Economics
G.Pazylkhairova
JSC “Ordabasy
Corporation”, Kazakhstan
Scientific – methodological basis of international
marketing
company strategy
Scientific
–methodological approaches to forming international marketing strategies of
companies from developed countries are regarded. Methods, tools, factors which
companies should take into consideration when entering international markets
are analyzed.
Key
words: sale
expansion, resource purchasing, diversification of supply and sale source,
definite target market, sale amount
I.Introduction: Kazakhstan is one of the most dynamically developing countries in post -
soviet space. Situation in the country is changing before our eyes.
Considerable raise of economy of the last years is being defined not only in
the oil state of the market but by the investment business activity as well.
The following should be referred to the main achievements of the last years:
transition from the closed economy to the one integrated into the world market.
World character of goods and service markets is vivid: countries can’t be
isolated inside their own borders any longer, they together form segments of
the world market. Companies which have achieved definite success in internal
market, aspire to enter the world market. JSC “Ordabasy” Corporation is one of
such companies. The company which was established in 1997 as intermediate trade
now it is positioned as a large investor in the internal market, presented in
more than ten branches of real economy sectors. Further progressive development of the Corporation is only
possible in the context of globalization. Therefore development of the International marketing concept has an
indisputable actuality.
II. Statement of
problem: Aim of the research:
form a conceptual model of international marketing
corporation strategy. Objective of the research: development
of algorithm of formulating of international competitive marketing strategy
of business- direction as a methodical
basis to be used to plan marketing activities in competitive strategies,
monitoring and risk management of operational level. To
develop international marketing strategy marketing, functional,
interdisciplinary, system, normative, complex, integration, dynamic, process,
optimization, situational and etc. approaches have been applied.
III. Results: In our opinion International Marketing strategy is defined as subordination to
corporation system mission
interconnected, long-term, significant, for the whole corporation aims
formalized in the form of tied totalities of marketing programmes and project
of corporation product proposals to foreign markets, agreed with global
marketing environment- this is common long-term, adapting programme of gradual
output of conformity of goods and services to external price market and
following satisfaction of consumers’ needs on these market and corporation
needs by means of thorough putting of elements of market – mix goods, costs, channels
of distribution, realized as projects. International marketing strategies
depend on geographical distribution of corporation activity (regional,
multinational, global) , and also on goods and markets ( narrow or wide product
line; local niche or global segment).
Strategy of the way of
entering external market is in the composition of international marketing
strategy. Corporation use several types of such strategies:
·
strategy
of global distribution sources of supply and produce
·
strategy
of import
·
strategy
of export
·
strategy
goods and communication net modification
·
strategy
of new invents
·
strategy
of goods produce stopping
After development of organization strategy scientific
– research works on check of technological and resource possibilities of strategic
normative achievements are carried out. Then action programme for a certain
period is developed. All enumerated actions refer both to internal and external
strategies.
Key indicators of competitive advantages in the international activity are:
1.
interdependence
of market positions of all business – units in all selected market segments.
Success of one business direction in this case supports other directions as
well.
2.
Equal
composition of consumers, constant customers promotes efficiency increase.
3.
Equal
composition of competitors allows to get wide and authentic information
about them and act more flexibly and
economically.
4.
Resemblance
of factors in different segments allows to get economy on costs on the
marketing.
5.
Presence
of market-leaders. Participation in such market let save highly valuable
experience at the same time to correct management and get successful
result.
Model of international marketing strategy is based on the following assumptions:
1.Formulating strategy – analytical process which a
result of realized thinking.
2.Responsibility for the process of forming
strategy must be personal. For this manager is appointed whose responsibility
is attracting specialists who formulate strategy.
3.Strategy model must be simple and clear for understanding
and perception by the workers and informative to ensure coincidence and
rationality of accepted decisions in frame of model.
4.Strategy must be unique mustn’t be built
conventionally.
5.Strategy must be sustainable to establish
feedback with strategy realization evaluation.
