SCHOLEDGE INTERNATIONAL JOURNAL OF BUSINESS POLICY & GOVERNANCE

VOL. 2, ISSUE 3 (MARCH 2015) ISSN-2394-3351

A CRITIQUE ON THE MULTINATIONAL MARKETING STRATEGIES

Simon Reid，
Scholar/Author
The Royal Society of New Zealand
Wellington, NEW ZEALAND.

ABSTRACT Corporate Effectiveness.

REVIEW STATEMENT
The trade and commerce across border has been
expanding over the past decade at a much impressive Various kinds of the business strategies as being used
pace. The international business is being carried on by the multinationals are reviewed to their relevance
by the multinationals by focusing on their strengths and productivity. The work reviews as to how
and core competencies achieved by them with the successfully the Marketing strategies are being
experience of doing business across borders. The adopted, formed and used by the multinational firms.
international business is possible only with the tactics
developed over period by the trade players. The DISCUSSION
international practices and methods are the subject
matter of this critique study. The study puts light on The business marketing strategy is always seen as the
the relevance of the multinational business strategies tools for the drastically moving the organization to the
as critically analysed. The study also looks ahead onto desired direction. The business strategy can be
the fact that the effectiveness of the strategies is understood as a tool of preparing a policy programme
critically imperative for the success qf any business which is adopted throught the organization towards
strategy. achieving a common goal and positioning the
organization in a competitive position. The core
KEYWORDS: - International Business, competence of an organization is known to be
Business Marketing Strategy, International Strategies, generated by the strategies and their relevance by the
business houses.
Followings are some of the critically important
marketing strategies adopted by the corporates going
overseas for their commercial activities:-

d I SCHOLEDGE PUBLISHING WORLDWIDE- SCHOLARLY INTERNATIONAL JOURNAL

丄 WWW.SCHOLEDGE.ORG
 Marketing Startegies

Follower Leader Strategies

Marketing
Strategy

The stated above in the their business either by

chart, the international copying or innovating of the
marketing strategies can be existing idea or refining the
categorized in to following existing business model.
for segments:-
REVIEW
• Follower Marketing
Strategies EBay and Amazon are
• Leader Marketing known as the online retail
Strategies beginners but Flipkart and
• Niche Marketing Snapdeal have taken the
Strategies idea seriously and refined
• Challenger the model with the express
Marketing Strategies delivery model. They have
gone for intermediary
All the above strategies are acquisitions aggressively.
widely being used by the The result is EBay and
international firms in their Amazon is getting tough
policy framework and competition from the
adoption. The effectiveness Flipkart and Snapdeal.
of these strategies is
reviewed in the following Even they have been made
segment of the paper. compelled to shake hands
with these neo-market
REVIEW OF participants.
FOLLOWER
MARKETING In another case, Apple
STRATEGIES conceptualized the Touch
screen phones and the
When there is a profitable Samsung followed the
leader in the market and the concept. The result is that
entry barriers are minimal, Samsung has become the
the follower marketers come smartphones market leader.
in to the market with the
hope to earn revenues from REVIEW OF LEADER
the already tested business MARKETING
idea. In this type of STRATEGIES
marketing strategies, the
after-leader marketers do Leader marketing strategies
SCHOLEDGE PUBLISHING WORLDWIDE- SCHOLARLY INTERNATIONAL JOURNAL
2 WWW.SCHOLEDGE.ORG
have been associated with used worldwide as the
the fact that the first and official operating system.
successful entrant in the The market role of the
market with an aggressive Microsoft is unchallenged.
market position develops its The other story is that of
core competencies which are Coca-Cola which has
never challenged by any intacted its position of being
other market player. In this the market leader even with
type of strategy, the tougher competition from
company makes an the PepsiCo. McDonalds5
aggressive drive taking the has created its own market
market campaign and and occupied the seat of the
creating its own market market leader. All this
standing. signifies that the market
leader poses as an aggressive
REVIEW wave into the market created
by its own. Google did not
Microsoft has become a made any move to challenge
market leader of Computer the wave created by
Operating System being Facebook as the Facebook

SCHOLEDGE PUBLISHING WORLDWIDE- SCHOLARLY INTERNATIONAL JOURNAL

2 WWW.SCHOLEDGE.ORG
presented itself as the market leader with an
aggressive market expansion.

REVIEW OF NICHE MARKETING

STRATEGIES

The another one is the Niche Marketing strategy

which is being adopted and used by the
multinational organizations now a days. In this
type of market, a relatively small segment is served
under this type of segment. The size of the market
is small and is still untapped or served by any
marketer. First mover advantage is generally
available to the niche marketer ・ Not all
marketers want to enter this market instead very
few make their decisions to enter the market. By
tapping the niche market, premium revenue can
be generated in less competitive scenario.

REVIEW

The first mover in the fashion apparels online

store market in India was MYNTS. Till nowthe
online fashion apparels market was untapped and
was not served ， it was MYNTRA which took
advantage of the niche market of youth shopping
for fashion apparels online.

CHALLENGER MARKETING
STRATEGIES

A company which is not a market leader instead it

want to be the market leader and undertake
aggressive marketing so as to grab the larger
market share is known as a challenger marketer.
The challenger marketer is use not to be the
market leader instead it use to be a contender for
becoming the market leader ・ Every
multinational uses to adopt this strategy while
going aggressive to create its own market share in
highly competitive market place.

