• Pricing: The Sneaker Pricing Wars (Adidas-Nike)
• Consumer Behavior and Purchasing Trends in Marketing
• Rusty's Surfboards Product Segment
• Fast Food War in Singapore: The Stiff Competition and Fight for Customers
• Consumer Behavior in Insurance Positioning
• Thirstier Mineral Water - Marketing
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The state of AI in early 2024: Gen AI adoption spikes and starts to generate value

If 2023 was the year the world discovered generative AI (gen AI) , 2024 is the year organizations truly began using—and deriving business value from—this new technology. In the latest McKinsey Global Survey  on AI, 65 percent of respondents report that their organizations are regularly using gen AI, nearly double the percentage from our previous survey just ten months ago. Respondents’ expectations for gen AI’s impact remain as high as they were last year , with three-quarters predicting that gen AI will lead to significant or disruptive change in their industries in the years ahead.

About the authors

This article is a collaborative effort by Alex Singla , Alexander Sukharevsky , Lareina Yee , and Michael Chui , with Bryce Hall , representing views from QuantumBlack, AI by McKinsey, and McKinsey Digital.

Organizations are already seeing material benefits from gen AI use, reporting both cost decreases and revenue jumps in the business units deploying the technology. The survey also provides insights into the kinds of risks presented by gen AI—most notably, inaccuracy—as well as the emerging practices of top performers to mitigate those challenges and capture value.

AI adoption surges

Interest in generative AI has also brightened the spotlight on a broader set of AI capabilities. For the past six years, AI adoption by respondents’ organizations has hovered at about 50 percent. This year, the survey finds that adoption has jumped to 72 percent (Exhibit 1). And the interest is truly global in scope. Our 2023 survey found that AI adoption did not reach 66 percent in any region; however, this year more than two-thirds of respondents in nearly every region say their organizations are using AI. 1 Organizations based in Central and South America are the exception, with 58 percent of respondents working for organizations based in Central and South America reporting AI adoption. Looking by industry, the biggest increase in adoption can be found in professional services. 2 Includes respondents working for organizations focused on human resources, legal services, management consulting, market research, R&D, tax preparation, and training.

Also, responses suggest that companies are now using AI in more parts of the business. Half of respondents say their organizations have adopted AI in two or more business functions, up from less than a third of respondents in 2023 (Exhibit 2).

Future frontiers: Navigating the next wave of tech innovations

Join Lareina Yee and Roger Roberts on Tuesday, July 30, at 12:30 p.m. EDT/6:30 p.m. CET as they discuss the future of these technological trends, the factors that will fuel their growth, and strategies for investing in them through 2024 and beyond.

Gen AI adoption is most common in the functions where it can create the most value

Most respondents now report that their organizations—and they as individuals—are using gen AI. Sixty-five percent of respondents say their organizations are regularly using gen AI in at least one business function, up from one-third last year. The average organization using gen AI is doing so in two functions, most often in marketing and sales and in product and service development—two functions in which previous research  determined that gen AI adoption could generate the most value 3 “ The economic potential of generative AI: The next productivity frontier ,” McKinsey, June 14, 2023. —as well as in IT (Exhibit 3). The biggest increase from 2023 is found in marketing and sales, where reported adoption has more than doubled. Yet across functions, only two use cases, both within marketing and sales, are reported by 15 percent or more of respondents.

Gen AI also is weaving its way into respondents’ personal lives. Compared with 2023, respondents are much more likely to be using gen AI at work and even more likely to be using gen AI both at work and in their personal lives (Exhibit 4). The survey finds upticks in gen AI use across all regions, with the largest increases in Asia–Pacific and Greater China. Respondents at the highest seniority levels, meanwhile, show larger jumps in the use of gen Al tools for work and outside of work compared with their midlevel-management peers. Looking at specific industries, respondents working in energy and materials and in professional services report the largest increase in gen AI use.

Investments in gen AI and analytical AI are beginning to create value

The latest survey also shows how different industries are budgeting for gen AI. Responses suggest that, in many industries, organizations are about equally as likely to be investing more than 5 percent of their digital budgets in gen AI as they are in nongenerative, analytical-AI solutions (Exhibit 5). Yet in most industries, larger shares of respondents report that their organizations spend more than 20 percent on analytical AI than on gen AI. Looking ahead, most respondents—67 percent—expect their organizations to invest more in AI over the next three years.

