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Discuss the marketing challenges an Irish business may face when trading globally, providing examples to support your answer. - Leaving Cert Business - Question B - 2016
Question B
Discuss the marketing challenges an Irish business may face when trading globally, providing examples to support your answer.
Worked Solution & Example Answer:Discuss the marketing challenges an Irish business may face when trading globally, providing examples to support your answer. - Leaving Cert Business - Question B - 2016
Step 1
Product Adaptation
Answer
Irish businesses often need to adapt their products to meet local requirements in international markets. For instance, electrical products designed for the Irish market may require modifications to be compatible with different electrical standards and sockets used in other countries. An example would be an Irish manufacturer of electronic devices needing to alter their products for markets in continental Europe or North America.
Step 2
Pricing Strategy
Answer
Pricing remains a significant challenge for Irish businesses as it must reflect various factors like the local standard of living, transport costs, and currency exchange rates. For example, a company like Glanbia may set higher prices in Ireland due to increased living costs while offering lower prices in emerging markets like South America, where consumers have different purchasing power.
Step 3
Distribution Channels
Answer
Longer channels of distribution can arise when entering foreign markets. Irish companies might need to establish new manufacturing partnerships overseas, which can complicate logistics and increase costs. For instance, Glanbia has set up operations in countries like Germany and Belgium, requiring them to adapt their distribution strategies to suit local conditions and practices.
Step 4
Cultural Considerations
Answer
Language, culture, and media pose substantial marketing challenges. Marketers must ensure that promotional campaigns resonate with local audiences and respect cultural norms. Some products, particularly those sensitive in nature (like tobacco), may face stricter advertising regulations in other countries compared to Ireland, necessitating careful planning and adaptation of marketing messages.