International Marketing Strategy of Coca Cola Company

The essence and objectives of international marketing


Term Paper, 2017
32 Pages

Excerpt

Table of Contents

Introduction

The Essence and Objectives of International Marketing
The Concept and Essence of International Marketing
Principles and Methods of International Marketing
International Marketing Concepts and Features of Transition to International Marketing

Characteristics and analysis of the international marketing activities of The Coca Cola Company
Characteristics of the activities and history of The Coca Cola Company

International Marketing Strategy of Coca Cola Company
The Implementation of the Strategy of Coca Cola on the example of Different Countries

American Dream

Water Plans

Conclusion

List of References

Introduction

In conditions of transition to a market economy, one of the factors of effective functioning of economic entities is the access of these entities to international markets. Marketing, as experts emphasize, is not only a theoretical but also a predominantly practical discipline that arose and developed as a result of economic activity in a market. Marketing in the course of its development has widely used the advanced achievements of science, it is an arsenal of modern techniques and methods of various scientific disciplines that are used to solve a wide range of tasks. In the current conditions of development of the economic sphere of society, which are characterized by the intensification of competition in world markets, increasingly complex technological and organizational models of production, extreme information saturation and efficiency of foreign economic activity, is closely linked with the goals and methodology of using marketing tools. Moreover, its international aspects are significantly updated due to the further internationalization of the world economy, expansion of international trade, more dynamic and massive movement of capital and labor. In conditions of rapid market development, the application of marketing strategies is one of the most important functions for organizations. Every year the competitive situation grows and is increasingly complicated due to the expansion of the borders of foreign markets, the presence in the domestic market of foreign firms with significant experience of international business. In such conditions, the growth of competitiveness in demonstrated by organizations that carry out their activities not only on the domestic market, but also on foreign markets. Organizations can count on successful conduct of business in foreign markets only if they have a good knowledge of the world situation and own the economic situation in international markets, which is connected with the need to have not only advanced achievements in the production of goods but also with effective marketing abroad. Today, the study and application of international marketing by organizations in their activities becomes a necessity. In addition, individual industries of countries with developed market economies could not exist at all without foreign markets, since there is no necessary sales volume within their country. The foregoing causes the relevance of the study on "International Marketing". The subject of the study is marketing in international markets, the subject of research is the essence and the system of it. The purpose of the paper work is to analyze the principles of international marketing, to consider this kind of activities in The Coca Cola Company. To achieve this goal, I solve a number of problems:

- To uncover the concept and essence of international marketing
- To justify the principles and methods
- Explore the concepts and features of international marketing
- Studying the history and giving a description of the activities of the company "The Coca-Cola Company".
- Considering the principles of the international marketing strategy "The Coca-Cola Company".

The Essence and Objectives of International Marketing

The Concept and Essence of International Marketing

Marketing is the concept of managing the activities of the organization. It is a part of the overall management process. As a type of management, it includes an analysis of the needs of customers and the development of a set of measures designed to ensure that they are met with the maximum profit for the organization. According to the definition, international marketing is the marketing of goods and services in the markets of countries other than the producing country. [1]

The development of such a complex is a management process, covering stages of analysis, planning, organization and control of marketing activities. Therefore, the center of marketing activities of the organization is the preparation and adoption of managerial solutions that allow solving international marketing tasks on the basis of relevant external (market) and internal (technical, industrial and economic) information.

The essence of international marketing is the consideration of the whole world as its potential market, its analysis and satisfaction of its needs. It also requires an important aspect of the problem, such as the differences between categories: exports, export and international marketing. Export consists in the fact that producers are limited to supplying their products to firms of other countries (importers).

The suppliers are not interested in what is happening with their products, how satisfied the need of customer are. Export marketing is understood as an attempt to sell products in another country, which differs from sales on the domestic market: sales conditions, business practices, national traditions, currency and peculiarities of the socio-cultural environment. As a rule, the company at the same times translates its trading practices beyond the national borders, making minimal changes to its components. It is with the establishment of export operations that many firms start their international marketing activities.

