Today, no country lives in complete separation from other countries. The economic resources, technology, and standard of living of one country depend on the economies of other countries, which are interconnected by a complex flow of goods, services, capital, and technology. Countries increase their production levels and make more profit through international exchanges.
Through imports, they obtain goods that they are unable to produce, and through exports, they send surplus manufactured goods to other countries. Although a country may have different factors of production and be able to produce a variety of goods, it will not be able to produce them at the same price. The primary cause of international trade is apparently the difference in prices of goods and services between countries.
The main goals of international marketing
- To strengthen free trade globally and try to bring all countries together for trade
- To increase globalization by integrating the economies of different countries Achieving world peace by establishing trade relations between different nations
- To promote social and cultural exchange between nations
- To help developing countries in their economic and industrial growth by inviting them to the international market and thus closing the gap between developed and developing countries
- To ensure sustainable resource management worldwide
- To export and import goods worldwide and distribute profits among all participating countries
- To maintain free and fair trade
International marketing participates in global trade with the aim of achieving all goals and establishing connections between countries. It should be noted that creating jobs in countries has limitations and demands, but when marketing is done internationally, you have to consider the details and complexities of it every minute. In such cases, as the market expands, demand increases, preferences change, and the company is forced to follow the laws and regulations of two or more countries.
Different levels of international marketing
It includes all the activities that a company is involved in when exporting its products to a foreign country. These activities also include the physical shipment of products from one country to another.
The main challenges of export marketing include selecting the right markets or countries through marketing research, deciding on necessary changes in goods so that they are suitable for foreign markets, and selecting the right export channels.
As multinational corporations evolved, multinational markets were formed. One of the characteristics of multinational companies is that they have a lot of assets in foreign countries and act in such countries or markets as if it is a domestic and domestic market. A multinational company has several marketing strategies, each designed specifically for a specific market. The main challenge for these companies is to design and implement a specific marketing strategy for a specific country, which leads to the localization of multinational companies and having a different marketing program.
In order to avoid the costs of designing a specific marketing plan for a particular country, companies began to evolve and develop strategies that spanned larger areas. This thinking arose from the formation of various economic alliances. Like the European Union
Global marketing is the ultimate evolution of international marketing. In this type of marketing, a coordinated company integrates and controls a set of marketing activities as a global effort. The main goal of a large international marketing company is to achieve synergy in its extensive marketing activities. The challenge for management in this regard is to be able to design marketing strategies to work well in different markets. Global marketing philosophy comes from two factors. The first factor is that the environment, markets and customer demands are increasingly similar. The more important factor is that with the huge investments that large international companies make in the field of technology, distribution and so on. They have to expand their market coverage, so that the profits are worth the investment.
- Intense competition
Competing in the international market is very difficult, because organizations have to compete both globally and domestically with domestic competitors; Competition is between developed and developing countries that have different standards and are partners of inequality for each other.
- Risk and challenge
International marketing, in addition to having its own advantages, is prone to various risks and challenges. These challenges come in the form of political factors, regional and cultural differences, changing trends, the sudden state of war, revisions of government laws and regulations, and communication barriers.
The nature of international marketing depends on various factors and conditions, the most important of which depends on the policies set by different countries that are active in international marketing. The goal of international marketing is to ensure balanced imports and exports to all countries, large or small, rich or poor, developed or developing.
International market management is difficult and requires careful market research. This is a predefined process that leads to the design and presentation of products based on the demands of overseas customers. Proper management helps the company achieve its goals.
- Extensive activity
International marketing requires extensive activity in all areas such as transportation, warehousing and so on. Companies that take steps in this field must have the ability and power to control their conditions and activities.
- The superiority of multinational corporations in developed countries
International marketing is heavily dominated by multinational corporations. These organizations apply all the necessary activities in the field of efficient business in all their business activities. These companies have a stable position and with their global approach, they promote themselves in the field of international marketing.
- International restrictions
The international market has various tariff and non-tariff restrictions. These restrictions vary from country to country. Because different countries follow different regulations. All countries tend to follow the rules. There are also restrictions on foreign exchange for imports and exports for all countries participating in international marketing.
