International Marketing

1. What is International Marketing?

 According to Kotler, "Global marketing is concerned with integrating and standardizing
marketing actions across a number of geographic markets."
 According to Cateora, "International marketing is the performance of business activities that
direct the flow of goods and services to consumers and users in more than one nation."

2. Nature of International Marketing?

A. Large Scale Operations: International marketing consists of large scale operations to be
performed by business for promoting their products in many countries. It requires huge
amount of labour and capital for meeting out the needs of large peoples at international
level.
B. Broader Market: It provides wider platform for advertising products at an international
level. Business can target their products among large population residing in different
nations. Marketing is not limited to any local area or nation but is free for all across the
globe.
C. Intense Competition: International marketing faces an intense competition due to the
presence of both domestic and international competitors. Organizations at a global level
have to compete with both of these competitors which leads to stiff competition in
international market.
D. Higher Risk And Challenges: Marketing at an international level involves a large amount of
risk and challenges as it is dependent upon various factors and conditions. These risks arise
due to political factors, cultural and regional differences, language barriers, changing styles
and fashions of customers, sudden war or changes in government regulations.
E. International Restrictions: Organizations in international market need to follow all tariff and
non-traffic constraints. There are various restrictions imposed due to differences in rules and
regulation among nations at global level. All nations perform import and export following
the restrictions imposed in international market.
F. Controlling Nature: International market is dominated by developed countries and
multinational corporations due to their global presence. Developed countries due to the
presence of advanced technology and worldwide reach are able to perform business
operations efficiently everywhere.
G. Subject To Diplomatic Relations: International marketing is subject to the diplomatic
relations between countries. Organizations enter into international market of those
countries with which its home country share better cordial relations. There is no trade in
between the nations having clash with one another.

3. Scope of International Marketing?

A. Import And Export: International marketing provide business an opportunity to enter global
market for conducting trade. Export refers to selling its products in another country for
earning high revenues. Import involves buying goods from foreign market and selling it in
domestic market. These activities help business in expanding their operations and earning
better profits.
 B. Re-Export: Re-export is an activity under which companies imports semi-finished goods,
process these goods for transforming them into finished products and export them to
foreign countries.
C. Contractual Agreement: International marketing exposes business to global market for
expanding their operations. Companies enters into contract with other companies overseas
for performing certain operations. Agreement are entered into in form of co-production,
licensing and technical assistance. It raises the customer base, expands the market and
overall profitability of business.
D. Joint Venturing: Joint venture is the one where two brands associate with one another for
starting a new business. They perform all activities together and share revenue in pre-
decided ratio. Partnership with domestic brands in foreign land help companies in easily
understanding the market dynamics.
E. Fully Owned Manufacturing: Under this, companies set up their own manufacturing unit in
foreign land. They themselves manufacture goods and promote on their own. It will help in
minimizing cost and maintaining the quality. Establishing of manufacturing unit in foreign
company will overcome all issue like cost differences, government policies and trade
barriers.

4. Benefits/ Advantages of International Marketing?

A. Higher Sales: International marketing helps business in enhancing their sales by presenting
them at international level. It provides access to wider market globally through which
business connects with large number of customers. This boosts the sales volume and overall
profitability of organization.
B. Minimizes Cost: It help companies in reducing their cost by producing goods in large
quantities. Companies when trade in international market performs their operations at large
scale which helps them in attaining cost competency in both national and international
market.
C. Earns Foreign Currency: International marketing is an important source for earning foreign
revenue by nations. Companies by trading in foreign market brings large amount of foreign
reserves in their home country. All business dealings are made in foreign currency by
companies operating at an international level.
D. Enhance Living Standards: International marketing helps people of different nations in
enhancing their living styles. People are easily able to purchase high quality goods which are
not produced in their home country from international brands. It serves as a platform where
different reputed brands are able to sell their products in various nations.
E. Create Employment: It generates employment opportunities in home country as well as in
host country. International marketing requires large scale operations to be performed by
companies for meeting out the demands of large population. Companies hires huge no. of
employees for carrying out their activities efficiently.
F. Rapid Industrial Growth: International marketing leads to rapid industrial growth of the
country. It creates demand for new products which enhances the scale of operations of
industries. Various infrastructural facilities such as transportation, insurance and banking are
also guided by international marketing that contributes to national economy.
G. Benefits At Time Of Emergency: International marketing provides special benefits to nations
facing emergency situations. Whenever any country is adversely affected by situations like
drought and flood, it gets help from other nations in international market. Emergency supply
of all goods and services for fulfilling the urgent needs of peoples in such countries is
facilitated through international market.
4. Challenges/Dis-Advantages of International Marketing?
A. Cultural Differences: International marketing faces many difficulties due to varying cultures
and norms across the globe. Different countries have their distinct norms, traditions,
lifestyles, languages and preferences. Companies may sometimes find it difficult to sell their
products.
B. High Competition: The degree of competition in international marketing is very high due to
the presence of large competitors. Companies entering foreign market have to compete
with both home brands as well as various international brands.
C. Government Restrictions: International marketing is bound to follow various strict rules and
regulations imposed by government. Government impose high tax and duties on import and
export of goods which adversely affect the profitability and continuity of companies.
Sometimes, it become difficult for companies to abide by all the rules and regulations in host
country.
D. War Situations: International marketing is adversely affected by tension and war like
situation among nations. It is subjected to diplomatic relation between countries and
continues as long as these countries shares friendly relations. If any tension is erupted in
host country, companies incurs huge losses and may lead to complete shutdown of their
operations.
E. Distance Issues: Large geographical distance among nations is a major drawback in
international marketing. Companies requires large efforts in servicing customers at far
distant places. Suppling of fresh and perishable products to far nations becomes a
challenging task for companies.