International marketing helps manufacturers to utilize excess production effectively. It involves shipping goods produced in surplus in one country to another.
That way, foreign exchange of products between the importing and exporting countries can meet each specific needs. In other words, surplus raw materials, goods, or services in domestic production can be shipped to foreign markets.
Besides increasing revenue and diversifying asset, international marketing also provides competitive advantages. By expanding abroad, you can access new customers and visibility that your competitors might not have. This is especially true when the home market is already saturated. These include marketing managers, marketing coordinators, and translators, among others.
As a result, companies usually hire workers with a unique skill set that may prove useful at home. For instance, over 71 percent of advertisers believe that some of the best ad campaigns are being developed abroad. So, applying a similar strategy at home could convey a competitive advantage. Despite its benefits, global marketing comes with specific downsides. For one, cultural restrictions between the home and host country could hinder the marketing strategy. Other disadvantages of international marketing include government restrictions, high competition, potential infrastructure issues, and war in the host country.
The varying culture and norms across the globe could lead to various marketing challenges. These include differences in consumer needs and usage patterns as well as response to marketing mix elements.
Also, foreign countries sometimes have institutions that may call for creating an entirely new marketing strategy. For example, Muslim culture considers dogs to be dirty creatures. These usually include high taxes, as well as duties to import and export goods. Sometimes, companies may find it challenging to follow these foreign regulations and be forced to leave.
Tensions and war-like situations among nations can severely impact international marketing. As a result, the ability to sell products and services in other countries is subject to diplomatic relations. Trade will proceed smoothly as long as these countries remain friendly. However, any tension in the host country could lead to huge losses.
In some cases, it could lead to a complete shutdown of operations. Brands that are entering a foreign market usually have to compete with both local companies and international brands.
As a result, the degree of competition in global marketing is generally high. Admittedly, it can be challenging for small or medium-sized businesses to build a successful international marketing strategy. However, smaller companies can partner with other businesses in the local market to build cultural research. Another option is to hire marketing experts with knowledge of foreign markets. Whichever option you may choose, the most crucial facet for a successful global marketing campaign is research.
For instance, you could review your marketing strategy every quarter. Let Edgy Universe know how much you appreciate this article by clicking the heart icon and by sharing this article on social media. EDGY is an SEO incubator, forecaster, and support center for deep learning, technological advancement, and enterprise-level end-to-end search programs. Sign in to access your personalized homepage, follow authors and topics you love, and clap for stories that matter to you.
By using our site you agree to our privacy policy. Marketing 12 min read. Main International Marketing Takeaways: International marketing refers to any marketing activity that occurs across borders.
Types of international marketing include export, licensing, franchising, joint venture, and foreign direct investment. Global marketing aims to satisfy the needs of global customers. International marketing enables the effective utilization of surplus production. Along with a broader customer base, global marketing also protects against potential economic downturns. Cultural restrictions between the home and host countries could hinder international marketing strategies.
Other downsides of international marketing include high competition, government restrictions, and war situations. What is International Marketing? What are the Characteristics of International Marketing? As a result, international marketing has specific characteristics, such as: It involves two or more countries Unique marketing strategies for specific countries It enables exchange between a company and foreign customers Decisions are taken with reference to the global business environment As you may have guessed, global marketing offers attractive opportunities to companies that are successful at it.
What are the Types of International Marketing? Export Exporting refers to the practice of shipping goods directly to a foreign country. Licensing Licensing is an agreement whereby a company, known as the licensor , grants a foreign firm the right to use its intellectual property.
Franchising Like licensing, franchising involves a parent company granting a foreign firm the right to do business in its name. Joint Venture A joint venture describes the combined effort of two businesses from different countries to their mutual benefit. What is International Marketing examples? There has historically been much discussion over commonalities and differences between global and domestic marketing, but the three most common points of view upon which scholars agree are the following.
Third, international marketing is not synonymous with international trade Perry, Perhaps the best way to distinguish between the two is simply to focus on the textbook definition of international marketing. At its simplest level, international marketing involves the firm in making one or more marketing decisions across national boundaries. At its most complex, it involves the firm in establishing manufacturing and marketing facilities overseas and coordinating marketing strategies across markets.
Thus, how international marketing is defined and interpreted depends on the level of involvement of the company in the international marketplace. Skip to content 1. Case: Toyota has a vehicle for every market Each market has unique cultural characteristics and contextual circumstances that must be considered.
Previous Section. Next Section. And keeping in mind such limitation, the soft drink industries are spreading their marketing activities throughout the global market. It has been observed that global selling has enabled the company to carry on with production throughout the year and help the companies to stabilize their business. The benefits of International trade are readily self-evident. Exports are always considered beneficial to a country.
On the other hand imports can also be highly beneficial to a country. Because there is not any incentive for domestic firms to moderate these prices. The lack of alternatives in imported products may compel consumers to pay more for the products to local firms, resulting in inflation and excess profits for local firms.
It is evident that in Europe, when the prices of orange Juice were jumped up, their customers switched over to other alternative drinks. Finally it took ten years for citrus industry to win back these consumers. The U. International marketing helps the countries and their citizens to increase their standard of living. On the other hand without trade, there may be product shortage and which may force people to pay more or less.
