International Marketing Practices

which is now estimated at 3.2 billion people and projected to grow by 160 million each year, with most of the new entrants located in Asia [15]. A firm may want to take advantage of easy access to some markets or free trade agreements (FTAs). The U.S. has signed FTAs with 20 countries [2]. International markets help businesses diversify their markets, allow them to smooth out domestic economic downturns, and can be an attractive outlet for a firm’s excess capacity. Entering international markets may provide information and access to talent that will help a business develop a competitive advantage in the long term. Lastly, international markets present opportunities for small businesses to identify and develop profitable niche markets, where firms often face less competition than in a crowded domestic market. There are reasons why some companies avoid international operations, including increased paperwork, language and cultural barriers, slower and more complicated payment methods, tariff and non-tariff trade barriers, market access and logistical challenges, lack of personnel with training in international commerce, risky political and economic climates, and lack of competitive products. These challenges contribute to a perception of higher risk and uncertainty in entering international markets. In addition, many small to medium sized forest products firms do not start with adequate training in marketing, much less international marketing. Sometimes the day-to-day pressures of running the business may not leave enough time to do market research, learn about legal requirements in a target market, or develop international marketing plans. However, careful research and planning can help to decrease risk and boost a firm’s chances of success. Appendix A contains a comprehensive list of resources compiled to assist firms entering foreign markets. International Marketing Defined Marketing is often considered the “income generating” function of a business. One author states that marketing is 20% of the business planning process that produces 80% of the results [16]. According to the American Marketing Association, marketing is the process by which value is created , communicated , and delivered to customers [17]. Marketing links production with customers, integrates a firm’s several functions, and helps create and maintain relationships with customers and other stakeholders [18]. International marketing can be defined as “ the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to customers or users in more than one nation for a profit ” [19]. Therefore, to sell a product effectively overseas, it is essential to appeal to consumer needs and desires in that specific market. Careful planning of international marketing strategies can help to address the uncertainty associated with exports by gauging a company’s readiness to enter a market [20].

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