Beruflich Dokumente
Kultur Dokumente
No country or organization is sufficient unto itself. Organizations market goods and services that
have no domestic demand in international markets and perhaps come back with products that
have domestic demand. In some cases, industrial inputs such as labor, raw materials, capital and
technology are imported from foreign lands to complement indigenous industrial inputs for
efficiency and effectiveness. The importance of international marketing can never be
overemphasized. In acknowledging this fact, Awoniyi (1999) states:
We are all affected by international marketing. We wake up in the morning with the help of
Japanese alarm clock. At breakfast we eat Indomie or drink Maxwell or Colombian coffee and
eat bread made of wheat from America. We glance at advertisement for French wine in the
newspapers. Many of the goods and services we consume each day are imported. And over 70%
of products made in this country (Nigeria) face direct foreign competition.
This analogy shows clearly that every individual, organization, even country is affected directly
or indirectly by international marketing.
Cateora et al define international marketing as the performance of business activities that direct
the flow of the companys goods and services to consumers or users in more than one nation. It
is the performance of business activities including marketing research, product development and
management, and marketing intelligence, across national boundaries with the view of satisfying
human wants and needs and achieving companys predefined objectives.
Majaro stipulates that any company that endeavors to market its products in more than one
country such a company is involved in international marketing. Basically, what differentiate
international marketing from international trade are the operative words of sense, serve and
satisfy. International marketing takes place when a company senses or identifies currently
unfulfilled needs and wants, design appropriate product to fill the gap and satisfy the consumers
at profit. International marketing is entrepreneurial. It is innovative and dynamic, hence requires
deliberate, holistic, and concerted efforts and programmers to make it successful. International
trade is more or less individualistic in nature, may not be customer-centered, and may not require
deliberate efforts in its operations.
Certain nations of a region have come together to form trading bloc for and their mutual benefit,
economic development and to reduce or eliminate trade barriers among member nations.
International marketing is influenced by the presence of such trading blocs. The most powerful
trading blocs are NAFTA (North American Free Trade Area) and EU (European Union).
Three-faced competition:
Suppliers have to face competition from three angles in international marketing. They have to
face competition from the other suppliers of the exporters country, from the local producers of
importing country and from the exporters of competing nations.
International Forums:
International trade is regulated by international forums like WTO and UNCTAD.
International marketers should have a deep knowledge of the forums rules and regulations.
International marketing is very sensitive and flexible in character. Due to political and economic
reasons, a product may suddenly become unpopular or market may come down quickly. The sale
at the international level may be affected by competitors or due to the introduction of a new
product by a competitor
Advanced Technology:
International marketing is very dynamic and competitive. Thus, an organization must be able to
sell goods of the best quality, at competitive prices. Advanced countries like U.S.A., Japan and
Germany dominate in international marketing because they use advanced or sophisticated
technology in production and marketing of goods.
International marketing is lengthy and time consuming due to long distances, restrictions
imposed by different countries, payment difficulties because of the use of different currencies,
and lengthy procedural formalities.
Wide Scope:
International marketing has a wide scope. The important areas covered by international
marketing are product planning, product development, pricing, packaging, branding, advertising,
marking, labeling, communication, procedural formalities, sales promotion, international
marketing research etc.
fair proportion by all participating countries rich and poor countries enefits are availed by all
participating countries.
International Restrictions
In domestic marketing there are no restrictions, in international marketing there are various trade
restrictions (tariff and non-tariff) due to the protective policies followed by different countries.
The trade barriers are adopted by all countries.
If one market is in a recession, you can increase profitability by selling to markets that are
thriving. An aviation operator that is dependent on oil & gas may not be in a position to
acquire new aircraft. However, with the aging population medevacs are in the position to
acquire and grow.
Branding:
International branding has targeted approach to specific market segments, where as global
branding promotes the same image for all markets. Either way, there is a perceived allure to a
global brand that has the power and reputation to work with consumers world-wide. At the same
time, you need to be aware of the differences in perception of the single brand image. Canadian
manufacture Bombardier is a global brand, but may be perceived differently by Canadian versus
elsewhere.
In todays world, there is much opportunity to connect with the global market. It is definitely
more strategic and brings more opportunity to focus on the consumer/business profile versus
borders
Larger Market
International marketing can help open up a larger market than your company would be able to
reach otherwise. With a larger market comes the potential for more profit and a greater customer
base. International marketing introduces an entirely new population to your products or services
and has the potential to substantially increase your company's recognition and reach. While the
expense associated with international marketing on a large scale can be prohibitive for many
small businesses, the potential reward can far outweigh the risk. Small businesses can sometimes
band together or partner with an existing marketing company or network to help reduce the
financial and logistical burdens involved.
Brand Prestige
The prestige gained by the use of international marketing and a presence in more than one
country has many benefits. Companies that can use international marketing to create an image of
themselves as having an international or even global reach are often perceived to have reached a
different level of success than those who are present only within the domestic market.
International marketing allows you to create the brand image you want for your small business
and present it to an entirely new audience that brings no preconceived notions or biases to the
table. Starting fresh with a new audience can sometimes help a company make the jump to
another price point as well.
New Relationships
When a company has an international marketing presence, the potential for all manner of new
business relationships arises. For example, new vendors may see the advertising and inquire
about selling your product. New suppliers may contact you in hopes of providing the raw
materials, shipping, packaging or other essentials. These new suppliers may be able to save you
money on your bottom line so profit rises and your margins shift. If your company never
ventures into new markets, there is no telling what opportunities to improve the business and the
efficiency of the company are undiscovered.
Contractual Agreements:
Patent licensing, turnkey operations, co production, technical and managerial know how and
licensing agreements are all a part of international marketing. Licensing includes a number of
contractual agreements whereby intangible assets such as patents, trade secrets, know how,
trademarks and brand names are made available to foreign firms in return for a fee.
Joint Ventures:
A form of collaborative association for a considerable period is known as joint venture. A joint
venture comes into existence when a foreign investor acquires interest in a local company and
vice versa or when overseas and local firms jointly form a new firm. In countries where fully
owned firms are not allowed to operate, joint venture is the alternative.
A company with long term interest in a foreign market may establish fully owned manufacturing
facilities. Factors like trade barriers, cost differences, government policies etc. encourage the
setting up of production facilities in foreign markets. Manufacturing abroad provides the firm
with total control over quality and production.
Contract manufacturing:
When a firm enters into a contract with other firm in foreign country to manufacture assembles
the products and retains product marketing with itself, it is known as contract manufacturing.
Contract manufacturing has important advantages such as low risk, low cost and easy exit.
Management contracting:
Under a management contract the supplier brings a package of skills that will provide an
integrated service to the client without incurring the risk and benefit of ownership.
There exists difference in price for a product in different markets. Due to stiff
competition in local market, firms profit gets reduced. In such situation
exporters benefits owing to more profit margin in foreign/international market
in price. Differences in price and enhanced profits in the international market
are chief reasons for exporting.