Title: Study on International marketing and its effect onsmall andmedium enterprises in Doha, Qatar.
International marketing has been defined as “the harmonizing of organisational resources to overseas consumer requirements in the background of achieving organisational goals”. It can also be said as “the procedure of utilizing the organisational resources for satisfaction of foreign consumers for better growth of the organization.” it's a method of launching a service/product from the company to the customer in a foreign nation.
International marketing mostly deals with finding a solution to the problems which occur during the export process example the selection of most positive foreign markets and supply channel. After identification of foreign markets a good strategy should be outlined for the examination of advertising media, message channels and the many diverse methods of accomplishing the decision making.
The decision making mix refers to the entity or set of persons who have participation in the judgment to procure the good or service. Example an organisation selling Pharmaceutical products would have more achievement in targeting the doctors rather than directly to patients (the end user of the good) directly .For that reason, ones advertising tactic should be concentrating on communication to the decision making entity.
Value for the client:
An organisation expecting to export must acquire a reasonable benefit over other competitors in each and every market by creating value that a consumer can perceive. This can be illustrated using the following:
CLIENT'S PERCEIVED VALUE = BENEFITS OBTAINED/ PRICE
According to the modern vision marketing is global .But it doesn't mean that similar parameters are applicable to each country. Every country has separate peculiarities and no two markets can be treated the same way. So this means that a marketing plan with little modification cannot be successful in two different countries. Different countries have different methods of distribution, media, completion and different traits of customers. In the beginning the requirement is to understand the levels of marketing plan and category of standardisation in every country. There is no universally acceptable method for accessing international market even if internationalisation is a reality. Tailored product design, product promotion, even price and the distribution campaigns should be made for each separate market
A good policy could be “THINK GLOBALLY, ACT LOCALLY.”
Small and Medium Enterprises:
Who is doing the defining is important when we want to know what exactly a small and medium enterprise is. Canada Industry uses the term SME to refer to businesses with less than 500 staff, while classifying firms with 500 or more staff as "large" businesses.
In Qatar, a small and medium business is defined as having less than 50 employees in industrialized and less than 20 employees in non-industrialised industries.
A micro business is defined as a business with fewer than five employees.
Different countries define SMEs differently.
In Qatar, a small and medium business is defined as having less than 50 employees in manufacturing and less than 20 employees in non-manufacturing industries. This project only emphasises on sales and service industries; together these comprise about 60 percent of employment in Qatar and about 66 percent of GDP. Mining and agriculture are excluded from the study. Small and medium enterprises in Doha, Qatar are less globalised than the average in other gulf countries, but over the last five to ten years there seems to have been a sharp increase in the number of SME's actively pursuing international opportunities. On the best estimates and based on the globalisation scale adopted for the project about 1 percent of manufacturing SMEs are extensively globalised, 1 percent are globalized to a major extent, and another 2 to 3 percent are globalised to some limited extent. A typical globalised SME has around 25 employees, is active in at least five countries in two major global regions, and sources over 40 per cent of its turnover from overseas.
The 1980s witnessed one of the most phenomenal shifts in international production and specialization in modern history from developed market economies to developing economies (Plasschaert and Van Den Bulcke, 1991; Dicken, 1992; and Ojah and Ueng, 1995). With these shifts has come an increased movement of firms into foreign countries for marketing (exporting) purposes. Some of the international marketing activities are done in developing countries by firms based in both developed and newly industrializing countries (NICs) (Lall, 1983; Lecraw, 1993; and Li, 1994). The success or failure of these international marketers depends on the extent to which they understand the environmental nuances of the new and alien markets into which they choose to expand (Peterson, 1990; and Cateora, 1990). Among the potentially alluring markets of developing economies, Gulf (Qatar) markets have received the least attention. However, given the current pace of business globalization, it is not far-fetched to suppose that Qatar markets will soon begin to receive increased attention, at least, as product markets. Therefore, prospective international marketers to this long-neglected region of the world's markets need some knowledge of the region's market environment. And such knowledge can be more insightful when viewed in the context of a once neglected region of the world's markets--i.e., a comparison of the Doha Qatar market environmentalism with East Asia's.
