The term global marketing is concerned with the business operations which are associated and transacted between the two nations or different boundaries. The transactions or the trade between the two nations and the marketing which is concerned with these trades is known as the global marketing. Global marketing is concerned with the promotional activities which are executed by the business corporations who are engaged in the global business. This is a broad concept which comprises of the applications and implementation of number approaches and models. These implementations will aid the business entity while dealing with the nations across the borders (Armstrong et al., 2015). The concept is mainly made focused on the marketing activities which are operated for developing awareness about the products and the services. This enables the business entity to develop the products and services in the global markets and also the company will be able to establish the markets in the foreign countries. The below executed analysis has been made focused on the global marketing for Star Mart which is a retail organization and is planning to expand the business entity in Thailand. The further analysis has been conducted for establishing the business operations in the mentioned region and the same has been presented by implementing some approaches and model.
When an organization plans to expand its business operations globally, it needs to adopt some market entry strategies and options (Ryan, 2016). The organization looks for specific group of customers to enhance its customer base and spread the business processes. The decision of how to enter in global market has a significant impact on the results of business expansion. There are different types of market entry modes, which can be adopted by an organization while entering into international market. As a large retail firm, Star-Mart is planning to expand the business to Thailand for increasing its market share and profitability. Thailand is second largest economy in Asian countries after Indonesia country. In Thailand, traditional retail stores are continuously dominating the retail industry. Thai market is witnessing slow growth, because traditional retail stores are replaced by supermarkets and modern retail stores. It will be better for the organization to expand its business in Thailand. So, Star-Mart has to adopt and implement effective modes of market entry (Mooij, 2013). The company will analyze different market entry options, like; partnership, direct exporting, joint venture etc. The marketing entry options for Star-Mart are stated below;
Franchising is the most favored model for majority of retail brands. Star-Mart can select this model for expanding business in Thailand (Keegan & Green, 2015). Under this model, Star-Mart can engage with a domestic business partner in Thai market using franchise agreement. It is very popular and familiar model in the retail industry. In expanding business in Thailand, Star-Mart can partner with leading retailer, like; Big C, Global House etc.
The success of this mode depends on the fact that Star-Mart chooses a right partner, who is interested in growing its business and making better relationships between both entities. There are so many advantages behind choosing this entry mode, such as; low costs, low political and legal risks in franchises agreement etc. By adopting this market entry mode, Star-Mart can make an agreement with well-established retailers in Thai market (Akaka, Vargo & Lusch, 2013).
In order to adopt this mode, the company may confront some challenges, like; it may be very difficult to keep control over franchisee partner. In addition, the franchisee can take the benefits of acquired information and pose competitive pressure in future. Star-Mart may face some conflicts with franchisee, like; legal and compliance disputes.
In international market, where an organization finds an appropriate trade partner and which is well-established in that market, a retailer may select to enter into joint venture that will work in the favor of both the parties (Andersson & Xiao, 2016). In order to practice joint venture; company needs to consider some favorable factors, like; local company’s size, market share of the partner, competitive advantage etc. In Thai market, Star-Mart needs to conduct a market research to find out a suitable partner for joint venture. The success of this mode depends on the relationship of two entities and business objectives as well.
There are so many advantages of joint venture entry mode, like; it will assist Star-Mart to financial strength in emerging market (Atzori, Iera & Morabito, 2014). Moreover, joint venture can help in sharing the risks with joint partner and establishing distribution channels and political connections in Thailand. Implementation of this market entry strategy will attempt to develop shared resources. It will assist the Star-Mart to gain more competitive advantage in the foreign market.
Direct Exporting is another mode of market entry, which is done by the organization by using its own resources, like; contacts with companies in foreign market, relatives, friends etc. In this business expansion, Star-Mart does not have many contacts in Thailand, so it will be more advantageous mode for this organization (Baack, Harris & Baack, 2013). Directing exporting is the fundamental mode for exporting the products in new market. If Star-Mart selects this market entry mode, it can choose foreign representative company in Thailand. It can assist the organization in safeguarding its intellectual properties, like; trademarks, patents etc.
In adopting this mode of entry, business firm may have some disadvantages, like; higher costs for the start-ups, higher investment of resources and time etc. In the case of direct exporting, Star-Mart needs to find greater information about Thailand and retailers in Thai market. This entry strategy will consume comparatively more time in establishing retail business in Thailand.
Apart from the advantages of joint venture, Star-Mart may have some disadvantages. Because there are so many entities in the venture, so there may be an imbalance of investment, assets and expertise. As the company is partnering in the new market, so it can face the challenges related to culture and language differences.
