International Marketing Management

Broader market is available

A wide platform is available for marketing and advertising products and services. The market is not limited to some precise local market or for people residing in a particular place, region or country but is free for all. People from different nations sharing different cultures and traditions can actively participate in it.

Involves at least two set of uncontrollable variables

By uncontrollable variables, we mean the geographical factors, political factors prevailing indifferent countries. At the global level, all the companies have to face uncontrollable variables from different countries. While establishing business globally, a company has to learn to deal with these variables.

Requires broader competence

International market requires more expertise and special management skills and wider competence to deal with various circumstances and handle different situations like changes in the strategies of the government, the mindset of the people and many other such factors.

Competition is intense

Competition is very tough in international market, as the organizations at the global level have to compete with both competitors in their home countries and also in the foreign lands. Competition is high because the clash is between developed & developing countries and both have different standards and are unequal partners.

Involves high risk and challenges

International marketing with its own advantages is also prone to different and tangible risks and challenges. These challenges come in the form of political factors, regional and cultural differences, changing fashion trends, sudden war situation, revision in government rules and regulations and communication barriers

Large-scale operation

involve relative amount of labor and capital to cater to the needs such as transportation, and warehousing.

Domination of multinationals and developed countries

International marketing is highly dominated by multinational corporations due to their worldwide reach. These organizations apply efficient and effective business practices to all their business operations. They have a stable position and with their global approach find themselves fitting into the arena of international marketing.

International restrictions

The international market needs to abide by different tariff and non-tariff constraints. These constraints are regulated because different countries follow different regulations. All nations tend to rationally abide by tariff barriers. All the imports and exports between the nations participating in international marketing follow some restrictions in foreign exchange.

Sensitive character

International marketing is highly sensitive and flexible. The demand for a product in a market is highly influenced by political and economic factors. These factors can create as well as decrease the demand for a product. In fact, use of advanced technology by a competitor or the launch of a new product by another competitor may affect the sale of a particular firm's product worldwide.

Importance of Advanced Technology

International market is dominated by developed countries like the USA, Japan, and Germany as they use highly advanced technology in production, marketing, advertising and establishing a brand name. They provide admirable quality of products at reasonable prices. Presently, Japanese product shave got substantial existence in markets around the world. The Japanese could achieve this only because of automation and effective use of advanced computer technology.

Need for specialized institutions

Marketing at global level is highly prone to risks & is very complex and knotty. It undergoes lengthy and time taking procedures & formalities. Competent expertise is required for handling various sections of international marketing

Need for long term planning

International marketing calls for long term planning. Marketing practices differ from nation to nation influenced by social, economic & political factors.

Lengthy & Time Consuming

The activities in international marketing are very time-consuming and knotty or complex. The main cause of these difficulties are the local laws and policies enforced on different nations, issues in payment as different countries use different currencies, distance between the participating nations and time taking formalities involved therein.

Export

Trading of goods and services from one country to another by promoting the same on social media, and abiding by the rules and regulation of both the home country and the foreign country with respect to the rules and regulations is known as export. In short, exporting means shipping the products and services from one nation to another.

Import

Buying of products and services from an external source across national borders is known as import.

Re-export

refers to the export of foreign goods in the same state as previously imported, from the free circulation area, premises for inward processing or industrial free zones, directly to the rest of the world and from premises for customs warehousing or commercial free zones, to the rest of the world.

Regulation on marketing activities

Formalities and procedures of marketing

There are a number of laws and policies framed by different countries and these make international marketing more complex, and a time consuming process. The exporters & importers are compelled to abide by all the formalities & procedure related to licensing, foreign exchange, customs duties & goods clearance. These policies, rules and regulations are not static for all participating countries. So, it is important to be well aware of the procedure and formalities and plunge into the vast expanse of international marketing.

Trade block and their impact -

Active participation of several nations in marketing activities builds trade block. These blocks involve EU, LAFTA, ASEAN, EFTA & CACM. Measures should be taken to reduce trade blocks as they are harmful to the growth of free world trade.

Commercial policies and their impact

The countries participating in the international marketing design their own commercial policies that suit their requirements. Different policies of different nations invoke the commercial environment of international market.

International marketing research

International market is important, as it deals with marketing on a larger scale and also paves way for productive research. Research requires complete knowledge of the in and out of target market, customers' needs and requirement, buying behavior, prevailing market competition and many more. Market research at international level provides base for product planning& development, introduction of sales promotion techniques

1. No regular export activities,

2. Export via independent representatives (agent),

3. Establishment of an overseas sales subsidiary,

4. Overseas production/manufacturing

What are the stages of internationalization: Andersen has proposed a U-model, there are four stages:

No regular export activities

Stage 1 of internationalization

Export via independent representatives (agent)

Stage 2 of internationalization

Establishment of an overseas sales subsidiary

Stage 3 of internationalization

Overseas production/manufacturing

Stage 4 of internationalization