Domestic And International Marketing Principle

Published Date: 02 Nov 2017

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Table of Contents

Contents

Contents 3

Introduction 5

1.1 Domestic and International Marketing principle 7

1.1.1 international and domestic marketing main difference 7

1.2:marketing growth in globally 8

1.3 Cross cultural Effects in marketing and their implications 9

3.3 Market Penetration and their pricing strategies 10

3.4 Penetration Pricing and their advantages 10

3.5 marketing Communications Campaign with their Objectives 11

3.6 Marketing mix and International Markets 12

3.7. provision of the e-services to other countries 12

4 Planning Models/ tools for Marketing 14

5: Marketing Operations Management 17

6.1: International Marketing Planning Process 17

6.2. Management of product 19

6.3 International Marketing 21

6.4 operation in Domestic marketing 21

7. market choice of the country 23

7.1 strategies in marketing entries 23

8. International Requirements of the Marketing Mix in consumer market. 26

8.1 Marketing Mix: Product 26

8.2 Marketing Mix: Promotion 27

8.3 Marketing Mix: Pricing 28

8.4 Marketing Mix: Place 29

9. Marketing Operation. 30

9.1 Alliances in strategic level 31

10. the overall Systematic Analysis 32

10.1 Investment Agreements 33

References and bibliographic details 34

Introduction

Marketing is one of the comprehensive tool in every type of the organization, marketing play an important role in making the organization growth high. there are number of the marketing campaigns are used to convince the customer according to their segmented market tools in the market. so marketing can convince the customers to think about their products and to buy their products with their new marketing trend into consumer market, Different types of the marketing mix tool which are segmented according to the life style and the living standard of the people are used in marketing which deals about their main targeted of the marketing

For processes like exporting there is a need for human and financial resources. Exporting cannot simply be considered as an action of ‘hit and run’. Your business requires the act of exporting. Exporting will not be forced by you. Decisions cannot be taken spontaneously and before making it first give the full consideration. Medal will not be given for exporting and no one will force you exporting also. Believe on you and simply don’t count on benefiting through gifts and grants. Still if you get them that fine. It is better to make assessment of the company or business establishment, yourself, operation part, production division and also employees. After doing the homework then start exporting seriously in a determined process and not as a trail or adventure.

Activity of export is generally is having uncertainty and ‘trial and error’ element is present in it. It is better to consult a consultant who is an expert in that area of exporting. First decide on your goals, budget, objectives, expectations and others and they should be in a position to be achievable by your business and you. Always the world market is changing and it is a dynamic and competitive one. Countries and manufacturers enter this process of exporting and try to withstand the fluctuation in the international currency. The person who wants to start will have to maintain and get updated with the developments in that area. For example based on the world market position each and every Israeli service and product can be exported to most of the destinations, but reaching to the target destination is difficult as the target market is not in a ready position to take it. Some substantial efforts are to be made to make and create market in the abroad. Fortunately most of the countries are having international trade agreements with Israel.

1.1 Domestic and International Marketing principle

Fundamentally both the marketing principles of international and domestic business entities are same. For every business marketing is considered as and integral part where it is all about polices and plans that an organization and individual do to reach out to its predefined customers who are potential enough. Even it is defined as a process of planning and execution, promotion, distribution, pricing of services and goods to the desired individuals and organizations. Now the world is becoming a organized global village and the national boundaries are slowly getting vanished and companies are focusing on the global platform leaving the local markets. Marketing is and art of getting the new customers into it fold and retaining the old customers as well. Where ever you do marketing may be in the international level or local level the basic principle remains the same.

1.1.1 international and domestic marketing main difference

Barriers: Domestic marketing does not face the cross cultural barriers but international marketing will face it in the areas like currency, language, customs, traditions etc.

Benefits: The international marketing is equipped with more number of benefits compared to the domestic market. For the developing countries the foreign currency changes will help out and considered as an added advantage.

Political relations: There is no relation to the domestic marketing with the political relations but coming to the international marketing there is a direct relation with the countries political relations and policies.

Scope: Opportunities in the global market are vast unlike in the domestic market where there is a chance of drying up of opportunities and marginalizing the scope.

