International Market Research Assignment Sample

Introduction Of International Market Research

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International marketing implies the principles and methods related to marketing which is followed and used by countries all over the world. With time the advancement in the field of international marketing, companies all over the world have benefitted by following these methods and principles. It has become easier for companies all over the world to do business with more efficiency. International marketing has helped companies to extend their businesses across the globe. The well-defined strategies are enabling the organizations to gain customers rapidly. This is only possible due to the collaboration and smooth execution of the multinational corporations, exporters, importers and service companies. There is also another type of marketing known as domestic marketing which generally refers to the execution of activities related to marketing within the boundaries of one company's own country. It is also known as domestic trading; this type of marketing enables the organization to look after the supply and services provided by their company within the borders of their country. In domestic marketing, the organization has to face only one type of competition related to the economy, the marketing issue, only one type of customers and even if the company has different sections in the market. There are limitations of domestic marketing because the companies that are following domestic marketing get a very limited amount of growth in the marketing sector (Pereira et al., 2019). In the following, we are going to discuss the similarities, differences between international marketing research and domestic marketing research. We are also going to know about the parameters and constraints of international marketing research. the similarities and differences between domestic and international business research

Similarities between domestic and international businesses

The trade-in on a global scale can be achieved by all the large scale corporations and also by the independent wholesalers. Trading is a part of the DNA and also played a great role in the civilization of human beings. Humans have been trading for more than a century now. They have been trading in different things varying from generation to generation. The method of transactions has also been developed day by day. When businessmen try to expand their business, whether internally or externally, they do thorough research about the advantages and disadvantages of domestic markets and international markets. There are a lot of differences in trading and selling within the home country and expanding the business from domestic to shipping goods in overseas market. This is a basic overview of the differences between international and domestic trade. This goes through the opportunities and also the potential to unlock the opportunities in domestic as well as international markets (Buckley, Enderwick & Cross, 2018). The businessman should understand the importance and the risks factors involves in cross border E-commerce.

There are some important similarities between the trades that are done internally and internationally. There are very few similarities between domestic and international businesses because the platform of their trade or business is quite different. But in between the few similarities, the main common point would be that all the firms have the same set of objectives, plans and ultimate goals for becoming successful in their own business. For example, maximising the profits of their businesses is one of their main mottos. Another similarity that can be said is that both domestic and international businesses work with the same functional departments (Srivastava, Singh & Dhir, 2020). Both of them needs a marketing strategy, keeping the records of their accounts, investing in their human resources and good administrative systems. Hence, they often try to combine the aspects of domestic and international operations. Their technique of marketing is quite similar in both cases which are non-human factors like the costs of the product and quality of the product. In both, markets building goodwill is required. That is, building the goodwill of the customers is very necessary. The satisfaction of the customers should be the prime concern of any business whether it is domestic or international (Cherunilam, 2020). The confidence of the customer can only be won by the good quality of service. And the more the customer prefers your product, the more the company can earn a good reputation. Some services like after-sales service and liberal guarantees are very essential for creating goodwill to win over customers. Both the businesses are voluntary exchanges and not coercive exchanges

On the other hand, the differences between both the businesses are a lot in spite of their few similarities. Domestic businesses are the type of business where the transactions are done within the geographical boundaries of a particular country. They trade within their own country. The customer and the seller are from the same boundaries. These businesses are mainly local and they also advertise in their particular country (Borchardt, 2020). Their businesses are generally limited to the territories of their countries. It is not very difficult to conduct business research in domestic business because the customers of this business are homogeneous in nature. They use the currency of their parent country to do business transactions. While in international business the scenario is quite different. It is even somewhat opposite to the features of domestic business. International business generally refers to the business in which the transactions of the business are held across the borders of different countries. They trade their products in several countries. The seller and the customer can be from different countries. They do their production on a large scale as compared to domestic businesses. It is very difficult to conduct business research in international business because the nature of their customers is heterogeneous and the process which is needed to conduct the research is also very expensive. Currencies of many different countries are used in the transaction process of the business. The international business is quite wider as compared to domestic businesses.

There are many advantages and disadvantages of domestic and international businesses. The development in the fields of transportation systems, the easier and faster ways of transactions through net banking has helped businesses to grow a lot. In spite of these developments, the mobility factors of labours and capital are not as much in the international business because it takes a quite lot of time. Whereas domestic businesses are faster in such cases. There are a lot of differences in their marketing characteristics in both businesses. The demand pattern of customers varies in domestic and international business. International business uses a different method of promotion, advertising and channelling its distribution because it is trading in between the countries while domestic business has a different method. There are some other factors which are different such as the laws and rules of business. Domestic businesses have to take care of the law of their country only but international businesses have to take care of the business laws of the countries in which they are trading (Bai, Johanson & Martin, 2020). The laws of the countries and the rules of customs of trade are different in each country. Hence the procedure of business done by the businessman in international business varies for each country.

There are certain restrictions in each country to safeguard the interest of tier own country. There are some quantity restrictions also which restricts the trade of certain products or commodities. Under some restrictions, importers are not allowed the foreign exchange to make the payment for the imported good. The customs duties tax is also imposed on international businesses for trading in different countries. There are a lot benefits which are associated with overseas trading i.e. international trade. The passage of time it has taken a part as the major contributor towards the growth of the global economy and also played a great role in the reduction of poverty. It has also improved the quality of life as it enables a greater amount of diversity of products and services to run on a global scale. It has also promoted the efficiency of production and allocation of resources and it has a tendency to increase the employment rate and ignite innovative minds (Karafyllia & Zucchella, 20017).