Where are those investments paying off? For the first time, our latest survey explored the value created by gen AI use by business function. The function in which the largest share of respondents report seeing cost decreases is human resources. Respondents most commonly report meaningful revenue increases (of more than 5 percent) in supply chain and inventory management (Exhibit 6). For analytical AI, respondents most often report seeing cost benefits in service operations—in line with what we found last year —as well as meaningful revenue increases from AI use in marketing and sales.

Inaccuracy: The most recognized and experienced risk of gen AI use

As businesses begin to see the benefits of gen AI, they’re also recognizing the diverse risks associated with the technology. These can range from data management risks such as data privacy, bias, or intellectual property (IP) infringement to model management risks, which tend to focus on inaccurate output or lack of explainability. A third big risk category is security and incorrect use.

Respondents to the latest survey are more likely than they were last year to say their organizations consider inaccuracy and IP infringement to be relevant to their use of gen AI, and about half continue to view cybersecurity as a risk (Exhibit 7).

Conversely, respondents are less likely than they were last year to say their organizations consider workforce and labor displacement to be relevant risks and are not increasing efforts to mitigate them.

In fact, inaccuracy— which can affect use cases across the gen AI value chain , ranging from customer journeys and summarization to coding and creative content—is the only risk that respondents are significantly more likely than last year to say their organizations are actively working to mitigate.

Some organizations have already experienced negative consequences from the use of gen AI, with 44 percent of respondents saying their organizations have experienced at least one consequence (Exhibit 8). Respondents most often report inaccuracy as a risk that has affected their organizations, followed by cybersecurity and explainability.

Our previous research has found that there are several elements of governance that can help in scaling gen AI use responsibly, yet few respondents report having these risk-related practices in place. 4 “ Implementing generative AI with speed and safety ,” McKinsey Quarterly , March 13, 2024. For example, just 18 percent say their organizations have an enterprise-wide council or board with the authority to make decisions involving responsible AI governance, and only one-third say gen AI risk awareness and risk mitigation controls are required skill sets for technical talent.

Bringing gen AI capabilities to bear

The latest survey also sought to understand how, and how quickly, organizations are deploying these new gen AI tools. We have found three archetypes for implementing gen AI solutions : takers use off-the-shelf, publicly available solutions; shapers customize those tools with proprietary data and systems; and makers develop their own foundation models from scratch. 5 “ Technology’s generational moment with generative AI: A CIO and CTO guide ,” McKinsey, July 11, 2023. Across most industries, the survey results suggest that organizations are finding off-the-shelf offerings applicable to their business needs—though many are pursuing opportunities to customize models or even develop their own (Exhibit 9). About half of reported gen AI uses within respondents’ business functions are utilizing off-the-shelf, publicly available models or tools, with little or no customization. Respondents in energy and materials, technology, and media and telecommunications are more likely to report significant customization or tuning of publicly available models or developing their own proprietary models to address specific business needs.

Respondents most often report that their organizations required one to four months from the start of a project to put gen AI into production, though the time it takes varies by business function (Exhibit 10). It also depends upon the approach for acquiring those capabilities. Not surprisingly, reported uses of highly customized or proprietary models are 1.5 times more likely than off-the-shelf, publicly available models to take five months or more to implement.

Gen AI high performers are excelling despite facing challenges

Gen AI is a new technology, and organizations are still early in the journey of pursuing its opportunities and scaling it across functions. So it’s little surprise that only a small subset of respondents (46 out of 876) report that a meaningful share of their organizations’ EBIT can be attributed to their deployment of gen AI. Still, these gen AI leaders are worth examining closely. These, after all, are the early movers, who already attribute more than 10 percent of their organizations’ EBIT to their use of gen AI. Forty-two percent of these high performers say more than 20 percent of their EBIT is attributable to their use of nongenerative, analytical AI, and they span industries and regions—though most are at organizations with less than $1 billion in annual revenue. The AI-related practices at these organizations can offer guidance to those looking to create value from gen AI adoption at their own organizations.