Technology sharing: Limited technology is used by the domestic companies where as international companies use the advanced technology and these international companies try to acquire the latest technology. The dissimilarities in between them are broadly categorized into scope, benefits, sharing of technology, political relations and barriers.

1.2:marketing growth in globally

The basic idea behind the global market is that there is no epic center for the global marketing. This boundary less global market is developed to only by the industrially developed countries but also the developing economies like Indian and China with the help of international co-operation and competition.

The marketing principles are dynamic and also on the fact that preferences of consumer are not changed regularly and if changed mostly by the exogenous forces and not the endogenous forces where the desires and wants of consumer can be converged. The development in the communication and transporting technology are allowing the consumers to access to foreign market. Now national boundaries are not at all strong barriers. Internet access allowed the companies to adverstize and promotes their products. Continuous efforts will be put by the companies to improve standardization, synchronization, concentration and integration on various principle of marketing in order to achieve better growth.

1.3 Cross cultural Effects in marketing and their implications

For every multinational and international organization there is a need for efficient cross cultural management. This critical task needs a good manager who can integrate different strategies globally available to the local market objectives and also the demands of employees and also along with changing environment.

Well developed training solutions of TMA will guide the individuals in the company to develop global mindset and also substantially promote the patterns of thinking among the other employee or colleagues and also create a better competitive advantage to the company.

There is a need for a good foundation, where virtual skills can improve the cross cultural working effectively. These skills include communication techniques, virtual team working skills, strategies that build good relationship and again these are given main focus in the world training program of TMA.

An opportunity will be provided to the individuals to check their strengths and also cater all areas that are in need of development, which means that the training given will be in the appropriate areas.

3.3 Market Penetration and their pricing strategies

A technique used for setting up a comparatively less entry price, basically less compared to the prescribed or intended price in order to attract new customers is called penetration pricing. This technique or strategy is aimed to encourage or attract customers to and buy due to the low cost of the new product.

One of the common associated techniques is the penetration pricing with the marketing objective such as improving the share in the market or increasing the volume of the sales. In long-term penetration have higher benefits compared to the short term and even in the long term strategy of pricing can also be justified.

During the introduction of the new product into the market penetration pricing technique will be of use due to the difference in the prices on the same product and if demand is of price elastic then it will favor the new product if the price is less compared to the other same products in the market and acts as a competitive weapon.

3.4 Penetration Pricing and their advantages

Competition will be given to rival by surprise and straight away in the market. Recommendation is given to ‘word-of-mouth’ because of the fewer prices and will help as a promotion in the marketing. The market will be forced to workout on minimizing unit cost right from the introduction of the new product. But efficiency and productivity also plays and important role. This lowest price can act as a potential barrier to the other manufactures and are forced to consider same kind of strategy.

- The volume of sales should be high, thereby it is useful to obtain distribution easily.

-Penetration pricing strategies do have some drawbacks, however:

- The mindset of customers who switch to the product will have a permanently changed opinion upon the product and it is very difficult to increase the prices compared to lowering them.

- The customers who have the habit of bargaining will be attracted more, compared to the customers who can be loyal to its brand and business.

- The established competitors may retaliate, who are determined to retain their market share.

3.5 marketing Communications Campaign with their Objectives

The target audiences to the international communication campaign are categorized and given in different heading, which includes.

Primary Target Audience -

The category of primary target audience includes (Teenagers whose age is between 13-17 years and Adults with age in between 18-24 years). Their objectives include:

Behavioral - To improve the adoption skills.

Awareness - To bring awareness about the product susceptibility.

Attitude – Attitude should be changed and mould towards the usage of the product in positive frame of mind.

Intention- To increase the intentions to prepare and adapt to principles.

Secondary Target Audience

The Secondary Target Audience will be between the age group of children between 0-17 years

Behavioral – To improve the behavior to adopt the product.

Awareness – To bring awareness among the parents and influence them to buy the new product which is useful to the child.

Attitude – To bring the positive attitude and adopt them to bring the new product.

Intention- The intention is to bring the new behaviors among the children.

