Page 330 - DMGT408DMGT203_Marketing Management

Unit 14: The Global Marketplace

14.3.4 Technological Considerations Notes

Considering technological aspects is necessary when getting involved in international marketing
operations. Companies requiring the use of technically sound infrastructure need to evaluate
host markets on this dimension. At any given time, all countries do not reflect the same level of
technological development. For instance, in some countries there is considerable shortage of
power and this consequently influences demand for electrically operated products. A major
concern of businesses is communications facilities that differ across different countries of the
world. Communications influences speed of response to customers, suppliers, and others.
Many countries lack dependable communication services, such as modern broadcasting and
postal services, landline and mobile phones, fax, Broadband Internet, courier, transportation
and travel etc. Due to lack of technological advancements, much of technology used for marketing
communications cannot be used in many countries. For companies using high technology,
availability of skilled manpower is necessary to produce goods and services in the local market.

Self Assessment

State whether the following statements are true or false:
9. In case of global market, it’s the home country’s government that dictates the standards.
10. Income distribution is directly linked to attractiveness of global markets.
11. It is optional for an international marketer to understand the cultural values of a host
country.
12. A major concern of global marketers is communications facilities that differ across different
countries of the world.

14.4 Key Decision Areas

International marketers may have to modify or replace domestic marketing practices. Lack of
statistically reliable secondary data in a foreign market may pose difficulties in assessing the
country’s market attractiveness. Availability of reliable data generally depends on the level of
country’s economic development. In certain countries lack of reliable lists makes collecting
primary data difficult, coupled with problems of unfamiliar language. Other important
considerations mainly relate to selecting appropriate marketing mix.
Based on the extent to which a company can adjust its marketing mix, different companies adopt
different strategies.

14.4.1 Product

Some companies reflect the belief that the world is a single market and consumers everywhere
have the same needs, wants, and product preferences etc. Product standardisation can yield
important economies of scale. Customer visiting markets in other countries can immediately
recognize a brand and understand what it stands for.

Example: If Coca Cola or Pepsi tasted different in other countries, it would confuse
customers. Gillette sells the same razor blades worldwide; IBM sells the same laptops, Intel sells
the same processors everywhere, and Microsoft sells the same operating software everywhere
in the world.
The best bet for standardisation is in the area of durable products, particularly durable business
goods such as computers, earth moving machines, and aircrafts etc. Consumer durable goods,

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