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Only a few generations ago, it took months to ship products to a market in another country, and doing so was such a difficult undertaking that only huge trading companies were able to take the risk.
More recently, information technologya€”and particularly the Interneta€”has shrunk the world even further. Even if a company chooses not to expand globally, it may well face domestic competition from foreign companies that are. Global marketing is particularly important for products that have universal demand, such as food and automobiles. Coca-Cola started selling internationally back in 1919, and is now present in more than 200 countries. McDonalda€™s makes certain that a Big Mac tastes the same in every country; but it also varies items on its menu according to local tastes. In Japan, Kentucky Fried Chicken has managed to associate their product with Christmas, and every year Japanese line up around the block to get their KFC chicken on that day. For a non-American example of global marketing, consider Ahava, which started out as a tourist stand on the Dead Sea selling bottles of mud and salt from the renowned body of water. Since global marketing involves a variety of different products and opportunities, ita€™s impossible to identify a single customer profile. Particular attention needs to be paid to the growing international online market, which vastly increases businessesa€™ access to customers worldwide a€” if they can speak the language.
When marketing products globally, companies must recognize that a marketing mix that works in the domestic market may not have the same success in another market. Product a€” Should the product stay the same in each market, or does it need to be adjusted to fit local tastes?
Partnerships with local businesses may be an important step in expanding into one market; while in another market, such partnerships might dilute the brand (See also Local Marketing).
When promoting a product or brand globally, a company must make decisions regarding trade-offs between standard and local messages. A global company must carefully research the various markets, and prepare to make adjustments to its product and messaging wherever required.
Individual marketers working with global campaigns should strive to learn the language of the market theya€™re assigned to, both for the purpose of managing business relationships with local companies and in order to verify translation efforts. Additionally, marketers should personally visit their target markets, and spend time in thema€”even moving to them for a time.
Developing, and respecting, the local business talent is also critical to global marketing.
Global Marketing Managers direct a companya€™s strategy and interests abroad, and may be posted in a specific foreign market. Most marketing managers have at least a bachelora€™s degree, often in marketing, advertising, or business management. Internet marketing managers typically require at least a bachelora€™s degree in marketing or a related field.
Market research analysts need at least a bachelora€™s degree in market research, or in a related field such as statistics or computer science. A good marketing program allows students to build a significant knowledge base and highly developed skill set in communications and management -- key skills in the global marketplace.
As a marketera€”as opposed to merely an advertisera€”youa€™ll learn about economics, business management, and product development.
Effective communication is crucial to any marketing strategy, and particularly in the global market, where communication can easily go awry. To learn more about what a marketing school can do for you, request information from schools with degrees in marketing, and open up a whole new world of opportunity. Our readers can personalize ViralBlog in Zite alike ways, and schedule e-mail alerts to get the most relevant answers to their specific questions.
No other company in comes close to matching Coca-Cola’s reach into the global marketplace. A brilliant, consistant, integrated and global marketing strategy is one of the key drivers behind Coke’s success. In many entertaining ways, Coke is sharing happiness and putting smiles on people’s faces, all around the world.
Later more on the glocal marketing results, but in this infographic you can already see Coke’s ROI on their marketing efforts. For example, in Egypt, Coca-Cola has built 650 clean water installations in the rural village of Beni Suef and sponsors Ramadan meals for children across the Middle East. In India, the brand sponsors the Support My School initiative to improve facilities at local schools. As former agency founder and strategist, my work at WPP and as chief global social officer at Mindshare I have worked with a dozen of leading global brands like: Unilever, Nike, Heineken, Ford, AmEx, Volvo and more.
While working with CMOs at both global centralized and global decentralized brands, I have seen up close and personal how extremely difficult it can be to manage and execute global and glocal marketing strategies.
Igor Beuker was CMO at 3 listed companies, chairman at the IAB, jury member at Webby, AMMA and Esprix awards, founder of 3 digital agencies (sold to WPP) and global chief social officer at Mindshare.
Related StoriesHow Brands Staff And Budget Their Social Media (Infographic)The 4 Social Consumer Segments CMOs Should Watch? Networking without a higher purpose can feel like an aimless endeavor, but when you’re participating in something that matters to you it becomes immediately worthwhile. I know plenty of people who think that the only successful networking outcome is the identification of a new sales lead.