3.6 Marketing mix and International Markets

The main objective of marketing mix is in relation to the delivery and distributing of the service or product to the targeted customers at right time and right place. For example in UK the mobility of goods is from the manufacture to wholesalers and from there to the retailers and in the end to the customers will be like a chain. But in the developing countries there will be more number of parties in between the manufacture and the end user i.e the customer. In Japan there are 5 type of wholesalers. Before introducing the business it is better to know the parties involved and also investigation to be done on the other competitor’s business operations. The costs of transportation and margin in the profit may change based on the distribution strategy of each country.

3.7. provision of the e-services to other countries

The core concept of Electronic service is one of the latest applications developed on the information and communication technologies which are catering needs of different persons. Now there are different applications for the e-service.

According to Rowley (2006) approach who defines e-services as: "…deeds, efforts or performances whose delivery is mediated by information technology. Such e-service includes the service element of e-tailing, customer support, and service delivery". This definition reflects three main components which are service receiver, service provider and service delivery channels. Even there are different definitions most of them are accepting that role of technology is involved in it.

Following are a few examples regarding e-services in some developing countries:

E-services in Rwanda

Rwanda, a small country in Eastern Central Africa has emerged from the fastest genocide of the 20th Century a decade ago has now become one of the best nations in and model on bridging the digital divide through e-government. Rwanda a technologically backward country has now emerged as developed country in aspects of using technology in E-Governance. When compared with Rwanda the other countries which are located in Sub – Saharan Africa, having same limitations to e-governance had shown only a limited progress.

E – Services in South Africa

The government of south Africa has felt the increased need for the improved delivery of services and in this regard the government implemented e-government systems and e-services which affords them to deliver good governance and services. The implementation of e-governance has been widely accepted and adopted by the government by many of it programs such as Batho Pele portal, the e-Natis system ,SARS e filing, electronic processing of grant application from remote sites and large number of Governmental websites. Many of the analysts, researchers consider the e- government in South Africa to be at a fundamental stage. This is one of the factors which contributed for an e-government assessment as there are no clear strategies to adopt e-government services as well to assess the expectations of citizens who are the end users of these services.

E-services in Malaysia

Multimedia Super Corridor (MSC) has given an initiative to start E-services under a pilot project. With the E-service it is possible to maintain the transactions with the agencies of Government like Road Transport Department, Tenaga Nasional Berhad, Telekom Malaysia Berhad (TM) and other convenient channels. With the E-services bureaucratic hassles can be successfully restricted. Under the Electronic Government flagship application even syariah courts works are assisted to update the case details. Know how to apply analytical models/frameworks to international marketing opportunities.

4 Planning Models/ tools for Marketing

Marketing planning model is the second strategic planning model. Goods and services have their economic value only when introduced and sold to the end-users. The criterion used by the model of marketing planning is a different one. Marketplace is generally fashionable, fickle and fast, where the model of marketing planning model should show emphasis on the various factors and areas.

These areas are:

Introduction of service or Product

Positioning of service or Product

Entrenchment of service or Product

Based on the need and expectations of customer the model tries to discover and introduce the best cost saving method and which is appropriate once the customer is identified.

Depending on the customers needs, wants and expectations the most appropriate and cost effective method is introduced. In the past, due to faulty marketing planning many products and services could not make it beyond the introduction stage.

Introduction of the product should lead the path to the positioning of product. Depending on the position in the market, the model will state the strategy of marketing planning. Some times a product will be best positioned for the C market; subsequently it may do well in the B market as well. These types of situations are common in the market.

Product positioning then should determine product entrenchment. A well-positioned product has to be well established in the marketplace. When marketing planning decides to establish, it must be up to mark with the expected opposition.

Leaders in the industry should make serious campaign in the process of removing the product from the entrenchment and the position it is now. Marketing planning should be also being some time ready to display war in terms of price and also in advertising and so on. So the model of marketing planning should be adaptable to such serious aspects also.

4.1. Systematically: examine competitive strategies in respect to international marketing In the market competitive advantage can be achieved by the competitive strategies. Competitive strategies are of three types that are into implementation. They are focus strategy, differentiation and cost leadership. Based on the objectives of business and the position in the market these strategies will be mixed.

