International marketing its definition,types and basic concept
As the evolution of technology began to grow the emerging of international marketing took a new height.
In this era of digital marketing, The place, the market everything becomes global and customer represents overseas. Within a second he can buy or sell his product online anywhere in the world. The concept of global marketing represents international marketing. Let’s explore the concept.
Definition of international marketing.
- According to Prof. CzinKota:
International Marketing is the process of planning and conducting transactions across national borders to create exchanges. That satisfies the objectives of individuals and organizations.
- According to Prof.Green:
International marketing focuses its resources on global market opportunities and threats.
- According to Prof. Usunie :
International marketing is the motor of the internationalization of the process of the firm. It is a tool to obtain improvement in the firm’s position in the global market.
So basically international marketing is beyond the national borders. It is more important to focus on the issues related to other countries. Because the markets are expanding in this era of liberalization and globalization.
Now how do we go about with the internationalization of the products?
you have to decide whether you have to go abroad or you have to work in the national borders. However, deciding which markets to enter is important.
Again you have to decide how to enter the international market in terms of the programs you built up. It is necessary for the exchange of goods and services in the international market.
Adition to this basically the company has to decide on the internal resources and the kinds of these strengths the company has.
Now let’s see
the difference between the international market and the domestic marketing
- in domestic marketing, our focus is on the issues and the challenges deal in a platform being domestic.
- the basic concepts focus on definitions of domestic marketing and its uses.
- the success factors which are important are confined to the national borders.
On other hands
- international marketing also the issues are the same but here our strategic orientation is towards the resources in terms to satisfy the cross-cultural.
- Issues of the countries where we work in a different environment.
- we have a strategic role to decide on international marketing is more advanced.
The basic concept involved in international Marketing is seen in this diagram.
we have the export marketing, global marketing and we have intercultural marketing.
so these issues have to be genuinely focused in terms of the exchange of resources.
Exporters, when you are exporting goods to the other country’s global markets, is the total world is one market.
And intercultural and multicultural is where the exchanges between two or more countries.
what is international business?
international business has a wide range of activities. It operates on more borders in terms of international marketing.
where a comprehensive approach is needed to satisfy the customers with different attitudes.
Besides, different trains the basic market is more complex and difficult. Because the activities of selling and producing goods are extensive.
Along with this, reaching the customers are more extensive in terms to reach from the national to the international markets.
It is sizing of the Global Opportunities so as to cash on the economies of scale. In addition to cash on the markets.
which are more opportunistic and more growth-oriented.
The basics of markets types
When we talk about the basics of the market, according to the EPRG model it is of 4 types. As it is shown below.
- The ethnocentric markets. which is generally related to the domestic market.
- The polycentric markets where several countries are involved.
- The egocentric market where the regional countries involved.
- The geocentric markets where the world becomes a global village in a way of exchanging goods and services.
What is marketing?
marketing is basically a kind of social phenomenon. It manages things in such a way that we plant, we organize and we try to sell things.
It is managed in order to satisfy the customers. so we are exchanging goods where value has to be created and the customer has to be satisfied.
However, the world is big we have multi-country marketing. Besides, we have the global country marketing.
let’s see in this diagram we have shown you.
where the arrows show you the different markets in terms of the multi marketing concept. Here you have the global markets where the multi markets are interconnected. so we have a diverse and more wide range of activities. It is covered in terms of the global market.
Now when we talk about the international market let’s see the scope
Scope of international marketing.
The scope and the challenges of the markets in terms of operating our business operations beyond the domestic borders.
This is the figure which beautifully displays.
- The kind of international marketing, international management, and international finance. when all these three things interact.
- we have international trade which exchanges goods and services. It emerges as a kind of a field of study which is more complex.
- International trade involves a kind of global marketing. Besides, international marketing now the growth of international marketing is guided by many factors.
Basic examples of the concept of international marketing.
For example, the comparative advantages between countries like some countries can have the advantage of the resources.
In terms it is rich in some kind of natural resources and the other country has the scarcity of those resources.
So we can work on the exchange process to create value for the customer. then we have the economic trends as well.
The kind of economic stability and tax structures are prevalent in other countries. The kinds of benefits of the low-cost supply.
For example, you have a country like China giving you raw materials at a very low cost because of the kind of labor advantage.
In addition to that, the kind of the basic advantage of the production factors. So these are the economic forces in the trends that basically guide the international markets.
So as to decide to work with international partners. We have demographic trends as the change in cultural issues. The kind of international standards and the universal standards people are adopting for the lifestyles of the political trends.