REVIEW

e e e
marketer when we talk of EBay or Amazon as
market leaders. The Flipkart is aggressively
ee heavily on
intermediaries’ acquisitions. Although Flipkart is
not a market leader still it ee

RELEVANCE OF STRATEGIC BUSINESS e

STRATEGIES
e

created by a company for a special activity having

separate streams of revenues. The role of e e es
multinational business firms is imperative. The
following chart shows the exact profile of the SBU
and what it does:-

O I SCHOLEDGE PUBLISHING WORLDWIDE- SCHOLARLY INTERNATIONAL JOURNAL

3
WWW.SCHOLEDGE.ORG
 Corporate
Level

Business
Level

Operational
Level

corporate identity as an established brand. In

conclusion, it can easily be said that the
multinational firms are more strategic than the
domestic firms. As they need to face different
jurisdiction and market composition at a time,
they need to be strategically managed and carry
their affairs in a much coordinated way. The
presence of more players in the international
markets especially when there are domestic
players having all the knowledge of the local
market trends makes the marketing strategies a
must to use. The multinational firms have more
The chart shows the SBU at the functional level SBUs. They manage each SBU as a separate
above the operational level and below the business. The SBU is coordinated and managed as
corporate level. The SBU is identified as a separate they are invested with all the strategies and efforts
function by the functional head. It is managed by by the multinational firms.
the functional head. The SBU is performed by the
operational teams which are separate for each
SBUs. The SBU becomes more and more
important while framing the policies about the REFERANCE:-
future corporate plans and procedures. The
criticality of the SBU is that it is composed of all I. Cavusgil ， S.T. and Zou, S. (1994) ，
the marketing strategies especially in international “ Marketing strategy-performance
trade. relationship: an investigation of the
empirical link in export market
CONCLUSION
ventures’’ ， Journal of Marketing, Vol. 58
The work analysed various marketing strategies No. 1，pp. 1-21.
and their vitalities in the international trade. The II. Hill ， W.L.C. (2002) International
marketing strategies have been used by the Business ， Competing in the Global M
international firms like a tool of designing the arketpl ace: Postscript 2002 (3 Rd
future course of action and plans for putting the edn) ， United States ofAmerica, McGraw

O I SCHOLEDGE PUBLISHING WORLDWIDE- SCHOLARLY INTERNATIONAL JOURNAL

3
WWW.SCHOLEDGE.ORG
 Hill.

III. Kotabe, Masaki and Helsen, Kristiaan

(2004) Global Marketing Management,
3rd edition, John Wiley & Sons, ISBN o-
471-23062-6.
IV. Peebles, D.M. ， Ryans, J.K. and Vernon,
I.R. (1977).A new perspective on

O I SCHOLEDGE PUBLISHING WORLDWIDE- SCHOLARLY INTERNATIONAL JOURNAL

3
WWW.SCHOLEDGE.ORG
 advertising standardization. European European Journal of Marketing, Vol. 30
Journal of Marketing. No. 1，pp. 52-69.
V. Phillips, Chris, Isobel Doole, and Robin
Lowe. International Marketing Strategy:
Analysis, Development, and
Implementation. Routledge, 1994.
VI. Powell, T.C. (2001), "'Competitive
advantage: logical and philosophical
considerations", Strategic Management
Journal, Vol. 22 No. 9, pp. 875-88.
VII. Ryans, J.K. ， Griffith, D.A. and White,
S.D. (2003),
“Standardization/adaptation of
international marketing strategy:
necessary conditions for the
advancement of knowledge77,
International Marketing Review ，Vol. 20
No. 6, pp. 588-603.
VIII. Shoham, A. (1999) ， “ Bounded
rationality, planning, standardization of
international strategy, and export
performance: a structural model
examination77, Journal of International
Marketing, Vol. 7 No. 2, pp. 24-50.
IX. Solberg, A.C. (2000) ， “ Standardization
or adaptation of the international
marketing mix: the role of the local
subsidiary/representative Journal of
International Marketing, Vol. 8 No. 1 ，
pp. 78-98.
X. Theodosiou, M. and Leonidou, L.C.
(2003), Standardization versus
Adaptation of International Marketing
Strategy: An Integrative Assessment of
the Empirical Research, International
Business Review，12:2,141-171.
XI. Thrassou, A. and Vrontis ， D. (2006) ， A
Small Sendees Firm Marketing
Communications Model for SME-
Dominated Environments ， Journal of
Marketing Communications, 12 N0.3, pp.
183-202.
XII. Wedel，M.and Kamakura，W.A.(i998)，
Market Segmentation: Conceptual and
Methodological Foundations, Kluwer
Academic Publishers，London.
XIII. Wernerfelt, B. (1984) ， "S4 resource
based view qf the firm” ， Strategic
Management Journal, Vol. 5 No. 2, pp.
171-80.
XIV. Wind, Y. and Douglas, S.P. (1986) ， ‘The
myth of globalization” ， Journal of
Consumer Marketing, Vol. 3 No. 2, pp.
23-6.
XV. Zou, S. and Cavusgil ， T.S. (1996) ，
“ Global strategy: a review and an
integrated conceptual framework” ，

5 I SCHOLEDGE PUBLISHING WORLDWIDE- SCHOLARLY INTERNATIONAL JOURNAL

3
WWW.SCHOLEDGE.ORG