International marketing is very sensitive and flexible. Demand for the product in the market is strongly influenced by political and economic factors. These factors can increase or decrease the demand for a product. In fact, the use of advanced technology by one competitor or the launch of a new product by another competitor may affect the sales of a particular company’s product worldwide.
- The importance of advanced technology
International markets are dominated by developed countries such as the United States, Japan and Germany because they use highly advanced technology in production, marketing, advertising and branding. They provide admirable quality products at a reasonable price.
At present, Japanese products are available in markets all over the world. The Japanese have easily been able to easily establish a special place in international marketing due to the effective use of advanced computer technology.
- Need specialized institutions
Global marketing is very prone to risks and dangers that are very complex and insignificant. Expertise and competency are required to achieve different parts of international marketing.
- Requires long-term planning
International marketing requires long-term planning. Marketing methods vary from country to country and are influenced by political, economic and social factors.
- Long consumption and time
Activities in international marketing are very time consuming and complex. The main cause of these problems is local laws and policies governing different countries, and also due to the use of different currencies that are used in different countries, it takes a period of time for one country’s products to find a place in another country’s market. All of these factors contribute to the success of a business in international marketing.
The current trend of globalization does not limit companies to their national borders and invites them to market on a higher platform, the international market. Every nation is free to trade with other nations.
New markets are showing signs of growth, and there are signs of progress in economies such as China, Indonesia, India, Korea, Mexico, Chile, Brazil, Argentina, which distinguish these countries from other countries in terms of international trade. .
Benefits of International Marketing
- Provides higher standards of living
International marketing ensures a high standard of living for the citizens of the countries participating in this market. Goods that can not be produced in the country due to specific geographical restrictions are produced by other countries that have the raw materials needed to produce, and there are no restrictions on production.
- Ensures rational and efficient use of resources
The rational allocation of resources and ensuring their best use internationally is one of the most important benefits of international marketing. All nations are encouraged and invited to export what is left over from their own country.
- Rapid industrial growth
Demand for new goods is generated through the international market. This leads to growth in the industrial economy. A country’s industrial development is driven by international marketing. For example, new job opportunities, full use of natural resources and so on.
- Adaptive cost benefits
International marketing guarantees adaptive cost benefits for all participating countries. These countries benefit from the division of labor and expertise at the international level through international marketing.
- International cooperation and world peace
Trade relations established through international marketing bring all nations closer together and give them the opportunity to resolve their differences through mutual understanding. It also encourages countries to work together. Thus, a cycle is designed in which developed countries assist developing countries in their development activities, and this eliminates economic disparities and technological gaps between countries.
Facilitates cultural exchange
International marketing creates social and cultural exchanges between different countries in the world. Along with goods, trends and fashion are transferred from one country to another, and thus the cultural relationship between nations is developed. Thus, cultural integration is achieved globally.
- Better use of surplus production
Surplus goods produced in one country are shipped to other countries that need the goods in international marketing. Therefore, the foreign exchange of products between the exporting country and the importing countries meets each other’s needs.
This is only possible if all participating countries effectively use surplus goods, services, raw materials and so on. In summary, the most important advantages of international marketing include the effective use of surplus domestic production, the introduction of new types of goods, the improvement of production quality and the promotion of mutual cooperation between countries.
- Availability of foreign currency
International marketing facilitates the availability of foreign currencies needed to import capital goods, modern technology and much more. Basic imports of items can be financed with foreign currency from exports.
- Expand the third section
International marketing increases the export of goods from one country to another and contributes to industrial development. Infrastructure is expanding through international marketing. This indirectly guarantees the use of transportation, banking and insurance in a country and guarantees additional benefits for the national economy.
- Special benefits in case of emergency
Whenever a country faces a natural disaster such as floods and famines, it is supported by other countries in the international market. The international market provides emergency supplies of goods and services to meet the immediate needs of the country facing disaster. This distribution can only be facilitated by a country with surplus imports.
A company exporting goods to foreign countries makes significant profits through export operations. Because domestic marketing is less profitable than international marketing. The loss of a company in domestic marketing can be offset by the profits from exports in international marketing.
By exporting goods to foreign countries, foreign currency can be obtained. Therefore, the profits can be used to import basic goods, new machinery, technology and so on. This will facilitate large exports in the future.
