International Marketing: Strategies, Functions, and Planning
1. Definition of International Marketing
International marketing is a business management technique through which a company aims to profit by leveraging opportunities in foreign markets and navigating international competition.
2. Difference Between Domestic and International Marketing
Key differences between domestic and international marketing include:
- International Environment Complexity: The economic, cultural, legal, and political frameworks vary significantly across countries, creating diverse market conditions. International marketing requires research and analysis of these differences, influencing the international strategy, particularly the marketing mix (4 Ps).
- Market Selection: Domestic marketing focuses on a single market, while international marketing involves selecting target markets from a global pool.
- International Competition: Expanding internationally exposes businesses to a larger number of competitors with varying sizes and strengths.
- Market Entry Strategies: International market entry presents more complex choices, each with varying degrees of commitment, investment, and customer interaction.
3. Functions of the International Marketing Department
The core functions of an international marketing department are:
- Market Research: Understanding the current state and future trends of target markets.
- International Marketing Planning: Formulating, implementing, and evaluating annual and medium-term (typically three-year) international marketing plans.
- Internal and External Organization: Defining roles, responsibilities, and managing the network of external partners based on chosen market entry strategies. This includes overseeing after-sales service in foreign markets.
- Administration: Managing international operations procedures, including contracts, invoices, export licenses, customs, payments, budget control, etc.
- Logistics: Ensuring product delivery to customers in the right quantity, time, and place. This involves order processing, shipping, transport, packaging, delivery timelines, inventory control, and warehousing.
4. Global vs. Multi-Domestic Marketing Strategies
A global or standardized marketing strategy involves marketing the same product with the same brand, packaging, service, and price, and promoting it with the same image internationally. Conversely, a multi-domestic or adaptation strategy tailors the marketing mix to each market’s specific characteristics, customizing the product, distribution channels, and promotional activities.
Standardization offers cost savings and process streamlining, while adaptation allows for product customization and personalized marketing. Factors influencing the choice between these strategies include:
- Homogenization of consumer tastes and needs worldwide.
- Economies of scale.
- Standards and legislation.
- Economic integration.
5. Defining the International Marketing Plan and its Objective
The international marketing plan is a structured written document that outlines the development and implementation of a staged marketing program in foreign markets. Its ultimate goal is to achieve measurable targets based on an analysis of the international environment and the company’s capabilities.
6. Key Questions for Developing an International Marketing Strategy
