What Is Contractual Agreement In International Marketing
These efforts and investments by companies to penetrate foreign markets face a high degree of uncertainty about the development of their activities abroad. For this reason, companies need to carefully select their new markets, examine them closely with market research tools and gather all available knowledge before embarking on internationalization. A common export factor is the need to translate something through a product or service into the language of the target country. This requirement may be motivated by local regulations or the company`s desire to market the product or service locally in a friendly manner. While this may seem like a simple task, it`s often a source of embarrassment for the company and humor for competitors. David Ricks` book on International Business Mistakes tells the following story for American companies operating in the Canadian province of French as a language of Quebec. One company boasted of using fresh milk, which translates to “fresh used milk” when it meant bragging about fresh milk or “fresh milk used.” “Terrible” pencils sold by another company were more likely to be advertised as scary or terrifying. A company that has recognized the need for internationalization and decides to enter foreign markets must take into account the fact that, on the one hand, there is no foreign market similar to the domestic market. Kotler says a common mistake in internationalization is to think ethnocentrically.  Markets and therefore demands on and on products (quality and quantity) differ due to economic, geographical and socio-cultural factors (market volume, import and export activities, average income and purchasing power, education, mentality, traditions and habits, climatic and topographical factors, etc.). . Apart from this, there are two different trends regarding the country of origin of a product: in many countries, consumer patriotism is a major barrier to market entry (= country of origin effect), while “made in” images can positively influence purchasing decisions, e.B.
“made in Germany” products are subliminally combined with a high quality standard).