Charting the behavior of international industrial buyer
In order to act locally, marketers must understand how industrial buyer behaves in different parts of the world. Motivation to buy is either a group or an individual phenomenon. In countries where individuals defer to group desires, motivation to buy commonly requires a unanimous decision. In some authoritarian countries,motivation to buy is ordained from industry officials or government hierarchies.
One of general model (figure) has been proposed that helps industrial marketers to localize international marketing efforts. Much company buying internationally is done by industrial buying units within customers’ organizations. Six factors affect the buying unit’s behavior: individual, environmental, organizational,societal, uncertainty, and governmental.
Organizational. In evaluating organizational factor, sellers must ask key questions. What are the organization’s goals and objectives? How centralized is the organization and its buying activities? How well is the company doing? What are its competitive advantages? How does the buying unit operate in the total organization?
Uncertainty. Dealing with theuncertainty factor determines whether transactions take place smoothly and whether repeat business is likely in the future. Important questions must be asked: What time pressures is the buying unit under? What sorts of risks are considered by members of the buying unit? What king of purchasing agreements are they likely of request?
Governmental. All industrial transactions area affected to agreater or lesser extent by government regulations. Are these special government goals or controls that may influence the buying unit? What if any, are the legal constraints influencing this transaction (for example, special contractual provisions)? Are these trade restrictions that might affect the transaction (such a special licenses needed for export)? Does government bureaucracy need to be dealtwhit? Are bribes necessary to get action and are they legal? Hoe stable is the present government? If changes in the government occur, will they interfere with future transactions?
In addition to regulations, governments are large influence industrial transactions by their great purchasing power. All governments are large purchasers of products and services. They begin by developing “shoppinglist”, which contribute to their own economic plants. Marketers must identify what needs are on these list.
Effective local marketing strategies
After charting buyer behavior, companies must develop marketing strategies.
Locating target markets. Industrial marketing is business-to-business marketing, so locating potential customer for industrial goods is easier than it is for consumerproducts. Business directories, company specifics compiled by commercial attachés at overseas embassies, government list, trade associations and Chamber of Commerce area all good sources for identifying potential clients.
Mandatory adaptations. A successful market strategy usually includes mandatory adaptations, which are essential before products can enter foreign markets. Examples are adjustingelectrical voltages from US 110 to European 220 volt standards and left-hand to right-hand drives for cars. When Eastman Kodak entered the European photocopier market, it did not redesign its product line to suit European tastes but made only necessary changes: (1) altering keys on control panels to conform to local language requirements, (2) incorporating an optical system that could reduce images toany reasonable size (a feature it later built into the entire Eastman North American line), (3) conforming to the specifications of European electrical systems in writing and voltage, and (4) adding safety doors to meet European product safety standards.
Non mandatory adaptations for product differentiation. Many companies such as markers of computer, medical equipment, and telecommunications...