International marketing is marketing carried out by firms overseas or across national borderlines. This strategy is an extension of the marketing techniques applied in the domestic market to meet the different demands, buying patterns, demographics and market segments of overseas customers.
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
American Marketing Association (AMA)
International marketing and global marketing are often used interchangeably, although there is a significant difference. Global marketing is employing a uniform approach to the marketing of goods in overseas markets rather than adapting marketing to the local conditions. For example, global brands such as McDonalds and Adidas try to keep a consistent product, message and offer around the world.
Increasing globalisation is a facet of most firms, markets and brands, because selling into overseas markets has distinct advantages:
- Increased profitability - larger markets result in increases in sales and profitability as well as greater economies of scale. Overseas markets may be more lucrative and as the costs of sourcing from abroad can be considerably lower. In some markets it might be possible to sell at higher prices than can be charged in the domestic markets.
- Diversification and spreading of risk - economic problems in one country can be avoided if the company sells in more than one country. A fall in economic activity in one market may be mitigated by shifting production and sales promotion to other markets that are not undergoing an economic downturn.
- Increased brand exposure and recognition - brands are a valuable intangible asset. Global recognition of a brand will increase this value substantially as well as making it easier for the firm to introduce new products and services into new and existing markets.
- Legal differences - not all countries apply the same standards of health, safety etc and so it might be easier, or less costly to produce and or sell in one country than in another.
- Market saturation - in competitive market situations a firm might be able to both boost sales and prolong the life of a product of the range by selling overseas. In some cases, such as tobacco products, this has enabled companies to continue production when the economic, political and social circumstances have changed in their domestic markets.
Read the article UK Grocery Market To Grow 3.9% a Year till 2015 and then have a go at the questions below. You can either read the article in the window below, or follow the previous link to open the article in a new window.
Identify four effects of market saturation.
Outline four economies of scale that will benefit large grocery outlets.
Analyse the effect of online operations on the traditional marketing mix of a grocery retailer.
Evaluate the impact on multinational supermarkets, such as Tesco and Wal-Mart, of the recent economic recession.
Which of the following is a reason why international marketing is different from domestic?