Thus, these are the major market entry modes, which Star-Mart can adopt and implement while expanding business operations in an emerging market, i.e. Thailand (Bond & Saggi, 2014). The above-mentioned entry modes are appropriate modes, which company will choose new market. From all entry modes, the company can partner with the local distributors. It is the most effective mode for entering in Thai market. In this business expansion, Star-Mart can choose one of three market entry options and combination of these options.
Segmentation
The segmentation process is the mechanisms which can be adopted by Star Mart for creating a division in the consumers so as to develop and define some clear ideas for offering services and developing the strategies and plans for satisfying the consumers. The below mentioned is the segmentation process which has been conducted for creating a sub-division between the consumers on the basis of the following variables:
The target markets are the segments of the consumers which are analyzed and identified so as to have clear thought regarding the development of the strategies and plans for the designing f the products and the services. This segmentation is executed as the products are required to be developed after considering the requirements and demands of the consumers so as to offer a high level of satisfaction to them. In case of Star Mart the business entity can focus on the female consumers. The business entity can make use of cluster sample survey method so as to collect the data from these consumers which will enable the business entity to develop and design the products and services as per their requirements. Moreover, the business corporation can also target the other retailing firms which are dealing in the same sector or are associated with the same business operations. Mainly the focus should be concentrated on the local level audience, as the super markets are preferred more by this segment of consumers (Czinkota & Ronkainen, 2013).
Positioning is a mechanism which can be adopted by the business entity so as to establish the image of the products and services in the market. This approach can be adopted by the business corporation develop a strong presence of the product in the market place and which will be proven beneficial for business entity in terms of development and enhancement of the market share and hike in goodwill (Choi & Yeniyurt, 2015). In case of Star Mart the business entity can make use of contemporary platforms of promotions and advertisements. For instance, social media can be the platform which can be proven as a beneficial one for stimulating the audience of Thailand. Moreover, for influencing the local segment of consumers, the business entity can make use of local mediums of promotions such as advertisements through T.V ads, newspapers, road side hoardings etc.
Conclusion
In the limelight of the above executed analysis it has been concluded that the concept of global marketing is concerned with the activities which will promote the products and the services in the international markets. The above executed analysis has been focused on Star Mart which is a retailing entity and is planning to expand the business operations in the international markets of Thailand. The report has been concentrated on the approaches and models which can be adopted by the business corporation so as to establish the market in the concerned region. The report includes the various market entry modes which will enable to the corporation to create a safe gateway through the market and also the advantages and the disadvantages of the same have been described. The further report comprises of the STP which is an approach to develop and establish the products and the services for the consumers in the markets (Katsikeas, 2014).
References
Akaka, M. A., Vargo, S. L., & Lusch, R. F. (2013). The complexity of context: A service ecosystems approach for international marketing. Journal of Marketing Research, 21(4), 1-20.
Andersson, M., & Xiao, J. (2016). Acquisitions of start-ups by incumbent businesses: A market selection process of “high-quality” entrants?. Research Policy, 45(1), 272-290.
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.
Atzori, L., Iera, A., & Morabito, G. (2014). From” smart objects” to” social objects”: The next evolutionary step of the internet of things. IEEE Communications Magazine, 52(1), 97-105.
Baack, D. W., Harris, E. G., & Baack, D. (2013). International marketing. Sage.
Bond, E. W., & Saggi, K. (2014). Compulsory licensing, price controls, and access to patented foreign products. Journal of Development Economics, 109, 217-228.
Brady, D. L. (2014). Essentials of international marketing. Routledge.
Burton, F., & Cross, A. R. (2015). A reappraisal of franchising across national boundaries in foreign market entry mode analysis. In Proceedings of the 1993 Academy of Marketing Science (AMS) Annual Conference (pp. 638-642). Springer, Cham.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.
Choi, J., & Yeniyurt, S. (2015). Contingency distance factors and international research and development (R&D), marketing, and manufacturing alliance formations. International Business Review, 24(6), 1061-1071.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.
Johanson, J., & Mattsson, L. G. (2015). Internationalisation in industrial systems—a network approach. In Knowledge, Networks and Power (pp. 111-132). Palgrave Macmillan UK.
Katsikeas, C. S. (2014). Journal of International Marketing: Objectives, Challenges, and the Way Forward. Journal of International Marketing, 22(1), 1-4.
Keegan, W. J., & Green, M. C. (2015). Global marketing. Upper Saddle River, NJ: Pearson.
Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download