Introduction

International marketing refers to marketing carried out by companies overseas or across national borders. This strategy uses an extension of the techniques used in the home country of a firm. International marketing is simply the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which are similar terms.

The intersection is the result of the process of internationalization. Many American and European authors see international marketing as a simple extension of exporting, whereby the marketing mix 4Ps is simply adapted in some way to take into account differences in consumers and segments. It, then, follows that global marketing takes a more standardized approach to world markets and focuses upon sameness, in other words the similarities in consumers and segments.

According to American Marketing Association (AMA), international marketing is the multinational process of planning and executing the conception, pricing, promotion, and distribution of ideal goods and services to create exchanges that satisfy individual and organisational objectives.

You must note that in the definition, the word multinational has been added to the definition of marketing given by other experts. That word implies that marketing activities are undertaken in several countries and such activities should somehow be coordinated across nations. 

Concept of International Marketing

When a business crosses the borders of a nation, it becomes complex. International marketing involves all the activities that form part of domestic marketing. An enterprise engaged in international marketing has to correctly identify, assess and interpret the needs of the overseas customers and carry out integrated marketing operations to satisfy those needs. In other words, the basic functions are the same in international marketing as well as in domestic marketing.

At the same time, there are several characteristics that are unique to international marketing. When the business crosses the national borders of a given country, it becomes enormously more complex. The resulting problems and management situations transcend those of marketing, finance and production. A wide range of legal, political, cultural and sociological dimensions enter the picture, adding a lot of complexity to the task. And, the one factor that contributes maximum to the complexity is the environmental and cultural dynamics of the global markets.

Definition of International Marketing

“Marketing carried on across national boundaries”- Terpstra 

“International marketing is the marketing function on multinational companies”- Francis Cherunilam

“International marketing is the performance of the business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”- Cateora and Ghauri.(1999 

“International marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.” – American Marketing Association 

In simple words, international marketing is the application of marketing principles across national boundaries. An international marketer must consider various diversities and constraints such as language, custom and tradition, perception and standard of living. 

In brief, international marketing consists of the activity, institutions, and processes across national borders that create, communicate, deliver, and exchange offerings that have value for stakeholders and society. International marketing has forms ranging from export-import trade to licensing, joint ventures, wholly owned subsidiaries, turnkey operations, and management contracts. 

As this definition indicates, international marketing very much retains the basic marketing tenets of value and exchange. There is also the focus on stakeholders and society whose present positions are to be improved. The fact that a transaction takes place across national borders highlights the difference between domestic and international marketing. 

The international marketer is subject to a new set of macroenvironmental factors, to different constraints, and to quite frequent conflicts resulting from different laws, cultures, and societies. The basic principles of marketing still apply, but their applications, complexity, and intensity may vary substantially. It is in the international marketing field where one can observe most closely the role of marketing as a key agent of societal change and as a key instrument for the development of socially responsive business strategy. 

When we look, for example, at the emerging market economies of China and Russia, we can see the many new challenges confronting international marketing. 

• How does the marketing concept fit into these societies? 

• How can marketing contribute to economic development and the improvement of society? 

• How should distribution systems be organized? 

• How should the price mechanism work? 

Similarly, in the areas of social responsibility and ethics, the international marketer is faced with a multicultural environment of differing expectations and often inconsistent legal systems when it comes to monitoring environmental pollution, maintaining safe working conditions, copying technology or trademarks, or paying bribes. 

In addition, the long-term repercussions of marketing actions need to be understood and evaluated in terms of their societal impact, using not just today's criteria but considering also the long-term perspective of future affected parties. 

These are just a few of the issues that the international marketer needs to address. The capability to master these challenges successfully affords a company the potential for new opportunities and high rewards. 

The emphasis on stakeholders and society at large indicates the need for the marketer to look beyond narrow self-interest and to understand that there are many parties touched by marketing. Willing or unwilling, they all participate in the outcome of the marketing effort, and their interests must be considered.

International marketing also focuses on the need to create, communicate, and deliver value internationally. These dimensions indicate that marketing internationally is an activity that needs to be pursued, often aggressively. Those who do not participate in the transactions are still exposed to international marketing and subject to its changing influences. The international marketer is part of the exchange and recognizes the constantly changing nature of transactions. This need for adjustment, for comprehending change, and, in spite of it all, for successfully delivering

value highlights the fact that international marketing is as much art as science. To achieve success in the art of international marketing, it is necessary to be firmly grounded in its scientific aspects. Only then will individual consumers, policymakers, and business executives be able to incorporate international marketing considerations into their thinking and planning. Only then will they be able to consider international issues and repercussions and make decisions based on answers to questions such as:

• Where are my current and potential customers?

• Does my need-to-have market have borders?

• Does international activity increase risk?

• What marketing adjustments are or will be necessary? 

• What threats from global competition should I expect? 

• How do innovation and entrepreneurship change the global marketplace? 

• What are my strategic global alternatives?

If all these issues are integrated into each decision made by individuals and by firms, international markets can become a source of growth, profit, needs satisfaction, and quality of life that would not have existed for them had they limited themselves to domestic activities.