Question – Define International Marketing. Explain nature and scope of International Marketing.AnswerIntroduction

Today, the marketing organisations are not restricted to their national borders. The entire world is open for them. New markets are springing forth in emerging economies like – China, Indonesia, India, Korea, Mexico, Chile, Brazil, Argentina, and many other economies all over the world. In today’s global market opportunities are on a par with the expansion of economies, with the increasing purchasing power, and with the changing consumer taste and preferences. 

The economic, social, and political changes affect the practice of business worldwide, the business orgaisations have to remain flexible enough to react rapidly to changing global trends to be competitive.

The objective of this post is to make you understand the term ‘International Marketing’ and nature and scope of international marketing.

Definitions of International Marketing

According to Kotler, "Global marketing is concerned with integrating and standardizing marketing actions across a number of geographic markets."

According to Cateora, "International marketing is the performance of business activities that direct the flow of goods and services to consumers and users in more than one nation."

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 is different from domestic marketing not only in scope but also in nature. Following are the nature and scope of international marketing.

Nature of International Marketing

1. Broader market is available – Unlike domestic marketing the market is not restricted to national population. Population of other countries can also be targeted in international marketing.

2. Involves at least two set of uncontrollable variables – In domestic marketing the marketers have to interact with only one set of uncontrollable variables. In international marketing at least two set of uncontrollable variables are involved or more if the marketing organization deals in more countries.

3. Requires broader competence – Special management skills and broader competence is required in international marketing/business.

4. Competition is intense – An international marketing organization has to compete with both the domestic competitors and the international competitors. Hence, the competition is intense in international marketing.

5. Involve high risk and challenges – International marketing is prove to various kinds of risk and challenge like – political risk, cultural differences,

changes in fashion and style of foreign customers, sudden war, changes in government rules and regulations, communication challenges due to language and cultural barriers, etc,.

Scope of International Marketing

1. Export – It is a function of international business whereby goods produced in one country are shipped to another country for further sale or trade.

2. Import – Goods or services brought into one country from another for use or sale.

3. Re-export – Import of semi-finished goods, further processing, and export of finished goods.

4. Management of international operations

Operating marketing and sales facilities abroad, Establishing production or assembly facilities in foreign countries, and Monitoring the operations and practices of other MNCs and agencies.

IntroductionDo you know that 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 have not restricted its business to a nation, rather expanded it to throughout the world. Apple is a multinational organisation dealing in international business / marketing.

Meaning of International MarketingInternational Marketing refers to application of marketing principles in more than a nation. International marketing involves making one or more marketing mix decisions across national borders. International marketing involves establishing production facilities overseas and coordinating marketing strategies across the world.

In simple words, international marketing involves business activities that directs the flow of an organisation's goods or services to consumers or users in more than a nation for a profit.

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.”

Definition of Global Marketing According to Kotler, “Global Marketing is concerned with integrating or standardising marketing actions across a number of geographic markets.”

Global Marketing treats the entire world as a single market and standardises the marketing actions for every geographic location. Mc Donald’s is a well known example of global marketing.

Definition of Foreign MarketingForeign marketing is the domestic operations within a foreign country (i.e., marketing methods used outside the home market)

Definition of Domestic MarketingIt is concerned with the marketing practises within the researchers or Marketers home country (domestic market).