What is International Marketing, expound in detail with examples?

In simple sense, International marketing is the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar and interchangeable terms.

First: Definitions

"At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe.”Doole and Lowe (2001).

"International Marketing is the performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit. “Cateora and Ghauri (1999)

"International marketing is the application of marketing orientation and marketing capabilities to international business. “Muhlbacher, Helmuth, and Dahringer (2006)

"The international market goes beyond the export marketer and becomes more involved in the marketing environment in the countries in which it is doing business. “Keegan (2002)

Second: How does an organization enter an International  market

A mode of entry into an international market is the channel which an organization employs to gain entry to a new international market. modes of entry into international markets includes Internet, Exporting, Licensing, International Agents, International Distributors, Strategic Alliances, Joint Ventures, Overseas Manufacture and International Sales Subsidiaries, here each one is expounded in detail: 

1-Licensing

Licensing includes franchising, Turnkey contracts and contract manufacturing. includes  involves the organization (franchiser) providing branding, concepts, expertise, and in fact most facets that are needed to operate in an overseas market, to the franchisee.  e.g. Examples include Dominos Pizza, Coffee Republic and McDonald’s Restaurants. Turnkey contracts are major strategies to build large plants. They often include a the training and development of key employees where skills are sparse   for example, Toyota’s car plant in Adapazari, Turkey.

2-International Agents and International Distributors

Agents are often an early step into international marketing. Put simply, agents are individuals or organizations that are contracted to your business, and market on your behalf in a particular country. They rarely take ownership of products, and more commonly take a commission on goods sold. Agents usually represent more than one organization. Agents are a low-cost, but low-control option. If you intend to globalize, make sure that your contract allows you to regain direct control of product. Of course you need to set targets since you never know the level of commitment of your agent. Agents might also represent your competitors – so beware conflicts of interest. They tend to be expensive to recruit, retain and train. Distributors are similar to agents, with the main difference that distributors take ownership of the goods. Therefore they have an incentive to market products and to make a profit from them. Otherwise pros and cons are similar to those of international agents.

3- Strategic Alliances (SA)

strategic alliances is a term that describes a whole series of different relationships between companies that market internationally. Sometimes the relationships are between competitors. There are many examples including:

·         Shared manufacturing e.g. Toyota Ayago is also marketed as a Citroen and a Peugeot.

·         Research and Development (R&D) arrangements.

·         Distribution alliances for example iPhone was initially marketed by O2 in the United Kingdom.

·        Essentially, Strategic Alliances are non-equity based agreements e.g. companies remain independent and separate.

4-Joint Ventures (JV)

Joint Ventures tend to be equity-based i.e. a new company is set up with parties owning a proportion of the new business. There are many reasons why companies set up Joint Ventures to assist them to enter a new international market:

·         Access to technology, core competences or management skills. For example, Honda’s relationship with Rover in the 1980’s.  To gain entry to a foreign market. For example, any business wishing to enter China needs to source local Chinese partners. Access to distribution channels, manufacturing and R&D are most common forms of Joint Venture.

5-Overseas Manufacture or International Sales Subsidiary

A business may decide that none of the other options are as viable as actually owning an overseas manufacturing plant i.e. the organization invests in plant, machinery and labor in the overseas market. This is also known as Foreign Direct Investment (FDI). This can be a new-build, or the company might acquire a current business that has suitable plant etc. Of course you could assemble products in the new plant, and simply export components from the home market (or another country).

Third: Internationalization Stages

Some companies will never trade overseas and so do not go through a single stage. Others will start at a later or even final stage. Of course some will go through each stage as summarized :

·         Indirect exporting or licensing

·         Direct exporting via a local distributor

·         Your own foreign presences

·         Home manufacture, and foreign assembly

·         Foreign manufacture

International marketing is the application of marketing principles in more than one country, by companies overseas or across national borders. International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to marketing identification, targeting, and decisions internationally.

According to the American Marketing Association (AMA) "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."

As technology creates leaps in communication, transportation, and financial flows, the world continues to feel smaller and smaller. It is possible for companies and consumers to conduct business in almost any country around the world thanks to advances in international trade. According to the World Trade Organization, the volume of international merchandise trade increased times between and.

Brands and products that originate in one country are enthusiastically accepted in others. For example, Louis Vuitton handbags, BMWs, and Columbian coffee, all foreign products, are symbols of status and quality in the United States, and many American brands, like Warner Brothers motion pictures, have similar footholds overseas.

However, globalization has created just as many challenges as opportunities for brands that venture overseas. Because consumers have so many more options for similar products, companies must ensure that their products are high in quality and affordability. Additionally, these products cannot be marketed identically across the globe.  International marketing takes more into consideration than just language – it involves culture, market saturation, and customer behaviors. American and European companies especially have turned their international marketing efforts into something more than just exporting, they have adapted their branding to account for differences in consumers, demographics, and world markets.

Companies who have done this very well include Coca-Cola, who discovered that the word ‘Diet’ carries a negative connotation in Latin America and changed the name of their zero-calorie product to ‘Coke Lite’ for those countries. UPS, known in America for their brown trucks, issued a fleet of a different color after learning that their flagship brown trucks resembled Spanish hearses.

International Marketing is, by definition, the application of marketing principles in more than one country, by companies overseas or across national borders. International marketing is based on an extension of a company's local marekting strategy, with special attention paid to marketing identification, targeting, and decisions internationally" (Marketing Schools, 2015). 

In essence, what international marketing does is expand upon the already existing marketing strategies within any given company and extend them to markets that have otherwise not been exposed to a product/service. A great example of international marketing is what CocaCola does on a daily basis with their products. What they offer in the United States is different from what they offer to countries in the Middle East or what they provide to the United Kingdom. At the same time, however, they offer up some of the same promotional items globally to ensure that their consumers are happy with the brand, the product, and the overall experience. When CocaCola produces their "Share a Coke" campaign (where they placed names on the cans/bottles), they released that campaign globally and it was a huge hit! When it went to the MENA region, they made sure to include the languages that were spoken. So not only did they target their English-speaking market, they got to the Arabic, French, Urdu, Hindi, and Farsi speakers as well. 

How a company campaigns to their international market can make or break the company, and sometimes they cannot come back from that. What companies need to do - regardless of size - is do the right market research and take the time to get the proper and accurate data. What this does is secures the accuracy of the campaign strategy. I tend to use CocaCola as an example for many case studies because if there is any one company out there that has their marketing perfected, it is CocaCola. Every company should look into just how they do it, because whether you're a small startup or an established enterprise, they are the epitome of excellent international marketing.

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