Prerequisite for Entering Foreign Markets "Screening is the first step in evaluating foreign markets," asserts Peterson (1990). This assertion is very important when considering markets as unfamiliar and less studied as Gulf markets. Failure to screen before entering into a foreign market could produce undesirable results. (1) A potential international marketer's failure to identify economic indicators that correlate with his products, for instance, can be disastrous. For example, an international marketer of big-ticket household items should know that population growth (which is characteristic of Doha (Qatar) economies) correlates with staples such as food items, while increase in per capita income correlates with big ticket items such as cars and refrigerators. Hence, the economic environment that motivates the marketer's decision to enter a market must be evaluated in the context of such economic nuances. (2) The ignorance or non-acceptance of local business customs that can facilitate marketing transactions would impede an international marketer's success in that local foreign market. For instance, in Nigeria, it has become an accepted norm to, at various stages of a transaction, give gifts to employees involved in facilitating one's business. This is especially true when a government unit is concerned. A US based marketer, who for instance, views such practice as bribery would have a difficult time effecting transactions in that market. (3) An international marketer who ignores consideration of a target market's religion, language, and culture can needlessly waste advertising funds. If for example, McDonalds advertises hamburgers as its main product in India, the campaign risks failure as customers in India might consider it a socio-cultural affront given that the large Hindu population of India does not eat beef; emphasizing non-beef meals would be a better way to enter the Indian fast-food market (Pfeiffer, 1988; Cateora, 1990; and Kraft and Chung, 1992). However, marketing in Gulf (Qatar) does require some level of sensitivity to cultural concerns. Thus, a detailed screening of the environment is a must for entering foreign markets. After screening geographically dispersed markets for possible entry, a multinational marketer usually groups them into segments of similar markets for ease of planning.
Statement of the Problem:
Whenever a new market entrant has entered the market definetly the current market players are going to be affected by it. Also when there are international marketers that are going to enter the market they definitely bring huge profits the government as well as help in increasing the countries GDP. But with them comes a problem. Based on which, following problem will be studied in this research project.
What are the effects of international marketing on small and medium enterprises of Doha (Qatar)? What are the problems of international marketers have to face to enter the Doha (Qatar) market. Lastly How to overcome these problems of international marketing in Doha (Qatar).
Objectives of research:
The main objective of the research is to understand the importance of international marketing in context of Doha (Qatar). Secondly, the next objective is to find the effects of international marketing on the small and medium enterprises of Doha (Qatar).
Purpose of the Study:
When the market is distant or unfamiliar the marketer should firstly evaluate the market before entering the new market. Secondly the means should be made to achieve success in the market which is being targeted by the marketer. Especially in UN familiar markets such as Doha (Qatar) this points out to be a vital point in gaining success at international marketing. The expectations of environmental factors on marketing activity done by managers in different countries is used to show the differences and similarities in environment of market between the Western and the Asian markets which shows how this knowledge of market environmentalism is useful for international marketing strategy. There is no such clear difference in market environmentalism in Western & Asian markets as the marketing activity in emerging markets is highly susceptible to environmental effects. Similarly if such marketing plans are employed in familiar markets such as Saudi Arabia also can be used in little known markets like Oman.
· How international marketing effect the small and medium enterprises?
· (How important is international marketing for the growth of the organization?
· How can small and medium enterprises overcome effects of international marketers?
Significance, objective and benefit of study:
This study will provide an increased understanding of the subject and the measures taken by small and medium enterprises. Small and medium businesses and readers can benefit from this detailed study of available literature and critical analysis of real life activities in international marketing. A humanistic objective of research is to provide people with ease and comfort.
International marketers can benefit from this study by adopting and easy approach towards formulation of marketing strategies and procedures.