We have been using Neuron Global for our online SEO (search engine optimization) needs, website maintenance, and general online marketing work for over two years and have had great results. A look at the appropriate figures, (for example The World Development Report by the World Bank) will indicate that the world is becoming increasingly interdependent for its economic progress. The chapter starts by looking at the evolution of a firm's orientation from primarily a domestic producer to a global player. Whether an organisation markets its goods and services domestically or internationally, the definition of marketing still applies.
Acceptance of postmodern marketing affects discussions of products, pricing, advertising, distribution and planning.
When organisations develop into global marketing organisations, they usually evolve into this from a relatively small export base. The Cold Storage Company (CSC) of Zimbabwe, evolved in 1995, out of the Cold Storage Commission. There have been many underlying forces, concepts and theories which have emerged as giving political explanation to the development of international trade.
These include the theory of comparative advantage described in the book Wealth of Nations (Adam Smith) and David Ricardo), the product trade cycle (Raymond Vernon) and The Business Orientation (Howard Perlmutter). The theory can be relatively complex and difficult to understand but stated simply this theory is a demonstration (under assumptions) that a country can gain from trade even if it has an absolute disadvantage in the production of all goods, or it can gain from trade even if it has an absolute advantage in the production of all goods. The international product trade cycle model suggests that many products go through a cycle during which high-income, mass consumption countries which are initial exporters, lose their export markets and finally become importers of the product. From a high income country point of view phase 1 involves exporting, based on domestic product strength and surplus-to phase 2, when foreign production begins, to phase 3 when production in the foreign country becomes competitive, to phase 4 when import competition begins. In the second stage of the cycle, foreign and high income country production begins to supply the same export market.
The cycle continues as the production capability in the product extends from other advanced countries to less developed countries at home, then in international trade, and finally, in other advanced countries home markets. Soon they were able to support cloth and finished good back to the UK, which by now had experienced growing production costs due to rising labour costs and failing market share. Whilst the underlying assumption behind the International Product Trade Cycle is that the cycle begins with the export of new product ideas from high income countries to low income importers, then low income countries begin production of the product etc., things do not always turn out as the cycle suggests. Sunsplash, based in Masvingo, Zimbabwe had, since 1984, processed a variety of fruit juices for the Zimbabwean market. In a short space of time, market share for Sunsplash fell from 1 million litres annually to a mere 400 000 litres.
The latter two are based on similarities and differences in markets, capitalising on similarities to obtain cost benefits, but recognising differences. Over the last few decades internationalism has grown because of a number of market factors which have been driving development forward, over and above those factors which have been attempting to restrain it.
Many global opportunities have arisen because of the clustering of market opportunities worldwide. The greatest lift to producers of raw agricultural products has been the almost universal necessity to consume their produce. Kenya's export of off season and speciality vegetables has been such that from 1957 to the early 1990s exports have grown to 26 000 tonnes per annum. The 1970s saw an increased trade as private investment in irrigation expanded, and air freight space increased, the introduction of wide bodied aircraft, and trading relationships grew with European distributors.
Kenya's comparative advantage was based on its low labour costs, the country's location and its diverse agro-ecological conditions.
This lay in its ability for continuance of supply, better quality and Kenyan knowledge of the European immigrant population. Kenya is thus a classic case in its export vegetable industry of taking advantage of global market forces. Whilst the forces, market and otherwise, have been overwhelming in their push to globalisation, there remain a number of negatives.
Several factors have contributed to the growth of the international economy post World War II. Until the General Agreement on Tariffs and Trade (GATT) after World War II, the world trading system had been restricted by discriminating trade practices.
Not only did this give a market for maize only, but opened up opportunities for transport businesses and services to serve the drought stricken areas.
No doubt a great impetus to global trade was brought about by the development of economic blocs, and, conversely, by the collapse of others.
In the late 1980s and early 90s, the United States, along with Japan, have been playing an increasingly influential role in world affairs, especially with the collapse of the former USSR. Individuals or organisations may get involved in International Marketing in a rather unplanned way which gives the impetus to more formal and larger operations. Unsolicited enquiries through word of mouth, visits, exhibitions, and experience through others may result in orders. Importers may be looking for products unavailable in domestic markets, for example, mangoes in the UK, or products which can be imported on more favourable terms. These may be of four types - domestic based export merchants, domestic based export agents, export management companies or cooperative organisations.
