Global Marketing Destructive Regeneration and Multinational Firms

Question: Discuss about theGlobal Marketing for Destructive Regeneration and Multinational Firms. Answer: Explanation of Drivers in International Marketing International marketing is related to expansion of local marketing strategy of an organization with specific interest paid for international market identification, decision and targeting (Elango et al., 2013). Bulla Dairy is chosen for this study for demonstrating international market driver. Bulla dairy is a popular dairy organization, which manufactures and exports dairy products (Bulla.com.au, 2016). However, the organization is not much concentrated in international marketing, which may marginalize their profit level within domestic market. Therefore, the organization should expand their involvement in international marketing for increasing sales and profit. However, the following drivers will be needed to consider while expanding in international market: Market Needs According to Strizhakova and Coulter, (2015), tastes and preferences of consumers have become increasingly uniform in international market. On the other hand, Schmiele, (2012) opined that customers are now very much knowledgeable about the foreign products. Therefore, organization should effectively perform customer survey for knowing their preferences. For instance, while, Goodman Fielder took initiative of expanding in international market, it performed customer contact strategy for knowing unique value of taste of customers (Elango et al., 2013). Likewise, while going to expand internationally, Bulla Dairy should indentify the unique preferences of international customers through proper customer survey. Technology According to Sinkovics et al., (2015), technology has reduced the geographical distance of among different countries, which trading in international basis. Adoption of modern technology benefits organization in term of flexible transportation of products and communication with customers. For example, Huon Aquaculture uses commercial jet aircraft for distributing their food products in international market (Schmiele, 2012). While going for international business, Bulla Dairy may need huge manufacture of products, which need batch processing of products. Batch processing would be required to involve ample numbers of human resources by increasing company cost. In such situation, adopting modern technology for automatic product processing would minimize the international business cost. Cost Scale According to Cavusgil and Cavusgil, (2012), cost-scale of an organization fluctuates in international market due to trade laws, economical constraints, purchasing of raw materials and availability of human resource. While considering Eagle Boys Australia, it can be found that the organization only outsources its chefs from Australia to India, whereas hires human resource from the particular locality (Strizhakova Coulter, 2015). This maintains the cost scale ratio under considerable range. Therefore, Bulla Dairy needs to outsource its raw materials, machineries and assets so that cost of incorporation is reduced. Government According to Elango et al., (2013), government factor highly influence the export and import of products of an organization in terms of tax policy and tariff value. Organization should select those international markets, where Government has imposed less tariff value. For example, Lion Beverage Company has made strong bonding with the Government of foreign countries for getting support in their trade policy (Cavusgil Cavusgil, 2012). Likewise, Bulla Dairy should adopt common standard of the international Government for reduction in trade barriers. Communication According to Sinkovics et al., (2015), communication is international market is highly important for understanding the cross-cultural value of the international customers. Organization should effectively communicate with the international customers and Government for identifying their preferences. It helps organizations to customize their products. For example, web based marketing adopted by Coca-Cola Amatil in Australia, efficiently helped them to remain connected with their international customers (Schmiele, 2012). Likewise, Bulla Dairy should maintain smooth relationship with the customers and government of international market through constant contact. References Bulla.com.au. (2016).Bulla.com.au. Retrieved 16 August 2016, from https://www.bulla.com.au/#/ Cavusgil, S. T., Cavusgil, E. (2012). Reflections on international marketing: destructive regeneration and multinational firms.Journal of the Academy of Marketing Science,40(2), 202-217. Elango, B., Talluri, S. S., Hult, G. T. M. (2013). Understanding drivers of riskà ¢Ã¢â€š ¬Ã‚ adjusted performance for service firms with international operations.Decision Sciences,44(4), 755-783. Schmiele, A. (2012). Drivers for international innovation activities in developed and emerging countries.The Journal of Technology Transfer,37(1), 98-123. Sinkovics, R. R., Kim, D., Lew, Y. K. (2015). Drivers and performance implications of international key account management capability.International Business Review,24(4), 543-555. Strizhakova, Y., Coulter, R. A. (2015). Drivers of local relative to global brand purchases: A contingency approach.Journal of International Marketing,23(1), 1-22.