Report On International Marketing: Positioning Strategies, Export Management, And Consumer Behavior
Global Consumer Culture Positioning
The first presenter approaches the concept from the perspective of GCCP, Global Consumer Culture Positioning. The GCCP uses thematics and verbal components for positioning. Branding according to the first presenter connects consumers with the brands spiritually and emotionally. High tech products appeals more to the senses and creates ads that include little moments of life, friends and family. All international businesses follow English as the official language. The branding of high-tech products on the other hand are technologically difficult and sophisticated. Although the branding if these products have to be taken extra care of since they reach a wider consumer base. As per the FCCP or Foreign Consumer Culture Positioning, the users of brand, use occasions or product origins with a Foreign Branding. Lastly, the LCCP identifies with local values and used frequently for household durables, personnel and food items.
My contributions- I have gathered from my readings that GCCP is a highly potential communication strategy highly efficient for communicating with teens and global elites who are valuable members of the transitional culture of commerce. FCCP on the other hand is crucial as it sets the agenda of marketing with the use of effective language. LCCP strictly adheres to the cultural identities of the local area. I was able to identify the differences between the three. LCCP is used foe brand positioning in television advertisements and used more for promotions than GCCP. GCCP is used less for high-technology, household products and personal care as compared to LCCP (Jalkala and Keränen 2014). Further, GCCP makes use of symbols more often than LCCP,it is driven by globalization. The greater the influence of Globalization in the region, the more potent will the use of GCCP. Overall, positioning requires the adequate knowledge of brand recognition. Brands distinguish their positions in different markets by building up loyalty and creating peerless levels of awareness. Cultural influences is one of the motivating factors of consumer decision making.
According to the second positioner, positioning is the differentiation of product or brand in the mind of the customer. It emphasizes on the features of the brand to create an ideal image in the market. The positioning strategy should be aimed at distinguishing the brand in terms of its unique attributes like convenience and reliability. The second presenter approaches LCCP with the brand’s association with a region’s cultural meanings, depicting the product as locally consumed by local consumers. GCCP is a strategy that considers the brand to be a symbol of a global culture or segment. It is a set of symbols related to consumer behavior and consumption, which are understood universally but not shared by consumers across the globe.
My contributions- I feel one of the shortcomings in the presentation is that it has not focused on the consumer’s perception of a particular product or brand in relation to the other competing brands. The decision of consumer will always be influenced by the availability of substitutes and the quality, prices of those substitutes in comparison of the given brand. Any marketing positioning requires meticulous marketing initiatives which has to be intended for re-enforcing the perception of the target market regarding a particular brand or product. Sometimes, a brand needs repositioning, that is altering the position of the brand in the minds of the consumer, or in some required cases, changing the identity or image of the brand/product. Market positioning is categorized into differentiation and cost leadership. A business can choose to position itself either by a strategy of cost leadership or by strategizing a differentiation in business (Banker et al 2014). A company utilizing the strategy of cost leadership establishes its position in the minds of the customer by providing goods and services at lesser prices than the substitute ones available in the market. The differentiation strategy of business on the other hand attempts to develop an exclusive position in the minds of consumers by branding itself as a company that provides better quality products than the ones available in the market, these products are unique enough for the consumers to be willing to pay more for them. Both these strategies, I feel, are extremely powerful marketing tools and should be put to proper use for building a proper brand image.
Foreign Consumer Culture Positioning
The primary participants of export are Principal, Manufacturer and Foreign purchasing agent. The agent seeks out manufacturers whose quality and price match well with the specifications of the product. Export Management company acts as a commissioned representative without being entitled to financial risks and brand name. Freight Forwarders act as an intermediary between transportation services and a shipper. Some sourcing that helps in the reduction of manufacturing costs include the consideration of logistics, country infrastructure, political factors and outsourcing. The presenter has differentiated between a letter of credit and other forms of import financing and highlighted the importance of LOC in international transactions (Czinkota et al 2013). The different methods of payment include advance payment, bank collection, open account and letter of credit. The exporter or the seller prefers advance payment, letter of credit, bank collection an open account in the given order.
My contribution- What makes international marketing so feasible is the flexibility of business conducts and proceedings all over the world. The planning process, execution of rates, distribution and promotion of products is the same worldwide. However, I would like to draw attention to the scenario of competitive marketing. Companies of the contemporary world are not restricted to their current borders but are opening channels for the provision of international marketing (Majaro 2013). With the continuous changes in the customer’s demands, tastes and preferences and choices, the economies have been extending, which is making space for the field of competitive marketing. Hence, exporters and multinational corporations are required to be attentive and responsive to the consumers’ demands and be well aware of effective marketing strategies. I have also observed that several companies are under the impression that concentrating on single markets limits their target, and hence to increase their opportunities in the market place these companies seek to expand globally and concretize their market presence worldwide. I would also like to argue that the management relating to international trade is obscure and rather disorganized. The exporter can be differentiated from the international marketer on account of its alienated stature, nature of the products, while it is totally possible for the International Marketer to a avoid this under differing circumstances.
The presentation refers to the De Mooji article for reflecting on the converging and diverging consumer behavior. It stresses on the organization’s responsibility to understand the influence and values of cultures in the countries they wish to operate their business (Solomon et al 2014). The article suggests the anticipated diversity of consumer behavior due to cultural differences. Societies that adhere to strong uncertainty avoidance, maintain a rigid code of belief and behaviors and are intolerant of deviant ideas and persons. Countries like Netherlands and Spain are strong perpetrators of a masculine culture and consider hard work and success to be essential components of life. On the other hand a feminine culture looks well after the balance between work and life.