These may include banks, export organisations like ZIMTRADE, parastatals like the Kenyan Horticultural Crop Development Authority or even individual executives. Cavusgil3 (1984) developed a three stage model of export involvement, based on the fact that the opportunity to export may arise long before exporting behaviours became manifest. According to Cavusgil attitudes are determined by the operating style of the organisation and cultural norms which prevail in the domestic market. We saw earlier in the internationalisation process that organisations may evolve from exporting surplus or serving ad hoc enquiries to a more committed global strategy. Johanson and Mattison5 (1984) have explored the notion of differences in tasks facing organisations which internationalise.
This discussion on international infrastructure concludes the factors which have led to internationalisation.
In order to take advantage of global opportunities, as well as meet the challenges presented by so doing a number of concepts can be particularly useful. An analysis of the environmental uncontrollables allows the potential marketers to place products on a continuum of environmental sensitivity. In order to put together the task of finding the differences and similarities in environmental and market analysis, a framework needs to be devised. Once having identified the unifying and differentiating influences and answered many questions about where one could or could not standardise the marketing planning process then a conceptual framework for multinational marketing planning can be developed. Just as in domestic marketing the concept of the Product Life Cycle has often been cited as a useful (but often maligned!) planning concept, so it can be useful in international marketing.
The traditional four stage life cycle - introduction, growth, maturity, decline - is a well documented phenomenon.
With commodities, physical, Government and economic environmental factors playing a major role in international marketing. International marketing is, therefore, quite a complex operation, involving both an understanding of the theoretical and practical aspects involved. The development of global marketing has been brought about by a number of variables both exogenous and endogenous.
From your knowledge of the material in this chapter, give brief answers to the following questions below. Students should be encouraged to give examples of the concepts, techniques and factors where appropriate.
Zambezi nuts was a small agricultural cooperative, recently developed in the Zambezi Valley in Zimbabwe. The cooperative provided employment for about twenty small scale growers with a hectare each. Then, developments in transportation technology made it possible for people and products to move much more quickly, and the first push towards globalization began.
A business might have partners and employees half a world away, and consumers can get products from those locations in a matter of days. Rather, it includes the whole process of planning, producing, placing, and promoting a companya€™s products in a worldwide market. This competition has made it nearly a necessity for most businesses to establish an international presence. Thus a beverage company is likely to be in more markets than say, a wooden toy company; but even a wooden toy company may find niche markets in diverse corners of the world. In order to keep a consistent brand, Coke tastes the same in every region (although outside of the United States, the recipe uses sugar instead of high-fructose corn syrup), but the size, shape, and labeling of the bottle are changed to match the norms in each country.
Customers in Mexico can order a green chili cheeseburger, customers in Korea get to eat bulgogi burgers; and customers in many Arab countries can enjoy the McArabia, a grilled kofta sandwich on pita bread.
From this inauspicious start they developed a line of cosmetics, and after partnering with an American company that already has a global distribution network, their cosmetics are being sold in high-end department stores throughout the world.


A global company must be prepared to develop multiple profiles for each of the different regions it trades in. Walmart, for example, discovered that several retailers in Germany already occupied their low-price niche.
The savvy global marketer must consider all these aspects of marketing in addition to the task of communicating cross-culturally.
A single message is cheaper to produce and maintains the consistency of the brand; but it may not perform well in some regions due to differences in cultural values or expectations. Sometimes this requires changing a name (for example, the Chevy Nova didna€™t sell well in Spain, as a€?no vaa€? in Spanish means a€?no goa€?).
For example, how do you evaluate the work of someone who has translated your company website?
Here they can develop local contacts, as well as gain a deeper understanding about how business is conducted in the area. If you have an office in Hong Kong, for example, you want to make full use of talented Hong Kong Chinese professionals in your marketing, advertising, and distribution. Education preparing them for a global marketing career includes classes in marketing, market research, and international law. Important courses in their education will include information technology, market research, communications, and consumer behavior. Research analysts involved with global marketing will also benefit from a background in cultural anthropology.
Additionally, courses in market research will teach you how to gather the data you need in order to make marketing decisions.