4.1. 1Cost leadership:

The cost leadership strategy is aimed to be a relatively low-cost producer to that of the rival companies and it will help in the markets where price is determining factor. This strategy is maintained by choosing the techniques of production and suppliers who are adaptable to the low cost structure. But you should careful in maintaining the minimum standards in quality wise.

4.1. 2. Differentiation

The strategy like differentiation will get the competitive advantage by marketing and supplying the product that is having some sort of difference with that of existing in the market. With this price sensitivity can be reduced and also can get new customers who can be loyal as well.

4.1. 3. Focus strategy

Focus strategy will recognize the product selling and also will revel that group of homogenous customer will not be always reliable. So it shows that business should focus on different market segments. For that there is need to identify the wants, needs and interests of the market segments and techniques of market customization.

5: Marketing Operations Management

The human resources training is examined systematically and implication on international commitment for personnel is involved in the process of international marketing. Training is an activity of improving the skills and knowledge of the subjected employees in performing the jobs ascertained to them. This short-term process includes providing training facilities so that the job is effectively performed. Simply speaking development and training refer to inculcate specific skills, knowledge, abilities to the selected employee. The Five marketing commitments one should have are:

Commit to calculate the elements that are quantitative in your brand.

Commit to develop best ideal profile of the client for all the offered services.

Commit to take up the best practices of the generation

Commit to measuring and tracking each and every stage in the buying cycle of B2B.

Commit to build your brand by having a better understanding of it.

6.1: International Marketing Planning Process

Project management skills are not only vital for project managers; they are useful for each and every one. The tools and methods used by the project managers are also used by other people who find it helpful.A task need not be a big project in order to use tools and methods of project management. A very small task can take an advantage by using well preferred project management tools and techniques especially while the task is in the stage of planning.

By using some of the project management tools and techniques anywhere in the process, any project can acquire booming outcome and it can be done better. In planning and management stages, specifically the complex activities and some other tasks can be performed by using project management methods. Project management is all about managing and planning change in any project. It need not be related only to business, it may also be related to non-business like planning a wedding, shifting house. Project management tools and techniques are more useful and they can be used at various situations than people imagine. Project management and project planning techniques and tools are helpful in which various outcomes are possible. There may be possibility of failures and problems. So assessing and planning options, organizing activities are helpful in bringing successful result.

Projects need not be of one size, they may be small or big; complex or simple.

In businesses and organizations, project management techniques and tools can be used in changing or initiating things in any area such as Products and services, IT and communications, People, management and staffing, Materials, production and manufacturing, Storage, logistics, distribution, Buildings and premises. Plants, equipments, vehicles, Finance, acquisition, administration and divestment. Any other things which requires project management and planning techniques etc.

The process of the successful project management whether the project is small or big is outlined below. Not only the project managers use the project management techniques, it also can be used by anyone.

6.2. Management of product

Agree to particular requirements of the project – Terms of Reference Planning the project using proper project management tools such as team, time, resources, activities, financials etc. Discussing the plan with the project management team or to other group of people who are interested in the project. Agree and allotting project actions

Encouraging or managing to update and enable the project team.

Adjusting project plans, to check, monitor and re-evaluate the progress of the project.

Reporting and reviewing project performance.

Thanking and giving praise to the project team.

Lastly follow up of the project which includes support, training, benefits and report results. The modus operandi in the international marketing is very different. The organizations slowly expand and begin to grow in other countries rather than the domestic one. The description and characteristics of the companies at various stages which include domestic to global enterprises are outlined with typology of terms which can be seen in Table 1.1.

There are four stages and they are as follows:

Stage one:

It is focused in the domestic area which involves action focused in the home market. Many companies are going on this principle like raw milk marketing, specifically nationally oriented companies are almost certainly destined to long term failures.

Stage two:

Mainly focused on home that includes exports which is also known as ethnocentric. Certainly believes in home values but it establishes export division.

Stage three:

Here, the stage two organizations which adjust or expand their marketing operations to overseas operations. The interest changes to multinational or polycentric and adaption becomes supreme.

Stage four:

It includes the global organizations which focus on emerging global markets by extending programmes and products. This is geocentric. This includes identifying the market around the world regarding the differences and similarities to expand a global strategy to bring upon scale economies. This strategy studies regarding cost effective differences and it is a mixture of creation, adaptation and extension. In the industries like horticulture, the project management process is too quick. For the evolution process, there is no time limit.

