Introduction
International marketing is a wide subject that all the corporations willing to conduct their business on a global scale must look into. In this context, the conventions of trademark and their importance to the international marketer are analyzed. Several trademark conventions are available, however, the highlighted brands include the Paris Convention, the Patent Law Treaty, and the Madrid Protocol. Further, the influence of technology and globalization on trade in retail distribution is elaborated. Other aspects related to international marketing include the promotion of brand strategy and the cultural impact in promoting products in a new market. In general, a good marketing strategy requires international registration, cultural tolerance, brand strategy, and assessment of the influence of globalization and technology in retail distribution.
International Conventions and their Comparisons
International trademarks protect the intangible property of an organization. Several products have been formulated to facilitate efficient trade on a global scale by reducing the risks associated with brand theft. The first international trademark noted in this context is the Madrid Protocol. The convention basically enables companies and individuals to register their brands outside their home country (Abbott, Cottier, and Gurry, 2019). The treaty is available to more than 100 countries and, hence, filling the application guarantees protection for all the states under the protocol (Ghidini, 2018). For the application to be granted successfully in the Madrid Protocol, the business owner needs to identify the countries where they would opt to operate in (Abbott, Cottier, and Gurry, 2019). Further, the applicant needs to ensure that their trademark is secured in their home country by applying to the local offices. As long as the application is submitted, the applicant does not have to wait for the approval to be accepted at the local country level, as they are free to begin the international registration process at once.
To the international marketer, the trademark has a low fee structure. That is, it is relatively affordable to file the application in 10 countries than other conventions (Ghidini, 2018). Hence, an international marketer can file applications in many countries with limited capital. Another advantage is the prolonged validity of the registration that lasts up to 10 years (Ghidini, 2018). Moreover, an International Registration cover key is provided for the states that partner with the U.S. The disadvantages of the convention include the “Central attack” that is associated with the possibility of challenging the coverage in all the countries within which the I.R. was filed. For example, if the international marketer had registered in countries such as Spain, Canada, Brazil, Egypt, and the United States, and the coverage is challenged in the United States, then the registration in the rest of the countries would also be invalid (Lisitsa, 2018). Furthermore, the business owner must have a registered enterprise in the home country for the verification process to be granted.
Another trademark worth noting is the Paris Convention which is dedicated to the protection of international property. The international treaty protects intangible assets of about 177 states (Ghidini, 2018). The advantage of operating with the treaty is that it guarantees the same protection provided by the national laws. As long as a business owner files for protection in one of the countries in the Union, it is granted the chance to file in any other country within the treaty. The system also guarantees multiple applications of services offered. For instance, if the applicant filed for I.T. services, including web designing, software production, and IoT services, they could include other services related to the scope without strictly maintaining the initial mission.
The advantage of the Paris Convention is based on the number of countries that it covers. More than 177 countries have adopted the convention, meaning that it would guarantee protection to a wider geographic area (Ghidini, 2018). Further, the policies are flexible in that the coverage in other countries can still be granted if it is challenged in one state. There are many conventions with international packages that are favorable, however, the Paris Convention is exceptional in providing the same protection offered by the attorneys at the local state level. Another disadvantage of the system is based on the considerable time it could take to file the registration. That is, the international markers have to certify both the national and international jurisdiction laws.
The third treaty under consideration is the Patent Law Treaty (PLT). The theory was formulated to ease the process of registration while maintaining the regional laws associated with patenting of intellectual property. The convention helps innovators and business owners to reduce the risk of losing the date of the patent. That is, while most conventions limit their services towards international registration, PLT emphasizes the exact filing date, therefore, the owner can easily prove their property by presenting the date of application as evidence. PLT also reduces the cost of application by simplifying the processes involved in the protection of intellectual property. However, the treaty is limited to 59 countries and hence, it’s a disadvantage to the international marketer (Ghidini, 2018). Particularly, the treaty integrates the national procedures of registering properties with common international laws by emphasizing dates such that the owners can challenge any party that attempts to steal the property without their consent.
Comparing the Conventions
The international marketer is concerned with three criteria of identifying the effectiveness of convention, where the aspects are rated out of 5. The first criterion is the cost involved in which the Madrid Protocol weighs 4, while the Paris Convention and the PLT weigh 4 and 5 respectively. The second criterion is in regards to coverage area where the Paris Convention is ranked 5, the Madrid Protocol ranks 4 while the mark of the PLT is 2. In terms of easing the time for registration, the PLT ranks 5, whereas the Paris Convention and the Madrid Protocol rank 4 and 3 respectively. Overall, the score of the Paris Convention is 13, while the Madrid Protocol and the PLT score 10 and 12 respectively. Therefore, the Paris Convention ranks the highest in terms of exhibiting the interests of an international marketer.
Influence of Globalization and Technology on Retail Distribution
The globalization of markets affects retail distribution in several ways, including the direct selling of goods. The internet through e-commerce has bridged the distance between the producers and the consumers. E-commerce is currently trending based on its ease of use to consumers. Customers can easily navigate to the manufacturers’ websites and make their orders directly without involving a third party (Zeller, 2017). Furthermore, e-commerce has reduced the cost of distribution because the goods that could be distributed from the wholesalers to retailers and finally to the consumers can now take the shortest route from the production straight to the customers (Leung et al., 2019). The transactions that would be incurred from one wholesaler to another wholesaler are reduced amicably, which is to the advantage of the end-users and manufacturing firms in the supply chain.