Developing communications skills will be a core part of your marketing program, and will not only equip you with speech and presentations skills, but also give you a background in both organizational and cross-cultural communication.
Though it is a huge corporation, Coca-Cola focuses on small community programs and invests a lot of time and money in small-scale charity efforts. But most of these brands are advertising their theme, but not delivering on their brand promise. Browse our flagship format Viral Friday where you can enjoy over 1.250 viral hit videos, follow Igor Beuker on Twitter, grab our RSS Feed, join our Facebook movement or subscribe to our weekly e-mail newsletter.
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Now I understand, why Coca-cola is a globally renowned brand with such a high percentage of 94% consumer awareness about the brand. As a senior executive, you might have access to certain individuals that your sales force can’t easily reach. With the ubiquity of sites like LinkedIn and Meetup, almost every group that has a networking component will have a page for you to check out. With that said, I encourage you to give one or more of these concepts a try and let me know what you think. In 1954, in the USA, for instance, imports were only one percent of GNP, but in 1984 they had risen to 10%. It then goes on to describe the major factors that have led to global marketing, including both economic and social. However, the scope of marketing is broadened when the organisation decides to sell across international boundaries, this being primarily due to the numerous other dimensions which the organisation has to account for.
As a philosophy embracing customer value (or satisfaction), planning and organising activities to meet individual and organisational objectives, marketing must be internalised by all members of an organisation, because without satisfied customers the organisation will eventually die. However, given the fact that this textbook is primarily written with developing economies in mind, where the environmental conditions, consumer sophistication and systems are not such that allow a quantum leap to postmodernism, it is intended to mention the concept in passing. The latter, for many years, had been the parastatal (or nationalised company) with the mandate to market meat in Zimbabwe. Organisations begin to develop and run operations in the targeted country or countries outside of the domestic one. Stage three: stage two organisations which realise that they must adapt their marketing mixes to overseas operations.
Stage four: global organisations which create value by extending products and programmes and focus on serving emerging global markets (geocentric). Remarkably, despite the trend to world interdependency, some countries have been less involved than others.
Even though a country has an absolute production advantage it may be better to concentrate on its comparative advantage. Europe grows apples and South Africa oranges, these are two products, both undifferentiated and produced with production units which are a mixture of land, labour and capital. So South Africa should concentrate on the production of oranges as its comparative advantage is greatest here. At the same time other countries, particularly less developed but not exclusively so, shift from being importers to exporters. The assumption behind this cycle is that new products are firstly launched in high income markets because a) there is most potential and b) the product can be tested best domestically near its source of production. As foreign producers begin to expand and gain more experience, their competition displaces the high income export production source. Now the UK has little cotton materials production and it served by many countries over the world, including its former colonies and Commonwealth countries. When Zimbabwe embarked on its World Bank sponsored structural adjustment programme in 1990, Zimbabwe steadily moved from a command to a market economy, part of which allowed foreign importers.
On this reduced volume, coupled with higher transport costs, the company simply could not compete and closed its doors in January 1995. Organisations have found that similar basic segments exist worldwide and, therefore, can be met with a global orientation. A multi-product global giant like Nestle', with over £10 billion turnover annually, operates in so many markets, buys so much raw material from a variety of outgrowers of different sizes, that its international leverage is huge. If one considers the whole range of materials from their raw to value added state there is hardly a market segment which cannot be tapped globally.
This is the way by which many East African and South American producers established themselves in Europe and the USA respectively. From these beginnings Kenya has continued to give high quality, high value commodities, servicing niche markets. These facilitated the development of a diversified product range, all year round supply and better qualities due to labour intensity at harvest time.
Kenya's rapidly growing tourist trade also accelerated its canning industry and was able to take surplus production. Whilst losing out on temperature vegetables (courgettes etc) to lower cost Mediterranean countries, it increased its share in French beans and other speciality vegetables significantly getting direct entry into the supermarket chains and also Kenya broke into tropical fruits and cut flowers - a major success. However, ft has to look to its laurels as Zimbabwe is rapidly beginning to develop as another source of flowers and vegetables, particularly the former. Many organisations have been put off or have not bothered going into global industry due to a variety of factors.
Simply by creating barriers to entry, local enterprises may be protected from international competition as well as the local market.
