International Marketing
Introduction
a) The international market is made of the global economy. In the year 2007, the total
merchandise that was traded in the international market was US$10.5 trillion while total services
traded amounted to US$2.4 trillion. The international market is made up of the total world’s
population of 6.6 billion which is targeted to reach 10 billion people in the year 2050. (Ohmae,
2005). The total global wealth is ever increasing and is obviously reflected by the high demands
that increase affluence and developing commercial dynamism across all nations. (Doole and
Lowe, 2008)
The global population growth and also the increased affluence have together created a unique
global youth culture i.e. teenagers who currently account for nearly 30% of the total world’s
2 International Marketing
population. In most countries across the entire world, the pre-adult population is slightly more
than half the total population. (Porter, 1990). This development has created one of the largest
single markets globally i.e. the youth market. To open up new opportunities and remain globally
competitive, most Multinational Corporations opt to consolidate their positions through mergers
and acquisitions. (El-Kahal, 2006)
b) The processes used in international marketing are complex and diverse. These processes
involve all the factors that are considered during the planning processes of international
marketing and all the controlling activities and operations involved. The major objective of the
international marketing processes are basically how to achieve the current and the future targets
of the company, how to analyze and evaluate the market opportunities, its potential, capabilities
and how to forecast on the changes that are beyond the control of the company and which can
hinder the achievement of these objectives. The business processes must address the following
questions. a) Where is the firm currently? b) Where does the firm want to go? c) How can the
firm get there? These questions are essential and they query and emphasize the need for a
company to be adequately prepared for its future survival, its growth and to assess its
competitive nature either locally or internationally. The initial business process is to set the
company’s long term targets which will define its objective that will eventually reflect its general
aspirations. The market plans must be flexible and should be able to accommodate unfamiliar
cultures, the changing economic and political environments. When companies move to
international markets it goes through several process which includes the unplanned stage,
budgeting stage and finally the annual and strategic planning stage. (Kotabe and Helsen, 2008)
During the unplanned stage, the initial stages of the development of international marketing, the
company is normally engaged in finding new export market and customers together with funds to
3 International Marketing
finance its global expansion. Hence most companies remain unpredictable with relatively
unplanned and pending business processes during this period. As the business grows, the
budgeting stage sets in. These is usually the case as the pressure from external shareholders,
banks and other stakeholders exert pressure for a clear budget on sales, costs and other
expenditures. The annual business planning process involves the entire business in its planning
review operations. The business planning process begins with one of the following processes.
Top-down planning process approach. It includes development and setting of goals by middle
level and other senior staff members. For this approach to be successful, the senior management
teams have to be fully aware of the activities in the international markets whose nature must not
be very complex.
Bottom-up planning process refers to a situation where all the separate global branches prepare
their own targets and plans and forward them to the head office for approval. This process
encourages innovation and initiative. Goals down, plans up approach involve the senior
managers evaluating the company’s opportunities, needs while setting the corporate objectives
and other international strategies. (Wilson and Gilligan, 2003)
The control process is made up of the following key elements. a) Setting the standards that are
needed for the company to remain relevant internationally and also to meet the set targets of the
corporation. For instance, the standards on international products qualities, financial and other
non-financial standards. These standards must be applicable, achievable, easy to understand and
basically relevant to every country worldwide. b) These standards must be subjected to
measurement to ensure overall quick feedback of relevant information. For example, some
companies use meetings, reports, cost benefit analysis and processes on customers, market audits
4 International Marketing
and other techniques to weigh the outcome of their marketing efforts internationally. They may
also apply the of bench-marking that compares several aspects of the firms businesses i.e.
efficiency, customers responses, complaints, service levels and also make comparisons on
performances of other firms from the same industry. c) Corrective deviations from set targets and
plans are perhaps the most difficult decisions that need to be careful made before corrective
measures are adopted i.e. by either changing the plans or replacing the entire management team
that’s implementing the processes.
c) The firms that excel internationally are those ones that respond effectively to the changes in
the international market by adopting strategic measures which have been systematically
developed to counter and respond accordingly as per the conditions that have changed. (Hamel
and Prahalad, 1996) These companies have continually described themselves as knowledge
based firms that enhance personal employee knowledge, skills and other competencies needed in
its development potential internationally. (Quelch and Deshpande, 2004)
Counter trading, major financial innovations, value based marketing and other forms of
networking are becoming more relevant in the formulation of international business strategies.