6.3 International Marketing

The offices could be built in foreign countries if the exporting departments are flourishing but expenditure of doing business, language barriers, time differences and cultural ignorance are hampering the company’s growth in the foreign market. Most of the times, the companies overseas will buy the firms in the foreign countries so that it benefits them in terms of relationship, factories, storefronts and personnel. But the decisions are taken in the individual countries as the personnel are more knowledgeable regarding the situations in that country though they report to the head quarters. These markets are considered polycentric because they understand that every local market has different needs based on the local customers.

6.4 operation in Domestic marketing

Domestic marketing is a kind of marketing which sticks to the political boundaries of a country. The domestic completion is between those companies which does its marketing only in its national boundaries. Even if that company has foreign market competition, it should consider only the competition existed in the home market. All the decisions regarding the market are done in the head quarters. The product is specifically designed to use in the local market keeping in view the local people rather than thinking to use the product in the other markets. These marketers are facing difficulties and hurdles due to the emerging global markets. As the domestic marketers do not focus on the change being made globally, they do not have the idea of the global markets potential.

Marketing research is one of the important functions that connects the customers, public and consumers to the marketer using the information helpful in identifying the problems and market opportunities, estimating, producing and refining marketing actions, examining the performance of the market and develop marketing process. Marketing research answers the questions regarding these problems, specifies the way to collect information, supervise and execute the data collection process and speaks regarding the implications and their findings.

Marketing research is all about drawing together systematically, verifying and analyzing quantitative and qualitative data about problems regarding marketing services and products. The aim of marketing research is to recognize the change in the market which in turn affects the consumer behavior. Marketing research is frequently interchanged with the term market research. These two terms are different, the expert practitioner concludes that market research is related especially with markets and marketing research is all about marketing process. Marketing research is categorized in to two different sets either by target market or by methodological approach.

By target market

Consumer marketing research

Business to business marketing research

By methodological approach

Quantitative marketing research

Qualitative marketing research

Consumer marketing research is all about recognizing the behaviour, attitude, and consumer preferences in market based economy. The goal of the marketing research is to realize the outcome and success of marketing campaigns. The consumer marketing research was initiated by Arthur Nielsen by establishing ACNielsen Company in 1923. Marketing research can also be understood as the system used for identifying the objectives systematically, analyzing, collecting and distribution of information required to support regarding the opportunities and problems in marketing.

7. market choice of the country

This kind of market is based on the firm’s entry level of exporting versus production in foreign country. The host’s country’s market features are explained with regard to the business environment, competitiveness of local competitors and the production factors. According to the propositions tested, the availability of local production factors and the stage of competition of local market have more effect on the company’s entry mode choice.

7.1 strategies in marketing entries

Organizations can enter foreign markets in various ways. The three important ways are direct, indirect and production in foreign country.

7.1.1 Exporting

It is the most common form, traditional and well known form of operation in foreign markets. Marketing of goods manufactured in one country in to the other country is known as exporting. The necessary investment is required; no direct producing process is required. The inclination is not to get hold of detailed information regarding the manufacturing process in the marketing country.

7.1.2 Indirect Exports:

Indirect exports has various advantages that includes

Contracts made in the operating market or in any other country

Commission system

Expertise in manufacturer or exporter

The approval of credit takes trouble from the manufacturer

7.1.3 Foreign Production

Exporting is not only the market entry strategy, there are various other methods like joint ventures, licensing, ownership, contract manufacture and contributing in free trade zones or export processing zones.

7.1.4 Joint Ventures:

When two or more investors allocate the ownership and rights over the property and operation, the joint venture arises. It is not merely licensing or exporting but involves more wide spread participation. An olivine industry in Zimbabwe has joint venture agreement in food processing with HJ Heinz.

7.1.5 Licensing:

When a firm in one country gives permission to a company in other country to make use of the trade mark, know how process or any other skill which the licensor has got is known as licensing. It can be said that it is alike franchise operation. The example of licensing can be coca cola. The license to make coke is given to United Bottlers in Zimbabwe. Licensing does not need much involvement and expense. The only expense is to sign the agreement and implementing the rules.

