International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines.

This strategy uses an extension of the techniques used in the home country of a firm.[1] It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets.[2] 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."[3] In contrast to the definition of marketing only the word multinational has been added.[3] In simple words international marketing is the application of marketing principles to across national boundaries. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term

1. Introduction to international marketing International marketing consists in identifying and satisfying consumer needs abroad; better than the national and international competitors, under the constraints of the internationalization stage of the firm and the global environment. (Nathalie Prime)

Differences between domestic and international marketing

Domestic

International

Research data is available in a single language and is usually easily accessed Business is transacted in a single currency

Research data is generally in foreign languages and may be extremely difficult to obtain and interpret Many currencies are involved, with wide exchange rate fluctuations Head office employees might only possess and outline knowledge of the characteristic foreign markets Numerous cultural differences must be taken into account

Head office employees will normally possess detailed knowledge of the home market Promotional messages need to consider just a single national culture Market segmentation occurs within a single country

Market segments might be defined across the same type of consumer in many different countries.

Domestic

International

Communication and control are immediate and direct Business laws and regulations are clearly understood Business is conducted in a single language

International communication and control might be difficult Foreign laws and regulations might not be clear

Multilingual communication is requires

Business risks can usually identified and assessed

Environments may be so unstable that it is extremely difficult to identify and assess risks The complexity of international trade often necessitates the adoption of complex and sophisticated planning, organization and control systems

Planning and organizational control systems can be simple and direct

Domestic

International

Functional specialization within a marketing department is possible Distribution and credit control are straightforward Selling and delivery documentation is routine and easy to understand Distribution channels are easy to monitor and control Competitors behavior is easily predicted

International marketing managers require a wide range og marketing skills Distribution and credit control may be extremely complex

Documentation is often diverse and complicated due to meeting different border regulations Distribution is often carried out by intermediaries, so is much harder to monitor Competitors behavior is harder to observe, therefore less predictable

New product development can be geared to the needs of the home

New product development must take account of all the markets the product is sold in.

International marketing means marketing across national frontiers. Multinational marketing means the integrated coordination of the firms marketing activities throughout the world.

Reasons for marketing abroad

Difference Between Domestic marketing and International marketing

Jan 19th, 2011 | By Andrew

0 in Share email Domestic marketing vs International marketing Domestic marketing and International marketing are same when it comes to the fundamental principle of marketing. Marketing is an integral part of any business that refers to plans and policies adopted by any individual or organization to reach out to its potential customers. A web definition defines marketing as a process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. With the world shrinking at a fast pace, the boundaries between nations are melting and companies are now progressing from catering to local markets to reach out to customers in different parts of the world. Marketing is a ploy that is used to attract, satisfy and retain customers. Whether done at a local level or at the global level, the fundamental concepts of marketing remain the same. Domestic Marketing The marketing strategies that are employed to attract and influence customers within the political boundaries of a country are known as Domestic marketing. When a company caters only to local markets, even though it may be competing against foreign companies operating within the country, it is said to be involved in domestic marketing. The focus of companies is on the local customer and

market only and no thought is given to overseas markets. All the product and services are produced keeping in mind local customers only. International Marketing When there are no boundaries for a company and it targets customers overseas or in another country, it is said to be engaged in international marketing. If we go by the definition of marketing given above, the process becomes multinational in this case. As such, and in a simplified way, it is nothing but application of marketing principles across countries. Here it is interesting to note that the techniques used in international marketing are primarily those of the home country or the country which has the headquarters of the company. In America and Europe, many experts believe international marketing to be similar to exporting. According to another definition, international marketing refers to business activities that direct the flow of goods and services of a company to consumers in more than one country for profit purposes only. Difference between domestic marketing and international marketing As explained earlier, both domestic as well as international marketing refer to the same marketing principles. However, there are glaring dissimilarities between the two. Scope The scope of domestic marketing is limited and will eventually dry up. On the other end, international marketing has endless opportunities and scope. Benefits As is obvious, the benefits in domestic marketing are less than in international marketing. Furthermore, there is an added incentive of foreign currency that is important from the point of view of the home country as well. Sharing of technology Domestic marketing is limited in the use of technology whereas international marketing allows use and sharing of latest technologies. Political relations Domestic marketing has nothing to do with political relations whereas international marketing leads to improvement in political relations between countries and also increased level of cooperation as a result. Barriers In domestic marketing there are no barriers but in international marketing there are many barriers such as cross cultural differences, language, currency, traditions and customs.

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Advantages of Global Marketing

Lower Marketing Costs: If you are to consider the lump-sum cost, then yes, it is high, but the same cost goes even higher if the company has to market a product differently in every country that it is selling. Global Scope: Scope of this kind of marketing is so large that it becomes a unique experience.


Disadvantages of Global Marketing

Brand Image Consistency: Global marketing allows you to have a consistent image in every region that you choose to market. Quick and Efficient Use of Ideas: A global entity is able to use a marketing idea and mold it into a strategy to implement on a global scale. Uniformity in Marketing Practices: A global entity can keep some degree of uniformity in marketing throughout the world.

Inconsistency in Consumer Needs: An American consumer will be different from a South African one. Global marketing should be able to address that. Consumer Response Inconsistency: A consumer in one country may react differently as compared to a consumer in another country. Country Specific Brand and Product: A Japanese might like a product to have a traditional touch, whereas an American might like to add a retro modern look to it. In this case, a global strategy is difficult to devise. The Laws of the Land Have to be Considered: Original company policies may be according to the laws of home countries. The overseas laws may be conflicting in these policies. Infrastructural Differences: Infrastructure may be hampering the process in one country and accelerating in another. Global strategy cannot be consistent in such a scenario.

Advantages and Disadvantages of Globalization in Developing Countries Overall globalization has been a big boon for the developing countries, but there are a few who say that it has been a curse. Let us take a look at both these aspects of globalization. The Advantages

GDP Increase: If statistics are of any indication, the GDP of the developing countries has increased twice as much as before. Per Capita Income Increase: The wealth has had a trickling effect on the poor. The average income has increased to thrice as much. Unemployment is Reduced: This fact is quite evident when you look at countries like India and China. Education has Increased: Globalization has been a catalyst to the jobs that require higher skill set. This demand allowed people to gain higher education. Competition on Even Platform: The companies all around the world are competing on a single global platform. This allows better options to consumers.

The Disadvantages

Uneven Distribution of Wealth: Wealth is still concentrated in the hands of a few individuals, and the common man in a developing country is yet to see any major benefits of globalization. Income Gap Between Developed and Developing Countries: The wealth of developed countries continues to grow twice as much as the developing world.

Different Wage Standards for Developing Countries: A technology worker may get more value for his work in a developed country than a worker in a developing country. Reversal of Globalization: In future, factors such as war may demand the reversal of the globalization (as evident in inter world war years), and current process of globalization may just be impossible to reverse.