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by Sampath de Silva

International business means the design and implementation of marketing strategies across different National markets. The global trading arena is highly unpredictable, uncommon, and unknown. It is absolutely a costly and risky drama, with numerous trade obstacles and disparities in the scene.

If you contemplate adding an overseas arm to your business entity, it should not be a hit or miss affair. It is not possible to predict the hurdles that will have to be encountered. We should be flexible in our efforts to a great extent and consider the pros and cons in the process.

What is needed is to take a more vigorous and disciplined approach. Look beyond national boundaries and adjust to overseas conditions that you have specialized in. Carry out in a most delicate manner and transcend all the barriers to become an International Player. Once a company decides to go abroad and target a particular country, it has to determine the best mode of entry strategy. Its road choices are indirect exports, direct exports, licensing, joint ventures, direct investments etc.

In deciding to venture abroad the company needs to define its marketing objectives and policies precisely and be on the dot accurate. Set moderate and achievable goals at the inception of the campaign and fire all your cylinders to build-up your own little empire abroad.

Screening international

marketing opportunities

The assessments of international marketing opportunities usually begin with a screening process, which involves gathering relevant information on each country. In the screening process, in which the firm identifies need potential of the country use the following techniques to eliminate less desirable and to filter out nonessentials.

* Initial screening process
* Economic and financial process.
* Political and legal factors
* Social cultural forces
* Competitive forces

Personal visits

Across the Globe, why gray markets for certain products

The overseas markets are multi cultural, multi racial, multi linguistic and multi religious. These markets are relatively heterogeneous in all the dimensions.

A frequent blunder in this ball game is targeting a segment of consumers from all walks of life and from every nook and corner of the country.

When any business entity attempts to venture into unfamiliar markets, it might encounter various peculiarities of people, law, culture as well as political uncertainties. The main concerns would be the political structure and economy of the country.

The politics and economy would be the livewire and synonymous with Trade practices to a larger degree in any country.

If the economy is clearly fragile and politics is in a fluid state or gloomy these conditions can upset the rhythm of trading opportunities in any country.

The marketers must have a substantial knowledge about political structure, Socio economic forces, and Cultural ambience and language articulations in the foreign soil. Before prospecting and popularising the concept of your choice in a market off shore, it is advisable to study that country's current trends.

The principal concerns of this process would be geographical structure, lifestyles, behaviour patterns, religion, National values and infrastructure.

If a country's individual's disposable income and per-capita income in drastically low, it would be absurd even to do the litmus test in such environment.

The better way to prevent such circumstances is to invest in a politically viable state. The most difficult factor is identifying a conducive environment for a futuristic and long-term investment.

The present climate in the world is that most of the ruling parties are embroiled in political upheavals and internal rifts.

Why some universally accepted brands are stagnant in another market One might anticipate a massive rise at the very outset. Even a highly publicized brand in your own domestic market could remain stagnant and would not yield desired outcome abroad.

Perhaps in the Internationalised operations even the iconic brands and superior products (Globally recognized) can face hostile receptions and lie dormant for years in another country.

To get over a situation of this sort alter the products and services to meet local conditions and products must be adapted to their superstitions and beliefs.

Otherwise whole campaign would be detrimental and could fail miserably.

Fish in the troubled waters

When the country's economy is in troubled waters or going through a turbulent period, due to high inflation, indebtedness, unemployment can result in unstable governments.

That exposes the foreign firms to the risk of expropriation (Nationalization) and limits on profit repatriation.

If the economy in a country fluctuates in that perspective premature death can happen to your products and go into hibernation.

The firm should pre-determine to overcome such discrepancies. The remedy for such instances could be to recourse to the closest neighbour.

There could be ample opportunities in the neighbouring land. Re-structure the battle plan and marshall your resources to cement a permanent place and shield the market share.

Perhaps, you may achieve greater success and catapult to prominence than expected. So some smart marketers of high calibre or extroverts in the field, track the weather before embarking on a voyage.

This is not to say there are not some brands that can fight the weather and go counter - wave, counter-wind, counter-current or tide - do something extraordinary or unusual and stand out for that reason.

Specific Cultural Influences

This is a very crucial factor to consider. Culture is learnt, not inherited and it is a very stable component of any human being.

