Importance of international marketing

From CEOpedia | Management online

International marketing is based on the main marketing principles, which are value and exchange. Nevertheless, it also focuses on stakeholders and society whose present positions are to be improved. There are three main trends in international marketing. First, the world's big emerging markets such as Russia and China expand and we can observe the shift from socialist-based to market-based economies in Eastern Europe. Second, there has been the rapid growth of middle-income market segments. Third, we can witness the steady creation of regional market groups, including the European Union, the North American Free Trade Agreement, ASEAN Free Trade Area and others. These are challenges for international marketers of the 21st century.

Importance of the environment

One of the fields where international marketing can be involved is environmental business. Green energy, water stewardship, and sustainable manufacturing are becoming priorities for international marketers because of high expectations of governments as well as customers. Global marketers give opportunities for technologists and entrepreneurs worldwide to present ideas on how to improve household energy efficiency or to harness wind, solar, hydro and biomass power.

Importance for emerging markets

Contributing to economic development of the emerging market economies in such countries as Russia or China, and the developing countries of Asia and Africa could be seen as beneficial. However, in these regions we can see lots of challenges facing international marketing. Marketing concepts not necessarily fit into these societies. Price mechanism sometimes does not work properly, and distribution systems can be hard to organize. The same refers to the fields of social responsibility and ethics where the international marketer has to cope with a multicultural environment of various expectations and inconsistent legal systems when it refers to monitoring environmental pollution, maintaining safe working conditions, copying technology and trademarks or even paying bribes. All things considered, although international marketers face some difficulties in these countries, their activity is important for creating and improving new markets, since international marketing as a rule offers more choices and lower prices to consumers.

Importance for enterprises

There are also many reasons why international marketing is very important to companies. A great number of companies realize that their target market is limited if they focus on a domestic market only. If companies think globally, they seek for overseas opportunities to increase their market share and customer base. However, shrinking of the world through technology has made it easier for marketers to reach global markets. As a result, the global market is very competitive. Yet international marketing is essential for businesses to survive in the global marketplace. International marketers find out what the company has to change so that it can win the new market, what other competition exists in the market, and finally what regulations exist that could affect business operations. Last but not least, they should work out methods of adopting the product by different cultures.

Examples of international marketing

  • International marketing enables businesses to access new markets and customers. By marketing products and services outside their home market, companies can tap into a new consumer base and expand their reach. This allows them to increase their revenue and profits.
  • International marketing helps businesses to gain a competitive advantage over their rivals. By introducing new products and services to a new market, businesses can gain a first-mover advantage, which can give them a head start over their rivals. This can help them to gain a foothold in the market before their competitors.
  • International marketing can help businesses to build valuable relationships with other countries. Through international marketing, businesses can build relationships with other countries that can help them to access new resources, gain access to new technologies and develop new partnerships.
  • International marketing can help businesses to reduce their costs. By marketing their products and services in different countries, businesses can reduce their costs by taking advantage of cheaper labor, materials, and other resources. This can help them to boost their profits.

Advantages of international marketing

One of the main advantages of international marketing is the ability to access new markets and customers. This can help businesses to increase their customer base and revenue potential. Other advantages of international marketing include:

  • Increased Competition: International marketing can create more competitive markets, as companies from across the world can compete for the same customers. This can lead to lower prices and better quality products for customers.
  • Improved Brand Recognition: Companies that market their products and services internationally are likely to gain more recognition and awareness. This can help to build brand loyalty and trust, which can lead to increased sales and revenue.
  • Access to Resources: International marketing can provide access to resources that may not be available in one specific country or region. This can lead to lower costs and higher profits.
  • Increased Innovation: Through international marketing, companies can access new ideas and technologies which can lead to increased innovation. This can create new opportunities for businesses to expand and grow.

Limitations of international marketing

The importance of international marketing is significant for businesses looking to expand their operations and customer base beyond their local market. However, there are some limitations to this approach, including:

  • High Costs: International marketing is a costly endeavor, as it requires setting up offices in the target country, resources for legal and marketing activities, and costs associated with marketing materials and advertisement.
  • Cultural Barriers: A company must understand the culture of its target market in order to successfully launch its products. This requires extensive research and expertise, as well as an understanding of the local laws and regulations.
  • Language Barriers: Reaching out to customers in a foreign language can be difficult, as it requires the use of translators and interpreters, which adds to the cost.
  • Complex Regulatory Environment: Different countries have different laws and regulations, which can make the process of launching a product in a foreign market quite challenging.
  • Lack of Knowledge: Companies may lack the necessary knowledge and experience to successfully enter a foreign market, which can lead to mistakes and costly losses.

Other approaches related to international marketing

  • Market selection is the process of understanding the demographic, geographic, political and cultural characteristics of a target country in order to evaluate if the market is suitable for the product or service.
  • Standardization vs. adaptation is the decision-making process of whether to apply the same marketing strategy in different countries, or to adapt it taking into account the local culture and customer preferences.
  • Global value chain analysis is the process of understanding how a product or service is designed, produced, distributed and consumed in different countries.
  • International customer relationship management is the process of understanding customer needs and preferences in different countries, and offering tailored solutions in order to build customer loyalty.
  • International competitive strategy is the process of understanding the competitive environment in different countries, and developing strategies to gain a competitive edge in the market.

In conclusion, international marketing is an important aspect of the business environment and requires an understanding of the different approaches related to it. Market selection, standardization vs. adaptation, global value chain analysis, international customer relationship management and international competitive strategy are some of the approaches that help in understanding and managing international markets.


Importance of international marketing — recommended articles
Importance of international business — Competitive environment — Internationalization — Global marketing strategy — Green innovation — Disruptive business model — International competitiveness — International marketing mix strategy — Benefits of innovation

References

Author: Justyna Galon

Retrieved from "https://ceopedia.org/index.php?title=Importance_of_international_marketing&oldid=93005"