6.Strategy must be fully supplied by necessary
resources including passing new knowledge to personnel.
Strategy models can
be formed in the form:
·
Business
undertaking strategy as a form of collective social activity;
·
Corporation
strategy as a juridical person;
·
Business
directions strategy or otherwise competitive strategies of business – units;
·
Functional
strategies where function is understood as aggregate of target directed
managerial decisions in each functionally isolated.
Stages of international
competitive strategy model development.
Algorithmically development of international
strategy doesn’t differ from national or regional strategy. However
international market environment differs by more high degree of uncertainty
that establishes additional risks and demands more complex strategic analysis.
1.Development of strategy is fulfilled according to
the concept of life cycle and begins with revealing of vision of corporation
future by top-management. belonging to its future. Vision allows to support
focus of management attention, energetic trials, to distribute resources on
strategic programmes.
2. Further define business sphere: type of business
connected with a certain programme or business – unit.
3. The next step will be carrying out analysis of
external and internal corporation or business –units environment and branch
analysis.
Why is it important to start projecting from
vision? Vision is more generalized picture of the future. Vision is the image
of possible and desirable corporation future.
Business
direction is defined by mission
which lets clearly express presentation of corporation or business – unit.
Mission (socially significant role) of corporation (business-unit, programme,
project) is qualitatively expressed whole of corporation or business –
units main target defining their
behaviour in business. Mission formulates corporation values serves guiding
line to choose such norms. Such values refer to products and services of corporation,
categories of its targeted consumers, technologies, competitive advantages as
well as philosophy. Therefore it must clear and easy for understanding both in
reference to direction of development and corporative norms – values. Refusal
from needless processes not backing values releases important resources.
Development of strategy marketing components
include in itself the following steps: strategic segmentation of the market;
development competitiveness standards; evaluation of product competitiveness;
budgeting of strategy realization; development of programme or project
realization strategy.
On the stage of segmentation prediction is carried
out. In case of high market environment uncertainty scenarios are built. On the
basis of received analytical information definition of corporative standards of
competitiveness which will serve guiding line for strategy realization on
business –units level begins. Evaluation of competitiveness of let out
production or services is done on the basis of standards of competitiveness of
business portfolio. Budgeting of strategy includes cost estimate of the
programme or project as well as distribution of existing resources. Projects
are established to solve the objectives and
problems facing corporation and business- units.
Analysis of business –
environment
This
analysis is final process as it represents basic information to define targets
of corporation at market segmentation. Business – environment changes actively
and competitive strategies must adapt to these changes. This process is called
adaptation of strategies. For this environment analysis if needed. E.g.
Position of raw materials and transport communication is key factors for oil
and gas branches.
Analysis of information
uncertainty and risks.
Large
companies strive to get rid of vagueness and uncertainty as they need
confidence in that everything is going according to the plan. However
uncertainty is very useful when launching a new idea: it testifies presence of
alternative methods of conducting competitive struggle. Practical activity gives
possibility to manage risks and find the best variants of survival in
competitive struggle. Reliable information is condition for taking grounded
decisions which will guarantee balance between profitable possibilities and
risk of losses.
In this connection it is worth pointing out such
aspects as prejudice and trustfulness. On markets of western countries the
buyers often ask the question why companies of this or that countries offer
their goods when there are own producers. Practically all companies, entering markets
of developed countries face such prejudice. On the other side western companies
not recently have had such situations that may be called hypnotic, when it is
possible for the product to have western brand to instantly conquer trust at
external markets.
Choice of strategic
competitive advantages. To define activity
directions and international strategy directions it is necessary to carryout
analysis of strategic competitive advantages. The following large scale sources
of competitive advantages are pointed out: focus at the consumers; focus at the competition;
focus on the output; focus at the effectiveness (economic approach).
At different stages of internationalization various activities combination, each of
which is connected with diverse costs, risks and effect, are possible to be used.
Exit means could be distinguished as follows: Form of capital migration (export,
cooperation, capital transfer of self-liability, direct investment and etc.).Costs level connected with the foreign
market entrance. Level of the investment
appeal.
