Question – Define International Marketing. Explain the steps involved in the process of international marketing.
Answer
Definition of International Marketing
According to Cateora and Graham, “international marketing is the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”
According to Terpstra and Sorathy, “international marketing consists of finding and satisfying global customer needs better than the competition, both domestic and international and of coordinating marketing activities with in the constraints of the global environment.”
International Marketing Process comprises of following five steps:-
1. Motivation for International Marketing – For an organisation the motivation for entering international market can be any or all of the following:
- Growth
- Profitability
- Economies of Scale, or
- Risk Spread
2. Research and Analysis – Market research is done to Analyse the organization’s strength and weakness, opportunities available in international markets, and threats in international markets.
3. Decision to Enter International Markets – After identification of potential opportunities in international market decisions are taken to enter international market. Such decisions include – identification of potential buyers in international markets, demand measurement and forecasting, market segmentation, market targeting and market positioning.
4. International Marketing Mix – At this step international marketing mix is developed. Marketing mix identifies four key areas – Product, Price, Place, and Promotion for developing a well coordinated marketing strategy.
5. Consolidate Marketing Efforts - Developing a good marketing program is not enough a marketing organisation need to manage the international marketing effort properly. Marketing organisations also need proper analysis, planning, implementation and control of their marketing efforts.