International Marketing Questions Essay Example

the need to be aware of an ailment to overcome it. Ignorance in cross-cultural interactions can lead to uncomfortable situations and negative consequences from others' judgments. The text also provides a political environment example that examines stakeholders' definition.The stability of the political environment and government significantly affects various aspects, including delays in implementing mental health policies, availability of funding for mental health initiatives, and the timeline for executing these policies. This also impacts views, beliefs, and attitudes towards government actions and the relationship between citizens and their governing bodies. Political risk comes in two types: macro risk affecting all foreign firms and micro risk only affecting specific industrial sectors or businesses. Adverse political actions encompass events like revolutions and financial measures such as capital movement restrictions. Multinational corporations being unprepared for these situations can suffer substantial financial losses. An example is given with Fidel Castro's takeover of Cuba in 1959 resulting in expropriation of American-owned assets worth hundreds of millions without hope for recovery. This serves as an illustration of economic risk influenced by macroeconomic conditions like government regulations, exchange rates, or political stability. In simpler terms, economic risk refers to the possibility that a project won't generate enough revenue to cover its costs and debt obligations.Assessing economic risk is crucial before starting a project as it highlights the potential for the venture to become economically unsustainable. Factors such as changes in economic trends or fraudulent activities can negatively impact the outcome. Political and social activism, which may lack official government approval, can disrupt normal trade processes. This activism involves various individuals and groups, including peaceful activists and those resorting to violence and terrorism for

change. When well organized, these actions can be successful, as seen in the campaign against Nestle's sale of baby formula in Third World markets. The global boycott resulted in significant changes to Nestle's marketing strategies. Recent activism from the Free Burma Campaign (BBC) pressured US armament companies into ceasing textile imports from Myanmar, leading PepsiCo-owned Pizza Hut and Taco Bell to face criticism for human rights violations there. As a result of the boycott, PepsiCo sold its stake in its joint venture in Myanmar and withdrew from the market due to potential losses outweighing profits. Similarly, Holland Heinlein and Denmark Scrabbles beer companies also withdrew from Myanmar for similar reasons.Expanding overseas investments is a way to mitigate political risk, which has been observed in corporate America for years as companies diversify their holdings. However, a major healthcare insurance company recently acquired a substantial stake in Brazier's Mail, a leading provider in Brazil's emerging-market healthcare industry. This move unethically reduces its exposure to the political process of U.S. healthcare reform in the future.

To achieve similar portfolio results, consider investing in foreign stocks and bonds. If you are concerned about potential increases in U.S. Treasury rates, Aberdeen Asia-Pacific Income primarily invests in Australian and Pacific-region bonds that offer higher interest rates and better prospects compared to Treasuries.

Furthermore, investing in shares of Telephonic and Banc Suntanned exposes you to Spain's political dynamics, specifically concerns regarding Catalan calls for secession and uncertainties surrounding the country's fiscal issues. Although these political risks differ from those faced by the U.S., allocating some funds there or elsewhere in Europe can provide protection against American gridlock.

Another strategy is purchasing affordable insurance. Recent stock

performance improvements have led to a significant decrease in volatility levels.
The reduced levels have made purchasing put options more cost-effective for safeguarding portfolios from short-term disruptions. It is important to note that if there is no major market downturn, the entire amount paid for the put options may be lost. Although buying puts is not a wise long-term strategy, it can protect investments from significant losses. Additionally, converting retirement assets into Roth IRAs or Roth 401(k)s can provide tax certainty for individuals concerned about future tax liability. Despite recent tax increases making Roth conversions more expensive at present, taking advantage of current rates may be preferable compared to potential future rises. The definition of a product varies across different industries. In marketing, a product encompasses anything that satisfies the wants and needs of a market. Retailing refers to products as merchandise and typically includes raw materials like metals and agricultural products in manufacturing processes. However, commodities can also encompass any widely available item on the open market. Project management defines products as formal deliverables that contribute to achieving project objectives. Insurance policies are considered products offered by insurance companies through contractual agreements. Adam Smith, the political economist who first introduced the concept of goods in economics and commerce, also defined their economic meaning.
Goods include products, which are classified as subproducts when they result from a production process. Product liability applies to physical products that pose risks to consumers or bystanders and cause injuries. The role of a product in international marketing is influenced by differences in consumer adoption rates across countries, driven by economic factors such as affordability disparities between Malaysian and American consumers for

Vicars. Moreover, attitudes towards new products, including pharmaceuticals challenging traditional faith healers, impact market acceptance. When one market becomes saturated with a specific product, there may be growth opportunities in other markets. For instance, computer ownership is widespread in a significant percentage of American homes (between one third and one half), while adoption rates in Europe and Japan are lower. As a result, computer manufacturers often see greater growth potential in these regions. It's important to highlight that economically developed countries typically purchase newer and more desirable aircraft while selling their older ones to developing countries as part of cycling expensive capital equipment between nations.