To start, gen AI high performers are using gen AI in more business functions—an average of three functions, while others average two. They, like other organizations, are most likely to use gen AI in marketing and sales and product or service development, but they’re much more likely than others to use gen AI solutions in risk, legal, and compliance; in strategy and corporate finance; and in supply chain and inventory management. They’re more than three times as likely as others to be using gen AI in activities ranging from processing of accounting documents and risk assessment to R&D testing and pricing and promotions. While, overall, about half of reported gen AI applications within business functions are utilizing publicly available models or tools, gen AI high performers are less likely to use those off-the-shelf options than to either implement significantly customized versions of those tools or to develop their own proprietary foundation models.

What else are these high performers doing differently? For one thing, they are paying more attention to gen-AI-related risks. Perhaps because they are further along on their journeys, they are more likely than others to say their organizations have experienced every negative consequence from gen AI we asked about, from cybersecurity and personal privacy to explainability and IP infringement. Given that, they are more likely than others to report that their organizations consider those risks, as well as regulatory compliance, environmental impacts, and political stability, to be relevant to their gen AI use, and they say they take steps to mitigate more risks than others do.

Gen AI high performers are also much more likely to say their organizations follow a set of risk-related best practices (Exhibit 11). For example, they are nearly twice as likely as others to involve the legal function and embed risk reviews early on in the development of gen AI solutions—that is, to “ shift left .” They’re also much more likely than others to employ a wide range of other best practices, from strategy-related practices to those related to scaling.

In addition to experiencing the risks of gen AI adoption, high performers have encountered other challenges that can serve as warnings to others (Exhibit 12). Seventy percent say they have experienced difficulties with data, including defining processes for data governance, developing the ability to quickly integrate data into AI models, and an insufficient amount of training data, highlighting the essential role that data play in capturing value. High performers are also more likely than others to report experiencing challenges with their operating models, such as implementing agile ways of working and effective sprint performance management.

About the research

The online survey was in the field from February 22 to March 5, 2024, and garnered responses from 1,363 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Of those respondents, 981 said their organizations had adopted AI in at least one business function, and 878 said their organizations were regularly using gen AI in at least one function. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP.

Alex Singla and Alexander Sukharevsky  are global coleaders of QuantumBlack, AI by McKinsey, and senior partners in McKinsey’s Chicago and London offices, respectively; Lareina Yee  is a senior partner in the Bay Area office, where Michael Chui , a McKinsey Global Institute partner, is a partner; and Bryce Hall  is an associate partner in the Washington, DC, office.

They wish to thank Kaitlin Noe, Larry Kanter, Mallika Jhamb, and Shinjini Srivastava for their contributions to this work.

This article was edited by Heather Hanselman, a senior editor in McKinsey’s Atlanta office.

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International Marketing Plan

Issue and purpose of the report.

Dutch Bros Coffee is an American-based coffee company known for its specialty coffee drinks, smoothies, and blended beverages. With more than 320 locations in the U.S., the company is looking to expand its operations into the Japanese market. To effectively enter the Japanese market, it is important to understand the country’s coffee consumption patterns, culture, and economic conditions. This paper will provide an in-depth analysis of Japanese coffee consumption, allowing Dutch Bros Coffee to understand better how to target this market and position its products. The report aims to develop an international marketing plan for Dutch Bros Coffee, a specialty beverage and coffee retailer. The marketing plan will focus on the company’s current capabilities, challenges, and opportunities related to international expansion. It will also discuss the various steps and processes that need to be undertaken to execute a global marketing strategy successfully. The plan will assess the current situation of Dutch Bros, identify potential international markets, and provide a comprehensive marketing strategy to allow the company to expand its operations to those markets.

The report will overview Dutch Bros Coffee’s current marketing situation and objectives, discuss potential markets for international expansion, and develop a global marketing plan for the company. The report will also provide an action plan for implementing the new marketing strategy. The current situation of Dutch Bros Coffee will be assessed from an internal and external perspective. The internal analysis will examine the company’s organizational structure, resources, and capabilities. External analysis will include examining the company’s current markets and assessing macro-environmental forces such as political, economic, social, and technological (PEST) trends. The potential markets for international expansion will be identified based on an analysis of the global coffee market, the competitive landscape, and the company’s objectives and capabilities. The international marketing plan will then be developed based on the identified target markets, focusing on the four Ps of marketing: product, price, promotion, and place. Finally, an action plan will be provided to guide the company in implementing the international marketing strategy. In developing the global marketing plan, various research methods will be used. These include an analysis of secondary data sources such as reports, articles, and industry publications; interviews with key stakeholders; and surveys of potential customers. Through this process, the report will provide an in-depth understanding of the global coffee market and a comprehensive international marketing plan for Dutch Bros Coffee.

