International Planning and Marketing Strategy

How countries may be dropped from further consideration as potential markets

Out of the four phases of the international screening process, the first two phases are fundamental. The two phases evaluate the internal and external environment of the company, host and home country, and an appropriate marketing mix for the new segment. Results of these two phases advise a manufacturer on whether to pursue the venture (Czinkota, 2007). Basically, countries that do not offer adequate prospects for further deliberations are eliminated from further screening.

Phase one deals with preliminary analysis and screening of environmental factors and the company character. The phase attempts to match the company’s and the country’s needs. A number of factors make firms drop a country in phase one of the international screening process, for instance, there might be aggressive competition in the country for the product. Such competition may lead to inadequate profitability for the firm. Secondly, the legal structure, political environment, level of technology, the structure of distribution, geography, and economic environment of the host country may be too stringent to allow foreign investors to penetrate with ease. Thirdly, the political, economic, and legal environment of the home country may make a manufacturer drop a country from further screening. Finally, the organizational culture these are, the company’s philosophy, objectives, management style, and management skills, may hinder a firm from venturing into a country (Doole & Lowe, 2008).

Phase two focuses on defining the market segment and adapting the marketing mix accordingly. The phase attempts to come up with a marketing mix that suits the proposed market segment. This comes after establishing that the company’s needs match with the country’s needs. Several factors can make a country be dropped in phase two of the international screening process, for instance, product development and acceptance in the country may require massive investment. The firm may not be able to afford such massive investment thus hindering investment. In addition, the product developed might require well-built distribution channels that the company cannot afford. These factors may result in dismal profits, the least return on investment, and an unstable environment for investment thus leading to the elimination of a country from further consideration (Doole & Lowe, 2008).

Conditions that exist in the country that would make a manufacturer exclude it

There are a number of conditions that exist in a country that can make a firm eliminate it from the screening process in phases one and two. Some of the conditions are political instability, low levels of technology, poor geographical conditions, and economic instability among others (Brady, 2010). In the second phase, a country may be dropped due to the general reception of the marketing mix these are, the product, price, distribution, and promotion. Therefore, the marketing mix is the center of analysis in this phase. The aim of a manufacturer is to adopt a marketing mix that requires low cost and guarantees a high profit (Shukla, 2008).

Conclusion

The work discussed ways and reasons why countries may be eliminated in phases one and two of the international planning process. The international planning process is vital for multinationals. It helps manufacturers to understand the business environment and the benefits that might accrue from such ventures. In conclusion, screening helps a firm to assess the comprehensive viability of a country before committing funds (Open Universities Australia, 2012).

References

Brady, D. (2010). Essentials of International marketing. United States of America: M.E. Sharpe, Inc.

Czinkota, M. (2007). International marketing. United States of America: Thompson South-Western.

Doole, I., & Lowe, R. (2008). International Marketing Strategy: Analysis, Development and Implementation. United States of America: Jennifer Pegg.

Open Universities Australia. (2012). International marketing. Web.

Shukla, P. (2008). International marketing. Web.