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Foreign economic activity. The concept and content of operational marketing in foreign economic activity (the most important)

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90. The concept and content of operational marketing in foreign economic activity

Operational Marketing - marketing mix deals with the study of the marketing mix, which is the link between the producer and the consumer. It is a set of variables that can be controlled and that firms must use to influence the demand for a product (sales) of a product (service). There are several groups of such variables. The most famous classification includes 4 "P":

▪ product;

▪ price;

▪ place;

▪ promotion.

In addition, the people component occupies an important place in international marketing.

The product is characterized by such components as quality; style; a trademark or, as they say, a brand; the size; package; level of service and guarantee. The concept of price includes the base price, discounts, duration of the payment period, credit options. The sale of products in the marketing mix is ​​represented by such components as distribution channels, the degree of market coverage, the location of points of sale, and the size of stocks. Promotion brings together advertising, propaganda, public relations activities, sales promotion and personal selling.

A firm wishing to sell its products in one or more foreign markets must first adapt its marketing mix to local conditions.

There are firms that widely use a standardized marketing mix. Known. That the standardization of the marketing concept provides the following benefits:

▪ costs for production and promotion of products are reduced;

▪ the product life cycle increases:

▪ risk is distributed between different markets;

▪ coordination of management and control over marketing activities from the head office of the company is ensured;

▪ R&D costs are distributed over a larger volume of production;

▪ competitive advantages are enhanced as a result of the development of an undifferentiated pricing and advertising strategy for the company for various country markets, etc.

The standardized approach is directly related to the globalization of the world economy, as it intensifies international competition - the main engine of marketing. As a result of competition and the growth of the market, the international division of labor deepens, which stimulates an increase in production both at the national and international levels. An important advantage in the context of globalization is economies of scale, which can potentially lead to cost reduction and lower prices, hence sustainable economic growth and overall improvement in welfare.

Despite the advantages of standardization, many national companies still consider it necessary to use the principle of an individualized marketing mix when entering a foreign market, i.e. modify your marketing concept or even create a completely new marketing concept for foreign markets. This approach allows you to concentrate the elements of the international marketing mix, taking into account the specifics of each individual market. At the same time, the firm, although it is forced to incur additional costs, at the same time hopes to win a larger market share for itself and thereby obtain higher profits. Changes made to marketing activities in foreign markets are linked to the type of product, the characteristics of the marketing environment, as well as the degree of penetration of the company into a particular market.

The focus of any enterprise should always be on the creation of goods and its implementation. The product is the core of the entire marketing mix.

Author: Bobkova O.V.

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