Encouraged by this and the availability of finance, global corporations have been able to expand into many markets.
The great drought of 1992 in Southern Africa, necessitated a large influx of foreign produce, especially yellow maize from the USA and South America. Blocs like the European Union (EU), ASEAN, the North American Free Trade Agreement (NAFTA) with the USA, Canada and Mexico has created market opportunities and challenges.
Whilst on the one hand this is good, as the USA is committed to world welfare development, it can be at a price. This gradual change may involve moving from geographically adjacent markets to another, say, for example from the Southern African Development Conference (SADC) to Europe. The existing situation of the firm will affect its interest in and ability to internationalise. In planning for international marketing organisations need a clear picture of the steps involved.
Taking account of cultural, economic and political differences is a must when dealing with different markets.
At the one end are environmentally insensitive products and at the other end, those more sensitive to economic, sociocultural, physical and other factors. Where unifying influences are found then the marketer is able to develop more standardised plans. The evolution of global marketing has been in a series of four stages from exporting to truly global operations. What are the principal differences between marketing domestically and internationally or globally?
In previous years much time had been spent selecting and clearing a site and putting in cashew nut trees and a service road.
Large businesses often have offices in the foreign countries they market to; but with the expansion of the Internet, even small companies can reach customers throughout the world.
However, even today most companies are focused on the domestic market (which is the largest economy in the world), with only one percent of U.S. While the company formerly used a standardized advertising approach, it has changed to adapt advertising messages to local culture.
And as a global buyer of coffee, the company has long had a reputation for engaging local cultures according to their needs.
The United Statesa€™ biggest trading partners are Canada, Mexico, China, and the European Union; but international trade by no means ends there.
Morgan, in a report for the Department of Commerce, estimated that only 27 percent of online shoppers speak English.
Sometimes it even involves changing the packaging (in America, Gerber baby food has a cute baby on the label to represent the brand, but in some countries shoppers expect the picture to represent the contents of the jar, and were appalled by the image).
In Japan, for example, it is not enough just to speak Japanese; you must also conduct business the Japanese way.
Many companies have lost opportunities and alienated allies by having the attitude that as Americans, they automatically knew better than their foreign partners. The ability to communicate in another language is especially important; therefore, a global marketing manager will want to cultivate a proficiency in a foreign language (such as Mandarin or Japanese) or learn some of several different languages. Before examining global markets, researchers often gain experience in domestic markets, or in research assignments such as ethnographies.
Youa€™ll develop a variety of tools for both collecting and analyzing data, in both domestic and foreign markets.
Youa€™ll learn how to use both verbal and graphic messages, and how to tap into the values of your target audience to create a powerful message.
Or you might be in a better position to engage in dynamic, business-building discussions with a potential partner. If you’re looking for suggestions, below is a short list of some of my personal networking best practices.
And when you take that possibility off the table, you’re more likely to relax and connect in a meaningful way with the people around you. So even if you find this person, their guard will probably go up when they realize you’re trying to pitch something, 5 minutes after meeting them. These are really helpful because they can show you how big the group is, how active the members are, what their personal and group interests are, and so on. In food crops, while developing countries trade in coffee, cocoa, cotton and sugar actually declined in value during the 1980s, developing countries as a group experienced annual export growth rates of 4 to 11% in categories like processed fruit and vegetables, fresh processed fish products, feed stuffs and oil seeds. For example, in order to stave off potential famine, the United Nation's World Food Programme (WFP) may purchase maize from Zimbabwe and distribute it in Tanzania, Malawi and Kenya.
As a set of operational activities, marketing embraces selling, advertising, transporting, market research and product development activities to name but a few.
Even further, post modernisim, posts that the consumer who is the consumed, the ultimate marketable image, is also becoming liberated from the sole role of a consumer and is becoming a producer. However, the CSC lost its monopoly under the Zimbabwean Economic Reform Programme of 1990-95, which saw the introduction of many private abattoirs. In practice, organisations evolve and Table 1.1 outlines a typology of terms which describes the characteristics of companies at different stages in the process of evolving from domestic to global enterprises.
Whilst many organisations can survive like this, for example raw milk marketing, solely domestically oriented organisations are probably doomed to long term failure.
This involves recognising that markets around the world consist of similarities and differences and that it is possible to develop a global strategy based on similarities to obtain scale economies, but also recognises and responds to cost effective differences.
