The paper "Odes of Entry in the International Market, Price Escalation " is a perfect example of a marketing assignment. International product decisions apply to those products that are produced by a business entity that engages in international marketing. The standards of these products are highly considered so as to ensure that they meet the expected standards across diverse cultures. There are different alternatives available to an entity and these normally depend on market conditions that are presented to the business entity. This is defined in terms of the market and the terms which it serves.
The international product alternatives that are available to the company are the number of products lines that the company will put in place as it ca. this decision is very core for the organization and it has to be taken with precision so as to avoid making losses in a case so many products lines are, employed. It also avoids probable loss of market if the product lines that are put in place are less than required thus the strategic team always considers this as a very core question to which the right proportion of attention ought to has been assigned.
The other alternatives that the companies have to consider are the product alternative is the product mix which refers to the various considerations that the organization has to take. The other alternative is the degree to which these companies need to be consistent as far as these product lines are concerned. the degree of consistency of the supply decision is made depending on whether the product is seasonal or not seasonal and also depending on the reception of the product by the market.
The other alternative that the companies put into consideration is the length and the depth to which the product lines need to be implemented. The other alternative that is put into consideration is such factors as the product extension, the product adaptation which refers to what has to be done to the product so as to ensure that it is adaptable to the market. the product invention is the final alternative that has to be taken into consideration by the international business enterprise.
There are several factors that normally affect this decision and these include such factors as consumer preferences, the laws and regulations that are provided in the various nations. There are mainly four alternative modes of entry in the international market. These refer to the alternatives from which an international business entity can choose from so as to decide how to join the international market. The alternative ways are through export where the organization exports the products to the foreign nations. The second alternative is through getting into contractual agreements with foreign firms and agents.
The organization then does business with and in the other nations on the bases of a contract which is time-bound according to the time indicated in the contract. Formation of strategic alliances is also an alternative way in which an organization uses the strategic marketing team to come up with the strategies that can be applied so as to venture into foreign markets in a strategic way that can allow the company to make profits. This involves identification of the opportunities that arise and making proper use of these opportunities so as to make the best sales and the highest profits for the seasons that the chance arises.
Direct foreign investment is the final alternative that the businesses can use as a mode of entry into the foreign market. This is whereby the company or the foreign business does business with other nations by way of investing in these nations directly. The decision is normally influenced by such factors as the cost. The cost of entry is put into great consideration as the company has to weigh the costs of the different alternatives and come up with the most cost-effective method.
Other factors that influence this decision are the potential sales that the nation can make and the strengths of the resources that are available in the nation that the business is trading with. The restrictions by the foreign nations are also put in place and the cultural differences as well. Culture refers to the way of living that is embraced by particular people. it normally refers to the norms, values, believes and the ideas that a particular people hold on to.
It to a large extent determines the behavior of these particular people. There are different elements of culture that influence cultural values. The culture of a particular people normally differs from the culture of other people. Due to the differences in the different cultures in the different nations the international company does business with, the international company has to understand the diversities and therefore act accordingly in the different nations. This is due to the fact that two different cultures look the same they may have a degree of differing from those of the others.
An international marketer must adopt ways and means of adopting the different strategies to cope with the diversities. Part of what constitutes culture, are such things as the languages that are used across the different divides and that may actually use similar words but across the different nations, these words have totally different meanings. If a person uses the same word in the different cultures he may end up being misinterpreted and thus if this communication was meant to capture a market it might result in a loss instead.
Ethics are also an element of culture and they are a core element that the organization has to put into consideration. This would apply when it comes to advertising the products in the different nations or in any other form of direct communication that would occur between the business enterprise and the people. The marketing research carried out so as to facilitate a defective sales response should focus to understand the different cultures and this will help in the right understanding of the different cultures.
This will also help in the right interpretation of the different ethical values and standards across the divide. Global organizations should focus on making the best out of the elements of culture are the rituals that are carried out by the different people. The symbols used like the gestures and signs as well as the languages and also the thought process which normally results in actions. An international marketer should strive to understand how the various elements work across different cultures. The core importance for the understanding of the different cultures is important for the implementation of good international business deals. Price escalation normally refers to the changes in the prices of goods in the market.
This is evident to some specific goods over specific periods of time. It could be termed to have similar effects as inflation but the difference is that price escalation happens to a particular class of goods or items and it normally happens in particular seasons. In other words price escalation is not general in nature but it is specific. It refers to the added costs that are added as a result of exporting.
Price escalation is not driven by the changes that occur in the money supply but rather it is related to the changes in technology and the changes to the practices that occur and it is also caused by the supply and the demand imbalances. It is normally indicated by the changes in the price index of a good or service. It can also be indicated using econometrics. Price escalation can be misleading because it can sometimes occur only in a small market known as a micro-market.
the effects in a micro-market tend to be hard to be predetermined using the surveys and indices that are difficult to find. As a result, an international supplier may make predictions that are likely to be misleading in adjusting the prices in the market. Some businessmen employ the use of risk fund so as to curb the effect of cost escalation. Normally the marketers or the companies supply their products in the market place with the perception that the products will do well.
They use the figures available to evaluate if they will make a profit or not. Just like inflation which occurs without prediction and affects the way that the business affairs do price, escalation also causes problems in the market place. This causes a loss to the business and this, in turn, makes the international business to make some losses. it the reduction in price escalation can occur due to various factors such as lowering the costs of the goods as well as lowering the tariffs and lowering the distribution costs.
Firms, can, however, employ clauses against escalation.