Marketing Abroad – Meaning Of International Marketing
The global economy, spaceship earth and world currency are some of the terms which have arisen to describe the interdependence of the nations and people of the world. This interdependence of the human race used to be recognized only by poets, preachers and philosophers. Today it is brought home to all of us by modern technology and communication, and problems in ecology and international economic development. People all over the world watch the Olympic Games and suffer from high oil princes, Ozone layer depletion, nuclear bomb scare and more. This post deals with the significance of this international dependence for businesses.
Meaning Of International Marketing Abroad
The collection of activities just described as marketing abroad (market intelligence, product development, pricing, distribution and promotion) constitutes the meaning of marketing for this chapter. What then is international marketing of marketing abroad? For the simplicity sake, it is the performance of one or more of these activities across national boundaries. Terpstra defined international marketing or marketing abroad as simply marketing across national boundaries. In its most complex state, it involves the performance of all these functions in many countries.
A small firm that engages in minor exporting is an international marketer to a limited extent merely by distributing its products in foreign markets. This firm becomes a sophisticated international marketer to the degree that it participates in the pricing, promotion distribution after sale services for its products in foreign markets. Although the basic functions of product development promotions, and other activities are the same in both domestic and foreign markets, implementation of the crime marketing programs can be differences. The management of both are not the same.
Domestic marketing management is often portrayed as the task of respond to the uncontrollable factors in the firm’s environment while manipulating the controllable. Marketing abroad or international marketing management has the task, but with the critical distinction that the controllable as uncontrollable are different internationally. The nature of demand, competition and the distribution structure will have characterised peculiar to each national market. The firm marketing program must be adaptable to these market characteristics.
The other obvious distinction is that even the controllable factors may vary from market to market internationally. These controllable factors are price, products, channel of distribution and promotion. Differences are bound to exist in the cost and price structure, products and product line and promotional capacities of a firm individual foreign market.
It will not be an overstatement for one to say that virtually all the determinations of the marketing programs can vary giving rise to complexities international marketing or marketing abroad management that are not known in the domestic market. A renowned author known as Cain, had in a bid to buttress the point that international marketing activities are different from marketing products and services in a domestic market did tabulate some of these differences.
Characteristics Of Domestic And International Operations
- Domestic operation requires one primary language and nationality while international operation requires multilingual, multinational and multicultural.
- Domestic operations are relatively homogenous markets, data available usually accurate and easy to collect, while in the international operation hosts markets fragmental and diverse markets, here data collection requires a formidable task, requiring, significant higher budgets and personnel allocation.
- Domestic operation battles with factors such as political factors which are relatively unimportant, relative freedom from government interference while international operation contends with the political factors frequently as it is vital, national economic plans, government influences and has the business decision in common ground, there is also gravitation distortion.
- In domestic operations, individual cooperation has little effect on environment, relatively stable business environment, while in international operation involves large companies within multiple environments many highly unstable (potentially very profitable).
- Domestic system operates with a uniformed financial climate while the international system operates with a variety of financial accounts and their climates, ranging from new conservative to widely inflationary.
- While domestic operation allows for only one currency which is likely the local currency, the case with the international operation is that currencies differing in stability and real value (it is relative).
- In the domestic operations the business rules mature into what it is meant to be and it is often understood, while in the international operations the business rules are diverse, they are also changeable as well as unclear on a wider scale.
- Domestic operation involves or takes on the management outlook, with a generally accustomed portfolio used to sharing responsibilities and also using financial controls, while in the international operation, this involves a management were a frequently autonomous system is employed and an unfamiliar methods that requires a budget and absolute controls.
These assumptions were made and adopted by Cain, in an authored publication titled the international planning Mission impossible, on the Columbia Journal of world business, this is an exclusive outliner on the workings of the domestic operation and the international operation as well as the characteristics of marketing abroad.