Background of Dutch Bros Coffee

Dutch Bros Coffee is a privately owned drive-thru coffee chain founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon. The corporation is the leading privately owned drive-thru coffee chain in the United States, with over 400 localities in seven states, including Oregon, Washington, California, Idaho, Arizona, Nevada, and Colorado (DutchBros, 2023). The firm’s mission is to “inspire and uplift everyone we come in contact with,” and they strive to do this through their unique coffee and customer service. The company has a unique brand identity, offering a variety of specialty drinks, coffee beverages, specialty drinks, and smoothies, creating a culture of fun and friendliness. Dutch Bros Coffee is also firmly committed to giving back to its communities and is dedicated to positively impacting the world. It has donated more than $8 million to various charities since its inception (DutchBros, 2023). Dutch Bros Coffee has achieved remarkable success and has become an established leader in the specialty coffee market. In 2019 the company made a revenue of $238, $327 in 2020, and $498 in 2021 (macrotrends, 2022). The establishment is recognized for its fast service, friendly staff, and signature blended and iced coffees.

Dutch Bros Coffee’s home marketing strategy includes the 4Ps: Product, Price, Promotion, and Place. Product: Dutch Bros Coffee offers a wide selection of coffee, tea, smoothies, and energy drinks, as well as specialty drinks such as the Dutch Bros Blue Rebel, a nitro cold brew. They also offer food items such as pastries and breakfast sandwiches. They are committed to using quality ingredients and have various options to meet different dietary needs, such as vegan and gluten-free. Price: Dutch Bros Coffee is known for offering competitive product prices. They have a loyalty program that offers frequent customers discounts and other perks. They also offer discounts for large orders and military personnel. Promotion: Dutch Bros Coffee uses various promotional techniques to reach customers. They use conventional media, such as television and radio, and digital media, such as social media and email campaigns. They also utilize in-store campaigns such as free samples and rebates. Place: Dutch Bros Coffee has over 400 locations across the United States. They also offer online ordering and delivery options and a mobile app. They have a strong presence in the Pacific Northwest but are expanding into other regions. Overall, Dutch Bros Coffee’s home marketing strategy is designed to reach a wide variety of customers and offer them quality products at competitive prices. They use traditional and digital media to promote their brand, products, and in-store promotions. They have a strong presence in the United States and are expanding into other regions. They offer online ordering and delivery and a loyalty program to reward frequent customers. These strategies help Dutch Bros Coffee remain competitive in the market.

The company’s decision to internationalize is driven by its desire to expand its brand and reach new markets. The company has seen significant growth in the past few years, and they are now looking to move into new markets to exploit the increasing demand for its products. The company has also seen success in the international markets where its competition operates, and they believe it can replicate this success in other markets. The company Dutch Bros Coffee has seen steady growth since its inception in 1992 and has now become a leading specialty coffee retailer in the U.S. As of 2021, Dutch Bros has over 400 localities in eight states and generates over $400 million in revenue annually (macrotrends, 2022). The company has a solid customer base and an established reputation for quality products and customer service. Therefore, Dutch Bros Coffee is well-positioned to benefit from international expansion.

There are several reasons why Dutch Bros Coffee should consider internationalization. First, the company has a well-known brand and a large customer base in the United States. It could be leveraged to establish a presence in a new market and attract customers from abroad. Specialty coffee is growing globally, and Dutch Bros could capitalize on this trend by offering its unique products and services to international customers. The increasing demand for specialty coffee in the global market could lead to greater profits for Dutch Bros Coffee. Data from Macrotrends indicates that Dutch Bros Coffee has seen steady revenue growth since 2020, which is likely to continue. It suggests that the company’s current business model is successful and that international expansion could increase its revenue even further. According to Hollensen (2020), global markets offer businesses new opportunities. Dutch Bros Coffee could benefit from this by introducing new products, services, and marketing strategies in a new market. To successfully develop an international marketing plan, Dutch Bros Coffee must first analyze its current business model, identify potential target markets, and assess those markets’ economic and cultural environment. Once this is done, the company can develop a comprehensive marketing strategy, including the following steps:

• Establish a presence in the new market, which it can accomplish by opening a physical store, online presence, or franchising.
• Develop a comprehensive marketing plan that includes branding, advertising, and customer service strategies.
• Develop pricing strategies tailored to the target market.
• Analyze the competition and determine how to differentiate Dutch Bros Coffee from them.
• Monitor progress and adjust the strategy accordingly.

