Benefits of Online MBA in International Business
Business has to accept the fact it may no longer remain isolated from rest of the planet. International players creating competition for Indian businesses and are increasingly making India as the destination. Likewise several Indian organizations are becoming multinational corporations. Company is planning to go into the arena of international marketing have to be completely mindful of the manner host countries prefer to do business their civilization and parameters of societal contacts. Managers are required to have complete knowledge about international marketing and the subject continues to be getting focus in lots of the business schools.
Why International Business Management
There are many reasons why companies want to expand their operations to international markets or different countries. Country wants to start exporting when it has installed more production capacity than what is required for domestic consumption. When some countries enjoy easy availability of low cost raw material and labour, they can take advantage of cost arbitrage and expand into international market. Sometimes encouraging government policies fuel international expansion.
International marketing is different from domestic marketing. It is governed by regulations and rules of the host countries i.e. countries in which we want to establish the business. Moreover international marketing must look at what exactly are the cultural differences between the nations and take advantage of varied cultures. Especially, for the multinational companies patents and culture are extremely important terms. Using these MNCs can customize and offer different products to different host countries.
Factors affecting International Marketing
The following factors about general business in one may need to be considered for conducting business.
Demographics
Demographics is all about profile of your potential customer population. This gives you information about income levels, age, sex, languages spoken, religions followed, composition of urban, semi-urban and rural population. It also carries additional data about seasonal and permanent migration patterns of the people. This is critical as it helps a company understand demand patterns.
Social and Culture
There are many social and cultural aspects that need to be taken care of while doing international marketing. One of the considerations is individualistic society or group culture. In a group culture, buying decisions and habits would be affected by peers. Hence marketing strategy has to be aligned with it. Key festive season, level of literacy, affiliation and level influence of religious groups etc. are also some of the important points to consider.
Political and Legal factors
International marketing is affected by rules and regulations of the host country. Political system, political parties, ease of doing business, government’s look out towards foreign businesses, ease of setting up business come under legal and political considerations. Events like political unrest giving rise to terrorism, election outcomes where governments are changed in the host country can affect international marketing.
Technology
Technology is becoming key factor in today’s world. All business related activities starting from market research, production to post-sales support can be delivered through technology. Level of technology available in the host country, how easier it is to develop or upgrade it, what efforts are being taken for technology research and adoption are key things as input to international marketing.
Economic
Per capita income or buying power of the target country in one of the crucial factors. Product positioning and pricing has to be in alignment with it. For financial transactions, availability of banking system, use of various instruments, taxes levied on businesses are also equally important while planning international marketing strategy.
Government
The view of government about foreign businesses is important. There are many questions. Does government of the host country is open for foreign investments and also open about giving entry for foreign goods? How easy is it to start and grow the business considering government regulations and laws of the land?
While going international there are many factors that need to be studied and monitored in the context of host country. This study would help create better strategies for marketing internationally.
How to be successful international marketing manager
To be successful in international marketing many things would be required. One should have god knowledge about the demand pattern for across multiple countries based on demography, social, cultural and economic factors discussed above. This would help select right countries as target for particular product or service. Better estimation and deployment of resources is a key factor along with close monitoring of the marketing programs launched.
As companies are focusing on international expansions, demand for person who is skilled in International business is increasing. International marketing is one of the crucial area along with financial management and operations for any international business. A program for Online MBA in international business management focusses on giving these skills for its participant. If you are interested in taking a career leap into international business, this is a program for you.