Meaning of International Marketing
International marketing refers to marketing which is done globally in several nations. It is a marketing which is done across national borders for fulfilling the needs of peoples worldwide. International marketing is also known as Global marketing. It is the one which enables companies in reaching out to customers internationally.
They are easily able to sell their products in several countries which increase their sale and profitability. Brands are able to create a better position in the international market by conducting their marketing operations on an international level. International marketing bring several nations together for the purpose of trading by facilitating free trade at the international level.
It designs marketing mix as per the preference of people residing in different countries. Here marketing strategies are formulated in the brand’s home country and distributed across several offices. Customers are analyzed in foreign nations for recognizing the target audience.
Advantages of International Marketing
International marketing helps business in enhancing their sales by presenting them at international level. It provides access to wider market globally through which business connects with large number of customers. This boosts the sales volume and overall profitability of organization.
It help companies in reducing their cost by producing goods in large quantities. Companies when trade in international market performs their operations at large scale which helps them in attaining cost competency in both national and international market.
Earns Foreign Currency
International marketing is an important source for earning foreign revenue by nations. Companies by trading in foreign market brings large amount of foreign reserves in their home country. All business dealings are made in foreign currency by companies operating at an international level.
Enhance Living Standards
International marketing helps people of different nations in enhancing their living styles. People are easily able to purchase high quality goods which are not produced in their home country from international brands. It serves as a platform where different reputed brands are able to sell their products in various nations.
It generates employment opportunities in home country as well as in host country. International marketing requires large scale operations to be performed by companies for meeting out the demands of large population. Companies hires huge no. of employees for carrying out their activities efficiently.
Rapid Industrial Growth
International marketing leads to rapid industrial growth of the country. It creates demand for new products which enhances the scale of operations of industries. Various infrastructural facilities such as transportation, insurance and banking are also guided by international marketing that contributes to national economy.
Benefits at Time of Emergency
International marketing provides special benefits to nations facing emergency situations. Whenever any country is adversely affected by situations like drought and flood, it gets help from other nations in international market. Emergency supply of all goods and services for fulfilling the urgent needs of peoples in such countries is facilitated through international market.
Disadvantages of International Marketing
International marketing faces many difficulties due to varying cultures and norms across the globe. Different countries have their distinct norms, traditions, lifestyles, languages and preferences. Companies may sometimes find it difficult to sell their products.
The degree of competition in international marketing is very high due to the presence of large competitors. Companies entering foreign market have to compete with both home brands as well as various international brands.
International marketing is bound to follow various strict rules and regulations imposed by government. Government impose high tax and duties on import and export of goods which adversely affect the profitability and continuity of companies. Sometimes, it become difficult for companies to abide by all the rules and regulations in host country.
International marketing is adversely affected by tension and war like situation among nations. It is subjected to diplomatic relation between countries and continues as long as these countries shares friendly relations. If any tension is erupted in host country, companies incurs huge losses and may lead to complete shutdown of their operations.
Large geographical distance among nations is a major drawback in international marketing. Companies requires large efforts in servicing customers at far distant places. Suppling of fresh and perishable products to far nations becomes a challenging task for companies.