International Marketing Practices

Product adaptation is also important to consider when entering foreign markets, as exporters sometimes need to modify their products or services to comply with foreign regulations and meet consumer expectations overseas [82]. For example, the European Union has more stringent requirements for packaging and product safety than other markets; thus, companies interested in exporting to countries in the EU need to consider compliance costs when making pricing decisions [83]. Climate conditions in foreign markets may require different products or processes. For example, large differences in prevailing humidity between the location of production and use may require firms to dry wood to a different moisture content or change product design to allow for more or less wood expansion [84]. Differences in culture may also require firms to make product adaptations to adjust their values and attitudes in the target markets (Appendix C). Countless examples exist of companies that have overlooked cultural differences, leading to market introduction failure. Firms interested in starting international sales need to implement a structured process to evaluate whether a product needs adaptation. Promotion Promotion is communicating the firm’s value proposition to customers. The objectives of promotion are to inform, persuade, remind, and associate. Promoting your business and products serves to do the following:

• Build awareness among potential users. • Differentiate your service from that of your competitors. • Communicate the benefits of using your firm. • Build a favorable image. • Persuade customers to use your firm. • Eliminate preconceived misconceptions. • Inform existing and potential clients of new services.

As part of the strategic planning process, a company exploring international sales must decide on a promotional mix , including advertising, trade show participation, online presence, and social media. These topics are discussed in this section. Advertising The ultimate purpose of advertising is to communicate with current and potential customers [23]. Effective advertising “ interprets or translate the qualities of products and services in terms of consumer needs, wants, desires, and aspirations ” [19]. A well-executed and targeted advertising campaign can reach a large number of people and increase a foreign consumer base [38]. Global advertising spending reached $544 billion in 2018, with notable increases in digital and online media advertisement [85]. The prevalence of print (e.g., magazines, newspapers) and

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