International Marketing
A firm's international marketing program must generally be modified and adapted to foreign markets. An international marketing program uses strategies to accomplish its marketing goals. Within each foreign nation, the firm is likely to find a combination of marketing environment and target markets that are different from those of its own home country. It is important that in international marketing, marketing, product, pricing, distribution and promotional strategies are adapted accordingly. In order for an International firm to function properly, cultural, social, economic, and legal forces within the country must be clearly understood. "Australian Gourmet Gallery" is a small company based in Australia. Our company is currently successfully producing and marketing fresh, native Australian bush fruits throughout Australia. Australian native foods have been titillating international taste buds for over ten years. Our company hopes to export fresh Australian Native fruit to Malaysia. Native Australian fruit that will be available includes the Kakadu Plum which is the world's highest fruit source of vitamin C, Rosella fruit, Bush tomato or Akudjura, Wattleseeds which are high in protein and have the consistency of poppy seeds,
As "Australian Gourmet Gallery" is a only a relatively small company, the risk would be too high to invest the time and money up front to establish wholly owned subsidiaries. Instead, the business will rely on third party partners to market and sell the fresh native Australian fruit. Third party partners can be established relatively quickly, and are considered lower risk than subsidiaries. When using third party partners, it is crucial that the company research these partners ahead of time (Bussin, R). Pricing is a very important factor in international business. The pricing system more common in international marketing is cost-based pricing. Cost-based pricing is not as popular in domestic marketing as it is in international marketing. Using this simple method of pricing, the seller first determines the total cost of producing or purchasing one unit of the product. The seller then adds the additional amount to cover additional cost and profit. The cost added is called the markup. The total cost of the markup is the selling price of the product. Many smaller firms calculate the markup as a percentage of their total cost. Markup pricing is easy to apply and is used by most businesses. However, it has two major flaws. The first is the difficulty of determining an effective markup price. If this percentage is too costly, the product may be overpriced for the market. Another problem with markup pricing is that it separates pricing from other business functions. Many countries maintain regulations concerning products and packages. Countries have expectations that foreign marketers will adhere to these rules. The legal and political atmosphere varies across national borders. At present, there are no quarantine restrictions imposed by the Malaysian government on imported native fruit. All fresh fruit consignments entering Malaysia are subject to inspection at the port of entry and if necessary, treatment by the Department of Agriculture prior to clearance by customs (http://www.austrade.gov.au/MP/index.asp?pageid=52730). The current import duty for major fresh fruit is 5% on CIF value. All fruit attracts a sales tax of 5% (http://www.austrade.gov.au/MP/index.asp?pageid=52730). Malaysia is an important, attractive, and constantly growing market for Australia. "Australian Gourmet Gallery" will target only limited segments of the Malaysian market. Promotional strategies will be intended for the middle to upper class Malaysian people and fine and exotic restaurants. As the fresh fruit products will be sold through supermarkets though, it will be available to almost everyone in Malaysia. As in domestic marketing, the determining factor is how well the product satisfies the target matket. A firm's marketing program must be adapted to foreign markets to account for differences in the business environment and target markets from nation to nation. The marketing mix may require the modification of cultural, social, economic and legal differences. Foreign marketing requires the understanding of various additional costs, which tend to increase the prices of exported goods. The company "Australian Gourmet Gallery" has researched price, product, promotional strategies, distribution, research on the Malaysian market, legal aspects such as tariffs, social climate, packaging requirements, and staffing. After gathering such data, it is a viable option fo
Some common words found in the essay are:
Gourmet Gallery, Chinese Indian, Department Agriculture, Booker British, Kuala Lumpur, Malaysia Australian, Finally HR, , Bussin International, Australia Malaysian, australian gourmet, australian gourmet gallery, gourmet gallery, fresh fruit, native fruit, fruit malaysia, kuala lumpur, australian native, native australian, international marketing, australian fruit, australian native fruit, native australian fruit, native fruit malaysia, third party partners,
Approximate Word count = 2269
Approximate Pages = 9 (250 words per page double spaced)
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