Modern tendencies and development strategies of service marketing in international markets

Abstract

The article is about tendencies of the development of marketing and international strategies. Recently, the market share of services has been built up and that is why the role of importance of service marketing increasing. The service sector is still developing in the world economy and accounts for more than half of the total world production. The service industries differ from each other significantly. Service marketing strategies are distinct for local and international service companies. Service companies use marketing to position themselves strongly in a selected target market. The changing role of marketing in the service sector requires efficient management of customers, supply channels, markets, and profits. Three main trends have led to a change in the role of service marketing: The increasing importance of technological meditation, the changing role of the consumer and the professional, and the decreasing importance of the relational factor in consumer decision-making. These tendencies create a fundamental challenge for service marketing specialists to develop business strategies that incorporate dynamic changes in the business environment. Furthermore, main tendencies marketers working in service firms need to focus on 10 tendencies identified in the service sector for business success: personalization, understanding customer expectations, rehabilitee, simplicity, internationalization, packaging, rationing, vitality, and market spaces, and multidimensional competition. All of the above tendencies force marketers to adjust their strategies based on market needs and customers. Research shows that international service firms’ strategies and service marketing models provide new opportunities. In an international context, environmental factors have a significant impact on marketing strategy and the success of subsidiaries. It is important to understand the adoption needs and also to determine where and how to adopt. It has been proven that the service should be standardized at the beginning of the process because it can be done with lower costs and later adapted when the company sees its advantage. Consumers sometimes require specific conditions for adaption and information exchange to adapt to specific brands and terms of service. To implement good service marketing a balance between standardization and adaption at the international level is necessarily trying to balance the costs and benefits of adaptation assists companies succeed. The starting point for balancing external and internal factors of international companies is a correct marketing strategy. Marketing mix variables (product, price, place, and promotion) are considered in service marketing, these variables highlight the difference between the internationalization of services and goods. Product brand changes in case of service and 4P become 7P. The latter is a more complex brand design and adds additional service variables: physical evidence, process, and people. Proper management of these variables allows a firm to thrive in the service industry. External factors in the internationalization of services provide multifunctional firms with both challenges and opportunities in developing their marketing strategies. A frequently cited factor is culture, which provides information on who local consumers are, how they consume, how they select services, and how they interact with multinational firms. Market characteristics are also important for services in the adaptation process: market infrastructure, advertising, media availability, distribution structure, and market size. These features assist us to decide on standardization of adaption in marketing strategy. Another essential precursor to company standardization is competition and price adaptation, as well as promotion, which includes advertising media, sales promotion, public relations, discounts, and personal selling.  Today’s world market is characterized by high competition, despite this, service companies manage to sell their products in new markets, they manage to do this by increasing brand awareness, by developing the right marketing strategy. Recently, the volume of products sold by well-known brands in Georgia has been increasing.