ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Business and Employment»
  • Marketing & Sales

Problems and benefits that multinational market groups represent for international marketers

Updated on May 29, 2013

First of all, let me give a definition on what the phrase “Multinational Market Region” means. As Cateora in 1993 stated it is “those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers” In other words it is formed when countries neighbouring partner up so all of them could improve the performance of their economies. Now that we know that let us turn our attention to who an international marketer is. The definition given by Geoff Lancaster of what international marketing is goes like this, “all international activity.  However, strictly speaking, it is a term used to describe companies whose overseas sales account for more than 20% of their total turnover; where a strategic decision has been taken to enter foreign markets; where product mix and communications mix adaptations are considered when supplying goods or services for a particular overseas market” (http://www.marketingmasters.co.uk/geoff/International%20handout.doc). In other words it is when an organization, both for-profit, and non-profit, during their decision making consider what products and services to offer to different country markets, the packaging and the manner in which it should be merchandised and also the way they shall communicate these decisions.

Usually, except for very large ones, single countries are quite small for many multinational organizations, especially when they are manufacturers, and produce goods on the basis of economies of scale. For instance, the Japanese car manufacturer Suzuki established a factory in Hungary not to supply Hungarian market alone, but all of the European Union also.

There are drawbacks of a marketer treat group of countries as one larger market. in different countries there can be very different cultures, sometimes even in neighbouring countries. For instance, marketing wine in France and Germany the same way, may result in an overwhelming success in one, and a disastrous failure in the other, given the consumption preferences in the two countries

There are some political and legal differences that an international marketer should also consider.  In some countries politically and legally enforced production standards may be very different, and in some extreme cases the very same products cannot be called the same way in all the member countries in a multinational market group. The level of bureaucracy is not the same everywhere either.

Another issue of consideration is the infrastructural development from one country to another. For instance Austria has a much more motorways than Hungary does although the size of the two countries is very similar.  

The economical development from one country to another can differ quite a lot too. Let us look at the example of Austria and Hungary again. A luxury car manufacturer should not expect to be able to sell just as much cars in the later country, because it is much poorer and much less people can afford to buy expensive products.

In summary, although marketing to a number of countries instead of  just one saves costs and reduces risks, an international marketer should be very careful in choosing which multinational market groups it should choose.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      jhen 5 years ago

      well

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)