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.
Challenges of International Marketing
Different challenges faced by international marketing are as given below:-
It refers to various tax and duties which are imposed on import and export of goods or services. International marketers sometimes find it difficult to abide by all the rules and regulations imposed by the foreign government. Such taxes may adversely affect their profitability and create a problem for them.
Variations in Exchange Rate
Every country has its own currency and need to be exchanged with each other while doing international trade. There are fluctuations in the currency exchange rate every day. It becomes a great challenge before international marketer for converting currencies in case if fluctuations in exchanges rate sometimes goes extraordinary.
Cultural diversity means difference in culture and norms among people in several nations. Every country’s people have distinct tastes, habits, language, preferences, buying and consumption pattern. Companies may face difficulty in introducing their product in international market.
Another major problem in international marketing is the large geographical distances between countries. Trading with the nation at far distances is a quite challenging task as it requires large time and effort. In case of supplying perishable and fresh goods, companies may face a big problem.
There is a difference in the political atmosphere of every country. These political differences may pose threats or provide opportunity to companies. Government of foreign countries has distinct priorities and approaches to international trade. Companies may face restrictive trade policies imposed by the government of that country while trading their products.
Existence of high competition in the international market is another problem faced by companies. It may become difficult for them to sell their products or compete with existing companies in developed countries.
Importance of International Marketing
Importance of international marketing can be well-understood from points given below:-
International marketing provides an opportunity for doing business in a broader market. It helps in connecting to a large number of customers worldwide. Companies are able to sell their products to huge peoples and earn large profits.
Earn Foreign Exchange
It serves as a medium for earning foreign exchange by nations. Companies by selling their products in several nations abroad bring foreign currency in their home country.
Spread Business Risk
It enables in spreading business risk by conducting business operations in several nations. Business loss occurring in one country can be easily adjusted with high profits earned from other countries.
Raises Living Standards
International marketing enables in enhancing the living standards of people by providing quality products. It provides a platform through which different reputed brands are able to sell their products in many nations. People are able to avail high-quality products or services which improves their lifestyle.
Ensures Optimum Utilization of Resources
It aims at the efficient allocation of resources by promoting free trade at the global level. International marketing enables the nation in supplying their surplus materials to different nations where they can be used properly for manufacturing goods and services.
Facilitates Cultural Exchange
International marketing serves as a medium for exchanging culture and traditions among several countries. By free movement of goods, nations are able to exchange their social and cultural ideas. It aims at attaining cultural integration at world level.
Promote World Peace
It focuses on promoting harmony and peace on the international level. International marketing by facilitating international trade provides a platform where different countries are able to come together. It helps in developing mutual understanding and enables in working in collaboration with each other.