What is international marketing

International marketing is the application of marketing principles by industries in one or more than one country. It is possible for companies to conduct business in almost any country around the world, thanks to the advances in international marketing.

In simple words, international marketing is trading of goods and services among different countries. The procedure of planning and executing the rates, promotion and distribution of products and services is the same worldwide.

In recent times, companies are not restricted to their national borders, but are open for international marketing. With the increasing change in customers’ demands, choices, preferences and tastes, the economies are expanding and giving way to more competitive marketing. Thus, organizations need to respond rapidly to the demands of the customers with well-defined marketing strategies.

International Marketing − Overview

The word ‘International Marketing’ is defined as the exchange of goods and services across national borders to meet the requirements of the customers. It includes customer analysis in foreign countries and identifying the target market.

The major participants in international marketing are as follows −

Multinational Corporations (MNCs) − A multinational corporation (MNC) is an organization that ensures the production of goods and services in one or more countries other than its home country. Such organizations have their offices, help desks or industrial set-up across nations and usually have a centralized head office where they co-ordinate global management.

Exporters − They are the overseas sellers who sell products, and provide services across their home country by following the necessary jurisdiction.

Importers − They are the overseas buyers who buy products and services from exporters by complying with the jurisdiction. An import by one nation is an export from the other nation.

Service companies − A service company generates revenue by trading on services and not on physical commodities. A public accounting company is the best example of a service company. Revenue here is generated by preparing returns of income tax, performing audit services, and by maintaining financial records.

International Marketing

Definition: The International Marketing is the application of marketing principles to satisfy the varied needs and wants of different people residing across the national borders.

Simply, the International Marketing is to undertake the marketing activities in more than one nation. It is often called as Global Marketing, i.e. designing the marketing mix (viz. Product, price, place, promotion) worldwide and customizing it according to the preferences of different nation people.

The foremost decision that any company has to make is whether to go international or not, the company may not want to globalize because of its huge market share in the domestic market and do not want to learn the new laws and rules of the international market.

But however, there are following reasons that attract the organization to be global:

How to Enter the International Market?

There are following ways through which companies can globalize:

The companies go international with the objective to have an increased sales along with the huge market share. But certain things such as political, social, technological, cultural situations should be kept in mind while designing the marketing principles since these are different for the different nations.

International Marketing

Explore the Strategy of International Marketing

International Marketing

Explore the Strategy of International Marketing

Last Updated: November 22, 2020

Guide: International Marketing

As technology creates leaps in communication, transportation, and financial flows, the world continues to feel smaller and smaller. It is possible for companies and consumers to conduct business in almost any country around the world thanks to advances in international trade. According to the World Trade Organization, the volume of international merchandise trade increased 33 times between 1951 and 2010.

Brands and products that originate in one country are enthusiastically accepted in others. For example, Louis Vuitton handbags, BMWs, and Columbian coffee, all foreign products, are symbols of status and quality in the United States – and many American brands, like Warner Brothers motion pictures, have similar footholds overseas.

However, globalization has created just as many challenges as opportunities for brands that venture overseas. Because consumers have so many more options for similar products, companies must ensure that their products are high in quality and affordability. Additionally, these products cannot be marketed identically across the globe. (See also Global Marketing) International marketing takes more into consideration than just language – it involves culture, market saturation, and customer behaviors. American and European companies especially have turned their international marketing efforts into something more than just exporting – they have adapted their branding to account for differences in consumers, demographics, and world markets.

Companies who have done this very well include Coca-Cola, who discovered that the word ‘Diet’ carries a negative connotation in Latin America and changed the name of their zero-calorie product to ‘Coke Lite’ for those countries. UPS, known in America for their brown trucks, issued a fleet of a different color after learning that their flagship brown trucks resembled Spanish hearses.

What is international marketing?

International marketing is the application of marketing principles in more than one country, by companies overseas or across national borders. International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to marketing identification, targeting, and decisions internationally (See also Local Marketing).

According to the American Marketing Association (AMA) “international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

Who implements international marketing?

Market Entry Modes: Risk vs. Reward

*Market entry modes are listed from lowest risk/reward to highest risk/reward

Rapid technological advances mean that geographical and cultural communication barriers are disappearing, and even smaller businesses without a physical presence in other countries can market and sell their products internationally (See also Diversity Marketing). This means that almost anyone with the desire can market internationally, but will do so with varying levels of success, depending on the thought and research that is put into the international marketing strategy.