The exporter deeply examines the market and uses for its processing the entire set of marketing tools, as well as various forms of foreign economic relations: scientific and technological exchange, contact manufacturing, joint ventures, the establishment of subsidiaries and others.

The conceptual basis for the formation of international marketing, the most intensive development of which was noted in the 60-70s of the 20th century, was a serious change in the development of productive forces and relations. Among them are the following:

- Internationalization of economic life and activity of the largest companies
- The impact of scientific and technological progress on economic processes, the consequence of which was the restructuring of industrial production in developed countries
- Significant changes in the nature of goods supplied to foreign markets, the intensive movement of new products, licenses, scientific developments
- Reduction of the life cycle of many goods, while increasing the demands customers for novelty, quality, design, packaging
- The growing tendency to equalize the conditions of demand and style of consumption in different countries
- Aggravation of competition in the world markets, which in some cases acquires the character of a trade or price war.

International marketing activities do not involve the use of any fundamentally new marketing functions. Setting marketing tasks, selecting target markets, positioning products, developing a marketing mix and monitoring marketing activities – all these fundamental requirements remain relevant in the firm’s work abroad. It is quite obvious that there cannot be effective international marketing at an enterprise that does not comply with basic marketing principles in the domestic area. [2]

However, it should be remembered that a certain specificity generated by the features of the functioning of external markets and the conditions of activities on them, gives international marketing the features that organizations are required to take into account.

Principles and Methods of International Marketing

For successful marketing activities in foreign markets, organizations must make greater and more focused efforts, consistently follow the principles of marketing, use marketing techniques, methods, procedures. As a rule, external markets place not only high, but also special requirements for the goods offered on them, their services, advertising. This is due to both to the specific demand of individual markets, and to the level of competition. International marketing is based on the principles of national and has a similar structure.

At the same time, it is specific, because it deals with foreign trade and currency transactions, foreign and international legislation. The incentives of international business are the comparative advantages caused by division and specialization of the economies of states, the difference in their economic and geographical conditions. International marketing is an objective process dictated by the current state of the world community:

- Independence of the states of the international community
- International and national legislation
- Excess of demand over supply, saturation with gods and services
- Availability of national currency systems
- The developed competition of commodity producers
- Developed market infrastructure
- Growth in the living standards of a number of countries and, correspondingly, and increase in demand for food, clothing, furniture, machinery, computers and other goods
- The desire of enterprises, organizations to expand external markets for the sale of products and increase profits. [3]

An obligatory requirement in the conditions of international marketing is the formation of production programs and product range based on careful study of consumer demand, and marketing policy requires the restructuring of the entire production management system, as well as improving the efficiency of all divisions. Proceeding from this, international marketing should be viewed as a managerial activity in the world market, designed to provide a more complete satisfaction with the specific needs and needs of consumers in necessary goods than competitors. The main principle of international marketing is the orientation of the final results of production on the real requirements and wishes of foreign consumers.

From this principle follows a number of requirements:

- It is necessary to know the international market, comprehensively study the state and dynamic of consumer demand for a product or service, use the information obtained in the process of developing and adopting scientific, technical, production and economic solutions
- To maximally adapt production to the requirements of the market to improve the efficiency of the enterprise, to produce goods expected by the consumer
- To influence the market and consumer demand in order to form it in the directions necessary for the organization
- Organize the delivery of goods in such quantities, at the time and place that would most suit the end user
- To bring new products to the market
- To divide the international market into relatively homogeneous groups of consumers and focus on those segments for which the company as the best potential
- To conquer the market with goods of the highest quality and reliability
- To achieve the advantages in the competitive struggle by increasing the technical level and the quality of the product or service
- To assist trade intermediaries, providing them with assistance in solving technical problems and training staff

All these principles are not new, but the differences between countries can be so deep that an international market person needs to be able to understand foreign specifics and be ready to revise the fundamental ideas about how people react to the incentives of marketing. Before deciding to organize sales abroad, and organization needs to learn a lot. She needs to thoroughly understand the features of the international marketing environment [4]. The main thing in international marketing is target orientation and complexity, that is, the combination of entrepreneurial economic, production and marketing activities in a consistent interrelated system. This means merging all the components of marketing activities into one stream in order to achieve sustainable profitability within given time limits in a market economy.

