Internationalisation market entry

Introduction:

Internationalization and market penetration is no easy process, and there is no silver lining, but rather formulated theory regarding development process and guidelines. There can not be one answer towards a one-way approach (Matthias Schu & Dirk Morschett). Also, agreed upon by Nicolas Papadopoulos & Oscar Martin regarding integrated management systems (IMS), that can be modelled in various ways without reaching an “ideal” process framework. However, evidently research shows online growth to be safe and economically viable expansion tactic (Constantine Katsikeas & Leonidas Leonidou, 2019; Matthias Schu & Dirk Morschett, 2015; et.). Following analysis focuses on small to medium size enterprise relation, and theoretical background on foreign market selection and penetration.

 

Selection and segmentation:

Integrated management towards international marketing selection can be developed based on a national or cross-national level. Regardless of the campaign size and market selection, there can be a distinguishment between “selecting target audience soli based on national criteria” and “segmentation gathering a broader, globalized audience less specific to particular nations”. In relation to that, and the fact that market research can be costly and time consuming, Nicolas Papadopoulos & Oscar Martin suggest that there should be an initial screening stage to determine rational decisions. Furthermore, they highlight that management assessment often fails to account for temporal shifts in market. Thus, planning process should be developed carefully based on market pragmatic data and correspondence. Finally, they identify with an old philosophy that sets users above products and develops based on their wishes and expectations.

Regarding the process of segmentation and information gathering, it is worth mentioning digital convenience towards both standardized and customized practices. Regarding big data, and frameworks classifying all that information, we can assume that there is a convenient sampling when it comes to numeric values regardless a firm’s equational relevance (Constantine Katsikeas & Leonidas Leonidou, 2019; Matthias Schu & Dirk Morschett, 2015; et.). The phenomena are enhanced though real-life association on social media and completely adopted in business and marketing strategies.

 

Foreign investment:

As mentioned earlier, a common consensus regarding rational market entry have emphasized digital development. But in many cases that may not be enough.  Depending on market relevance foreign “relationships and alliances” may be the best or even only entry. Thus, understanding market entry requires some additional information regarding relevant resources and assumptions. First, geographically close and related countries that have commonalities in cultural and physical distance are easier to enter. Second, market sizing and evaluation takes priority in estimating future returns. Third, legal and political system is highly influential. Finally, considering all the above and borders as briers, unforeseen problems may arise from any given sector (e.g. legal approach, taxes etc.). thus, in selecting market approach there seems to be a key element that is undeniably the most important in configuring a secure strategy, and that is information accessibility (Matthias Schu & Dirk Morschett). Finally, firm is expected to adapt into country-based interaction, understanding their cultural differences and adopting new and flexible ways to communicate (Hannah Soobin Lee and David A. Griffith). A similar point was also given towards adapting customer needs instead of telling them what they need by Nicolas Papadopoulos & Oscar Martin.

 

Conclusion:

In relation to an enterprise digital growth, core benefits that can be identified are cost efficiency, data convenient sampling and broader audience reach. However, even though digital marketing has the above advantages and more, its reach is limited in many countries. Also, even in developed countries with the means and infostructure to support such tactics, human interaction takes priority and partnerships are prioritized or even regarded as essential. In relation to strategizing on organizational level, three distinct methods are recognized 1) Normative, 2) Descriptive, and 3) specific international stage. Finally, considering market dynamism there are offer frameworks that are sufficient to follow and leadership tactics that offer safer and more secure outcomes (e.g. reactivity, incrementalism, bounded rationality, and real options reasoning). 

Finally, we encourage you to keep track of all the new trends and tools that can be used to better enhance your campaign in any way. Google is a platform that is constantly evolving and many new tools can improve your conversions and make your life easier. It is therefore recommended that you keep track of such trends. We would also advise you to assign the job of search engine optimization to an expert in digital marketing.

References:

Ali Ahi, Gianpaolo Baronchelli, Olli Kuivalainen, and Mariella Piantoni (2015). International Market Entry: How Do Small and Medium-Sized Enterprises Make Decisions? Journalof International Marketing 2017, American Marketing Association Vol. 25, No. 1, 2017, pp. 1–21

Constantine Katsikeas, Leonidas Leonidou and Athina Zeriti (2019) Revisiting international marketing strategy in a digital era. International Marketing Review Vol. 37 No. 3, 2020 pp. 405-424

Hannah Soobin Lee and David A. Griffith (2019) The Balancing of Country-Based Interaction Orientation and Marketing Strategy Implementation Adaptation/ Standardization for Profit Growth in Multinational Corporations. Journal of International Marketing, Vol. 27(2) 22-37

Matthias Schu, Dirk Morschett (2015) Foreign market selection of online retailers — A path-dependent perspective on influence factors. International Business Review 26 (2017) 710–723

Nicolas Papadopoulos & Oscar Martin (2011) International market selection and segmentation: perspectives and challenges. International Marketing Review Vol. 28 No. 2, pp. 132-149