To calculate the comparative advantage one has to compare the production ratios, and make the assumption that the one country totally specialises in one product.
Kenya flower growers Sulmac and Oserian have achieved legendary reputations, in the supply of fresh cut flowers to Europe, How? To use the same production units South Africa can produce 100 apples and no oranges, and Europe can produce 80 apples and no oranges. Thus new products generally emanate from high income countries and, over time, orders begin to be solicited from lower income countries and so a thriving export market develops.
At this point high income countries often decide to invest in foreign countries to protect their share. In the early and mid twentieth century the UK was a major producer of cotton textile materials, primarily based on its access to cheap raw materials from its Commonwealth countries and its relatively cheap labour. Cotton, as an ingredient in shirtings, suitings, and curtain material can be globally marketed as natural and fashionable.
In many cases this may mean an adaption in advertising appeals or messages as well as packaging and instructions. If it consumes a third of the world's cocoa output annually, then it is in a position to dominate terms. In fact the case of Kenya vegetables to Europe is a classic, covering many of the factors which have just been discussed-improved technology, emerging global segments, shrinking communications gaps and the drive to diversify product ranges.
Under the colonialists, production remained small, under the misguided reasoning that Kenya was too far from major markets. Kenya was favoured because of its ability to supply all year round - a competitive edge over other suppliers.
Kenya's airfreight costs were kept low due to government intervention, but lower costs of production were not its strength.


Some have found the need to adapt the marketing mix, especially in many culture bound products, too daunting.
After 1969 liquidity was eased by the agreement that member nations to the IMF accept the Special Drawing Rights (SDR) in settling reserve transactions. The most favoured nation concept (MFN), whereby each country agrees to extend to all countries the most favourable terms that it negotiates with any country, helped reduce barriers.
The break up of the former Soviet Union has opened up vast opportunities to investors, aided by the World Bank and the European Development Bank. Costs and time have reduced enormously and with the advent of television, people can see what is happening elsewhere and this can cause desire levels to rise dramatically. New countries are trying to join these blocs all the time, because of the economic, social and other advantages they bring.
Sometimes an intermediary may provide export services in an attempt to reduce their own costs on the export of their own produce by acting as a representative for other organisations. The latter type of organisation may systematically, or in an ad hoc manner, search out international opportunities. The greater the sensitivity, the greater the need for the organisation to learn the way the product interacts with the environment. When there are a large number of differences, then plans have to be designed adapted to circumstances. The market life cycle is very similar and what global marketers have to be wary of is that not all markets are at the same stage globally.
In later years the enormous success of the Brazilian frozen concentrated orange juice industry has been attributable not only to poor climatic conditions prevailing in its competitive countries, but the fact that its investment in large production economies of scale, bulk transport and storage technologies considerably reduced international transport costs and facilitated improved distribution of the juice to, and within, importing countries. The coop itself had collection, grading and bulk packing facilities but no packaging facilities. Additionally, it adjusts its product line-up to fit local tastes; including a number of additional beverage brands. Nonetheless, in Korea, 99 percent of those with Internet access shop online; in Germany and Japan, 97 percent. In some cases, it may be more profitable to produce things locally; in others, it may be cheaper to ship them in from across the globe. To prepare specifically for global marketing, youa€™ll also take advantage of classes offered in cultural anthropology and international business law.
Whatever the case may be, it behooves you to spend a bit of time thinking about your own personal business networking strategy. High value food product exports in 1990 totalled approximately $144 billion, the same as crude petroleum, representing 5% of world commodity trade. This not only requires a translation facility, but the French cultural conditions have to be accounted for as well. It is important to note that marketing is not just a philosophy or one or some of the operational activities.
During its monopoly years the CSC had built five modern abattoirs, a number of which were up to European Union rating. To maximise the wellbeing of both individuals and countries, countries are better off specialising in their area of competitive advantage and then trading and exchanging with others in the market place.
At the other extreme South Africa can produce no apples and 50 oranges and Europe no apples and 30 oranges.
High income country entrepreneurs quickly realise that the markets to which they are selling often have lower production costs and so production is initiated abroad for the new products, so starts the second stage. As foreign producers expand, their growing economies of scale make them a competitive source for third country markets where they compete with high income exporters.
