Today, the marketing organizations are not restricted to their national borders. The entire world is open for them. New markets are springing forth in emerging economies like – China, Indonesia, India, Korea, Mexico, Chile, Brazil, Argentina, and many other economies all over the world. In today’s global market opportunities are on a par with the expansion of economies, with the increasing purchasing power, and with the changing consumer taste and preferences.
The economic, social, and political changes affect the practice of business worldwide, the business organizations have to remain flexible enough to react rapidly to changing global trends to be competitive.
When a company contemplates marketing abroad or expanding existing international marketing activity, management faces five major decisions:
1.International marketing decision i.e. initial and fundamental decision on whether or not to market or expand abroad.
2. The market selection decision i.e. determination of which market to enter.
3. The market entry decision i.e. determination of the most appropriate methods of entry into those markets, e.g. exporting, licensing, manufacturing abroad.
4. The Marketing Mix decision i.e. planning and implementing a marketing mix appropriate to the market environment.
5. The Organization decision i.e. determining the appropriate organization structures.
Definitions of International Marketing
According to Kotler, “Global marketing is concerned with integrating and standardizing marketing actions across a number of geographic markets.”
According to Cateora, “International marketing is the performance of business activities that direct the flow of goods and services to consumers and users in more than one nation.”
According to Cateora and Graham, “International marketing is the performance of business activitiesdesigned to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”
According to Terpstra and Sorathy, “international marketing consists of finding and satisfying global customer needs better than the competition, both domestic and international and of coordinating marketing activities with in the constraints of the global environment.”
Nature of International Marketing
1. Broader market is available– Unlike domestic marketing the market is not restricted to national population. Population of other countries can also be targeted in international marketing.
2. Involves at least two set of uncontrollable variables – In domestic marketing the marketers have to interact with only one set of uncontrollable variables. In international marketing at least two set of uncontrollable variables are involved or more if the marketing organization deals in more countries.
3. Requires broader competence– Special management skills and broader competence is required in international marketing/business.
4. Competition is intense – An international marketing organization has to compete with both the domestic competitors and the international competitors. Hence, the competition is intense in international marketing.
5. Involve high risk and challenges – International marketing is prove to various kinds of risk and challenge like – political risk, cultural differences, changes in fashion and style of foreign customers, sudden war, changes in government rules and regulations, communication challenges due to language and cultural barriers, etc.