International Marketing Management free essay sample

According to Alexandrides Bowers 1988 have identified two strategic policies categories among counter-trading firms: Company advantage policy; where the objective is to achieve short-term sales. Mutual advantage policy; where the primary focus is on the needs of customers and, in particular, and the developmental goals of the host country.? Within the categories identified, four variants describe the approach of firms to counter-trade: Defensive Companies with a defensive counter-trade strategy do not counter-trade at all instead they make many counter-trade type arrangements with buyer countries. These companies will avoid any contractual counter-trade requirements, but they make it clear to the country that they will respond in some way for the sale. Passive Companies with passive counter-trade strategies regard counter-trade as a necessary evil. They participate in counter-trade at ad hoc basis, on minimal level. Some companies operate this way because they have product influence, while others follow the passive strategy because of disinterest in counter-trade. We will write a custom essay sample on International Marketing Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Reactive Companies with proactive strategies have made a commitment to counter-trade. They use counter-trade aggressively as a marketing tool, and are interested in making trading an active and profitable part of their business. They regard offset and counter-purchase as an opportunity to make money through trading. Proactive companies participate in all kinds of counter-trade, including global sourcing, releasing of blocked funds, trade development, and trade financing. They often have in-house world trading companies, and will sometimes liquidate counter-trade obligations for other companies. As suggested by the specialist, companies should have a proactive well defined strategy instead of a reactive one. Examples of companies with proactive counter-trade strategies include Caterpillar, Monsanto, General Foods, Goodyear, Rockwell, General Electric, FMC, 3M, General Motors, Ford, Coca-Cola, United Technologies, and Pepsi-Cola. APPROACHES TO PRICING Pricing is a very complex topic to be discussed, few theorist try to attempt a common sense when coming into price however there is not a particular way that we can look at in order to decide on price. Factors such as accounting approach, marketing approach as well as economist approaches are a combination of different points of view deciding on pricing. Price on the other hand can also be considered as a communication tool, where organisations decide on how much to charge for a particular product they then build an image of the brand and the company itself, and this will also decide on the target market as well as the customers they acquire. e. g. : luxury brands. Firms that have a price quality relationship, when small firms must not concentrate on price. Although pricing is an important factor and also influences the behaviour of customers and buyer behaviour, it appears to be an irrelevant tool for some organisations; for Shipley 1981 as a competitive marketing strategy price is an extremely important factor for companies to succeed. Is important to stress that cultural differences have an impact on the way people do business and negotiate; Different cultures may have different expectations as to what should occur during the middle phase of negotiations, and how much time this phase should take. Low context cultures such as the U. S. expect that the middle phase will be a period of bargaining, a process of trade-offs and concessions in which the parties gradually converge on a shared position. Many high context cultures see such a process of haggling as appropriate to price negotiations, but inappropriate to matters of principle. High status individuals do not lower themselves to haggle over small points. Poly-chronic cultures are usually willing to draw out the middle phase. Mono-chronic cultures are usually in more of a hurry to reach an agreement. In order to have a proper training development at International level is evident that staff should be aware of overseas transactions as well as the inside of the organisation, or in other words the International mentality where concepts of exporting, importing and establishing cultural awareness as an overall strategy for the company. As part of the training we can first consider that staff must have the three main key elements within itself: Supervision, discipline and self-determination. Using expatriation and repatriation is also important and relevant for employees to be aware.

Why I Deserve This Scholarship - Sample Essay

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