The following are the key components in any international strategies. a) A clear and thorough
knowledge of all the essential elements of the international markets i.e. strong competitive
positioning and relevant strategic perspective that’s internationally recognized. b) An effective
and applicable relationship strategy that has been culminated through very strong customer
relationship, genuine commitments to quality and accessible products, service and honest
dedication to customer service in all the international markets. c) Well managed organizations
that reflect effective culture of learning. Companies that are innovative and are able and also
willing to learn are the most successful in the international market as they are committed and are
5 International Marketing
also monitoring all the markets internationally hence develop control procedures to any changes
that may affect them negatively. (Sarathy, Terpstra and Russow, 2006)
d) Corporate Social Responsibility is the process companies use to manage and produce their
general positive impact on the society. Most stakeholders are increasingly becoming more
interested in the activities and operations of companies around them. They constantly analyze
the products of the company in terms of their effects on the environment, social and economic
impact on the local community. Also whether the Corporations existence is having a positive or
negative impact in their lives. For instance, its employment policy towards the community and its
contribution towards the social life of the community. (Kotler & Lee, 2005) The concept of CSR
initially meant performance of good acts as a show of kindness towards the society but currently
its mutually favorable activity where both the society and the corporation equally benefit. They
are many benefits for CSR, these includes, improves corporate image, enhances and improves
staff morale and employee retention, it contributes to stronger ties with the government and local
communities. (Lee & Park, 2009)
The major limitation of CSR is that there’s no mention of increased profits among the benefits of
CSR activities. Vogel (2008) indicates that the major reason why Corporate Social
Responsibility doesn’t pay is that only a few clients, a niche market, cares whether the
establishment he’s buying services or goods from is socially responsible. Most clients make their
purchases based on the price, quality and above all convenience. Vogel doesn’t recognize the
benefits of increased levels of recycling and improved environment practices such as energy
saving lighting and other environmentally friendly activities.
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Easyjet plc is a company that is based in Britain and has its head office in Luton, Bedfordshire.
Its core business activity is in the airline industry. It was founded in the year 1995 and its current
CEO is Carolyn McCall.
Easyjet plc strives to excel in environmental, ethical and other social activities that mould
successful and sustainable business environment. Easyjet is involved in emissions control and
shaping greener environment for the future of the aviation industry. It has lately acquired an
ecojet that’s relatively friendly to the environment because of its low pollution rate. Easyjet
strives to be more efficient, reduce environmental pollution by controlling emissions and also
promoting economical low fares for its corporate social responsibilities promotions.
Easyjet is involved in several CSR activities. In partnership with UNICEF (United Nations
International Children Fund) in the year 2012, Easyjet funds the program Change for Good that
facilitates donation by allowing passengers to donate extra pocket change to the wellbeing of
destitute children and life saving work across the world. For instance, in the vaccination of
children against polio, measles and the provision of mosquito nets to prevent the spread of
malaria.
Easyjet has also taken the initiative to support and mobilize European community to donate
funds for UNICEF additional charitable work that can also assist other respective local charities
and communities back home.
Easyjet has also being involved in humanitarian activities in Syria by supporting UNICEF in
assisting the children caught up in the ranging conflict. In May 2012, Easyjet raised slightly over
$70,000 in aid of the victims of the Italian tragic earthquake in the Emilia Romagna region.
7 International Marketing
Easyjet also sponsored the Edinburgh Film Festival in the year 2012 to reflect its current
position as the leading Scotland’s airline. This is also one way of marketing its products
internationally and also locally.
Finally to conclude, International marketing involves a series of processes that involve strategic
formulation, implementation, evaluation of the feedback information and again restrategizing.
It’s basically a continuous process that generally adopts the universal changing trends.
References
Doole, I. and Lowe, R. (2008) International Marketing Strategy. London. Seng lee Press
El-Kahal, S. (2006) Introduction to international business. McGraw-Hill.
Hill, C., Jones, G. (2008) Strategic Management. Houghton Mifflin Company: New York.
Hamel, G. and Prahalad, C.K. (1996) Competing for the future. Harvard Business School Press.
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Kotabe, M.and Helsen, K. (2008) Global marketing management, 4th edn. J. Wiley and Sons.
Kotler P. & Lee N. (2005) Corporate Social Responsibility – Doing the most good for your
company and your cause. New Jersey: Wiley & Sons Inc
Lee S. & Park S.Y. (2009) Do socially responsible activities help hotels and casinos achieve
their financial goals? International Journal of Hospitality Management Vol. 28 p. 105-112
1 December.
Ohmae, K. (2005). The next global stage: the challenges and opportunities in our borderless
world. Pearson Education.
Porter, M.C. (1990). The competitive advantage of nations. Macmillan.
Quelch, J. and Deshpande. R. (2004). The global market: developing a strategy to manage
across borders .Wiley and Sons.
Sarathy, R., Terpstra, V. and Russow, L.C (2006) International marketing, 9th edn. Dryden
Press.
Vogel (2008) CSR doesn’t pay. Accessed online on 24/11/2008.
Wilson, R. and Gilligan, C. (2003) Strategic marketing management: planning implementation
and control, 3rd edn, Butterworth-Heinemann.