International trade make easy for industries to get specialization and gain access to raw materials. And at the same time it foster competition and efficiency. In overall it leads to the conclusion that international trade is helpful to provide their citizen higher standard of living. It is important at this stage to discuss various factors affecting international marketing. These factors can be divided in two ways:.
It includes the control and design of elements of marketing mix. The Company is in a position to control and design product, price, place and promotion. On the other hand uncontrollable factors are those, which are beyond the control of the company. It consists of total environment in which the marketing mix elements operates.
Some of the relevant factors to international marketing are given as under:. The social factors of a nation determine the value system of the society, which in turn affect the International Marketing mix. Social factors are culture, caste, customs, languages, life style, standard of living, climate and marketing infrastructure etc.
The demand for goods and services is affected by all these factors. There is a lot of change in quality of life style of the people. They are willing to purchase many consumer durables like T. It became possible because of availability of hire purchase system or installment basis. Cultural factors also influence every aspect of International Marketing.
International marketing decisions are based on recognition of needs and wants of the customers. The cultural factors help to understand the behaviour patterns and life style of the societies culture, in which individual has grown up.
The economic factors are the most significant determinants of International Marketing. They also affect the survival of a business organization and its success. The economic factors can be studied under following categories :. The decision regarding international marketing mix is taken by keeping in mind the above stated economic factors which determine the economic environment of a country.
Therefore before going for export business or before going for any decision regarding international marketing mix, it is necessary to examine the economic factors, which determines the economic environment of a country. Competition is an important determinant of international marketing mix. The business firm has to face competition in his home market as well as in the international market. The international marketing mix is decided by keeping in mind the strategies of the competitors for the product, price, place and promotion.
The International Marketing mix is strongly affected by the political environment of the country. A marketer has to operate its business activities in a given political factors. The business operations are greatly affected by the political constraints at different levels. The change in political scenario leads to change in the government policies.
The following impact is associated with the political factors- i If the government is stable, it leads to stable policies relating to the business ii If frequent changes are there in the government, then it leads to frequent changes in the policies of the government relating to the business operations. The political factors play a major role in deciding the operation of a business organization in the international business.
Thus a business organization has to study and analyse the political environment of a particular country, if it has decided to carry out its business operations. Before going for any decision relating to the International business the business organization has to carry out swot analysis and cost benefit analysis of International marketing mix.
It must be analysed, keeping in mind the political scenario of a particular country. The government policy of a country must be assessed and the role of private sector, small scale industry is also important.
Finally it must be analysed that what significant role of Multinational Corporation is there in the national economy. International Marketing decisions are influenced by legal environment pertaining to competition, price setting, taxation, law etc. The legal system of a particular country should be studied well before doing business with that country. International Marketing mix is influenced by the Logistics. It includes mode of transportation, cost of transportation, inventory management, material handling and warehousing etc.
It is necessary to study all these factors, before go in for any decision regarding international marketing mix. The analysis of the risk factor is an important task to be performed before taking the decisions relating to the international marketing mix. Many small and medium entrepreneurs wrongly think that an international marketing plan has to be carried out only by big-sized companies.
This conclusion is based on wrong and simplistic ideas that relegate the small-sized company plan. Every enterprise that would like to internationalize must have its own plan of external business. To design an adequate strategy, a number of steps relevant to any company will have to be followed, no matter its size. Ordering of a series of stages assignation of priorities and deadlines to follow, in order to get access to external markets.
Company internal resources human, monetary, etc. Quantification of objectives and supervision of their observance. Putting into practice of the different policies so as to accomplish the set goals. Strategy different steps adjustment throughout the implementation of the plan. Strategy design stage includes a series of sub-stages:. Acquisition of Information about International Markets:.
However, some aspects on the topic are going to duly discuss the subject in full. Fixing of objectives about what the international market information wanted is. Information inquiry instruments design and definition of the research acting field. Determination of the different traditional and alternative sources of information especially for informal market research. Acquisition of data elements historical or current information and trends.
Analysis, comparison, register, accumulation and interrelation of the information obtained. Drawing of conclusions of the information obtained and analyzed. The initial investigation on international market is going to throw light upon certain issues like:.
If there is a great number of equally attractive markets, and the budget assigned to international markets is meager, or the company wants to concentrate on a few markets, different factors will have to be considered to select them: similarity between external and national markets, number of legal regulations or cultural issues that imply product adaptation, and competition features, among other factors.
Particular commercial mix policies product, price, promotion, market or penetration strategy to be used agents, distributors, etc. International market acquisition of information has a value for the company, which is reflected in some features: exclusivity, reliability, precision, specificity, uncertainty reduction, etc. Information acquisition has a cost in money or time. The entrepreneur must always make an adequate analysis of the value-cost ratio, when compiling international information.
This primary goal of this stage is the selection of the most adequate markets for the company products. Afterwards, the next stage will proceed. Objectives as International Activity Conducting Structures:.