By following these steps, Dutch Bros Coffee can develop a successful international marketing plan and gain a strong foothold in the global market.

Methods: New Market Analysis

To expand the reach of Dutch Bros Coffee, three potential countries for market entry include the United Kingdom, India, and Japan. The United Kingdom is a developed economy with a stable political system and a free market. It is also an attractive destination for businesses due to its relatively low taxes and regulations. Furthermore, the U.K. is an English-speaking country with a long-standing coffee-drinking tradition, making it a natural choice for Dutch Bros Coffee to enter. Additionally, the UK is a member of the European Union, which offers benefits such as access to a more extensive consumer base, the ability to move resources and personnel freely, and the option to use the pound sterling as a common currency. India is another attractive destination for Dutch Bros Coffee. The country has a large population and a growing middle class, meaning there is a potential for strong demand for the company’s products. The Indian government has been promoting foreign direct investment in recent years, making it an attractive option for businesses looking to enter the market.

Moreover, India has many unique cultural and culinary practices, allowing Dutch Bros Coffee to introduce its products innovatively. Japan is a potential market for Dutch Bros Coffee due to its large population and high disposable income. The country also has a strong culture of coffee drinking, making it an ideal market for the company. The Japanese government has recently introduced policies to encourage foreign direct investment, making it a viable option for businesses looking to enter the market.

While making an informed decision about which countries to enter for international marketing, conducting an in-depth country analysis is essential. After considering various factors, such as market size, economic stability, cultural compatibility, and access to resources, the United Kingdom, Japan, and India were selected as the countries for Dutch Bros Coffee’s market entry. The United Kingdom is an attractive market for Dutch Bros Coffee due to its high purchasing power, solid economic stability, and large population of young people who are interested in new and innovative products. According to the Office for National Statistics, in 2020, the U.K. had a GDP of $2.91 trillion, making it the 5th largest economy in the world (Office for National Statistics, 2021). The country’s population is the 22nd largest in the world, with a large proportion of young people, making it an attractive target market. The U.K. is also a culturally compatible market for Dutch Bros Coffee, with a high rate of coffee consumption and appreciation of specialty coffee products. Japan is another attractive target market for Dutch Bros Coffee. Japan has a high purchasing power and a large population, making it an attractive market for any product. According to Macrotrends (2022), Japan had a 2020 GDP of $5.11 trillion, making it the 3rd largest economy in the world. It also has a large population, with 127 million people, making it the 10th most populated nation in the world. Japan has a culturally compatible market for Dutch Bros Coffee. The Japanese are known to be discerning coffee drinkers and have an enormous appreciation for specialty coffee products. Finally, India is an attractive target market for Dutch Bros Coffee. India has a large population of over 1.3 billion people and an economy with a GDP of over $3.8 trillion in 2021, making it the 4th largest economy in the world (Verma, 2022). India has a large population of young people interested in trying new products, making it an attractive target market for Dutch Bros Coffee. India is also a culturally compatible market for Dutch Bros Coffee, with a high rate of coffee consumption and appreciation for specialty coffee products.

The macro environment of Japan presents an interesting opportunity for Dutch Bros Coffee’s international market entry. Japan has an advanced economy with a high GDP per capita, a dependable and efficient infrastructure, and a highly educated and skilled labor force. Its political environment is stable, with a long-standing democracy, and its legal environment is highly protective of foreign investors and intellectual property (McGraw-Hill Education, 2020). Culturally, Japan is an open and accepting country with a strong appreciation of foreign goods and services. The microenvironment of the Japanese market is favorable to the entry of Dutch Bros Coffee. The coffee and tea industry in Japan is highly competitive. However, there is still room for new entrants, with organic and specialty coffee offerings expected to grow in the coming years (McGraw-Hill Education, 2020). Japanese consumers have an established appreciation for coffee and tea and are willing to pay for high-quality specialty drinks.