In developed countries, "three part" canning machines that solder on the bottom with lead are considered unacceptable for health reasons. However, these machines have found a market in developing countries.

The text below describes the components of a product: core benefits, actual product, and augmented product. The core benefits fulfill the customer's needs. Product development is driven by various needs such as social validation, user-friendliness, or risk-free purchasing. These key benefits can be provided directly by the product itself or through other aspects like packaging.
The actual product is what customers physically buy and hold in their hands. It includes components that deliver the core benefits to customers. Features, branding, packaging design, and labeling decisions also contribute to defining the actual product.
Augmented products involve adding extra products and services to generate additional revenue streams. An example is an accounting software program that includes various modules alongside its main function.
When operating in international markets, companies must adapt their products and marketing strategies considering local differences which include language, culture, regulations, and distribution channels. Adapting

to these differences is necessary for success in individual markets. To achieve international success, products must align with local preferences such as tastes, price levels, technical and safety standards regulations cultural preferencesUsing a platform strategy can decrease costs associated with product development and adaptation. This involves creating a central product that can be customized for different regions. By doing this, local adjustments can be made without the need to create entirely new products. For example, electrical equipment may need to be modified to accommodate variations in power supply, safety regulations, and compliance with local laws. Similarly, software developers must consider factors such as time format, date format, currency display colors, and navigation systems.

It is recommended to work with a translation agency that understands the technical aspects of the product in order to ensure that product information meets local requirements accurately. This will help maintain precision in product descriptions and operating instructions for localized versions. Additionally, it is important to consider local cultural preferences when it comes to packaging graphics and colors since certain colors or images may be offensive in specific markets which could create barriers to acceptance.

To effectively incorporate relevant messages, images, offers, and creative treatment while maintaining the brand's value and strength, it is crucial to adapt marketing communications according to local conditions. Educating the audience about unfamiliar products in new markets plays a vital role in achieving success.Collaborating with local agencies or professionals can help adjust communication tools like emails, newsletters, advertisements, direct marketing, publications, and customer magazines. When entering international markets without enough resources to reach customers directly through a sales force in their own market, alternative channels should be considered.

Local distributors or agents can provide knowledge and contacts for faster market entry. Another option is marketing products through a website supported by a local marketing communications program. Outsourcing parts of the adaptation project to localization specialists can speed up entry into international markets. Localization agencies offer translation and communication services that adhere to local cultural, language, political, legal, and business requirements.

Innovation involves applying new solutions to meet market needs whether they are known or not. This can be achieved by introducing more efficient products, processes, services, technologies or ideas available to markets governments and society. The term "innovation" refers to something original and new that enters the market or society and is associated with new important phenomena.A comprehensive definition would state that innovation is something original new important in any field that enters a market or society .In some fields like economics and management science, novelty is often considered an innovation. It is seen as a process that combines evolving ideas to impact society. Innovation, unlike invention, focuses on using better and novel ideas or methods rather than creating them. It also differs from improvement as it implies doing something different instead of just doing it better. Embracing mistakes as part of the innovative process is characteristic since being open to new business ideas entails recognizing their necessity.

According to management expert Tom Peters, it is important not only to tolerate but also encourage mistakes. At Minnesota Mining & Manufacturing (MM), a researcher stumbled upon a new adhesive while trying to improve the adhesives used in MM tapes. Despite initially seeming like a failure, this adhesive eventually became useful for Post-it notes, leading to significant

innovation and business opportunities.

To promote innovation, it is crucial for everyone in the company to have an open mind and approach things with a fresh perspective. Nooks, a Finnish company, provides a classic example of how lateral thinking can transform a company originally involved in the wood pulp and logging industry. They faced tough competition from cheaper imports when the Russian market opened upHowever, Nooks realized that their competitive advantage came from a communication system developed in the 1980s for remote logging operations. This realization led to Nooks becoming one of the top vendors of communications equipment globally (Figure 1).

On a walk with his dog, George De Mistral—an amateur mountaineer and inventor from Switzerland—accidentally discovered something. After returning home covered in burrs, he examined one closely under his microscope and found tiny hooks on them that attached to fabric loops on his pants. This revelation inspired De Mistral to create Evolve, a fastener that imitated this mechanism. Evolve had stiff hooks resembling burrs on one side and soft loops on the other (Figure 2).

This innovation demonstrates how innovation affects the rate of diffusion. The theory of diffusion explains how new ideas and technology spread in cultures by examining factors influencing adoption within a specific culture. Diffusion research focuses on identifying conditions that can either enhance or hinder adoption likelihood.