International Market
An international market, in other words, is also known as a global market. It is a forum that facilitates the exchange of goods and services in more than one country. The International market is interlinked with international business. According to Kunal and Neveena (2011), the global market has grown extensively over the years with a lot of firms branching out of their countries to do business globally.
There are always some reasons why people decide to venture into the international markets. One of the reasons is they may have analysed the targeted market and come to a conclusion that it is a worthy investment. Another arguable reason could be because they have projected the cash flows and realized that there is more consistent income from outside. Kunal and Neveena (2011), point out that companies opt to venture into international markets most especially are because there is a wider scope of opportunities and they get to be ahead of their competitors.
Many companies have adopted various types of methods to ensure that they research on the viability of their products in a particular country. Various factors are considered when exploring the outside world. A key aspect is the political stability of a country. The progress of a firm is mostly determined by how politically stable that company is. It is advisable for a company to ensure that the state they plan to venture into is stable enough. Tamer, Gary, John, and Attila (2009), recommend that extensive research is done to ensure that the market is stable enough for the company’s products and services.
Tamer, Gary, John, and Attila (2009), go on to explain that it is important to establish the livelihood of the people in the target market. Sometimes, the services a company offers may be
too highly priced such that the target audience is not able to afford to render the business shaky. In another perspective, the services may be too underpriced, and people may not trust them due to the pricing. Knowing the type of consumers, you are dealing with is important so as to ensure you know what your customers’ requirements and needs are.
One significant product differentiation method is pricing. Pricing is very vital to a company’s success or failure. It is a key determinant on whether the company is bound to succeed. The company should be able to know how worth their brand is and the people they intend to sell their products and services to (Shelby 2003). The prices quoted become a determinant on whether the business will be long term or short term.
The place where the company is based also affects the international market. This means that the channel in which the products are to reach their clients all depends on how far they are from the company. Sometimes, when a corporation decides to venture into international marketing, they opt to have a central place where they manufacture products from. They then …