International Marketing Concepts and Features of Transition to International Marketing

Studying foreign markets, their capabilities and requirements, this starting point in international marketing is usually much more complicated and time consuming than researching the domestic market. If I take into account that the world market includes approximately 180 markets of other countries and each of them has common features as well as certain features, it becomes obvious that more research work is needed for each of the selected markets. In addition, when entering a foreign market, we also have to analyze complex objects that the domestic market does not have: for example, customs regulation, exchange rates, international balance sheets, and so on. [5]

In international marketing activities one cannot ignore the political risks associated with entering markets chosen by the national company as the most attractive for export sales, or other forms of international marketing. For effective operation in foreign markets, it is necessary to use very flexible marketing procedures. There are no standard approaches here. To use various marketing methods should be taking into account the fluctuations and the forecast of the development of foreign markets, the established their commercial practice and trade customs, features of the surrounding marketing environment.

It is especially important to take into account the specifics of the socio-cultural environment. Differences in the environment orientation and approaches to international markets, on which international business organizations operate, can fall under one of the three concepts of international marketing:

- The concept of expanding the domestic market
- The concept of the multi-domestic market
- The concept of global marketing

The concept of expanding the domestic market, is the orientation of the enterprise to international marketing, and occurs when an organization with the aim of increasing the share of sales of its goods enters foreign markets. The concept of expanding the domestic market involves considering its international operations as secondary, and the initial operation is to expand the set of operations on the domestic market. The primary motive is the sale of surplus products.

Entrepreneurship in the domestic market, is the orientation of the enterprise to international marketing, and occurs when an organization with the aim of increasing the share of sales of its goods enters foreign markets. The concept of expanding the domestic market involves considering its international operations as secondary, and the initial operation is to expand the set of operations on the domestic market. The primary motive is the sale of surplus products.

Entrepreneurship in the domestic market is a priority, and activity abroad is a profitable increase in the number of operations in the domestic market. Companies are looking for segments of the international market, where demand for products is similar to demand in the domestic market. Such a market expansion strategy is very profitable in practice, and many firms are involved in international marketing due to this line of behavior.

The concept of the multi-domestic market companies use this concept in the case when work in foreign markets is of great importance and it is necessary to modify foreign business in terms of organization. They develop individual programs for each market.

The products of these firms are adapted to each individual market, regardless of the branches of their organization in other foreign countries. Each branch develops its marketing program, strives to adapt to the local market of a foreign country. The concept of global marketing, global marketing, covering the whole world. An enterprise of this type develops standard high quality products that will be sold at a reasonable price in the global market.

With such a campaign, the global market is equated with domestic market of the country, but it works all over the world.

The main principle of the global marketing concept involves the orientation of the world market to the people to the buyer to meet their needs and desires. Many companies try to standardize most of their approaches.

The global organization views the world as a whole a single market and creates a global marketing strategy. [6]

Groups of prospective consumers with identical needs form global market segments. Consequently, the global marketing plan provides a standardized product for the global market, but with differences in advertising that takes into account the characteristics of the country. Identify the basic concepts of the organization of international marketing activities:

- The concept of production
- Concept of the goods
- Sales concept
- The concept of marketing
- The concept of public marketing

[...]

Excerpt out of 32 pages

Details

Title
International Marketing Strategy of Coca Cola Company
Subtitle
The essence and objectives of international marketing
College
ESC Dijon Bourgogne - Burgundy School of Business
Author
Year
2017
Pages
32
Catalog Number
V374307
ISBN (eBook)
9783668516281
ISBN (Book)
9783668516298
File size
592 KB
Language
English
Tags
International, Marketing, Strategy, Coca Cola, Marktes, System, Essence, Economy, Expansion
Quote paper
Umut Çelik (Author), 2017, International Marketing Strategy of Coca Cola Company, Munich, GRIN Verlag, https://www.grin.com/document/374307

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