Date: 19.11.

2021
International Marketing

Global Marketing vs International Marketing

International marketing involves the marketing tactics adopted by knowledgeable
marketers in different countries specific to the markets of those countries.
Global marketing, on the other hand is a marketing concept which involves the
marketing efforts put in for the unique worldwide market.

International marketing refers to a situation wherein a company opens a subsidiary

in a new country and permits that subsidiary to look after the market in that region and
pay consideration to local customs like religion, dietary and lifestyle habits.

Global marketing is when an organization utilizes an exact promotional tactic all over
the world – like Nike or Wal-Mart. The entire world is deemed one market and does
not adjust the products or services, distribution channels or the communication to
regional requirements.

1. Service or Product offering

In global marketing, a company provides the exact product or service offerings to the
customers in all countries that it operates. For example, banks, insurance companies
and big retail chains such as Wal-Mart.
In International Marketing however, each of the individual market is served with
specific tailored products especially suited to the customers in that market only. The
Sharia finance products that are only offered to Muslim customers in Muslim countries
or non-Muslim countries for that matter.

2. Marketing personnel
The marketing staffs of companies employing the global marketing strategy work at
the company’s head office and are generally quite different from each other in terms
of background, age, gender and also nature of work.
On the other hand, in international marketing, there is much less dissimilarity
amongst the team members.

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3. Marketing Budget
The marketing budget of a company adopting the global marketing policy is finalized
and approved from the corporate headquarters. For example, Nike finalizes a said
amount of budget at its headquarters which then drops down to local branch offices
subsequently.
However, in international marketing, the budget gets segregated into each of the
subsidiary offices which can also formulate its own budget as well. For example,
McDonald’s runs ads in local languages and according to local traditions that can be
found in those regions only.

4. Promotion tactics
In global marketing, the company tries to make and air (on TV and radio) ads that
are in sync with the worldwide audience and similarly does other marketing efforts. An
appropriate example for this would be the ads that were aired on television during the
FIFA World Cup. It was a mix of all: global event, passionate viewers and the game of
football.
In international marketing, all the marketing efforts including television commercials
are tailored for the local market.

5. Marketing Autonomy
In global marketing, every marketing strategy is devised and implemented from the
corporate headquarters.
Whereas in international marketing the marketing efforts are generated from within
the domestic markets.

6. Use of Social Media

(International Marketing) Just by reviewing their social media pages, one can
contemplate as to what type of marketing policy the company has adopted. For
example, brands like McDonald’s have separate Facebook pages for numerous
countries such as Malaysia, Brazil, Italy and Spain.
(Global Marketing) Whereas, companies like Nike and Caterpillar have just a solitary
Facebook page for their customers irrespective of any region or country.

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7. Customers’ engagement
Customers’ engagement is more visible in International Marketing. A company can
better connect with its customers by installing in place better communication channels.
Global marketing is also as effective when it comes to customers’ engagement only
the international marketing strategies are little different.
However, it is proved that international marketing seems to create greater amount of
engagement than global marketing does.

8. Advertising
In the global marketing concept, the advertisements are typically aired on worldwide
mediums;
However, in international marketing companies tend to air the advertisements in
local markets or markets with similar characteristics.

INTERNATIONALIZATION STAGES
Stages of international market development
Stage 1: Domestic Operations The firm’s market is exclusively domestic. E.g.,
Patanjali have currently its major operations in India Only.

Stage 2: Export Operations The firm expands its market to include other
countries, but retains production facilities within domestic borders. E.g., Indian firms
exporting textiles jute, spices, nuts, rice all around the world.

Stage 3: Subsidiaries or Joint Ventures The firm physically moves some of its
operations out of the home country. E.g., A joint venture between Maruti (Indian
Company) and Suzuki (Japanese Company)

Stage 4: Multinational Operations The firm becomes a full-fledged multinational

corp. (MNC) with assembly and production facilities in several countries and regions
of the world. E.g., Mc Donald’s is a MNC operating world-wide.

Stage 5: Transnational Operations Firms that reach this stage are often called
transnational because they own little loyalty to their country of origin. Operations are
highly decentralized, with each business unit free to make personnel decisions with
very loose control from corp. headquarters. E.g., Coca-Cola, Nestle.
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