Mark Armitage, Director of International Trade,
Herefordshire & Worcestershire Chamber of Commerce
The Covid-19 pandemic has changed and will continue to change global markets that companies are already or planning to operate in. And not just the country markets (are they in decline, static or growing?), but also how to access them through existing supply chains including in-country routes to market, international brand development, international marketing communications and ultimately international sales. This article demonstrates how an International Marketing function within a business can provide vital support to companies in a challenging, ever changing in a post-Covid-19 global business landscape.
Firstly, what is International Marketing and International Marketing planning and what is its function within a company? As well as being part of the broader concept of overall strategic business planning, International Marketing manages the interface between the company and its international markets and clients and the international business environment and its opportunities and threats.
At its simplest level, the role of international marketing ensures that the marketing mix for a company’s product or service matches (changing) international customer needs as well as seeking opportunities to use a company’s competitive advantages to market other products in new and/or existing markets. At a more strategic level, listed below are some of the vital functions that International Marketing carries out for a business:
- International market research – global, regional and country markets (growing, static, declining), international and (domestic) competitors, the international business environment (PESTEL factors – Political, Economic, Social, technological, Ecological and Legal) the company operates within and the threats and opportunities that are uncovered as a result. See below for how the Marketing function makes use of this market research and data in a constructive, targeted way to generate revenue for a business.
- New Product/Service Development e.g. in conjunction with engineering/manufacturing/operations
- International brand development
- International Marketing Communications – advertising, PR, website, SEO, social media, events planning and execution, marketing collateral development
- International Markets Forecasting and Trends Analysis
- International Markets Pricing
- International Channel and Sales Development, Management and Support
Why are the above functions even more important and relevant in a post-Covid-19 international business landscape? Taking each area in turn:
International Market research
Global markets have been massively disrupted by the Covid-19 pandemic. International markets that were previously strong for companies may now be in decline, markets that were weak revenue earners may now be the reverse. Logistics and supply chain factors may also mean routes to those markets no longer exist or are significantly more challenging. PESTEL factors may all have changed in a company’s existing or target markets which in turn may mean threats and opportunities are now in place where they weren’t previously. Competitor activity may have increased, decreased or there may be no competition at all. As a result, companies need to re-evaluate and audit their existing and target country markets by ongoing research to understand how to mitigate against risk and take advantage of new opportunities.
New product/service development
Based on market research, companies may now need to alter existing services/products or create new services and products to suit the new international market conditions.
International Brand Development
How does a company develop or sustain its international brand in the new business environment uncovered by the research and how does it position or re-position itself against the competition as a result – both globally and at a more local market level? Does the international brand proposition need to be altered, changed or simply reinforced considering competitor and market activity, for example, if a country market sector is shrinking and the competition is strengthening its brand presence through local marketing activity to prevent loss of market share.
At a more strategic level, in the light of these international market and international business environment developments, companies may need to consider completely re-framing or re-calibrating their international proposition and brand to gain competitor advantage and demonstrate differentiation from the competition.
International Marketing Communications
Based on the research and local market audit, how does a company now target and effectively communicate its brand values and proposition to its international markets? The communications mix (website, SEO, social media, virtual exhibitions, collateral, advertising, PR etc.) may need to be developed and/or tailored to target new, existing and potential markets to strengthen and/or sustain a company’s brand proposition. This must also be done bearing in mind local language and cultural sensitivities in order to maximise brand penetration.
Effective international marketing communications also closes the psychic, cultural and therefore the commercial distance between a business and its international market/client. Effective language and cultural approaches and communication with local markets will be even more important in the current situation given restrictive travel, cancellation/postponement of international exhibitions and conferences.
Trends, Demand Forecasting and Pricing
New or changing international market and supply chain conditions will influence market demand and pricing. Effective ongoing market analysis and marketing audits will ensure more accurate market trends understanding, demand forecasting for Operations and of course provide the data required to adapt prices to the new market conditions thereby helping to protect margin and maintain and /or grow local market share or, make a decision to exit the market if it is no longer commercially viable.
International Channel Management and Direct Sales and Business Development
Market research will also reveal how robust the company’s routes to their international markets are in the current situation and enable the appropriate Marketing remedial steps to be put in place. How is the local distributor/agent/wholesaler/strategic partner performing? Is the company still operating? Has it had to diversify away from the UK company’s product given a change in local market conditions thereby reducing local market penetration and sales of the UK company’s products a result? Is the Channel partner taking advantage of new opportunities – or not? Is it mitigating against local market risk? The UK marketing operation can adjust marketing support levels accordingly – be that local brand development, distributor/agent/partner support and marketing communications thereby helping to ensure sustained revenues as a result.
How does the company now sell and market directly to its client/consumer base (if that was the business model previously) now that there is restrictive travel and cancellation or extended postponement of local exhibitions and conferences? Does International Digital marketing now need to perform a bigger role as a result and to compensate?
In summary, never before has the role of International Marketing, as the interface between a firm and its international marketplace, been so pivotal as companies strive to make sense of the new order in global trade so that they can take advantage of new international opportunities and mitigate against the threats of a post Covid-19 international business landscape.