Market Research
International marketing can be defined as the marketing done by companies to foreign markets outside their national boundaries. This form of marketing involves identification and targeting of a particular market zone or area (Davenport, 2000, p. 34). Another consideration usually taken by the companies that want to venture in the international market is the marketing strategy. For example, for the iPad to enter the Australian market, the Apple Company must find a good entry point and create an appropriate marketing strategy.
This report will consider all fundamental processes involved in the international markets such as: advertising campaigns, sales promotions and technology. Some companies consider outsourcing marketing strategies rather than using their own means, these results exposing such companies to trade risks. It is important to note that Apple uses its own marketing strategies in such markets, thus avoiding such risks. After the company has chosen to venture in international markets; it must also choose the mode of engagement in this type of market. These modes of engagement are: exporting, joint ventures and direct investment.
Advertising Campaign Strategy
Advertising is one of many forms of communication used by companies to relay information to its consumers; this information can be relayed by use of an identified sponsor. Companies should not only choose to use attractive product prices and quality products, but should also consider the access to these products; otherwise they may result in failure in this type of market. The most important thing in communication is the type of information relayed; to whom and the number of times it should be communicated. Advertising is not only the form of communication but also there are other forms, such as sales promotions and public relations (Davenport, 2000, p. 54).
Advertising as a form of marketing communication usually informs the consumer about the product, mainly its use and, how it is used. Advertising links the brand to the people in order for them to believe it and come closer to it; it also creates awareness of the same, hence creating brand equity among the people. With the increase of similar products in markets such as the United States, Apple will want to be more proactive in its advertising strategies; otherwise its product will not see the light of the day. IPad being such a complicated product; the company must use the proper avenues of advertising so as to help the consumers in Australia and the United States in using the product.
Many companies usually consider various factors when selecting an appropriate advertising campaign strategy, such factors are: media coverage, media time table, budget and specific advertising message.
Media coverage
Most of the advertising messages are sent via the media. The media has several channels such as: electronic media, display media, network media, broadcast media and, print media. Mass media is the most effective means of advertising because it caters for the behavior and attitudes of personalities toward a certain product, this often takes two processes. First, the opinion leaders receive the information and then it flows to the public. The implication of the two processes are that; the opinion of the public is cross-blend by the opinion leaders and that the people usually get involved in social groups, which makes it possible to relay the media ideas. Advertising agencies consider it important to relay information to opinion leaders and thereafter they can transfer the ideas to the public. The effectiveness of the media can be justified because many people, if not all have access to media facilities (Krugman, 1998, p. 330).
A well coordinated media which is either within or across media types should be emphasized by all companies; this will ensure better coverage of the product. To reach the maximum number of people and also to increase the impact, the media should be channeled using appropriate time frame. Many companies have sought to increase their sales pitches through online and offline data transfer.
Media timetable
When a company is choosing the type of media to use, it can be faced by two main problems: macro scheduling and micro scheduling. Macro scheduling is the use of business cycle and seasons to arrange for an advertising program, although the latter involves cost evaluation and expenditure allocation for a short period, it obtains the highest impact. Where a new product has been launched in the market several features are taken into consideration such as, advertisement continuity, pulsing and, flighting. The Company should consider the amount allocated on advertisements over a certain period and space.
Budget
A budget is a very important tool when arranging the type of advertising machine to use and the following factors should be taken into consideration while doing the same;
- Product life cycle: New products require bigger budgets while existing products in markets require less.
- Market share and consumer base: Products which have high market share require a high expenditure for maintenance; this is the same also for the consumer base.
- Competition and clutter: Products which are highly competitive require bigger budgets. Advertisement clutter requires an additional budget even though competitors are few.
- Advertising frequency: This is the number of times the advertisement can be played. The higher the rate of advertisement, the more the process becomes expensive and vice versa.
- Product substitutability: Products which are easily substituted such as beer and cigarettes require bigger advertising budgets (Nigel, 2007, p. 77).
Specific advertising message
Advertising is dependent on the message put across to the consumers but mostly on how it is said. When the message is wrongly placed, the impacts of the advertisement are not decisive. For this reason, many companies usually seek experienced sponsors and have the skills to perform this task.
The sales promotion strategy to consumers
For a company like the Apple, it is important to use this form of advertising because it enables the company to capture instant buyers who seek low priced products and premiums even though such customers are not loyal to the company. Such an activity forces consumers to buy commodities in bulk, hence increasing the sales of the company. Sales promotions challenge consumers to try new products which are on offer in the market.
It is important to note that, sales promotions do not target loyal brand buyers because they do not change their patterns of buying, for the reasons of sales promotions. Research has shown that sales promotions do not alter the total category of buying volume. For example, a study conducted on 1,000 promotions revealed that only 16% were positive on the build up of total category volume (Krugman, 1998, p. 340).
Sales promotion strategy to trade channel members
Many countries usually organize their promotions in international markets similar to those of their local or domestic structures.International sales force can be organized by firms within a certain country along geographical border lines. When determining the international sales force, a company should consider the following: expatriates, third country nationals and, the nationals of the host country (Hollensen, 2007, p. 43).
Technology used to market the product or service
One of the best examples of technology used in marketing is the viral marketing. Viral marketing is the use of pre existing social networks such as face book to offer awareness of the brand (Nigel, 2007, p. 87). This type of networking enhances the use of the Internet and thus enables a company to reach a wise range of consumers. With this type of technology in use, it will increase the sales of iPad in the United States and Australian markets.
Seeding is another form of technology used to market products, and this is done through the Internet. Many options have been used while seeding in the Internet and they are:
- Blogs
- E-mail
- Online forums
- Podcasts
Conclusion
In conclusion, it is important to note all the five factors involved in developing a good marketing and advertising program. These factors are: advertising objectives, budget, media, evaluation of sales effects and creative strategy. With these factors in place, a company can establish a good market base. Companies should also organize proper sales promotions to broaden and create a good partnership with its customers.
References
- Davenport, H., (2000).The Attention Economy: Understanding the New Currency of Business, Boston: Harvard Business School Press.
- Hollensen, S., (2007). Global marketing: A decision oriented approach (4th edition). New York: Prentice-Hall.
- Krugman, G., (1998).What makes Advertising Effective? Boston: Harvard Business Review, p.340.
- Nigel, B., (2007).Marketing Research: Tools and Techniques. Oxford: Oxford University Press.