Companies selling goods that have customs restrictions, like food and live plants, must contend with a more rigorous regulatory process before marketing their products internationally. While they may have a more difficult time setting up their international export business, they also have the opportunity to expose other countries to native products they couldn’t access otherwise.

Other types of companies that often perform well internationally include those involved in export, joint ventures, and direct investment.

Joint venture companies refer to the combined efforts of two or more businesses to their mutual benefit. One of the most famous international joint venture success stories is Sony-Ericsson, a partnership between a Japanese electronics company and a Swedish telecommunications company. Their international marketing strategy, comprised of bright colors and modern shapes, has helped make the joint venture known the world over. (See also Cooperative Marketing)

A direct investment company places a fixed asset in a foreign country with the aim of manufacturing a product, or part of a product, abroad. Dell computers, for example, is an American company with factories in many other countries that assemble personal computers from parts made all around the world. Dell then markets their computers with an exceptional emphasis on customer needs and customization – unlike other companies that sell pre-manufactured products; Dell computers are custom-assembled after customers place their orders.

What kinds of customers are effectively marketed to with international marketing?

Depending on your brand, any foreign citizen is a potential customer. But how does a marketing team figure out how to tap into an international market? Customers who live in foreign markets have different buying habits, preferences, and priorities than the customers they’re familiar with. By tracking these foreign customers through market research and cultural surveys, marketers can discover the best methods of reaching them.

Trying to market a brand to international customers without researching is just asking for trouble, as companies have proven time and time again. Careful consideration of a culture’s beliefs and prejudices is important in international marketing. For example, the Muslim culture considers dogs to be dirty animals. So, positioning a dog as “man’s best friend” in a Middle Eastern country will surely fall flat.

5 Huge International Marketing Blunders

How is an international marketing plan developed?

It can be difficult for a small or medium-sized corporation to initially build an international marketing plan, because they generally don’t have the expertise or budget to launch the campaign. By partnering with another group or hiring marketing experts with knowledge of foreign markets, smaller companies can build their cultural research and implement more successful campaigns. (See also International Marketer )

Whether a company chooses to partner with another foreign agency or hire an inside international marketing representative, the most important facet of building a successful international marketing campaign is the research they conduct. Research will inform the company’s marketing mission as they proceed, allowing them to maximize potential in new markets.

Once research is completed and a market is chosen, experts should examine and modify a brand’s marketing strategy so that it fits their target demographics. Hiring representives from the country will help ensure that all cultural differences are handled appropriately and with sensitivity.

For an emerging international brand, establishing partnerships and networking with other companies in the country are essential for success. Partners within a target market help new companies establish themselves in markets where they would otherwise have gone unnoticed.

Finally, it is important to review an international marketing strategy on a quarterly basis. Even if a company sends representatives to travel to the foreign market, it is much more difficult to keep a finger on the pulse of an overseas marketing campaign. This means that results need to be tracked extremely closely, and tweaks should be made regularly to help a product gain the appropriate foothold for success.

What types of careers work with international marketing strategies?

Because international business is largely conducted over the telephone and internet, an international marketing professional should have a firm grasp on changing technologies as well as an understanding of different cultures and global economy. An international marketing career is especially suited to an individual with political understanding, good economic and communications skills, and an ear for language.

Marketing Managers

What do they do?

Salaries of Event Marketing Careers

Source: Payscale.com, BLS.gov

International marketing campaigns are generally led by a marketing manager with the knowledge and training necessary to manage and effectively direct a comprehensive global campaign. Typically, marketing managers oversee all activities within a company’s marketing, advertising, and promotional department, locally and abroad. They establish brand guidelines and growth strategies, evaluate customer needs in foreign markets, and tweak marketing plans dependent on culture. This position is a key component in ensuring the success of an international marketing campaign.

Education and Skills

Most marketing managers have at least a bachelor’s degree in marketing or a related major like communication, advertising, or business. For an international marketing manager, a second major or minor in a foreign language, and retained fluency in that language, would also be extremely beneficial. Marketing managers generally begin in entry-level marketing positions and work their way up the career ladder.

Marketing Coordinators

What do they do?