Globalization has also created enormous markets such that companies based in the United States can sell their goods in China by opening branches in the country. In this case, the Chinese citizens enjoy the same products in terms of quality as the ones availed in the U.S. at a substantial cost (Diez-Martin et al., 2019). The distribution costs that would be incurred when the goods are imported are reduced, and as a result, the enterprises become competitive. That is, when the manufacturing companies are located close to a large consumer market in China, the enterprises can compete effectively with local industries.
Another way in which the technology influences retail distribution is based on enhanced inventory management that has been enhanced. That is, the automation of the inventory is associated with efficient stock checking and programming on how to run the supply chain. Additionally, many distribution firms are investing in robotics to reduce labor expenses (Savastano et al., 2019). Besides, the efficiency of robots is guaranteed as long as they are maintained. Examples of companies that have adopted the technology in their distribution include Amazon Inc. Although the corporation has employed many workers who facilitate the distribution of goods to consumers’ destinations, a lot of work is done by robots. Furthermore, the internet has reduced the advertisement cost considering that many platforms can be used to advertise brands and reach out to a wider customer audience; as a result, manufacturing companies no longer rely on intermediate vendors (Savastano et al., 2019). Rather, the products are advertised immediately through the internet that connects billions of potential consumers globally.
Challenges of Formulating a Coherent Brand Strategy
The challenge of developing a brilliant brand strategy is the over-reliance on traditional marketing techniques, which may not catch up with the current technological trends (Jimenez, Valdes, and Salinas, 2019). For instance, most companies still put a lot of emphasis on billboards, yet many consumers are using the world wide web. Another challenge is the stiff competition faced by established brands. New products or brands take a lot of time before they finally catch up with the market because consumers trust old firms. For instance, the Coca-Cola beverage company has established itself as an unchallenged brand based on the quality of drinks it produces with a unique formula. Although other enterprises such as Pepsi have also penetrated the market by developing their branding strategy through the promotion of sports, Coca-Cola has remained unchallenged in the beverage industry for decades. Furthermore, many corporations lack a unique system that defines their products (Diez-Martin et al., 2019). Hence, most products are treated as general goods with no emotional connection to the consumers. Once the product is termed available, it cannot compete effectively in an industry dominated by old players.
Another challenge is in regards to funding for the advertisement. Many enterprises with quality brands do not capture the attention of the market because the promotions or production communication is limited due to the insufficient amount of capital allocated for that purpose (Gómez et al., 2019). Therefore, most products trend on a local level because they lack the financial muscle to advertise on a global scale. Furthermore, the businesses fail to attract value investors because the products lack vision. Most investors look into the potential of business many years before injecting their investment.
From my point of view, businesses should develop a product that connects with consumers emotionally. The brand must be unique and valuable to the consumers to competitively position itself strategically among other players within the industry. The product communication goes beyond the slogan and logo as consumers are interested in the value (Chaffey, Edmundson-Bird, and Hemphill, 2019; Newall et al., 2019). The stakeholders at the organization must consider the global requirements of any product. That means analyzing if the outcome would meet the needs of people in China and the United States equally. Upon specifying an ideal strategy, the marketing would follow. Marketing can only be applied after the product communication is achieved, which is associated with uniqueness and a price-effective formula.
Influence of Cultural Change in Product Introduction in the Market
The product entry in a new market can face resistance from the inhabitants of the geographic region based on the following factors. The first aspect is based on the level of education of the locals. An example in this aspect is based on products in the technology sector that are likely to face resistance if they are marketed in areas where people are illiterate on characteristics associated with innovation (Röth and Spieth, 2019; Chaouali and Souiden, 2019). For example, the launch of the 5G technology was rumored to be dangerous in contributing to cancer development (Ndinojuo, 2020). Hence, companies that introduced 5G products in the geographic locations faced a lot of resistance considering that the consumption rate was abysmal.
The second aspect that is likely to influence cultural change is religious beliefs. Any company that wishes to expand its operations or introduce a new product to a new location must consider the spiritual aspects. Products manufacturers must study the religious doctrines of the community being targeted. For example, introducing a bank that depends on interest as a strategy of profitability may not work effectively in the Muslim states (Belwal and Al Maqbali, 2019). The Muslim believes in “halal,” which emphasizes that banks should not charge interest for people who borrow money for domestic purposes other than commercial reasons (Thaker et al. 2019; Belwal and Al Maqbali, 2019). Therefore, commercial banks may not perform effectively in such markets. The most performing banks in U.A.E. are Muslim-based banks such as Dubai Islamic Bank because their core values align with the religious morals of the community.
Additionally, language is another important aspect in determining whether a product will be welcomed well in a new market. That is, most markers strive to identify interpreters who would facilitate the promotion of products by exhibiting a similar accent. Otherwise, a product may not perform unless the target audience connects with the product socially. For example, a Spanish product may face resistance in an African market unless the company invests in employing Africans to brand and promote the product in English (for English-speaking countries such as Uganda and Ghana) based countries.
Conclusion
International marketing encompasses subjects related to the registration of companies of a global scale, formulation of brand strategy, utilization of technology in retail distribution, and the consideration of cultural influence in local marketing. Furthermore, an international marketer must evaluate the pros and cons associated with trademarks available in regards to the capital. The criteria for selecting the best convention are based on cost-effectiveness, time reduction, and the states covered which in this context, the Paris Convention is ranked the best. Most products face challenges in establishing a brand strategy because there is no uniqueness in the products released to the market. Other attributes include keeping up with technological trends to reduce the cost of retail distribution.
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