In the broad anthropological sense collective programming of the human mind results in strong cultural emotions. Broadly speaking culture evolves with the way we live, die, organize, perceive and culture influences the hierarchy of needs. Some products have a strong dependence on culture, an excellent example would be marriage related goods, such as wedding kit. Anthropology, the study of humans, is a discipline that focuses on the understanding of human behaviour. Anthropology examines all human behaviour that is known, including social, linguistic and family behaviours.

Culture includes the entire heritage of a society, transmitted by word, literature or any other form. It includes all traditions, habits, religion, art, langauge and also the ancient artefacts of a society.

Culture also reflects the human aspects of a person's environment. International marketing practitioner refrains from violating cultural ethos, customs, traditions and national values of the country.

A function of marketing is to understand and influence the consumer's needs in order to earn profits from satisfaction of human wants and needs. Specifically in the Global arena we should understand culture.

These elements send direct and indirect messages to consumers regarding the choice of goods and services.

Cultural Analysis for International marketing

* Learn local communication complexities
* Mix with the host and nationals
* Be creative and experimental
* Be culturally sensitive
* Recognize complexities in host culture
* Perceive one's self as a culture bearer
* Be patient, understanding and acceptable to one's host
* Be more realistic in expectations
* Accept the challenges of intercultural experiences

Trends in World Trade

The world is increasingly becoming a Global Village, with its market place stretching across every continent. To successful business, this opens a huge door of opportunity enabling it to sell its products and services to people thousands of miles away from their base.

In the present situation world leaders of any trade (highly diverse blue chip conglomerate) practise the most sophisticated techniques on promotional activities.

This will definitely hurt market followers and the other entrepreneurs and new entrant in the world.

Know how to deal with Internationals effectively

The marketers in this millennium should learn foreign languages.

The language is the spine of any cultural process.

The other vital area to deal with is volatile currency and be more Global minded.

This is absolutely a meeting of minds for further negotiation.

Identify character, personality traits and background through body language or non-verbal communication.

The arm and hand gestures, facial expressions and language articulation should be prime concerns. The personal touch and the natural inclination matters a lot in the process.

What is multinational?

Multinational corporations (MNCs) are companies that manufacture and market products in several countries.

Typically a MNC operates a number of plants abroad and markets products through a large network of fully owned subsidiaries.

Although no clearly acceptable definition exists. MNCs are also referred to as Global Companies, trans national firms or stateless corporations.

The term MNC is reserved for a company with extensive overseas operations including overseas manufacturing in several countries.

The Global companies differ from MNCs in that they pursue integrated strategies on a worldwide scale rather than separate strategies on a country by country basis.

Characters of multinational companies

* Manufacturing ways abroad
* Global perspective
* No Distinction between local and International
* Allocate resources worldwide

Advantages of the MNC

* Flexibility of supply e.g. If a company is short of materials etc, it should be able to get the requirement from the closest country
* Raising additional capital

If a firm is in need of a financial assistance banks and institutions are willing to finance it any moment

* Movement of raw materials
* Transfer of technology

You can transfer the technical expertise and advancement for consultation

* Interchange of management
* Research and development
* Internationalisation of management Benefits to host country
* Transfer of Technology
* Capital inflow
* Sharing of the management expertise
* Training and development of local staff
* Multinational companies introduce best potentials to the company

Problems with multinational companies

* Multinational companies have colonial attitude
* Control and influence of local market
* Aggressive marketing
* Unequal competition with local companies
* Outflow of capital
* Repatriation of profits
* Locals can adopt foreign corrupt practices with MNCs are so powerful and they can change any developing country's culture by media.

Also there are nations victimized by changing lifestyles, accents, religion, styles of dress and food and transform traditions and customs.

If the business is off the track, or outside the orbit

A more recent phenomenon is the development of a range of strategic alliances. The strategic alliances are different from traditional joint ventures, in which two partners contribute a fixed amount of resources and the venture, develops on its own. In an alliance two different firms pool their resources directly in a collaboration that goes beyond the limited of a joint venture.

In an alliance partners bring particular skills and resources.

If your firm's business is at the declining stage or away from the mainstream, it is the most appropriate time to give consideration to the strategic alliance or merge with another financially strong entity.

For the future growth of the company or to further survive, merge even with the arch rival. This method could curtail unwanted outlay and tug of war of competition and tit for tat tests.

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