A marketing coordinator organizes and implements the day-to-day tasks of personifying a brand across all markets. In the case of international marketing, a marketing coordinator may be hired for each foreign market, to ensure that the brand and its message are being utilized appropriately across all cultures in routine application.

Education and Skills

Most marketing coordinators need a bachelor’s degree in marketing, event planning, or a related field, but generally need less experience than other positions in the international marketing field. They should have excellent time management and organizational skills, and should be able to manage multiple projects on tight deadlines. Again, fluency in a foreign language is extremely beneficial.

Translators

What do they do?

Even if most members of an international marketing team are fluent in a second language, it is best practice to keep a translator on staff who is familiar with the subtleties, nuances, and unique sayings of a language in the target market. As the language expert, a translator helps keep business transactions running smoothly across linguistic barriers and can prevent mishaps in marketing.

Education and Skills

In most situations, a translator will have formal study in his or her specialty language, like a bachelor’s degree in Spanish or Farsi. However, a translator can also be a foreign-born professional whose second (or third, or fourth) language is English.

What Is International Marketing?

INTRODUCTION

As technology creates bounds in communication, transport, and fiscal flows, the world continues to shrink smaller and smaller. It is likely for companies and consumers to accomplish business objectives in almost any country around the world thanks to progress in global trade.

According to the World Trade Organization, the quantity of international merchandise trade increased 33 times between 1951 and 2010.

In this article you will learn about:

1. What is International Marketing?

2. Who employs International Marketing?

3. International Marketing

GLOBALIZATION & INTERNATIONAL MARKETING

However, globalization has shaped just as many hurdles as opportunities for brands that undertake business ventures overseas. Because consumers have so many more options for parallel products, companies must make certain that their products are elevated in quality and affordability.

In addition, these products cannot be marketed identically all over the world. (See also Global Marketing) International marketing considers more than just language – it engages culture, market saturation, and customer behaviors.

American and European companies particularly have directed their international marketing efforts into something more than just exporting – they have tailored their branding to account, owing to differences in consumers, demographics, and global markets.

Companies who have prepared this very well include Coca-Cola, who discovered that the word ‘Diet’ carries a negative undertone in Latin America and altered the name of their zero-calorie product to ‘Coke Lite’ for those countries.

UPS, recognized in America for their brown trucks, supplied a convoy of a different color after learning that their flagship brown trucks resembled Spanish hearses.

What Is International Marketing?

International marketing refers to the function of marketing values in more than one country, by companies abroad or exceeding national borders. International marketing is founded on an annex of a company’s local marketing policy, with special emphasis put on marketing identification, aiming, and decisions globally (See also Local Marketing).

According to the American Marketing Association (AMA) –

“international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

Who Employs International Market?

Speedy technical advances denote that geographical and enriching communication barriers are vanishing, and even slighter businesses without a bodily incidence in other countries can promote and sell their products globally (See also Diversity Marketing).

This means that almost anyone with the yearning can promote internationally, but will do so with unstable levels of success, contingent on the thought and research that is put into the international marketing policy.

Companies advertising goods are likely to tackle customs restrictions, like food and live plants, must put up with a more thorough rigid procedure before advertising their products internationally. While they may face a more hard time setting up their international export business, they also have the chance to introduce other countries to local products they couldn’t contact otherwise.

How Lucrative Is International Market?

Other types of companies that frequently achieve well internationally include those concerned in export, joint ventures, and direct investment.

Joint venture companies mention the collective efforts of two or more businesses to their mutual. What kinds of customers are effectively marketed to with international marketing?

Depending on your brand, any overseas citizen is a possible customer. However, how does a marketing team figure out how to develop an international market? Customers who live in foreign markets have diverse buying preferences, habits, and priorities than the customers they are acquainted with. By tracking these overseas customers through market research and cultural surveys, marketers can find out the best methods of attracting them.

SUMMARY

International Marketing is the application of marketing principles. International Marketing is essential for satisfying the varied needs and wants of diverse people residing across the globe. Simply, International Marketing concerns the marketing activities in more than one nation.

References:

Last Updated on January 24, 2022 by

Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.

International Marketing: Definition, Examples, and Strategies

Mudassar Iqbal / Pixabay.com

Main International Marketing Takeaways:

International marketing is now a viable option for businesses, thanks to advancements in communication, transportation, and financial flow. According to the World Trade Organization, the volume of international merchandise trade increased 33 times between 1951 and 2010.

