One should understand international marketing as international trade. International marketing is defined as the marketing activity carried out across national boundaries. Hence, it involves marketing goods and services from one nation to another. A company can market its products in more than one country at a time. International marketing is just a part of international trade. In the later section, you will know the importance of international marketing.
Definition of International Marketing
According to Warren J. Keegan, “International marketing is the process of focusing the resources and objectives of an organization on global marketing opportunities and needs”.
Similar Concepts of International Marketing
To understand the concept of international marketing, we need to follow the next points:
1. Domestic Marketing
Domestic marketing refers to those marketing activities carried out by the marketers’ country. It takes place in the home country, keeping in mind all the requirements of customers.
2. Foreign Marketing
In foreign marketing, the company operates in a country other than the home nation. The goods and services produced on the basis on the tastes and preferences of that particular country.
For example, if an Indian company does marketing in India, it is called domestic marketing. On the other hand, if the Indian company is conducting marketing in the U.S. and the U.K., it is termed as foreign marketing.
3. Comparative Marketing
The concept of comparative marketing involves the comparison between two or more marketing systems. Companies do this to analyse a specific country more effectively. It also helps identify the similarities and dissimilarities between different marketing systems. Hence, this type of marketing consists of two or more countries, and various analytical tools are used for this purpose.
4. International Trade
International Trade refers to the flow of goods and services across different nations. The main aim of international trade is to enhance a country’s commercial and monetary conditions, which influences the balance of payment and foreign exchange scenario.
Whereas international marketing is a micro view of the market and involves company analysis, the primary purpose of this analysis is to examine the success and failure of a product abroad and determine the marketing factors that influence the overall output.
Many authors worldwide prefer international marketing as multinational, world, or global marketing. These terms can be used interchangeably as all the international opportunities and its market emerge from multinational corporations, and there is nothing like the domestic or foreign market.
Importance of International Marketing
Points highlighting the importance of international marketing are as follows:
1. Diversification Opportunities
Due to international marketing, companies prefer to invest in various segments of products/services and utilise their resources extensively in new product development. This provides diversification opportunities for the majority of companies in the nation.
2. Expansion Opportunities
Because of international marketing, it becomes a necessity for the nation to expand its production and marketing activities. It is the importance of international marketing. This causes a new economy to generate, ultimately resulting in new expansion opportunities.
3. Increased Market Share
International marketing brings new markets and customers, as the company operates in more than one nation. This helps in increasing market share.
4. Career Opportunities
Due to globalisation, more and more companies are attracted towards international marketing, thus, requiring highly qualified individuals. Many educational institutions now offer special courses and subjects to cater to eligible persons’ demands. There is demand for individuals in production, distribution, finance, marketing, and after-sales services. Therefore, vast career opportunities are developed through international marketing.
5. Global Recognition
The international marketing of products and services helps provide global recognition to both country and the enterprise. By offering products and services of global standard, companies establish a significant brand image in the worldwide market. To maintain the brand image, enterprises need to provide customer value by providing better quality products/services at competitive rates.
6. Investment Opportunities
Various investment opportunities are generated through international marketing. These investments can be in terms of new technology, better infrastructure, new machinery, new marketing strategies and new production methods.
7. Increased Standard of Living
With the help of international marketing, the domestic economy gets better quality products and services at highly affordable and competitive prices, ultimately increasing the standard of living. Global companies also provide employment opportunities which help in reducing unemployment.
8. Mobility of Factors of Production
Companies can transfer their production plants to any nation due to international marketing. Suppliers can be easily arranged in these nations. Thus, global marketing causes mobility of factors of production
9. Cooperative Agreements
International marketing is a cooperative agreement between various parties. These parties combine their strengths and capabilities to provide customers with better products, technology and services than they can manufacture independently.