7.1.6 Ownership:

The mostly involved form of participation is the ownership. The ownership engages the firm in managerial effort and has commitment in capital. The ownership outweighs the disadvantages of the licensing and joint ventures. The capital and earnings need to be carefully supervised; otherwise the pathway of ownership is too hard.

7.1.7 Export processing zones (EPZ)

It is not entirely an entry strategy but it serves as an entry in to the market. This is a kind of investment incentive for the future investors. It also gives employment in the host country and it stands as a base for flow of goods in and out of the country. The best example of EPZ is Mauritian founded in 1970’s.

8. International Requirements of the Marketing Mix in consumer market.

8.1 Marketing Mix: Product

When our goal is to meet the needs of the target market, we would trade more products according to the basic marketing concept. In international markets it involves various issues like religion, cultural backgrounds, levels of income and buying habits. In most of the situations, the company has to become accustomed of their product and marketing mix strategy to look after the "needs and wants" of the local customers which cannot be avoided. For example, McDonalds is a global company. But their burgers are made specifically keeping in mind the local market. In India, as the cow is treated as a sacred animal, the burgers are made up of chicken or fish. In Mexico, their burgers come with chili sauce. Coca Cola tastes sweeter in some of the countries according to the taste of the local people. The procedure of accepting the product to local market adds little more cost on the product and weakens the brand globally as stated in the process of the standardization. Now the world has been changed. It is a global world where the people do shopping internationally over the internet, consumers travel in different places, watch satellite television. So, there is no imminent need to adapt the product in to the local market. There are some booming companies which do their business globally targeting their business in the similar groups. These brands include MTV, Nike, Levis etc.

As we have gone through both the strategies using customized product and a standard product, they both can go well naturally. But it depends on each company whether they prefer standard or customized product, it depends on the strength of the brand, the type of the product and the marketing area aimed at.

8.2 Marketing Mix: Promotion

A company can either adapt or standardize their message and promotional strategy with the help of the international product decision. Advertising messages are different in various countries. It should be adapted because of difference in political climate, language, religious practices and cultural attitudes. A promotional strategy made in one country may be treated as an offence in another country as the situations and beliefs in each country are different. Promotional strategy requires a lot of ground work, research and planning. A simple example may be use of color. Red color is worn by brides in India and considered lucky in china where as white is worn by mourners and brides wear it in china and united kingdom. Promotional strategies need to suit the local consumers and local market as cultural beliefs and traditions affect the consumers. This is practiced by most of the companies.

The availability and development of the media also takes an importance place. It involves some vital questions.

Is media and commercial television well set up in the host country?

What is the percentage of the people watching the television?

What is more popular –print media or TV?

What is the role of the government in controlling the advertising on TV, internet and radio?

When the company likes to enter in the foreign market, it is important to do PEST analysis. With this analysis, one can have a great understanding of the factors to operate in the foreign market. Pest analysis should be completed before designing promotional activity for foreign market.

8.3 Marketing Mix: Pricing

Pricing in an international scale of market is a tough task. In international marketing mix, for the pricing to be done, some factors need to be considered like traditional price considerations such as targeted groups and competition , variable and fixed costs. Besides this, the company has to consider some other factors which include

Transporting cost

Import duties and tariffs

The fluctuations in the exchange rates

Personal income of the targeted market

The Currency used in the market

Pricing according to the economic situation of the country

As the world has become small due to the internet, consumers can do shopping internationally over the internet. They can compare the prices globally. Due to this, the level of competition has been increased and the global competitors have lower operating costs.

8.4 Marketing Mix: Place

The place in the International marketing mix has its importance. It is all about distributing a service or a product to consumer at the right time in the right place. The process of distribution in national markets is like a chain link that is the goods move from the manufacturer to the wholesaler and to the retailers or directly to the consumers from there. Unlike domestic markets, in the overseas market there are more parties involved as the goods need to be moved around a foreign market. For example, there are five types of wholesalers engaged in the distribution process in Japan. The organizations need to know about the distribution chains before they start the business in that market. They also have to decide to whom they like to sell the product. They may sell the product to the wholesalers or to the retailers or to the consumers directly. The distribution strategy of each market differs from the other market. It depends on the type of the market, transportation costs and the profit margins.