United Kingdom:

The macro environment of the United Kingdom presents an attractive opportunity for Dutch Bros Coffee’s international market entry. The U.K. has a large, open economy with a high GDP per capita and a strong infrastructure. Its political environment is stable, and its legal environment is highly protective of foreign investors and intellectual property (OECD, 2020). Culturally, the U.K. is open to foreign goods and services and is a highly cosmopolitan country. The microenvironment of the U.K. market is also favorable for the entry of Dutch Bros Coffee. The coffee and tea industry in the U.K. is highly competitive, but there is still room for new entrants, with organic and specialty coffee offerings expected to grow in the coming years (OECD, 2020). British consumers have an established appreciation for coffee and tea and are willing to pay for high-quality specialty drinks.

The macro environment of India presents an interesting opportunity for Dutch Bros Coffee’s international market entry. India’s rapidly growing economy has a high GDP per capita and a dependable infrastructure. Its political environment is stable, with a long-standing democracy, and its legal environment is highly protective of foreign investors and intellectual property (India Brand Equity Foundation, 2020). Culturally, India is an open and accepting country with a strong appreciation of foreign goods and services. The microenvironment of the Indian market is favorable to the entry of Dutch Bros Coffee. India’s coffee and tea industry are highly competitive, but there is still room for new entrants, especially with specialty offerings (India Brand Equity Foundation, 2020). Indian consumers have an established appreciation for coffee and tea and are increasingly willing to pay for high-quality specialty drinks.

Japan, the United Kingdom, and India have been selected as potential country markets for Dutch Bros Coffee. Each country offers unique opportunities to expand the company’s global presence. Japan: Japan is a significant economic power and a major producer of coffee. It is one of the world’s top 10 coffee-consuming countries with a large, sophisticated coffee culture. Despite Jpan being a coffee producer, the consumption is very high, and the country tends to rely on imports to cover the gap. Japan is also a popular tourist destination, making it a desirable market for Dutch Bros. The government is also known for its high-tech infrastructure, which could benefit the company’s digital marketing efforts. United Kingdom: The United Kingdom is a central hub for international business, providing a favorable environment for Dutch Bros to establish operations. It is a major coffee-consuming nation with a large population and a thriving economy (Euromonitor International, 2022). The U.K. is a significant export destination for coffee, with a well-developed infrastructure for distributing coffee products. India: India is the world’s second-largest coffee producer and has a large, growing population. It is an attractive market for Dutch Bros due to its increasing demand for high-quality specialty coffee and its growing e-commerce market. India’s high-tech infrastructure and growing digital economy could benefit Dutch Bros’ efforts to expand its online presence (Euromonitor International, 2022). Overall, Japan is the best choice for Dutch Bros Coffee to enter the international market. The country’s high-tech infrastructure, large population, and sophisticated coffee culture make it an ideal market for the company. The government is also known for its high-quality standards, which could help Dutch Bros to establish itself as a premium coffee brand in the market.

Findings: Target Country Market Analysis

Japan is the world’s fourth-largest coffee consumer and the second-largest specialty coffee consumer (Euromonitor International, 2022). According to the International Coffee Organization, Japan’s coffee consumption has been steadily increasing, reaching 4.0 million bags in 2019 (Euromonitor International, 2022). The coffee market in Japan is mainly divided into two categories: domestic and imported coffees. Domestic coffee accounts for most coffee consumed in Japan, with an estimated 74% of the market share in 2019 (Euromonitor International, 2022). Regarding consumer preferences, Japanese coffee drinkers are likelier to prefer coffee roasted for a light flavor and coffee with low bitterness and a pleasant aftertaste. The Japan Coffee Association has reported that the popularity of cold brew coffee has been steadily increasing over the past few years. The trend will likely continue as the Japanese coffee market is expected to grow at an annual rate of 2.1% through 2024 (Euromonitor International, 2022). In terms of market size, the specialty coffee market in Japan accounted for an estimated US$2.2 billion in 2019. The market is largely dominated by domestic brands, which account for an estimated 77% of the market share. However, the market is also becoming increasingly open to imported coffees, with the imported market share estimated to have reached 23% in 2019. The Japanese coffee market is expected to grow at 1.9% per year through 2024 (Euromonitor International, 2022).