In terms of the Alliance and the kinds of trade agreements taking all over the world.
Then we have the cultural and social trends. where the media impacts and the kind of exchange of the issues takes place.
between these societies where people want to use and want to look like. Besides they want to be groomed like other people.
Then you have the technological trends which are basically changing in terms of the updations of the market.
The new technology that emerges in any market makes life easy for other people. Also, the technological exchange can connect the world and can make the world a more comfortable place to live in.
Alternative methods to enter the global market.
Now the alternative methods of entering into a global market are many. we have shown you in this diagram.
That we have basic aspects it basically depends on how much risk you want to take in life. We move from moderate risk to high-risk situations.
When we want to take a moderate risk we have indirect exporting this is through the domestic markets to the international markets.
Then we have the direct exporting that is we have the in-house overseas offices which operate in the foreign markets.
Then we have to license by which we take up the franchisee business. And we organize those issues in our country or in other countries.
Then we have the joint ventures where the ownership of partnership is done. Then we have the direct investment that is the FDI that is the foreign direct investment.
Where all the facilities in the foreign borders are owned. Now, this is a kind of a difficult situation. Although, it requires a lot of investment you ready to put on.
Here to take up all the risks involved with the manufacturing of planning to the government to the control to the taxation to the technology everything.
Basically, it depends on the foreign markets because your investment is done by the foreigner.
Process of international marketing
Now the basic marketing process which starts in the international process is shown.
you here in this diagram you have to understand the marketplace. where the customer is the king. your customer is important then you have to design a customer-driven marketing strategy.
you have to construct a kind of a marketing program that delivers a kind of a superior and a better value in the foreign market. you have to build profitable relationships so as to create a kind of customer satisfaction.
then you have to compute the values in terms. So that the customers have profits and they have the kind of increased standard of living.
Impact on customer values
This is basically to create values where you have to build a kind of relationship with the customers. So the marketing process in terms of international marketing involves market technology the global market and ethics.
Besides, the responsibilities of these social issues also now the factors which decide the entry mode. The decision is shown over here you have both the external factors impacting your business.
In addition to that, you have external factors. Which also deciding the kind of operations you take up in international markets.
The international factors in terms of resources related to the company’s internal product. Besides, the company’s resources and the kind of commitment.
Then the entry mode is also decided by the external forces related to the target country market forces.
The target country’s environmental factors its production factors and the kind of home country production factors etc.
So these are the basic elements of the entry in the international market.
Strategies to enter an international market.
the choice of the market is quite a difficult procedure because you have to compare the markets in terms of the cost and benefit advantage.
Now let’s see the elements of the entry-level strategies. first, when you choose a market you have to decide on the product. Besides, the kind of situation in which you have to operate.
Then you have to set the objectives and goals related to that particular product. The choice of the entry mode basically depends on the design of the plan and then you have to focus on the target market.
Now when you try to enter into the market you have the control systems. Moreover, the control systems relate to the monitoring operations.
And the kind of revising entry strategy so this diagram basically gives you the all options to enter into International Marketing.
the types of export in international marketing
International marketing involves exporting to other countries and also FDI. Here FDI is foreign direct investment. Exporting is less risky and FDI is riskier in terms of commitment, legalities, etc.
Let’s see the export diagram here.
relate to the internationalization process of both the direct exports and indirect exports.
The indirect exports relate to the distribution of the export agents. It also includes the kind of export mechanisms that we work on direct exporting.
It involves the export department, sales representatives, and e-business technology.
Then we have the co-operative exporting markets where we have the export groups and the kind of the forums by which we can export.
the basic philosophies of internationalization
in this basic model, we have a domestic market, export market, multinational marketing and we have global marketing.
Now when we talk about domestic marketing it is no international kind of commitment. It moves to limited commitment goes to substantial.
But it goes to extensive commitment in terms of the global market. The domestic focus is less in terms of domestic markets. Then it is ethnocentric, then it is polycentric, and then it becomes geometric. All this focus is on the kinds of markets where we try to segment the countries rather than the markets. So the global markets are more difficult.
Introduction to the marketing mix in international marketing.
The marketing mix gives information that is required to phase out the kind of the stages of the internationalization process. Again we have a complex model which describes the
phase 1 phase 2 phase 3 and phase 4
- phase one: is the environmental analysis of the market. This is the kind of basic ethics in terms of scanning the environment. the environmental scanning involves a kind of total scanning process in terms of identifying the upward. And the kinds of threats involved in the market.