However, its former colonies like India, Pakistan and certain African countries, which were sources of cotton in themselves realised that they had the labour and materials on their doorstep conducive to domestic production.
This may be due to a number of factors like lack of access to capital to build the facilities to respond to the import, lack of skills or that the costs of local production cannot get down to the level of costs of the imported product. One can see in the streets of New York, London, Kuala Lumpar or Harare, youth with the same style and brand of basketball shirts or American Football shorts. A new pesticide is available almost globally to any agricultural organisation as long as it has the means to buy it. Not only are Brazilian, Israeli, South African and Spanish oranges in demand in their raw state worldwide, but their downstream developments are equally in demand. So irrigation for production was limited and the markets served were tourists and the settlers in Kenya itseff.
It also has a highly developed information system, coordinated though the Kenya Horticultural Crops Development Authority. This atmosphere of peace has also allowed the steady upward trend of domestic growth and again opened up market opportunities domestically to foreign firms. Only recently has television been introduced into Tanzania, for example, and this has brought the world and its markets, closer to the average Tanzanian. Similarly, the collapse of the old communist blocs have given rise to opportunities for organisations as they strive to get into the new market based economies rising from the ruins. In the case of fresh cut flowers, these may go to major, developed country consumer centres, for example from Harare to London or Amsterdam and Frankfurt. Strategy is the response of the organisation to the realities of shareholders and the business environment. It may be appropriate to have tractor mounted ditchers and diggers in Africa or the UK where labour is not too plentiful, but in India, they may be the last thing required where labour is plentiful and very cheap.
Whilst the above discussion has tended to be theoretical in nature, most of it, if not all of it, is essential in practice.
From a cottage industry in 1970, it grew to account for 80% of world trade by the early 1990's. The differences lie in the degree of market similarities and differences, and the extent to which the product to be marketed is environmentally sensitive or insensitive. Although the domestic market was attractive, the cost of production and the quality of the nuts meant that far higher returns could be gained by selling the nuts on the international market. In order to do so, global companies may rely on local distribution networks; but as they grow in particular markets, they may establish their own networks. Thus, companies who wish to break into those markets need to not only create a good product and do what works stateside; they also need to immerse themselves in the language and culture of the international market they wish to break into. Instead, expand your focus to connect with vendors, potential partners, and direct competitors. In 1990, more than twenty Less Developed Countries (LDCs) had exports of high value foods exceeding $500 million including countries like Brazil, China, Thailand, India and Senegal. The focus was shifted from knowing everything about the customer, to knowing the customer in a context which includes the competition, government policy and regulations, and the broader economic, social and political macro forces that shape the evolution of markets. So in consuming food products for example, it becomes not just a case of satisfying hunger needs, but also can be rendered as an image - producing act. In addition, and as a driving force to the building of EU rated abattoirs, the CSC had obtained a 9000 tonnes beef quota in the EU. Today there are a variety of spreedsheets that one can use to calculate comparative advantage, one such is that of the Food and Agriculture Organization (FAO). The final phase of the cycle occurs when the foreign producer achieves such a scale and experience that it starts exporting to the original high income producer at a production cost lower than its original high income producer at a production cost lower than its original high income supplier. The company needed to make the transition to aseptic packaging which would alleviate the need for chemical preservations and enhance unrefrigerated shelf life. Computers in agriculture and other applications are used universally with IBM and Macintosh becoming household names. National Breweries of Zimbabwe, for example, may not find their Chibuku brand of beer (brewed especially for the locals) an easy transboundary traveller. Recently, the World Bank has taken a very active role in the reconstruction and development of developing country economies, a point which will be expanded on later. The latest round, Uruguay, was recently concluded in April 1994 and ratified by most countries in early 1995. They may also be pressurised by customers, supplies or competitors to get into joint venturing. In food marketing systems many transactions and discussions take place across international boundaries.
Companies attempting to enter new markets tend to start with heavily populated urban centers, before moving out to surrounding regions. In global marketing terms this means forging alliances (relationships) or developing networks, working closely with home country government officials and industry competitors to gain access to a target market. In planning for marketing, the organisation has to basically decide what it is going to sell, to which target market and with what marketing mix (product, place, promotion, price and people).