To understand the potential of Dutch Bros Coffee in Japan, an analysis of the coffee consumption culture in Japan and a comparison to the market in the United States are necessary. Hofstede’s cultural dimensions can be used to analyze Japan’s coffee culture. Hofstede’s cultural dimensions provide insight into a culture’s values, beliefs, and norms, which are all important factors to consider when expanding into a foreign market (Hofstede, 2020). Power Distance Index (PDI): Japan has a high power distance index, which indicates a strong hierarchy in the country (Hofstede, 2020). There is a strong respect for authority figures, and those in positions of power are expected to be obeyed without question. It is important to consider when marketing in Japan as it will be important to ensure that any authority figures in the country are respected to gain market access. Individualism vs. Collectivism (IDV): Japan’s low individualism score indicates a strong collectivist culture (Hofstede, 2020). It means that the Japanese highly value group cohesion and loyalty, which is important to consider when marketing in Japan, as it will be important to emphasize the importance of community and group cohesion through marketing campaigns. Masculinity vs. Femininity (MAS): Japan has a high masculinity score, indicating a culture that values hard work, competition, and success (Hofstede, 2020). It is an important factor in Japan, as marketing campaigns should emphasize the importance of success and hard work.

Uncertainty Avoidance Index (UAI): Japan’s high uncertainty avoidance score indicates a risk-averse culture and values stability (Hofstede, 2020). It is important to consider when marketing in Japan, as it will be important to emphasize the reliability and trustworthiness of the product to appeal to the culture’s values. Long-Term Orientation vs. Short-Term Orientation (LTO): Japan has a very high long-term orientation score, indicating a culture that values long-term planning and vision (Hofstede, 2020). It is important to consider when marketing in Japan, as it will be important to emphasize the long-term benefits of the product to appeal to the culture’s values. When comparing the coffee consumption market in Japan to the U.S., it is important to note that the U.S. market is much larger than the Japanese market. According to the National Coffee Association, the U.S. coffee market is projected to be valued at $48 billion, while the Japanese coffee market is estimated to be worth $11 billion (National Coffee Association, 2020). Additionally, the U.S. market has seen a growth of 3% in the past year, while the Japanese market has only 0.5% (National Coffee Association, 2020). It indicates that the U.S. market is a much larger and faster-growing market than the Japanese market.

Market Segmentation Analysis in Japan

When considering international expansion, it is important to analyze the target market and identify potential segments. In the case of Dutch Bros Coffee, the target market is Japan. The Japanese coffee market is highly competitive and is the second largest in the world, accounting for 11.9% of global coffee consumption (Kotler & Keller, 2012). Dutch Bros Coffee should conduct a market segmentation analysis to increase the chances of success in the Japanese market. Market segmentation divides a market into clusters of customers with the same behaviors, characteristics, and needs who may need distinct products or marketing strategies (Kotler & Keller, 2012). Segmentation can be based on variables such as age, gender, lifestyle, and occupation. In the case of Japan, the segmentation variables are more specific, such as coffee preference, purchasing power, and lifestyle. The first segment is the “coffee-loving” segment. The segment comprises young people and adults willing to pay for quality coffee products and familiar with different coffee types. They are the main target of Dutch Bros Coffee, as they are likely to be interested in trying new products. The second segment is the “occasional coffee drinker” segment. The segment comprises people who usually drink instant coffee or occasionally visit coffee shops but are not necessarily coffee connoisseurs. They are more likely to be price-sensitive and may prefer value-for-money products. The third segment is the “coffee-free” segment. The segment comprises people who rarely or never drink coffee and are not interested in trying new products. They are likely interested in something other than Dutch Bros Coffee and may not be a viable target market. These three segments can be further divided into sub-segments depending on the specific preferences and needs of the target market.

For example, the “coffee-loving” segment can be divided into sub-segments based on the type of coffee they prefer, such as espresso, cappuccino, or latte. The “occasional coffee drinker” segment can be divided into sub-segments based on their preferred price range. Once the target market segments have been identified, Dutch Bros Coffee can develop a marketing strategy tailored to each segment. It includes developing products and services that meet the needs of each segment and creating marketing strategies designed to appeal to each segment.