Convergence and divergence is associated with creating and making choices. As far as divergence is concerned, national culture is a vital force in shaping the values. The presenter suggests that national culture and not scientific growth and economic theory, is the embodiment of a country’s values and the character of management. One of the main obstructions to convergence is contrasting in cultural values. Moreover, culture is a major factor in the decision making process of the consumer.
Local Consumer Culture Positioning
My contribution- From my readings of peer reviewed articles and other relevant sources of the topic, I have concluded that eliminating incomes differences across the globe and converging technologies cannot lead to consumer behavior homogenization. Rather, cultural differences is a potential reason for the heterogeneous nature of consumer behavior. The convergence of consumer incomes across the countries will lead to the strengthening of the value difference manifestation.
The presenter approaches the concept of International Marketing with the Country Of Origin effect. The effect can be defined as an influence a certain country of assembly, design or manufacture has on a consumer’s positive or negative opinion of the product (Piron 2000). The elements of origin comprises of the following: site of manufacturing, place of design, company’s headquarters office, and most importantly, the place of locating the origin. Country of origin is a way to differentiate products from competitors, a cue to base buying decision, has impacts on consumer’s perception of quality, and also influences consumer preferences and their willingness to buy a product. However, the COO effect does not affect all products. Low involvement products with complex manufacturing process has high COO effect. Some examples include household goods, automobiles, agricultural products like corn, dairy and honey. Some critics have pointed out the increasing irrelevance of the COO construct in global branding and multinational production. Consumers today, display very little concern about the COO of a product. Although it cannot be undermined the effects of COO are automatic and can influences the customer’s perceptions and behavior even in the absence of intention.
My contribution- COO is an extension of the already existing stereotypes about countries a products traditionally formed by myth, heresy and experience. These vague yet broad stereotypes directs the consumer choices and influence their behavior. Another notable thing I observed is this context is that the ‘Made in’ label is equally powerful as the ‘Made by’ label. Italian flair, British class, Japanese miniaturization and Swedish design- the products and their brand values are inextricably associated with the countries (Agarwal and Kamakura 1999). The marketers, therefore, must be conscious of the type of COO branding that they involve in, since straying away from traditional niche markets might be unfavorable for their prospects.
The presenter approaches the concept of international marketing with the strategy of foreign branding. The technique refers to the practice of acquainting customers with the foreign name of a brand. In Farrell’s view, consumers have the tendency to assume that a company is originally based in the United States unless the brand makes it explicit that they are not so. The presenter refers to Juneja for elaborating on the concept of country of origin effect. It refers to the practice of consumers and marketers who associate the brands with particular, corresponding countries and basing their buying decisions on the product’s country of origin (Oliver 2014). It must also be considered that specific countries have different characteristics associated with their manufactured products. The concept of country of origin and foreign branding are similar in the sense that they alter the expectations and perceptions of the consumer. Although they have theoretical differences, as branding alters or modifies the perception of the consumers solely through the name of the brand while the country of origin influences the opinion of the consumer regarding the quality of the product.
My contribution- A survey conducted by EU suggested that majority of the customers today pay more attention to where the product is made and bases their decisions on it. I believe the strategy concerning foreign branding involves word pronunciation or a spelling, associated with diverse languages. The purpose is to create a perceived value or a brand image the business or the organization is after. Since names and words have enough power to mold the audience, their beliefs and perceptions, it becomes necessary for companies to choose a brand name that conveys a particular emotion, feeling, imagery about a particular product or service. By the manipulation of brands, companies can have the advantage of influencing how the consumers judge and perceive of the products they are selling.
References
Agrawal, J. and Kamakura, W.A., 1999. Country of origin: A competitive advantage?. International Journal of Research in Marketing, 16(4), pp.255-267.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
- Banker, R., Mashruwala, R. and Tripathy, A., 2014. Does a differentiation strategy lead to more sustainable financial performance than a cost leadership strategy?. Management Decision, 52(5), pp.872-896.
Jewell, R.D. and Saenger, C., 2014. Associative and dissociative comparative advertising strategies in broadening brand positioning. Journal of Business Research, 67(7), pp.1559-1566.
Maarit Jalkala, A. and Keränen, J., 2014. Brand positioning strategies for industrial firms providing customer solutions. Journal of Business & Industrial Marketing, 29(3), pp.253-264.
Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach to World Markets. Routledge.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp. 978-3658078836). Springer.
Oliver, R.L., 2014. Satisfaction: A Behavioral Perspective on the Consumer: A Behavioral Perspective on the Consumer. Routledge.
Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in international marketing. Routledge.
Singh, J., P. Kalafatis, S. and Ledden, L., 2014. Consumer perceptions of cobrands: The role of brand positioning strategies. Marketing Intelligence & Planning, 32(2), pp.145-159.
Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). London: Pearson.
Teeratansirikool, L., Siengthai, S., Badir, Y. and Charoenngam, C., 2013. Competitive strategies and firm performance: the mediating role of performance measurement. International Journal of Productivity and Performance Management, 62(2), pp.168-184.
Zeugner-Roth, K.P., Žabkar, V. and Diamantopoulos, A., 2015. Consumer ethnocentrism, national identity, and consumer cosmopolitanism as drivers of consumer behavior: A social identity theory perspective. Journal of international marketing, 23(2), pp.25-54.