The most effective strategic means of exit
selection requires complex calculation
and grounds. It is possible to perform self
development using available
resources.
However this way requires productive capacity gradual
raising and intellectual and social
capital development, that also requires
additional investment and long-term period.
Alternatively, it is possible to use the way of companies’ acquisition (consolidation, business-like alliance),
which promote: to
strengthen position on the market in comparison with the competitors; to obtain
soon the new level, to receive new knowledge or technologies; to rank the
definite market sector; to get effective product distribution and sales channels; to use “economy of scale” advantages; to become the key player on the
market (international); to reciprocate competitors’ strategies sufficiently; to
perform joint investigation and elaboration
with the aim of further development; to master soon the local market
specificity; to get the access to new knowledge; to get additional profit by
way of synergetic effect from integration of efforts.
It is necessary to evaluate the possibility of
cooperation with local companies on the chosen markets. Cooperation instead of
competition always costs cheaper and at the same time is less risky.
Companies accept price signals from price leader or
increase price simultaneously with it change, proposed by the price leader.
Using branch
unities, companies cooperate plainly on
industry-wide problems.
Those companies also create explicit unities for
the research activity or trade on the condition that the authorities, bounding
monopolistic activity raise nothing against it.
Then
the international commodity and price policy of the corporation
should be determined.
Commodity policy defines, how to manage the goods
modification – product or service, adapting it towards foreign market
necessity. Commodity policy realization represents interactive process of goods
and necessary communications modification and selection (adaptation) with the consumer of the
corporation goods. Commodity policy has 4 basic options, which coincide to the
quantity of combinations , that could be made up from 2 variables – goods and
communication, each being considered in two
conditions : standardization and adaptation. The first option of the
international commodity policy – is the standardization, which is suitable for
those companies, leaving their market
and wishing to sell their goods without any adaptation. The second
option – communicative adaptation, directed to the modification of
communication system, which provides the goods turnover in the context of the international marketing, creating new consuming value. The
third option – is commodity adaptation, i.e. the goods, that gave a good
account of itself on the internal market, going to serve the same needs on the foreign markets. The forth option –
is dual adaptation. It is the most complex demonstration of the commodity policy for the existing
goods, i.e., logically – it is the unity of the second and third options, which require more expenses in comparison with the other
options.
Foreign markets prices solution formation is connected with the significant
difficulties. The difficulties appear
at various stages:
·
At
optimal selling price determination for each country;
·
At application of corrections for prices accord support.
Each country has its own criterion of optimal prices, which is influenced by costs, purchasing capacity, social goods value,
“price-quality” ratio, goods image (origin).
Price determination is built on
the basis of either costs, or demand,
or competition. Evaluating transferring
price formation, naturally for profit
aims – complex or simple, it is necessary to know which admissions are
behind it. Managers not always able to control
some types of activities, which define expenses.
There are several
types of price policy strategy:
·
Premium
and protective price strategy
·
Penetration
strategy
·
Price
differentiation strategy
·
Price
leveling strategy
IV. Conclusion:
Carried out researches have great theoretical and practical meaning. Complex
researches when developing complex researches of companies’ entering
international markets Kazakhstani
economic science are absent. Approaches regarded in the article are scientific
– methodological basis for the author’s further researches. At the same time
Kazakhstani companies which intend to enter international markets require such researches. Today their
international economic strategy doesn’t have economically based platform. Their
positioning in international market as a competitive partner may be more
successful under the condition of clearly formulated international marketing
strategy.
REFERENCES:
1.
Edward G. Brierly, Robert W. Eckles,
Robert R. Reeder. Business marketing. - Prentice Hall, 1998.
2.
Michael E. Porter. Competitive
advantage. Creating and sustaining superior Performance.- The Free Press, 1998
3.
Steven Wheeler, Evan Hirsh. Channel
Champions. How leading companies build new strategies to serve customers. –
John Wiley & Sons, Inc., 1999