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INTRODUCTION

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.

Hence, this intends to give a true picture of

international marketing in theory, principles and practice.

International Marketing Defined


International marketing is defined as 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 objective

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.

Features of International Marketing

Large Scale Operations


International marketing is always conducted on a large scale. It is done on a wholesale basis and
not on a retail basis, to get the advantage of large scale operations regarding transportation,
handling and warehousing.

Dominance of MNCs and Developed countries:


MNCs having worldwide contacts dominate the scene of international marketing. MNCs
conduct business more efficiently and economically. MNCs adopt global approach which is
needed in international marketing.

Presence of Trading Blocs:

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 Research:


In international markets, it is required to know about customers, dealers and competitors. In
international marketing, marketing research is a must due to different social, cultural, economic
and political environment of far off markets.

Sensitive and Flexible:

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.

Lengthy and Time-consuming:

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.

Long term marketing planning:


International marketing needs long term marketing planning. The need for long term planning in
international markets is because the marketing situation in different countries changes due to
social, economic and political factors.

Advantages to all participating countries:


. But, some b International marketing is advantageous to all the countries participating in
international marketing. It helps in having smooth and good relations between countries and
thereby ensures world peace. But, the advantages of international marketing are not shared in a

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.

Benefits and Scope of International Marketing


International marketing encompasses the strategy to market outside your own domestic market.
Global marketing overlaps with international marketing in concept, however treats the world as
one market versus individual market segments.

Increased Revenue Potential:


If you expand your market beyond local borders, your lead potential increases. More leads =
more sales opportunities. I could focus on North American operators only, but instead extend
my reach world-wide, increasing the opportunity to sell inventory.

Increased Economic of Scale:


With increased volume potential comes increased production, which equates to cost savings.
Your fixed costs will be positively impacted if you can keep your aircraft mechanic busy all
day versus half a day - apply his salary across 2 jobs versus.

Focus on Growing Markets:

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.

Explore Areas with Less Competition:


Emerging markets are interesting and often less saturated with competition. It may be riskier
to deal in these markets, but with the right partnerships and terms, there can be great rewards.

Increased Network Opportunity:


By marketing to global markets, you extend your network to discover new talent and learn about
new production opportunities. Perhaps you focus on Asia Pacific from North America, but find a
reputable agent locally that you can support an international marketing strategy.

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.

Preparation for Expansion


International marketing is an effective first step toward the expansion of your company, its reach
and its presence around the world. Marketing requires background research and careful planning
but is relatively easy to put in place within an international market when compared with the
logistics of an actual overseas expansion. It allows the business to gauge the public reaction to
the new product or services and helps companies understand if an expansion into the market
would make good business sense. Before setting up business operations abroad, local vendors
can be signed on as authorized dealers who can then supply your product as required following
your marketing push. If things work out, the next step toward actual expansion can be taken. If
not, you can pull out with minimal financial consequences.

Scope of International Marketing

Exports and Imports:


International trade can be a good beginning to venture into international marketing. By
developing international markets for domestically produced goods and services a company can
reduce the risk of operating internationally, gain adequate experience and then go on to set up
manufacturing and marketing facilities abroad.

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.

Wholly owned manufacturing:

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.

Third country location:


When there is no commercial transactions between two countries due to various reasons, firm
which wants to enter into the market of another nation, will have to operate from a third country
base. For instance, Taiwans entry into china through bases in Hong Kong.

Mergers and Acquisitions


: Mergers and Acquisitions provide access to markets, distribution network, new technology and
patent rights. It also reduces the level of competition for firms which either merge or acquires.

Why Companies Go Into International Marketing


Diversified Income Stream
Small-business owners understand the importance of diversifying revenue sources; having that
one major client can seem like the answer to your business success -- until you lose it.
Marketing your business internationally expands and diversifies your revenue sources by
introducing your goods and services to customers in other countries. Thus, if the domestic
economy gets sluggish, you can temper the effect through revenue from countries with healthier
economies. A global sales base can help cushion the pain of losing customers via economic
hardship.

. Growth on saturation of domestic market:

In order to find out other marketing opportunities elsewhere, firms enter


international market.
To earn more profit:

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.

Decreasing the risk: If a firm is restricting its marketing activities to home


country only then it is prone to economic upheavals. International markets
decreases dependence on domestic home market and reduces risk associated
with market failure.

4. Availing imported inputs: Government provides incentive schemes that leads

to duty exemption or remission on import of inputs for export production such


as advance licensing, duty drawbacks, duty exemption, export promotion,
capital goods scheme etc. such provisions helps the firm in obtaining imported
items and technical know how to improve their current operations and become
more competitive.
5. Product characteristics: Each product passes through product lifecycle stages.

When a product enters in to decline stage in a particular market, a firm may


decide to introduce it in new international market. At the same time some
unique products e.g. Ayurvedic medicines may be appropriate for specific
international markets.