People are now accepting brands and products that originate from other countries. And this comes with a lot of opportunities and challenges.

What is International Marketing?

International marketing, also known as global marketing, involves marketing products to people across the world. In other words, it’s any marketing activity that occurs across borders. According to the American Marketing Association, international marketing is a multinational process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create an exchange that satisfies individual and organizational objectives.

It’s somewhat similar to export management. However, export management only involves managing the flow of goods and services from the host country to the guest country.

International marketing, on the other hand, covers production, finance, and personnel activities. It also entails several post-sales activities.

What are the Characteristics of International Marketing?

All the features of modern marketing apply to international marketing. However, the latter aims to satisfy the needs of global customers. So, it takes place across borders.

As a result, international marketing has specific characteristics, such as:

As you may have guessed, global marketing offers attractive opportunities to companies that are successful at it. However, it also comes with several threats and challenges.

Before we consider the benefits and challenges of international marketing, let’s address an equally important question.

What are the Types of International Marketing?

Mudassar Iqbal / Pixabay.com

International businesses looking to sell their products or service in a new country usually start with export or licensing. Besides these options, other international marketing types include contract manufacturing, joint venture, and foreign direct investment (FID).

Let’s delve a little deeper.

1. Export

Exporting refers to the practice of shipping goods directly to a foreign country. Manufacturers looking to expand their business to other countries often consider exporting first. And that’s not surprising.

Compared to the other international marketing types on this list, exporting entails the lowest risk. It also has the least impact on the company’s human resource management.

2. Licensing

Licensing is an agreement whereby a company, known as the licensor, grants a foreign firm the right to use its intellectual property. It’s usually for a specific period, and the licensor receives royalty in return.

You’ll find several examples of licensing of intellectual property across the United States. These include patents, copyrights, manufacturing processes, and trade names.

Some top global licensors include Disney, Iconix Brand Group, and Warner Bros, to name a few.

3. Franchising

Like licensing, franchising involves a parent company granting a foreign firm the right to do business in its name. However, franchises usually have to follow stricter guidelines in running the business than licensing.

This type of international marketing is also more prevalent among service firms, such as hotels, rental services, and restaurants. On the other hand, licensing is usually restricted to manufacturing.

4. Joint Venture

A joint venture describes the combined effort of two businesses from different countries to their mutual benefit. It’s the participation of two or more companies jointly in an enterprise in which each company:

Perhaps the most popular international joint venture to date is Sony-Ericsson. It’s a partnership between a Japanese electronics company, Sony, and Swedish telecom company Ericsson.

5. Foreign Direct Investment (FID)

In FID, a company places a fixed asset in a foreign country to manufacture a product abroad.

Unlike joint ventures, the foreign company wholly owns the subsidiary. As a result, it establishes either effective control or substantial influence over the decision-making process.

Examples of foreign direct investment include mergers, acquisitions, retail, services, logistics, among others.

Several companies in the United States use these international marketing methods to sell their products and services globally. Here are some examples.

What is International Marketing examples?

There’s no one-size-fits-all approach to international marketing. As such, brands usually have to adopt various global marketing strategies to appeal to their diverse audience. It includes adjusting menus, translating across multiple languages, and adapting to the social system to avoid blunders. For example, Pepsi used the slogan “Come Alive with Pepsi” in Taiwan, or so they thought. Meanwhile, it actually translates as “Pepsi brings your ancestors back from the dead.”

This post will consider five brands that are enjoying success in global marketing — AirBnB, Nike, Coca-Cola, Apple, and Spotify.

1. Airbnb

In 2008, Brian Chesky and two other friends founded Airbnb, an online marketplace for vacation rentals in San Francisco. Since then, the company has grown to over 1,500,000 listings in more than 34,000 cities worldwide.

So, what’s responsible for the meteoric growth?

Airbnb created a dedicated localization department to make its site accessible around the globe. It also uses the power of local storytelling to foster trust and a sense of community between hosts and travelers.

For example, Airbnb launched a social media campaign with the hashtag #OneLessStranger in January 2015. It encouraged locals to perform random acts of hospitality for strangers and share on social media.

The campaign was a success!

Three weeks after #OneLessStranger launched, over three million people worldwide were either creating content or talking about the campaign.

