The marketer is highly concerned with the controllable elements in the marketplace. These controllable are product, price, place and promotion. The marketer can get a product produced or develop an attractive product at a price consumers would be willing to pay, as well as adopt a successful marketing plan that would aid in moving the product quickly through the distribution system and onto the final customer. The marketer must adapt these controllable elements to the changing market conditions encountered in a foreign country. The marketer adjusts these four P's around the consumers' needs and wants.
There are different product strategies that can be applied when marketing internationally: straight extension, which is marketing the same product without a change; product adaptation, which alters the product to meet the cultural differences; and product innovation, which is creating a totally new product.
When promoting a product abroad, marketers may choose to use the same advertising theme in all countries they market to or develop a new advertisement especially for that country. Both strategies can be successful depending on the particular product and the country involved.
Marketers will usually offer a lower priced product in a foreign country. This depends on the average income of the country involved. When deciding what channels of distribution are to be used, the marketer has to determine if the use of wholesalers or retailers, or direct selling would work best in the particular country.
Again, companies have to decide on the extent to which their product, promotion, price, and distribution should be adapted to individual foreign markets.
The domestic environmental elements can have a direct effect on the success of a foreign venture and these include political forces, legal structure and the economic situation in the home country.
A political decision that involves...