9. Marketing Operation.

The process consider for various operations like strategic alliances, joint ventures and promoting offices and those branches in the manner of setting up, organizing and running abroad.

Formulation of Joint Venture is a progression of such series. It also requires a lot of work and accuracy. The steps needed to take for JV formulation are as follows:

Formation of objectives, structure and project which consists of the such financial arrangements like investment, debt etc.

Technical depiction and utilization of Joint Venture’s products

Improved and innovative technologies in production

Estimation of cost of equipment and production and other costs

Particulars of site which is offered for warehousing, testing, quality control, supply, usage, by-products and waste and transport requirements

Critical analysis of competitive advantage

Procedures to distribution, marketing and through projected sales

Environmental impact and social benefit

Joint Ventures help organizations for access of new marketplaces, information and other resources. However, if these organizations are owned by two or more parent companies, it can be challenge to manage. These companies also may face problems like heavy competitions, achievement of their goals and various styles of management. Other additional complexities such as diversity in business practices and various government policies may also face to do business internationally. For successful management of JVs, vigilant decision making in selection of partner, negotiation of terms which are to be implement and ongoing management. Some of the important implications also needed for each partner like disputes settlement, honesty and trust worthy commitments for success and allotment of managerial responsibilities based on the functional capabilities.

9.1 Alliances in strategic level

The most important tool for association executive is the establishment of strategic alliances including both profit and non-profit entities. These can be utilized for improving shared resources by adding talent in solving a difficult problem, targeting new customers and creating mechanisms. Unfortunately, in identifying, selecting and managing of strategic partners, these associations failed.

Establishment of Strategic Alliance:

There are mainly 5 steps to establish better strategic alliance:

Determination of corporate ground rules association and partner

Evaluation of strategic potential of the strategic alliance

Defining of success decisive factors

Establishment of strategic alliance plan

Structure of strategic alliance agreement

10. the overall Systematic Analysis

Methods of finance / Payments in Trading:

The main objective of present module is to ascertain the terms and procedures of payment. It also determines the documentation to payment for the sale of goods and services at right time, facilitations for financing and risks involved.

It is most important to a global business professional for international business transactions. An international business manager should know the methods, types and ways of payment both internally and externally of the business organization. It is very critical to apply these payment terms in the way to meet the business and collection objectives of the organization.

Such methods of payment used in international business are:

Advance payment of cash

Collection of documents

Letters of credit

Open account

Combining methods of payment

10.1 Investment Agreements

There is an agreement named International Investment Agreement (IIA) between countries for the purpose of promotion, protection and liberalization of investments of organizations. The IIA addresses the issues relating to cross-border investments and mostly Foreign Direct Investments (FDI) and portfolio investment. According to IIA, countries commit to adhere to particular standards in handling of foreign investments within in their province. The procedures to solve the disputes which should not be met those commitments also defined by IIAs.

The 4 general types of IIAs:

Bilateral Investment Treaties (BITs),

Preferential Trade and Investment Agreements (PTIAs),

Double Taxation Treaties (DTTs) and 4. International Taxation Agreements.

1. Bilateral Investment Treaties (BITs):

BIT type of IIA deals with admission, management and protection of foreign investment. BITs generally cover the investments of organizations and individuals of a country in the province of its treaty partner.

2. Preferential Trade and Investment Agreements (PTIAs):

PTI type of IIA deals with the reduction of the tariffs will be agreed by agreed countries on specific products. Even though tariffs are not totally reduced at least price will be reduced.

3. Double Taxation Treaties (DTTs)

Double Taxation Treaties are between two countries where elimination of taxation in both countries again thereby improving FDI.

International Taxation Agreements (ITA)

International taxation agreements are bilateral or multilateral agreements in trade between two countries or group of countries.

References and bibliographic details

Marchant, A. (2010). Grassroots to Global–Marketing Strategy for SMEs. Available: http://www.smeworld.org/story/marketing-prescriptions-120/grassroots-to-global%E2%80%93marketing-strategy-for-smes-131.php. Last accessed 9th OCT 2012.

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