The very development of Chinese markets might be planned as a progression: first, exporting finished products; then, exporting components; next, setting up subsidiaries; and finally, licensing, cooperating with, or merging with foreign companies. Marketing, therefore, requires aggressive and imaginative approaches in cultivating the markets, with the realisation that methods effective at home may not necessarily work against competitors in foreign markets.
A completely new look at marketing innovations involving both technical and financial risk is mandatory. International marketing decisions are not the result of deliberate, planned assessments of business opportunities. They may stem from personal contact, experiences, or suggestions of foreign companies and may involve a cursory investigation or a “try it and see” policy. The aftermath, however, may be disastrous. What is required is an intensive analysis of significant information, its assessment against a world perspective, and a blending of decision making at home with that abroad. Yet, some strategic and certainly tactical decisions require local knowledge and must be made abroad. At best, it is difficult to decide where in the world resources should be invested for the greatest company benefit. But the rewards of marketing abroad include increased profits, higher rates of return on investment, new products and processes, diversification of risk, and the development of executives.
International markets are seen as an integral part of the business system since they affect fundamental strategies, plans, and organisations and generate a large proportion of total profits. A multinational or global corporation is emerging to prompt a new organisational style. Within organisations, a worldwide perspective is unfolding in marketing management, with marketing decisions made on the basis of global alternatives. Each management seeks the means most suited to their company to cultivate international markets. Each company’s current markets, corporate structure, finances, product line, and image all have an influence on its operations abroad. But flexible marketing policies are required for distribution channels, pricing, and advertising policies. They must be adjusted to meet foreign environments.
Timing is critical. The best time for introducing a product into a foreign market need not correspond with its debut in a domestic market. In fact, a cycle of market opportunities exists as a country develops, and companies should assess opportunities based on the cycle. The less-developed countries constitute markets for essentials, both in consumer-goods and industrial-goods sectors. In fact, manufacturing equipment, which may be obsolete in highly industrialised economies, may be ideal for emerging nations. The more developed countries offer opportunities for technical and research-intensive products.