Japan has risen fast to dominate the export rankings, with countries of Africa struggling to make a significant mark, mainly because of their emphasis on exporting primary products. High income producers, once enjoying a monopoly in their own market, now face competition at home.
Such was their success in supplying their own huge markets that their production costs dropped dramatically with growing economies of scale.
The need to recoup large costs of research and development in new products may force organisations to look at global markets to recoup their investment. In addition the ancillary products and services required to make the orange industry work, find themselves equally in global demand. More often than not sheer management myopia may set in and management may fail to seize the export opportunity although products may be likely candidates. Despite these trade agreements, non tariff barriers like exclusion deals, standards and administrative delays are more difficult to deal with. The liberation of economies under World Bank sponsored structural adjustment programmes have also given opportunities. By comparing the similarities and differences between domestic and international marketing needs and planning requirements, then the organisation is in a better position to isolate the key factors critical to success.
Lots of times these people are the ones who know your next customer, but for whatever reason it might not be the right fit for them. Although these tenents of marketing planning must apply anywhere, when marketing across national boundaries, the difference between domestic and international marketing lies almost entirely in the differences in national environments within which the global programme is conducted and the differences in the organisation and programmes of a firm operating simultaneously in different national markets.
For many years, the quota had been a source of volume and revenue, a source which is still continuing.
This section will briefly examine the forces which have been instrumental in the development of world trade.
The Boston Consulting group observed that as an organisation gains experience in production and marketing the greater the reduction in costs.
However, cashflow constraints within the holding company, (AFDIS), coupled with high interest rates made the $5,8 million investment unviable. The more culturally unbounded the product is, the more a global clustering can take place and the more a standardised approach can be made in the design of marketing programmes.
So insecticides, chemicals, machinery, transport services, financial institutions, warehousing, packaging and a whole range of other production and marketing services are in demand, many provided by global organisations like Beyer, British Airways and Barclays Bank.
This is very true of countries like Zambia and Zimbabwe, where in the latter, for example, over Z$2.8 billion of foreign investment in the stock exchange and mining projects have occurred in the early 1990s. If the organisation faces intense competition then it may be forced to up the pace and scale of foreign investment. If one considers food marketing as the physical and economic bridge linking raw materials production and consumer purchases then a whole series of interdependent decisions, institutions, resource flows and physical and business activities take place.
One such example is the Preferential Trade Area (PTA) in Eastern and Southern Africa where involved countries can trade inter-regionally under certain common modalities. Global volumes allow continuing investment in R & D, thus helping firms to improve quality. Of course, many raw materials are at the mercy of world prices, and so many developing countries find themselves at the mercy of supply and demand fluctuations. Under this deal, African and Caribbean countries enjoy favoured status with EU member countries. Rising protectionism in recent years has given impetus to late starters to establish production facilities in target markets.
For example, if an exporter of horticultural produce wishes to be able to anticipate changes in the political environment, it may build a relationship with certain politicians who may have intimate knowledge of the political system. Food marketing stimulates and supports raw material production, balances commodity supply and demand and stimulates end demand and enhances consumer welfare. Farm machinery, for example, requires volume to generate profits for the development of new products.
Infrastructure for foreign operations may also change (firms also reduce their investment as well as invest). This process often transcends several different industries and markets, many of them crossing international boundaries. Image, quality, reliability of delivery and other tangible and non tangible factors come into play. The product may change form, be graded, packed, transported and necessitate information flows, financial resources, invoice and retailing or wholesaling functions.
Kenyans may well be prepared to pay extra for imported French or South African wines, as the locally produced paw paw wine may be much inferior. With a growing trend away from tobacco products in the west, new markets or increasing volumes into consuming markets have to be prospected and developed. In addition, quality standards designed for producers and transporters may apply as may product improvements. In other words, the bridge may involve a whole set of utilities afforded to the end user (time, place and form), and add value at each stage of the transaction. To shift a perishable like strawberries 7000km from Harare, Zimbabwe to the UK requires an extraordinary complex series of activities, involving perfect timing. Unless these developments are picked up by global intelligence the plans for a big profit may be not realised as the extra volume supplied depresses prices.
The unexpected release of Chinese tobacco depressed the tobacco price well below expectations, leaving farms with stock and large interest carrying production loans.




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