International Marketing
This article covers meaning, importance, types & example of International Marketing from marketing perspective.
What is International Marketing?
International marketing is a type of marketing strategy which is used by a company to sell its goods & services across different countries and geographies to expand its reach internationally. In international marketing, a company which manufactures goods, identifies similar customer needs abroad, promotes its goods & sells them across the globe. Companies usually export locally produced goods but can also set up international manufacturing units to decrease costs, increase efficiency & drive revenue.
Importance of International Marketing
Companies which are constantly growing explore new geographies, which can also be international destinations. The strategies used to reach out global customers is international marketing.
What this means is that global MNCs like Toyota, Nike, PepsiCo, McDonalds etc., which now have a universal customer base, tend to exploit the differences between the operational costs, competitive advantages and expertise of the different parts of the world and integrate them together in order to function most optimally.
These companies often also change their offerings based on a local region’s specific interest as a part of international marketing.
4 Types of International Marketing Strategies
There are several ways companies can strategize on expanding their business overseas. International marketing strategies are largely driven by 2 critical factors i.e. local need & global acceptance.
Based on these, the following strategies are taken:
1. Exports
A company produces its goods in its home country, and the same product is simply promoted & sold across different countries.
2. Standardization
A single product is made for all countries. The product is standardized to suit the needs of all countries.
Companies can manufacture goods in large volumes.
3. Localization
This international strategy focuses on making products which are based on the local need of a particular country.
Companies cannot have a large volume strategy as products have to be made for countries.
4. Transnational
This strategy involves companies creating localized products but in a larger volume. This is a complex business strategy as a company needs to mass produce locally viable products.
Examples of International Marketing
1. In India McDonald’s offers vegetarian burgers as a part of its international marketing localization strategy.
2. PepsiCo & Coca Cola changes its form factor (labelling, size, packaging etc.) in each international market.
3. Online media brands like Facebook provide content & options based on localized requirements like language, festivities, beliefs etc.
Hence, this concludes the definition of International Marketing along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
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