After spending a substantial amount of revenue doing market research in foreign
ID: 1200580 • Letter: A
Question
After spending a substantial amount of revenue doing market research in foreign markets you found that there are numerous ethical and legal that should be taken into consideration. You have found that practices in the United States and Canada which are considered perfectly acceptable, may be considered offensive, objectionable, unethical or even unlawful in some territories of Europe and in several parts of Asia. The executive committee that has hired you to be the marketing manager of the expanding company is becoming impatient, as they want to quickly move into Europe and Asia in order to capture a large portion of the market. Time is of the essence; because your company’s closest competitors are making great strides in reaching potential customers. Explain to the executive committee what ethical issues that your company may face when expanding into these foreign markets. What are some of the key factors that should be taken into consideration when marketing products or services in a cross-cultural environment?
Explanation / Answer
Explain to the executive committee what ethical issues that your company may face when expanding into these foreign markets-
To discuss on that matter we need to know that what Business Expansion basicaly means-It's a strategy ,using that a customer can buy company's product and services by increasing number of stores.The benefits to expanding your business into foreign markets includes increased sales, more profits and improved competitiveness.Domestic dependency can be reduced by choosing global business.
When international business is one's target then to expand it from local to global level is not free of challenges.There are so many ethical issues that every company faces.Now below there is a list of issues faced at the time of expansion-
1.Language and cultural problem-Selling to customers or working with vendors who don't speak your native language can be a significant obstacle for any business owner. Beyond language, differing cultural norms may also stand in the way of a successful business expansion, Foreign customers' and business partners' needs may not be the same as those of your domestic stakeholders, and this could affect your sales, marketing and overall business strategies.For example if it needs to expand at Paris then french should known.
2.Tax codes and compliance issues-If it's difficult to navigate the various tax codes and business regulations from state to state, it's better to sell in another country.It is also noted that other countries have different labeling and packaging standards that we may need to comply with, depending on what we sell. In the states, the instructions you include with your product will be in English — sometimes Spanish or French,. "But in Europe, your instructions, even for the simplest product, will be in multiple languages, sometimes up to 24 languages. If our product is sold more regionally, our will have to consider the increase in packaging cost associated with labeling. In addition, our product will have to be certified as safe.
2.Slower pace- In America, the business world moves pretty quickly. Executives and even lower-level employees work day and night, making appointments and closing deals long after they've left the office for the day. We may be able to broker a deal just through formal business meetings [at home, but] in China and the Far East, it is necessary to spend extensive time getting to know your counterparts outside the boardroom during tea sessions or dinner banquets, for instance.Things will always take longer to be resolved overseas, but that isn't necessarily a sign of a lack of momentum — you have to be patient and prepared for multiple interactions to build trust.
3.Local competition-It's not always easy to convince a foreign customer to purchase our company's product when there's a comparable product available that's made in the customer's home country. Local competition. It's not always easy to convince a foreign customer to purchase your company's product when there's a comparable product available that's made in the customer's home country.
Thus we can explain to the executive committee what ethical issues that your company may face when expanding into these foreign markets.
What are some of the key factors that should be taken into consideration when marketing products or services in a cross-cultural environment-
Some kind of factors are to be adopted to reduce such issues.These are as follows-
1.Find the right partner(s)-When we're expanding your business, it's critical that you don't try to go it alone. Even if our "partner" is in the form of a mentor, we'll need the help of someone we trust, who can vouch for you in the country or countries you're looking to break into.
2.Hire a great team-The need for help "on the ground" also extends into our hiring practices. The people we hire to deal with our overseas business partners and customers must be fully immersed in the local environment, but we also need to be sure they'll be looking out for our interests.
3.Consider the impact of any new ideas- Introducing a new product or marketing campaign becomes a whole new ballgame when you operate internationally. Instead of only thinking about how our own country's customers might receive our new ideas, we'll also need to think about and accommodate for the impact these ideas will have on our foreign customers.
4.Remain consistent in branding- As mentioned above, varying cultural norms and customer needs in foreign countries may require you to adjust your sales approach, or even your whole product. It's very crucial to maintain the taste,quality and type of the product to stay in the competitive market with the brandname,
5.Sincerity-Any major business decision requires taking the time to think through all possible scenarios based on your business' strengths and weaknesses, but this is especially important for international expansion.
These are all key factors that should be taken into consideration when marketing products or services in a cross-cultural environment.