Marketing products to people all over the globe is known as international marketing or global marketing. To put it another way, it's any marketing effort that takes place beyond national borders. Thus, international marketing is a process of planning and executing the development, pricing, advertising, and distribution of ideas, commodities, and services to produce an exchange that fulfills individual and corporate objectives.
In some aspects, it's similar to export management. But, on the other hand, export management is limited to overseeing the movement of products and services from the host nation to the guest country. On the other side, international marketing involves all areas of production, finance, and staff. It also has a variety of post-sale activities.
International Marketing Characteristics
International marketing incorporates all of the characteristics of modern marketing. On the other hand, it tries to cater to the demands of international clients. As a result, it occurs across national boundaries. As a result, global marketing has its own set of traits, including:
- Marketing methods that are particular to each country
- It facilitates communication between a corporation and its international clientele.
- Decisions are made with the global business environment in mind.
As you may expect, organizations that are effective at worldwide marketing have a lot of options. It does, however, come with several hazards and obstacles. Let's start with a question that's equally relevant before we look at the advantages and problems of worldwide marketing.
Types of International Marketing
Export or licensing are generally the first steps for international enterprises wishing to offer their products or services in a new country. Contract manufacturing, joint ventures, and foreign direct investment are some more sorts of international marketing.
The process of transporting products directly to a foreign country is known as exporting. It is not surprising that the manufacturers that want to extend their firm into new markets generally begin by exporting. Exporting has the lowest risk of any of the foreign marketing types on our list. It also has the most negligible influence on the human resource management of the organization.
Licensing is an agreement in which a licensor grants permission to a foreign entity to use its intellectual property. It is generally for a set amount of time, and the licensor is compensated with royalties.
Throughout the United States, there are various examples of intellectual property licensing. Patents, copyrights, industrial methods, and trade names are examples of these. Disney, Iconic Brand Group, and Warner Bros. are just a handful of the largest worldwide licensors.
Like licensing, franchising includes a parent company granting authority to a foreign corporation to conduct business in its name. Franchises, on the other hand, are typically required to follow more burdensome operating requirements than licensed businesses.
Service businesses, such as hotels, rental services, and restaurants use this form of foreign marketing more frequently. Licensing, on the other hand, is usually restricted to the production of goods.
A joint project is an agreement between two firms from separate countries to benefit each other. It is the involvement of two or more firms in a business venture in which each company:
- Contributes assets
- Partially owns the company
- Shares risk
Sony-Ericsson is perhaps the most well-known worldwide joint venture to date. It's a joint venture between Sega, a German electronics company, and Ericsson, a Swedish telecommunications company.
Foreign Direct Investment
A company uses foreign Direct Investment FDI to deploy a fixed asset in another country in order to generate a product there. Unlike joint ventures, the foreign company owns the subsidiary outright. It acquires effective control or considerable influence over the decision-making process as part. Mergers and purchases, retail, services, and logistics are all examples of foreign participation. Several American businesses employ these worldwide marketing techniques to offer their goods and services throughout the world.
International Marketing examples
There can be no such thing as a one-size-fits-all answer when it comes to worldwide marketing. Consequently, in designed to cater to a broad audience, businesses must frequently use a range of global marketing techniques. It requires changing menus, translating into other languages, and adjusting to the social structure to avoid mistakes. Pepsi, for example, used the phrase "Come Alive with Pepsi" in Taiwan, or so they thought. On the other hand, Pepsi directly translates to "Pepsi brings your predecessors back to life."
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