2. Nike

Nike has managed to increase its global presence over the years through international sponsorships. An example of such is its previous long-standing arrangement with the English soccer club, Manchester United.

Besides international sponsorships, Nike have several other strategies to make its products appealing to the global market.

For instance, the NikeID co-creation platform puts the power of design in the consumer’s hands. It’s a quick way for the brand to deliver products that address cultural differences and styles.

3. Coca-Cola

Ervin Gjata / Pixabay.com

Coca-Cola is one of the biggest brands in the world and for good reasons. It’s an excellent example of a brand with a brilliant international marketing strategy.

The company gave local operations slack to adjust the soda’s taste to fit the market’s cultural preferences. Besides, advertising, promotion, distribution, and pricing are also adapted to suit specific demands.

Coca-Cola focuses on universal values, such as sharing and happiness. However, the brand also localizes campaigns using cultural references and endorsement deals with local celebrities.

4. Apple

Apple‘s primary global marketing strategy is to maintain a consistent brand across cultures.

The company’s products, ads, and websites use the same clean, minimalist design in different parts of the world. Also, the visuals on the website are the same, regardless of the country or language.

In other words, the iPhone makers focus on providing a consistent brand and customer experience.

Note that the one-size-fits-all approach may not work for most brands. However, it seems to work for Apple. In fact, Interbrand chose the iPhone maker as one of the best global brands in 2019.

5. Spotify

M. H. / Pixabay.com

Swedish-based audio streaming and media service provider Spotify launched twelve years ago.

Today, Spotify has a total of 299 million users and 17 offices around the world. What’s more, the company made Interbrand‘s list of the best global companies in 2019.

So, how did Spotify quickly expand from Sweden to the rest of the world? The answer lies in how it describes its content.

Rather than music genre, the streaming service gets users to focus on a habit or lifestyle that people share worldwide. For example, you could select a Workout, Sleepy, or Study music preferences.

As a result, international artists whose content falls in a specific category can quickly gain listeners from other countries.

What are the Benefits of International Marketing?

International marketing can help create bigger and better opportunities for business expansion. Not only does it offer a broader customer base, but it’s can also protect against a potential economic downturn. Global marketing also enables the effective utilization of surplus production and helps build relationships with other businesses worldwide. Besides, it also provides employment opportunities for the host country.

Here are some benefits of international marketing.

1. Market Expansion

One primary advantage of international marketing is market expansion. It’s an opportunity to extend a brand’s customer base.

Two decades ago, the idea of marketing a product or service was too expensive for small businesses to consider. But that’s no longer the case, thanks to new communication channels such as Google and Facebook.

Now, small businesses can access a more extensive customer base overseas without breaking their budget. Not only does it increase profit, but international marketing also boosts brand awareness.

2. Protects Against Economic Downturn

Unexpected economic events and catastrophes can wreak havoc on a company’s fortune.

However, revenue from selling to an overseas audience can offset possible downturns. As a result, your business will be able to weather the tough times and make up for losses suffered at home.

3. Effective Utilization of Surplus Production

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.

4. Provides Competitive Advantages

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.

Global marketing allows you to remain ahead of the competition.

5. Employment opportunities

Global marketing increases employment opportunities in a foreign country.

International marketing provides access to specialized talent that may not be available in a brand’s home country. 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.

What are the Disadvantages of International Marketing?

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.

1. Cultural Differences

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. That means a message that describes a dog as “man’s best friend” won’t work in Middle Eastern countries.

2. Government Restrictions

International marketing entail following various strict rules and regulations that the host country’s government imposes. These usually include high taxes, as well as duties to import and export goods.

In the end, these restrictions can impact a company’s profitability and continuity. Sometimes, companies may find it challenging to follow these foreign regulations and be forced to leave.

3. War Situations

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.

4. High Competition

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.

Final Word: How do you do International Marketing?

Admittedly, it can be challenging for small or medium-sized businesses to build a successful international marketing strategy. That’s because they usually lack the expertise or budget to launch such a campaign.

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. Not only will it inform decisions, but it’ll allow companies to maximize potentials in new markets.

Finally, it’s essential to make regular tweaks to remain competitive in the foreign market. For instance, you could review your marketing strategy every quarter.

Read More: Marketing Objectives: How To Define, Measure, And Achieve Them

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