Understanding the international marketing environment Essay

Understanding the international marketing environment - Essay Example Global marketing has become a popular subject of research and analysis due to increasing number of companies starting their operations in various countries. The increasing trend of globalization of the world economy, international marketing has become an essentiality for survival of all organizations irrespective of being big or small as previously multinational companies used to enjoy the benefits of international business (Lee and Carter, 2009). The major trend today is growing internationalization of international business contrary to 1950’s when major form of international business was exporting by national firms (Terpstra, 1985). The essential elements of effective international marketing are the ability to interpret the business environment, recognize the foreign market opportunities and appreciate how the firm’s resources can best be used to match and develop patterns of market demand (Gilligan and Hird, 1986). International Marketing is the process of planning a nd conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations (Czinkota and Ronkainen, 2007). International marketing environment includes various factors like political, legal, environment and economic. However the present paper critically analyses the network theory model of internalization and evaluate the effects of climate differences and differing levels of disposable income on the business and how it influences the design of firms’ marketing campaign.... Network theory was initially developed in the context of industrial marketing to explain how firms connect to each other and develop long term relationships as opposed to conventional transaction-only approach dominant in marketing theory. This suggests that firms do not enter international markets as standalone actors but instead are part of network of other firms providing them the chance to internationalize their operations in various parts of the world (Baker and Hart, 2007). Gummesson (2006) mentioned that network theory has primarily attracted attention in business to business marketing which has been extended further to marketing in general. It is further stated that general network theory categorizes all of us as nodes in a network of relationships in which we interact and form clusters which further form organizations and corporations. Gummesson (2002) further states that total relationship marketing is a synthesis of contributions from several marketing and management theor ies and practices and network theory of business to business marketing has been an important source of inspiration from relationship marketing. Organizations in the present economy depend mostly of marketing their products and services. The successful organizations have been able to make it big because of their marketing ability to promote their products in the international arena. Companies marketing their products and services through hiring of public figures as brand ambassadors, providing opportunity for small businesses to sell their goods and services as freelancers and media are all part of a network which is interconnected to make profits for the