International Marketing

Course : instructor
Kynat Raza
 What is International Marketing
• The International Marketing is the application
of marketing principles to satisfy the varied
needs and wants of different people residing
across the national borders.
• International marketing refers to the process
of business expansion across the domestic
geographical boundaries by setting up
subsidiaries in the target markets of different
countries.
• These subsidiaries design and adopt the
marketing principles and strategies according
to the needs of the target local market
Example of International Marketing
• Dunkin’ Donuts adopted international
marketing strategy by selling the products
according to the consumer’s liking and
preference across the worldwide target
markets. It sold Grapefruit Coolatta Donuts in
South Korea, while Seaweed Donuts in China.
 Benefits
• Increased Economies of Scale
• High-profit opportunities in the international
market than the domestic market
• Huge Market Share
• Elongated life of the product
• Untapped International Market
• Advantages of International Marketing
• International marketing has provided an
opportunity for domestic companies to meet
the requirements of customers existing in vast
and varied geographical market segments.
• International marketing provides for expansion of
the business units or establishing subsidiaries in
various countries.
• The sales of the organization can be increased as the
company penetrates other global markets, instead
of operating only in the domestic market.
• All the marketing strategies are framed and
customized according to the customer’s needs in the
target market.
• .
• The business risks like fluctuation in market
demand, economic conditions, government
policies, etc. can be diversified when the
business operates in multiple countries.
• International marketing promotes two-way
communication with consumers due to the
company’s physical existence in the market
place. Thus, keeping customers engaged and
enhancing the product or service provided.
• The company develops a robust economy by
meeting the needs of consumers in the local
markets.
• The company can easily blend with the local
markets and can very well understand the
marketing strategies or practices of the
domestic players
Strategies to Enter International Market
 What is Global Marketing

• Global marketing is an internationalization

strategy. The company conceptualizes a
product or service such that it suits the global
consumer requirements.
• The company frames a universal tactic for
planning, production, placement and
promotion of these products or services
across the globe
• Example
• Global Marketing:
• Let us take the case of Apple; the brand
maintains a uniformity in handset’s design and
features while targeting the consumers in
various countries. Walmart is another example
of global marketing.
 Advantages of Global Marketing

• Global marketing is a beneficial strategy when

it comes to the internationalization of
business operations if the product or service
offered has a universal demand.
• The company can expand its customer base by selling the product
or service overseas.
• With the globalization of business operations, the company can go
for mass production, ultimately reducing the cost and ensuring
economies of scale.
• Due to the reduced cost of production, the company can make a
higher profit on sales.
• The company gains recognition worldwide as a brand.
• Going global helps the organization to win over its competitors
(domestic and international) by ensuring quality product or service.
• The company adopts a consistent marketing practice while selling
products or services in the markets of different countries.
 Disadvantages of Global Marketing

• Global marketing is a narrow concept since it

is not suitable for every business organization.
Let us now have a look at its various demerits:
• Sometimes, the organization fails to analyze the global target
market and try to enter it through the same sales and
marketing channel, which it adopted in the domestic market.
• The biggest challenge in global marketing is to fulfil the global
consumer needs with a universal product or service when the
demands and requirements of the consumers vary from
country to country.
• While reaching out the worldwide customers, the company
needs to understand the local language of the consumers
belonging to different regions and countries, which is a
difficult task.
• The organization entirely relies on its research and information
gathered through external sources about the global target markets.
• The government’s restrictions and change in policies of selling
products or services overseas can harm sales and profitability.
• When the same product or service is introduced in different global
markets, there are more chances of rejection. This is because the
product may or may not live up to the expectations of all the target
markets.
• The organization sometimes does not have complete knowledge or
fails to specify the global target market, which can be a reason for
business failure.
• The company may end up with a weak global logistic if it plans its
marketing strategies according to the major countries only.
 Disadvantages of International Marketing

• International marketing provides an edge over

the other internationalization strategies when
it comes to creating footprints worldwide.
• The cost of operating multiple subsidiaries in
different countries is quite high.
• The foreign government’s policies and
regulations impose restrictions on overseas
business operations.
• Competition with Local Companies: The local
business organizations which have been
existing in the global target market, emerge as
significant competitors for the company.
• The companies adopting global marketing
process employs personnel persisting distinct
nature, skill set, gender, ethnicity and age; and
working together in the company’s head office.
However, the organizations with international
marketing strategy have marketing people with
cultural similarities since they belong to the
country where the company originated, but are
placed in the target market countries.
• Difference and Comparison
• BASISGLOBAL MARKETINGINTERNATIONAL MARKETINGMeaningGlobal marketing is the application of a
single marketing strategy in the worldwide market, for a product or service.International marketing refers to
the company's penetration into the prospective markets of different countries by directly engaging in the
local marketing environment.Product or Service OfferingsStandard product or serviceCustomized product or
serviceMarketing PeopleCross-cultural marketing personnel employed at the company’s head officeNative
marketing employees placed in the target foreign marketsMarketing Research and DevelopmentIt requires
intense market research due to the company's physical absence in the prospective global market.It
comparatively needs less research and development since the company has a physical existence in the
international market and can analyze the market.Customer EngagementLess customer engagement due to
the distant presence and low customer interactions.Customer engagement is quite high due to the local
presence and multiple communication channels.Marketing BudgetAll the budgeting activities for global
marketing are performed at the company's headquarters.The international subsidiaries perform budgeting
activities at the local level.Social Media MarketingCompany has a unanimous social media page for its global
operations.Here, there are multiple social media pages of the company, on Twitter, Instagram or Facebook
segregated according to the country.AdvertisingHere, a single commercial runs throughout the world in
various regional languages of different countries.Advertisements in the international market are tailored
exclusively for the local market and vary drastically from country to country.Promotion StrategyPromotion
tactics are adopted keeping in mind the global audience perspective.The promotional strategies are designed
individually for every local market.Marketing AutonomyLimited to the company's headquarters.Spread
across the subsidiaries located in different countries.
 Summary

• Global marketing refers to the adoption of the same

marketing strategy for worldwide selling of products
or services, i.e., considering the whole global market
as one. Whereas, international marketing can be
seen as customizing the marketing strategies to suit
the prospective international market.
• The former provides a universal or standard product
for all the foreign markets. Whereas, the latter
emphasises on customizing the product or service
as per the overseas target market.
• The former requires more market research and
investigation as compared to the latter due to lack of
frequent market interactions.
• The consumer interaction and brand engagement in global
marketing strategy are quite low as compared with that of
international marketing because of distant existence.
• In the case of the former, the marketing budget is
prepared at the company’s headquarter. Whereas, the
latter provides for the preparation of individual marketing
budget by the subsidiaries for their respective local
markets.
• In global marketing, the company has a single social media page which
covers all the target country markets. But, a company with international
marketing has a separate social media page for every country in which
it carries out business.
• In the former strategy, company airs the same advertisement in
different countries in their regional languages. However, the
organizations with the latter approach frame many ads to suit different
target country markets.
• All the promotional activities are carried out with a comprehensive
view in global marketing concept. Whereas, in international marketing,
different promotional tactics are used for every local market targeted.
• The former restricts the decision making power to the company’s
headquarter, while the latter leaves marketing decision making on
subsidiaries for their respective local markets.
 Hybrid Structure

• The hybrid structure is a blend of international

as well as global marketing, adopted by the
companies to ensure success and growth
during international business expansion.
Initially, this strategy was adopted by Coca-
Cola to win a competitive edge in the global
market.