Limitations of the Study:
Due to limited financial resources and geographical distance factors research will be restricted and relative to qualitative research methods. The research will involve data taken from government statistics and research papers, journals and magazines and survey and statistical institutes. Businesses are reluctant to provide vital information in particular, consumer trends. Due to limited budget surveys, interviews and observations will be taken from authenticated and recognised data sources.
Advantages of International Marketing:
• Economies of scale in production and distribution
• Lower marketing costs
• Power and scope
• Consistency in brand image
• Ability to leverage good ideas quickly and efficiently
• Uniformity of marketing practices
• Helps to establish relationships outside of the "political arena"
• Helps to encourage ancillary industries to be set up to cater for
needs of the global player
To understand the basic concepts of International marketing the following are necessary for the successful research project.
Marketing Mix -4P's
Initially we should analyze the four elements that comprise the marketing mix which are usually referred to as marketing the “4 Ps''i.e. product, price, place, & promotion while developing the components of the marketing policy. Any strategy should comprise of all these four elements for gaining best results.
Marketing Mix and Distribution
Various types of marketing techniques are relevant depending on the type of product that we are planning to market. Certain study of 4 P's is required in marketing of consumer products. Even in the industrial products the study or analysis is made using similar techniques, but in this case the 4 P's mix will be different.
While preparing the marketing plan we must analyze the different steps involved International marketing.
To plan properly one must know:
· Production distribution methods
· Level needed to service the market
· Methods of payments that can be considered
· Promotion methods needed to gain access.
International Marketing Environment:
1. Demographic Environment:
Demographic environment involves the study of different factors like human population location, gender, age, occupation, race, and other statistics. As Demographic Environment involves the people, it is the major interest to marketers.
2. Economic Environment:
The economic environment involves the various factors that affect the purchasing power of the consumer as well as its spending patterns. There is a great difference in the levels of distribution of income in various nations.
3. Natural Environment:
The Natural Environment consists of the natural resources that are required by the marketers or those which affect the activities of the market. The marketer should also be aware of the various trends in the natural market. First the marketer should have the knowledge of growing shortage of the raw materials. Secondly air & water may seem to be infinite resourses, but some times they may involve long- run dangers.
4. Technological Environment:
The marketer should also study the developments in the technological environment to be on par with the market, if the new technologies are ignored the business may decline & thus become outdated. Thus, marketers should watch the technological .Environment closely. Companies that do not keep up with technological change soon will find their products outdated.
5. Political Environment
The political environment consists of the government agencies, laws and pressure groups that influence various organizations and inturn affect the individual in a given society. Hence the marketing decisions are affected by the developments in the political environment.
6. Cultural Environment
The cultural environment various institutions and other forces which affects the society's basic values behavior.
The main objective of this research is to understand the international marketing, also to study its effects on small and medium enterprises on and also the process of international marketing. The research is qualitative based and different books, articles, websites, and literature and will be used to compile this research. The key elements of the research are marketing mix, marketing plans, marketing environments, marketing strategies, brand functions small and medium enterprises, and other marketing elements that help organizations in international marketing .The data will be collected from secondary sources. Sources of secondary data include books, journal articles, related websites and other related literature.
Analysis and Finding:
All major facts and figures those will be found in result of analysis will be considered as finding. These finding will help in formulation of conclusion.
Critical review of the literature will provide a firm ground on which a structure of different types of data and their collections will be erected. Application of different tools of analysis will provide us with findings. However, from review of literature up to the analysis and findings each element will have to be constantly aligned with objectives. Integration of these objectives will provide us with a clear and applicable conclusion.
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Philip R.Cateora (2007) International marketing, 433
Marieke K.de Mooji et al Global Marketing and Advertising: Understanding cultural paradoxes, 161-163.
Moha Asri Hj(2000). Et al, Small and medium enterprises in Asian pacific Countries: Roles and issues. 87, 88.
Robert C. Et al, E-commerce in regional Small to medium enterprises (2007), 90.
Subhash C. jain- Business and economics: Handbook of research in international marketing, 31.
Gerald Albaum(2008), Et al, International marketing and export Management, 55-58.