The parameters and constraints of International Business research.

According to Saurabh Srivastava, International Business research discusses the role played by International business in gaining the systematic result of the internalization of businesses. This study reflects how an organisation can gain more benefits in the marketing world by studying the areas where there has been a noticeable development in the past decades and where there is scope to develop in the future. The segments of this research include the methodology, context, knowledge and management practices. Today the international business is themed on one of the oldest and recurring themes known as “Globalization". This deals with the growth of the relationship of the change of international economy of all the countries within themselves (Tien & Ngoc, 2019). This can be calculated by the measurement of the flow of the foreign direct investments (FDI), different types of exchanges based on the ideas, effective practices, capital, technology, and people.

 Globalization acts as a catalyst for increasing the different parameters at the highest level. It was successful in stimulating the rate of change, dynamic process and ultimate effects. Globalization has been described as an irreversible change in recent years. Today International Business has become the face of the modern economy through which organizations have gained noticeable technical advancement with the more efficient execution of their businesses globally on an everyday basis. The most important parameters of International business research are the relationship between the economic system and the business sectors. The IB research also depends on the decisive factors of a country like the GDP and per capita income. Periodically the implication of taxes on foreign trading is involved in deciding the parameters of the IB. Other parameters are like the availability of the resources required for the smooth running of the company like the supply of manpower and raw material. The structure of wages is also important to maintain a stable growth of the companies dealing in international business (Beugelsdijk, Ambos & Nell, 2020). The proper management of financial resources is also needed to ensure the development of international business. If the same is not done then the organisation would not be able to flourish and spread its wings all over the world. Therefore to have a flourishing business reaching to the customers and providing services all over the world, it is needed that all the mentioned parameters of the IB research are followed.

According to the Journal of International Business Studies. It has been reported that the critiques of the IB research are tackling some big questions by focusing on them immensely. The research methods used in International business research tries to highlight the fact about how much distance we still have to cover. The position we have reached in the field of international business research has been only possible due to global capitalism. The contributors of the RGC agreed to make the RGC a non-existing body today. It was an integrated system spread across the boundaries of the governance of the economy. Without caring about the view's legitimacy, it can be questioned about the spread boundaries of the regimes of capitalists (Dörrenbächer & Gammelgaard, 2019). There are some widely recognized technological advances whose shocking changes have contributed to the liberation of markets where new players can emerge on the scene of the global economy. The constantly widening scope of international business and the multinational enterprises with its specialization activities are bringing forward new types of moral challenges along with many obligations. These things are giving rise to an awareness of intercountry institutions with cultural mores which are running with a trend of raising the costs of the transaction of both market and non-market.

Conclusion

With the development in the field of international and domestic business, we can notice that the difference in culture can affect the global economy today, which can ultimately affect the business on an international level. Therefore if the people who are operating the market on an international basis want to cut off the factor related to the culture of the entrepreneurs. The market should be able to diagnose the country's culture with the help of which they will earn an entry into the relationships of business. They also need to formulate different strategies for different markets based on the diagnosis made earlier. This can provide inspiration to the entrepreneurs by helping them to understand the depth of the issue. This will help us to know the functioning of international and domestic business research. Due to the effect of globalization, the raging competition between the international business and the domestic business can be seen, where the small scale industries are giving tough competition to the international business adding to the increasing pressure on the global market. Now there is a crucial role played by the innovations of the technology and industry which will help both kinds of businesses to attain a position that would be highly competitive (Kingsley, Noordewier & Bergh, 2017). The domestic and international business research is providing us with a better understanding of the International market and helps us to develop it even more so the business sector can gain more profit with its better and developed implication.

References

Pereira, V., Vrontis, D., Christofi, M. and Temouri, Y., 2019. Analysing three decades of emerging market research: future research directions. British Journal of Management, 2019, pp.1-12.

Tien, N.H. and Ngoc, N.M., 2019. Comparative Analysis of Advantages and Disadvantages of the Modes of Entrying the International Market.“. International Journal of Advanced Research in Engineering and Management, 5(7), pp.29-36.

Buckley, P.J., Enderwick, P. and Cross, A.R. eds., 2018. International business. Oxford University Press.

Srivastava, S., Singh, S. and Dhir, S., 2020. Culture and International business research: a review and research agenda. International Business Review, 29(4), p.101709.

Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..

Borchardt, M., Ndubisi, N.O., Jabbour, C.J.C., Grebinevych, O. and Pereira, G.M., 2020. The evolution of base of the pyramid approaches and the role of multinational and domestic business ventures: value-commitment and profit-making perspectives. Industrial Marketing Management, 89, pp.171-180.

Bai, W., Johanson, M. and Martin Martin, O., 2017. The best of both worlds: Domestic and international business relationships and opportunity knowledge and their impact on returnee entrepreneurial firms’ innovation performance.

Karafyllia, M. and Zucchella, A., 2017. Synergies and tensions between and within domestic and international market activities of firms. International Business Review, 26(5), pp.942-958.

Beugelsdijk, S., Ambos, B. and Nell, P.C., 2020. Conceptualizing and measuring distance in international business research: Recurring questions and best practice guidelines. In Research methods in international business (pp. 449-498). Palgrave Macmillan, Cham.

Dörrenbächer, C. and Gammelgaard, J., 2019. Critical and mainstream international business research: making critical IB an integral part of a societally engaged international business discipline. critical perspectives on international business.

Kingsley, A.F., Noordewier, T.G. and Bergh, R.G.V., 2017. Overstating and understating interaction results in international business research. Journal of World Business, 52(2), pp.286-295.