Relationships are seemingly the obsession of marketers in the 1990s. For some, the development and solidification of long‐term relationships is tantamount to success. However, practitioners and academicians have been saying for years that to succeed in business, firms must adhere to the principles of the marketing mix. The “4Ps of Marketing” are an old standby with which many of us are familiar. Nonetheless, before developing a price, product, promotional and place/distribution strategy, managers must understand that the foundation for such a strategy rests with a firm grasp of the marketing environment. As the marketing environment is a very powerful force which continually affects the firm and its marketing mix, marginal comprehension in this area can spell doom for many firms.
For corporations engaged in international marketing, understanding the marketing environment becomes even more acute. Varied cultures, demographics, economic conditions and political systems suggest that marketers must be sensitive to unique situations abroad if any significant amount of business is to be conducted. This is particularly true with respect to the procurement function of the firm. With the globalization of markets combined with a restructuring of US firms with an eye towards costs, quality, flexibility and technology[1] a new role for procurement has emerged. Purchasing, in many organizations, has suddenly become a very active group with a broadened, international focus. This has meant that old ways of doing business may not necessarily apply today.
In an attempt to understand better the marketing environment to be faced by international procurement managers, this paper outlines some of the important developments in this area. Although not all inclusive by any means, it is hoped that this overview will help to broaden our appreciation of what doing business in the international arena actually entails.
Relationships are seemingly the obsession of marketers in the 1990s. For some, the development and solidification of long‐term relationships is tantamount to success. However, practitioners and academicians have been saying for years that to succeed in business, firms must adhere to the principles of the marketing mix. The “4Ps of Marketing” are an old standby with which many of us are familiar. Nonetheless, before developing a price, product, promotional and place/distribution strategy, managers must understand that the foundation for such a strategy rests with a firm grasp of the marketing environment. As the marketing environment is a very powerful force which continually affects the firm and its marketing mix, marginal comprehension in this area can spell doom for many firms.
For corporations engaged in international marketing, understanding the marketing environment becomes even more acute. Varied cultures, demographics, economic conditions and political systems suggest that marketers must be sensitive to unique situations abroad if any significant amount of business is to be conducted. This is particularly true with respect to the procurement function of the firm. With the globalization of markets combined with a restructuring of US firms with an eye towards costs, quality, flexibility and technology[1] a new role for procurement has emerged. Purchasing, in many organizations, has suddenly become a very active group with a broadened, international focus. This has meant that old ways of doing business may not necessarily apply today.
In an attempt to understand better the marketing environment to be faced by international procurement managers, this paper outlines some of the important developments in this area. Although not all inclusive by any means, it is hoped that this overview will help to broaden our appreciation of what doing business in the international arena actually entails.
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