Question - Define International Marketing. Also, explain why international marketing is important?
Today, the world is shrinking through technology and making it easier for marketers to reach the global market. Marketing organizations now have to target not just domestic, but international markets.
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 within the constraints of the global environment.”
Importance of International Marketing
Important to expand target market – The target market of a marketing organization will be limited if it just concentrates on the domestic market. When an organization thinks globally, it looks for overseas opportunities to increase its market share and customer base.
Important to boost brand reputation – International marketing may give a boost to a brand’s reputation. The brand that sold internationally is perceived to be better than the brand that sold locally. People like to purchase products that are widely available. Hence, international marketing is important to boost brand reputation.
Important to connect business with the world – Expanding business into an international market gives a business an advantage to connect with new customers and new business partners. Apple - the tech giant designs its iPhone in California; outsources its manufacturing jobs to different countries like - Mongolia, China, Korea, and Taiwan; and markets them across the world. Apple has not restricted its business to a nation, rather expanded it to throughout the world. The opportunities for networking internationally are limitless. The more "places" a business is, the more connections it can make with the world.
Important to open doors for future opportunities – International marketing can also open doors for future business opportunities. International marketing not only increases market share and customer base, but also helps the business to connect to new vendors, a larger workforce, and new technologies and ways of doing business. For example – American organizations investing in Japan have found programs like – Six Sigma and Theory Z which are helpful in shaping their business strategies.