Customer analysis in Japan

When looking at the potential customer base in Japan, it is important to consider both the existing coffee consumption culture and the unique tastes of the Japanese consumer. The Japanese market is one of the world’s largest and most competitive markets. The country is known for its high quality of life, strong economic performance, and highly educated population. In terms of coffee consumption, the Japanese market is one of the largest in the world, with an estimated 10 million people drinking coffee daily (Euromonitor International, 2022). While most Japanese coffee is domestically produced, imported coffees are also widely consumed. The Japanese are known for their appreciation of specialty coffees, making them an ideal target market for Dutch Bros Coffee. Coffee Consumption in Japan Coffee consumption in Japan has been steadily increasing over the past few decades. In 2017, the total coffee consumption was estimated to be 7.8 million tons, with a projected increase of 8.1 million tons by 2021 (Euromonitor International., 2022). Most of this consumption is for domestic consumption, with imported coffees making up a small but growing portion of the market. Most coffee consumed in Japan is instant coffee, with pre-ground and brewed coffees making up the remaining share. In terms of specialty coffee, the Japanese market is one of the largest in the world. Specialty coffees, such as cold brew, nitro brew, and espresso drinks, are becoming increasingly popular with the country’s growing middle class. Furthermore, the Japanese population highly appreciates its coffee’s quality, making it an ideal market for Dutch Bros Coffee.

Two main and substantial adaptations to the Japanese market

• One major and substantial adaptation Dutch Bros Coffee should make to the Japanese market is to focus on creating a unique product offering that appeals to local tastes. According to a study by the International Food Information Council, Japanese consumers prioritize taste and flavor when purchasing food and beverages. As such, it would be beneficial for Dutch Bros Coffee to develop unique items specifically tailored to the Japanese market, such as incorporating traditional flavors into their menu. For example, the company could offer drinks that feature matcha, green tea powder, or azuki beans, which are popular in many Japanese desserts. Packaging could be designed to appeal to local aesthetics, such as featuring Japanese-style artwork and decorative elements, to better connect with Japanese consumers (Bryant, 2018).
• Another major and substantial adaptation Dutch Bros Coffee should make to the Japanese market is to focus on providing a high-quality service experience. According to a survey by the Japan Productivity Center for Socio-Economic Development, Japanese customers value customer service when selecting a business. Thus, it would be beneficial for Dutch Bros Coffee to emphasize its customer service standards when entering the Japanese market. For example, the company could require its employees to provide courteous and helpful service and ensure that its stores are clean, well-lit, and comfortable. Dutch Bros Coffee could also offer additional amenities such as free Wi-Fi, charging stations, and comfortable seating areas to enhance further the customer experience (Japan Productivity Center, 2018).

Entry strategy

When entering the global market, it is important to understand each market’s different objectives and strategies. For Dutch Bros Coffee, a popular American coffee chain, the entry strategy should combine market skimming and market penetration. Market skimming entails setting high prices to maximize profits, while market penetration involves setting low prices to maximize market share (Kotler and Armstrong, 2010). Using a combination of the two strategies, Dutch Bros Coffee can capitalize on both the high-end and low-end markets. By focusing on market skimming, they can create a premium product that appeals to the high-end market. Focusing on market penetration allows them to attract a larger base of customers by offering a lower-priced product. In addition to pricing strategies, Dutch Bros Coffee should also focus on product development and marketing. By continuing to develop innovative products, they can create a unique brand identity that stands out from the competition. By developing an effective marketing strategy, they can reach a global audience and ensure their products are seen and purchased by consumers worldwide. In conclusion, Dutch Bros Coffee can use a combination of market skimming and market penetration to enter the global market. By focusing on product development and marketing, they can create a unique brand identity and reach a global audience.

Recommendation

Internationalization to Japan by Dutch Bros Coffee could be successful due to the growing popularity of specialty coffee in Japan. Japan is already known for its unique and high-quality coffee, and specialty coffee is becoming increasingly popular with younger generations. Dutch Bros Coffee will be successful in internationalizing to Japan because of the unique coffee offerings that the company provides. Dutch Bros Coffee has a wide variety of coffee drinks, ranging from traditional coffee to more creative flavored drinks. The variety and creativity will be appealing to the Japanese market, as they are known for their appreciation of unique, creative flavors. The company’s focus on quality ingredients and customer service will likely help win over the Japanese market. The company’s brand and marketing strategy could be well-received in Japan, as the Dutch Bros Coffee brand is associated with fun, positive energy, and great-tasting coffee. With the right marketing strategy and a strong presence in Japan, Dutch Bros Coffee could be successful in this market. Therefore the company’s strong presence on social media platforms, such as Instagram and Facebook, will help the company to reach a wide range of potential customers in Japan.

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