Keys to internationalisation

There is no single route for competing at the international level. The type of products or services provided, experience at the international level, the market targeted, and the positioning you hope to achieve all determine which type of strategy you develop.

Generally speaking, there are two approaches you can take. On the one hand is the global approach, meaning that establishing oneself in all the markets follows a similar pattern. And on the other hand there is the adapted or multidomestic approach, involving a unique strategy for each market. Deciding between these two methods entails analysing and researching the foreign markets in depth. byGalicia recommends that you understand the market you are targeting well. Visit the Analysis and Selection of Markets portal, go to the section Marketing Information System for International Markets and see links. The more elements of analysis you have on the table, the more prepared you will be for decision-making.

• Global approach
  The same marketing strategy is applied to all the markets where the company is present: the same products, the same packaging, the same promotional campaign, etc.

• Multidomestic approach
  Elements of the marketing mix (price, promotion, product, and communication) are adapted to the characteristics of each market. This approach is well-oriented towards consumer needs.

• Global approach
  Money is saved by avoiding adapting products

• Multidomestic approach
  Products are much more centred on local clients' needs and preferences.

Apart from the products and services offered by the company, the choice depends more on external variables than on internal factors.

• The globalisation of preferences and customs
  One of the consequences of globalisation has been a homogenisation of tastes and even in consumption patterns. If this is the case for the products you are marketing, it makes sense to use a global strategy. However, certain goods and services are perceived differently depending on many domestic factors, and a differentiated strategy must be followed taking these environmental aspects into account.
• Economies of scale
  When the company's strategy is based on costs, achieving economies of scale is important, and standardising marketing strategy will contribute to this end.
• International life cycle of the product
  Not all markets have the same level of maturity regarding certain products, especially where technology is concerned. It is therefore necessary to develop marketing strategies adapted to each market.
• Global communication methods
  Television by satellite and even Internet means that a company's marketing campaigns in other countries can be seen in almost any part of the world. Communication media's reach extends beyond their own borders, making them ideal for executing global marketing plans.
• Local requirements
  The differing regulations from one country to the next determine whether products must be adapted. Many governments impose such strict technical regulations that exporters must make adaptations and individualised marketing plans for their products. Certain customs or technical requirements also make it necessary to adjust marketing strategies. For example, Kosher standards or American FDA regulations require adaptations in products.
• Economic areas
  Reduced trade barriers and the appearance of areas of economic integration open to international commerce have led to marketing strategies focusing on entire zones rather than specific countries. Nevertheless, we must not forget how great cultural differences between countries can be.

• International marketing strategies
• The role of the environment
• Information systems in international markets
• Positioning in international markets
• International product
• Establishing prices
• Distribution channels
• International communication