These international strategy objectives are always determined in relation to a specific product and a particular market or submarket. In order to design them, the following aspects have to be taken into account:. Funds bound for international operation development, personnel affected to the international undertaking human talent development , productive structure capacity to satisfy international demand process technological updating and existence of company product differential elements quality, costs, material and packaging innovation, popular brand name, patents and services offered.
Existing commercial barriers, regulations that affect the marketing of the product, local competition structure and behaviour in destination, dynamics in import, motivations and other features of demand in destination, market segments and niches detected, unsatisfied needs, among other issues to be considered.
There is a time limit to their completion and evaluation. They fall into the frame of the company mission coherence. They have to be quantified, that is, turned into goals, for the subsequent measurement of results. If the objective cannot be measured in numbers, there should be, at least, a valid parameter that could permit to easily verify its completion.
They provide for an appropriate assessment of commercial and financial risks, which implies the development of activities for their completion. They evaluate the existing restrictions in the company as regards assigned resources quantity and quality.
They consider the different alternatives for process activities development. When there is conflict among several objectives, priorities and considerations will have to be established, and they will have to be divided into main and secondary.
When multiple objectives are established, it is important to analyze the degree of similarity, compatibility, as well as simultaneity or chronological arrangement. It is important to consider that some objectives can be autonomous and others are going to be conditioned by the previous completion of lesser objectives. Achieving certain exports percentage estimated upon company total sales for each market.
Reaching a specific fixed amount of sales or certain amount of unities per market selected. Covering a particular market share, in a particular country. Acquiring a certain profit level gross or after taxation in international operations. Achieving certain profitability from external market activities. Gaining access to particular cities or regions submarkets. Other objectives- performing a certain amount of promotional activities, making commercial and distribution agreements.
International marketing mix design comprises a series of different policies product, price, distribution, communication policies which are interrelated.
International product policy makes reference to all those attributes, functions and differentiated features that the product has, to satisfy international demand needs consumers and users. This important policy includes the following aspects:. Design and international registration of one or more brands appropriate for the product line. Aspects of product quality and economic life durability. Functional and communicational aspects related to packaging.
Technical, material and logistic aspects of export packing. Services associated to the product installation, training, parts replacement, reparation, warranty, etc. Product adaptation according to destination market different factors- consumer purchasing power, government regulations, consumption patterns, external client behaviour and economic aspects, among others. Exported product production cost with legal, cultural, economic or technological external market issues in mind.
Export costs documents, customs formalities, carriage, etc. Other commercial issues discounts and bonuses, advance or partial payments, etc. The distribution policy comprises all the commercial, logistical and communicational issues among the different intermediaries that make up an international distribution channel.
Number of intermediaries at each channel level density. Contractual issues and retributions at each distribution channel level. Intervention of intermediaries who facilitate international distribution carriers, warehouses owners, etc. Communication policy or promotion refers to different transmission aspects to various recipients consumers, suppliers, employees and society of different messages about the product and the company features and attributes that allow the building of a differentiated image of them-.
Every product, price, promotion and distribution policies are intimately linked with one another. For example, a product oriented towards a high purchasing power segment will need high quality components, and container and product intangible attributes will be highlighted, such as the status that promotes consumption.
In this case, the product price will fit a high level, and its distribution will not be massive, but exclusive of certain channels. Besides, advertising will be carried out in certain selected media, specialized magazines, and publications consumed by people with a high standard of life.
This commercial mix design for international market products is more complex than the one devised for the national market, because most variables product, price, promotion and distribution will be affected, in a greater or lesser extent, by economic, financial, political, legal and cultural environments differential features of each external market.
International marketing channel design implies the selection of the most adequate company structure for external market access. When evaluating international market penetration policy, entrepreneurs will have to consider some factors that will affect their decision- size and knowledge of the market to be penetrated, tariff and paratariff barriers, consumer and competition features, type of product, segment orientation, among others.
Associative strategies exports consortia and cooperative, joint ventures. Other channels piggy backing, technology transfer administration contracts. In this stage, the designed strategy is put into practice and the operationalization of all the variables involved in the strategy commercial mix and marketing channels is pursued in order to comply with the objectives.
This strategic implementation will be developed according to international market information collected throughout the design stage and will be applied to all the selected external markets.
It is an operative or active stage, in which the company assigns material, human, monetary and productive resources, for the actual completion development of the different goals set in the previous stage. The entrepreneur transforms what has been planned, stipulated and projected in the marketing strategy into real, tangible activities. An example of the activities at this stage could be: if an internationally market accessed product has been designed with a particular packaging to be manufactured by the company; suppliers who may offer material of the desired quality for that packaging will be required; meetings between the visual designers and the manufacturers will be held, pursuant to the set design stage stipulations.
Once manufactured, durability and functionality tests will be carried out. This is a fundamental stage in international activities, because feedback from the implementation stage actions is necessary. In this stage, information about the results of the international marketing strategy put into practice is analyzed and these features may be verified:.
Correct international marketing channel functioning and structuration;. Consistency and adequation of each of the marketing mix variables. From this analysis, it may turn out that all the objectives fixed in the first stage of the strategy called design may have been totally met, and this will allow the entrepreneur to establish higher objectives for the next period according to the experience gained through internationalization activities.
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