Companies today can no longer afford to pay attention only to their domestic market, no matter how large it is. Many industries are global industries, and those
ncath this, it told them how to find competitors' dealers by showing a pair of binoculars. Another ad focused on Xerox's reliability. This showed a skyscraper of paper standing behind a Xerox machine with the line "Only Xerox has to pass this simple test.'
Aspen brought over 20 marketing managers from eastern Europe to take them through the basics of advertising and marketing strategy. The intention was to underline what it is that makes Xerox good value, and the manager's role in putting this across. They were provided with enough information and materials to create mailshots to go out to locally sourced customer lists. The packs followed a standard direct marketing format, containing a leaflet, covering letter and incentives to try out Xerox products. The marketing managers' training also included advice about how to organize local door-to-door distributions. This may seem an unusual approach for Xerox, but the dealers in eastern Europe were small businesses operating separately, so it was important that individual operators communicated one cohesive Xerox image.
There were striking differences between how Xerox dealers in eastern Europe and the UK operated. In Moscow one dealer was situated In a flat 14 floors up. Some dealers operated from teashops. In Warsaw it was different again: there were more showrooms, but in one there was a machine actually being repaired in the middle of the shop. There was little point following a standard point-of-sale approach. A modular solution was devised with blocks of point-of-sale materials, including leaflet dispensers, stickers and pens, for dealers to choose the items that best suited their needs.
The success of the campaign, from advertising through to Xerox branding, was one factor that led to Xerox achieving an SO per cent sales growth in almost every European country in 1994. The increased sales were also due to economic growth in these countries, and an increase in the number of Xerox dealers.
The branding of dealers was particularly successful. Since the initial exercise that began in 1993, all Xerox dealers (which now total 400) have received new branding kits to reflect Xerox's latest image. This is recognizable by its use of a big red 'X' logo. Management believes today's marketing campaigns in eastern Europe must, however, use different approaches from the ones that succeeded just a few years ago. This is to keep up with the rapidly evolving market.
Soillif.'E: Daney Parker, 'The X files', Marketing Week (8 March 1996), pp. 73-4.
firms that operate globally achieve lower costs and higher brand awareness. At the same time, global -marketing is risky because of variable exchange rates, unstable governments, protectionist tariffs and trade barriers, and several other factors. Given the potential gains and risks of international marketing, companies need to adopt a systematic approach to making international marketing decisions. We examined eight components of international marketing planning.
First, a company must analyze the international market opportunity open to it. To do this managers must understand the global marketing environment, especially the international trade system. The company must assess each foreign market's economic, political-legal and cultural characteristics. The company decides whether to go abroad based on a consideration of the potential risks and benefits. Second, it has to decide which country markets it wants to enter. The decision calls for determining the volume of foreign sales - assuming there is high product potential - and how many countries to market in, having weighed the probable rate of return on investment against the level of risk. Third, the company must decide how to enter each chosen market - whether through exporting, joint venturing or direct investment. Many companies start as exporters, move to joint ventures and finally make a direct investment in foreign markets. Increasingly, however, firms - domestic or international — use joint ventures and even direct investments to enter a new country market for the first time.
Fourth, the firm must allocate necessary resources to secure a foothold initially, and then to build a strong position in the market. Fifth, the firm must develop its strategic marketing plan, which must take stock of the level of adaptation or standardization appropriate for all elements of the marketing mix -product, promotion, price and distribution channels. Next, the company has to organise its operational team to achieve effective strategy implementation. The firm may adopt different organizational structures for managing international operations. Most firms start with an export department and graduate to an international di'oiHion. A few become global organizations, with worldwide marketing planned and managed by the top officers of the company, who view the entire world as a single borderless market. Finally, managers should continually evaluate their international marketing programmes. Plans should be monitored and control procedures applied, when needed, to secure desired.performance.
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