International marketing is the logic of entrepreneurial thinking that considers the whole world market as a sphere of production and sales activity, as well as a source of income on a systematic routine basis (Mooij 2010). The essence of international marketing is the review of the whole world of a potential market, its analysis, and its needs.
Such five major features characterize international marketing as.
At the same time, the tasks of international marketing are placed in response to the following questions:
International marketing takes place in the world because of one the main reason. It probably occurs because of the tendency that the practice of entrepreneurship, which has already been accumulated in the field of small and medium-sized businesses in many countries, with all its advantages and disadvantages may not have a chance for further development and improvement without its enrichment with the experience of other countries, without taking into account current trends (Agarwal & Ramaswami 1992).
Relationship marketing, theoretical aspects of which have been described in the 80-ies of the last century, is the most advanced business philosophy that is well adapted to the current conditions of the market. It increases the importance of individual, personal contacts in the system of effective communications (Porter 2008). Moreover, it distributes the responsibility for decision-making in the field of marketing to the entire personnel of the company, as it requires participation in marketing activities not only of marketing professionals but also employees of other business units, including the top-level management.
The concept of relationship marketing involves the next requirements. Firstly, the needs of the target groups can be satisfied by a large number of similar products. Secondly, the success of the enterprise depends on the number of repeat visits from buyers and the stability of the relationship with the partners, which reduces transaction costs. Thirdly, customers and parents are interested in long-term relationships based on their individual needs and the circumstances of the interaction (Papavassiliou & Stathakopoulos 1997).
Currently, one of the characteristics, on which the degree of development of the market economy is being judged, is the percentage of services in comprehensive income that is achieved within the economic system of a particular state. This criterion suggests that trade in services is a key area of the economy of the future, and companies in developed countries are increasingly focused on the services sector by reducing the production of goods. Thus, for example, “France and Germany are rebalancing the tax burden away from labor to business and financial income, by changing their corporate tax and/or social security contribution bases while Italy has transferred the financing of part of social security expenditure from contributions to general taxation” (OECD 2000, p. 37). This trend has become one of the preconditions for the emergence of such a system of business looks like relationship marketing. The main reason for this was the fact that the promotion of services is fundamentally different from product marketing. A completely new approach to system sales is required at present because firms compete no longer so much in the quality of goods as in the methods of its presentation and individual approach to each customer. The main purpose of relationship marketing becomes a task-oriented forming-up of permanent trust with business partners. Such relationships are mutually beneficial for both the seller and the buyer of services. Using a structured marketing mix, based on the analysis of competitive advantage (marketing mix), a company reduces costs to attract new customers, and reduces customer service time, thereby increasing the total efficiency of the enterprise. Service consumer, in turn, receives quality service and individual approach based on a privileged business partnership (Sakarya, Eckman & Hyllegard 2007). In this case, the determining factor in the success of this approach is the personal contact with all business partners: customers, distributors, and other members of the marketing chain. The relationship between the partners in this case becomes a more important resource than the material, financial and human resources.
The second most important resource, which is so necessary when using communication strategies, is information. This is due to the highest rate of growth of information in the world, where knowledge and information are the most important competitive advantage, without which it is impossible to stay the course, even if possessing the highest quality product or providing unique services (Vahlne & Nordström 1993). The factor of innovative development is central to the modern marketing system, and the ability to present the most effective innovation to the client determines the success of the enterprise. For example, “eBay is so attractive because its large user base increases the likelihood that people can always find the specific product are seeking”, which is achieved with the help of the dissemination of information (Bidgoli 2006, p. 174).
The popularity and effectiveness of the concept of relationship marketing are reflected in the change of approaches to the central marketing function. The function of management, which has taken an honorable place in the theory of promoting the service, involves not so much marketing decisions so management of the system of relations between the seller, the buyer, and other market participants (Khan 2007). It is also relevant to notice that the concept of relationship marketing involves not only experts in the field but all the members of the organization, especially the controlling unit (management). The process of relationship marketing is the key to such an approach and personal relationships tend to be more qualified at the level of senior management.
The need for the emergence of such a new approach to doing business is due, above all, to an advance in similar competitive products and services, which has fallen upon the modern consumer (Axinn & Matthyssens 2002). A wide range of standardized products, which are available in the market now, has made a customer make choices based not on the quality of the product and its price since the differences between the competing companies are negligible, but based on the quality of service and personal relationships.
All the tools, which are used in relationship marketing, determine the decisive role of the use of new alternative methods of marketing (including marketing and interaction) in the company that operates in the market in the present day. The importance of the tools implemented in relationship marketing is paramount for international marketing, especially when activities are done not within the same country, but vary depending on the characteristics of a foreign country. The next features have characterized these situations. Firstly, the degree of uncertainty of the risk of the enterprise decreases. Secondly, there is a need for a thorough study of the foreign market. Thirdly, all the tools of marketing are used in various forms of an international system. Fourthly, the need for information security increases. Fifthly, demands as to the activity itself so to the quality of its goods increase (Johanson & Vahlne 1977).
Thus, international marketing is the logic of entrepreneurial thinking that considers the whole world market as a sphere of production and sales activity, as well as a source of income on a systematic routine basis. The essence of international marketing is the review of the whole world of a potential market, its analysis, and its needs. Relationship marketing distributes the responsibility for decision-making in the field of marketing for the entire personnel of the company, as it requires participation in marketing activities not only of marketing professionals but also employees of other business units, including the top-level management. The percentage of services in comprehensive income that is achieved within the economic system of a particular state and information describes the significance of relationship marketing in international marketing.
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