International and Domestic Marketing Comparison
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International and Domestic Marketing Comparison Paper
“Never before in American history have U.S. businesses, large and small, been so deeply involved in and affected by international business” (Cateora, & Grahm, 2007). Over the years many business are looking into expanding their business overseas since there is so much potential for growth and reaching more consumers from around the world. With the growth into international countries there is potential for growth but it is also important that the business understand that each country is different, they could have different ethics, beliefs, culture, politics, laws, and economic influences. Once they are able to have a better understanding of the difference between the home country and the foreign country then they would be able to market their products or services much easier. Lets take a look at the difference in marketing between the U.S. and Germany.
The official name of Germany is the Federal Republic of Germany and is located in central Europe. It is estimated that the population in Germany for 2012 is approximately 81.3 million people. According to the United States Department of State, “Germany has one of the worlds highest levels of education, technological development, and economic productivity. Since the end of World War II, the number of youths entering universities has more than tripled, and the trade and technical schools of the Federal Republic of Germany (F.R.G.) are among the worlds best” (U.S. Department of State, 2012).
Marketing strategies in the United States and Germany are different in various ways. One of the ways their marketing is different is that the Germans feels that the environment is very important. In 2008 Datamonitor Group conducted a survey that indicated that approximately 77% of the people who responded felt that protecting the environment is very important (International Markets Bureau, 2010). The Germans have been concerned about the environment since the 1970s and as for the U.S., it has only been over the past several years has there been a growing trend on creating products or services that are environmentally safe. In order to be able to be successful with marketing a product or services in Germany is to emphasize how the product is eco-friendly since they feel that the keeping the environment safe is of utmost importance. When it comes to marketing in the U.S. a company would create an image to the consumers that they may or may not need the product or services.
Both Germany and the U.S. have their similarities when it comes to marketing; one is that they both adhere to the four Ps of marketing which are: product, price, place, and promotion. There are some people who believe that the U.S. marketers does not perform as well as the Europeans. An “indication of how foreign marketers have woven societal responsibility into the fabric of their profession (and how Americans have not) is that European consumers generally know that the term export quality means superior to that produced for the home market. In Denmark, Tuborg beer, for example, has a long tradition of producing both a no-frill, less elaborately bottled and brewed domestic beer and a premium quality blue-chip packaged export beer” (Coulson, Mauser, Holloway, and Lazer 1980).
If a company in the U.S. wants to become successful in the European market, such as in Germany, then that particular company would need to meet the needs of their customers. The German consumers want a business that is able to respond quickly to the needs of their customers, not only respond quickly but also be environmentally friendly. In the U.S. after a consumer purchases a product, the company does not follow up on how the customers feel about the product. For other businesses, customer service is very important. “Often United States companies seem to seek to cover Europe from a single European base, or even through periodic visits from the United States” (U.S. Commercial Service, 2005). At the same the German customers expect to be able to pick up the phone and talk to someone if they have a problem with their product or services, once they are able to talk to someone they want to be able to receive the parts or services immediately. One thing that U.S. exporters should avoid is appointing distributors with large geographic areas that are impossible to get to without the firms commitments when it comes to parts, inventory, or service capabilities and without the agreement on dealer markups (U.S. Commercial Service, 2005). In order to be successful in Germany it requires long-term commitment to market development and sales back-up, especially if a U.S. company is to overcome the geographic handicap to the European Union (U.S. Commercial Service, 2005). The Germans perception on U.S. suppliers is that they are quick to defer processing an