Page 236 - GLOBAL STRATEGIC MARKETING

• Agreed minimum prices

• Prompt payment to suppliers

• Sustainable and environmentally friendly production

Sustainability and environmental issues are a growing concern for

developed countries as natural resources need to be replaced in
consumption-led societies. This can also be a source of competitive
advantage as consumers demand more ethical practices in relation to their

own consumption. This is one of the main reasons that Bionade is
successful because of the increase in bio/organic consumers who care

what they consume and who care about the environment. SME’s like any
larger organisation need to consider their international marketing strategy

and there are several options that need to be taken into account; such as
exporting, international niche marketing, electronic commerce and
participation in the supply chain of a larger organisation.

11.2 Exporting

Doole and Lowe (2008) argue that exporting is very different from

international niche marketing in that exporting is about selling excess
capacity and niche marketing is meeting customer needs. The differences

between an exporting strategy and a niche strategy are outlined in Table
11.1. Exporting is about selling excess production capacity, cost-based

and relying on distributors and agents to market and sell the products
internationally. With a niche marketing strategy, the organisation has a
higher level of control and commitment over its own operations as well as

assessing the environment to capitalise on opportunities and meet
customer needs. With an exporting strategy, the need to establish either

indirect (trading companies, export management companies) or more
direct methods such as the use of distributors and agents needs to be
established. For the inexperienced international marketer, the use of

indirect methods may be more appropriate. Once, an experience curve is
established within international markets, then more commitment and

control can be asserted in the choice of entry methods. As stated
previously, not all organisations go through this experience curve as many
companies are born global.