- phase two: This is the advantage of marketing in terms of the products and the markets. So we have market basically when it focuses and products we talk about the marketing mix. which involves the kind of piece related to promotion distribution, physical evidence, the price, the process, and the product itself.
- phase three: Basically involves a kind of development or developing a plan. Now, this market development plan is important because here you do a kind of a situation analysis. After this, you do a kind of strategic orientation in terms of making up the strategy. Then you have the budget and the location of the resources. All has to be done in such a way that you form an action program.
- phase four: It is basically the kind of implementation stage. It involves the basic crystallization of the objectives and goals for which you wanted to enter the international market. you assign the responsibilities to the people. and measure the performance in terms of achievement of goals.
Factors affecting the international marketing decision
Now the major international decisions are required to enter the market. which is look into the global environment. then decide the international factors, decide on to which markets to enter decide how to enter and then make a program, and then make an organizational kind of a strategy to enter into international programs.
The decision not to go in the global market or not to go to a global market depends on firm strengths and weaknesses. why we have reasons to built up international markets. Again why we have to go global. Simple is when your domestic market is saturated.
how to sell your products in the domestic market try to discover some new markets in foreign countries.
where the products could be used in foreign markets with high opportunities and high profits.
available they might not use it. Then we have this stagnant or a kind of a shrinking market in the domestic kind of the country. So in this, you can cover or discover new markets in the international area.
when your products could match up with the needs of the products on the customers. we have a larger customer base in the foreign countries where your expansions can take place and then you can reduce the dependence on the domestic market. You can come out of the competition in terms of the domestic market.
Then you can follow the customers who are expanding in terms of the taste and change in the international markets.
The whole channel of the international market is quite difficult in terms of operations.
Creating real value for the product is crucial
When we talk about creating value to the product or making it different in taste, size, etc. If all kind of similar products is started in the market with the same kind of universal values then it is difficult to sell.
So you have to differentiate the product in terms of the color, the variety, and the kind of functions. Besides, the kind of taste and everything which makes it unique in terms to sell into the international market.
so we have all these basic aspects which require basic principles in terms of selling the positioning of marketing. Which creates a good relationship with the customers. Again the ultimate principle is the principle of balance like you have to focus on segmentation targeting.
Furthermore, you have to serve the heart and the voice of the customers. The emotions of the customers are more important. So you have to synchronize with the values of the customers.
Basics of management of products
the marketing environment has to be studied in terms to create issues. That is more close to their heart. Now the future of international Marketing is basically difficult in terms of management.
Because you have to manage the kind of products which are more updated. As technology is changing for present customers. Today they are being educated, they are being groomed and they are more aware of the product.
So you have to develop the products of tomorrow. you have to look at the marketing myopia in which thinks beyond today’s issue. we have to look into the future which is more difficult.
so the kind of global experience has to work into issues. which counts for not only to the company’s basic resources but also accounts on the job markets. Also on to the marketing aspects related to product manufacturing in a different way.
we have to work at the economies of scale. Also, have to work on the assembly line issues. we also have to work on the cutting down cost procedures and then making the distribution channels less lately. So as to reach the customer in an easy way.
So these are the basic issues and the principles which guide the total international process. However, the basic marketing mix which is a universal process impacting national marketing.
The international marketing is the basic mix that is the four-piece you have the product price promotion and the place which we have already discussed.
Furthermore, these are the basic key decision-making factors. This is important because you have to develop tangible products and the intangible aspects related to the products.
These services and the kind of trust would bring faith to the value of the pricing. Besides, you have to develop the policies that bring revenue to the company.
However, when it gives a low-cost product to the customer then you have the promotion policies to enhance the desirability of the product into the minds of the customers. then places that the product has to be available into the international markets.
The basic advantages of product mix in marketing
Starting of this product mix is that it reduces your cost aspects. it makes the product easily in the international market. It is a kind of customization of products. where the customers can basically understand and use the products.
The global economy is talking about ideas, goods, services skills, and competencies all over the world. We have a kind of reality the market which is definitely impacted by the constant changes. In growth simultaneously also impacted by the retrenchment we have.
So there are so many positive and negative forces operating into the international market. which makes the international markets difficult.
In spite of all these things, the global economy is growing. It is offering a lot of opportunities for marketers to expand their base in the international market. Where it is good for the life of customers and societies. In addition to that, we have the opportunity to work with better products and better services.