International marketing tasks
Activities that take place in a marketing context and have recently been established abroad or in the home country are known as international marketing tasks. These tasks include the following:
- Observe and acknowledge customer behavior
- Adapt to changes in market trends
- Identify competitors and obtain the necessary information about them
- Gain knowledge about products
- Perform a political, economic, social and technological analysis, ie PEST analysis
- SWOT analysis
- Choosing the right advertising combinations: pricing, promotion, advertising and…
International marketing management
Since it is not possible for an enterprise to meet all the needs of consumers, marketing management must analyze the existing opportunities through market segmentation, in order to provide the goods and services needed by consumers according to their resources. .
Market segmentation means dividing a large market into smaller segments in such a way that there is more uniformity of supply and demand in each segment.
Consumers have similar and similar characteristics. The criteria by which market segmentation is based include geographical, demographic, psychological, behavioral, marketing, and economic factors.
After examining the market and dividing it into similar segments, the marketing management must decide which of these segments to choose as the target market. Of course, he can choose more than one department based on the composition and ability of the marketing staff, competitiveness and business policy of his organization.
Companies can be globalized through the following methods.
The easiest way to enter the global market is to export (export process) directly or indirectly. In indirect exports, there are trading companies that facilitate the purchase and sale of goods and services abroad by the manufacturer. While in direct export, the company alone sells its products and services in one of the following ways:
- By setting up an in-house export department as an independent department
- Through overseas branches that carry out promotional activities and facilitate sales and distribution
- Through sales agents traveling abroad
- By distributors or agents operating exclusively on behalf of the company abroad
- Internet strategies:
Today, companies no longer need to attend international exhibitions to display their products; They can easily create the desired awareness of their products through electronic media, ie the Internet, to their international target audience. The customer can get complete information about the desired product through the company’s website and order the product in the same way.
- Licensing and franchising:
One way to globalize is through licensing. In this case, the parent company issues a license to the foreign company that allows it to use the production process, trademark, patent and name of the parent company while facilitating the sale. In this model, the parent company has less control over the secondary company.
But in the case of a franchise, the parent company has more control because it allows the franchisee to operate on behalf of the parent company in accordance with its terms and conditions.
- participation :
Companies can enter the international arena by cooperating with other companies.
- Direct investment:
Companies can invest directly in foreign countries to produce or provide their services.
Companies enter the international market with the aim of gaining a large and valuable market share in addition to increasing sales. But in the process of designing marketing principles, some specific issues, such as the political, social, economic, cultural and technological capabilities of the target countries, must also be considered, as these are different for each country and their impact on business is irreversible. It is a denial.
Conventional methods of international trade in the world
- Barter transactions
Pure trading, in its narrowest sense, is the simple exchange of goods without the exchange of related funds. In pure transactions, great care is taken to value the type of goods and services to the values of the same country or the other party.
- Compensation transactions
This type of transaction takes place when the value of imports from a foreign country is exchanged in a pure account against exports to the same country or vice versa. The purpose of such a settlement is to prevent one country from becoming indebted to another.
- Compensation Full
In this type of transaction, like pure transactions, all settlement is done sexually (exchange of goods). In both transactions, the goods are delivered without transfer of money.
- Compensation Partial
The method of doing this type of transaction is practically similar to full compensation transactions. The exporter receives part of the money in cash and the rest in the form of goods (for which the customer must find).
- Purchase Counter
In reciprocal purchases, the import of one type of goods is done simultaneously with the export of another type. Unlike compensatory transactions, the issuer receives its money by remittance from the buyer. This gives him the opportunity to meet his mutual obligations, which must be settled in cash, and if he fails to do so, he will be fined.
- Transactions Switch
Such transactions are not similar in nature to commercial goods, but are foreign exchange transactions that provide financial facilities for the international exchange of commercial goods. Therefore, the term SWITCH refers to the conversion of currency from hedging transactions (bilateral payment agreements or clearing accounts) into a convertible free currency – such as the US dollar.
An important challenge in international marketing
It is necessary to understand the different environments in which a company intends to operate. Understanding cultural, economic, political, and legal differences is essential to a company’s success.
Distribution channels in marketing include domestic distribution channels and international distribution channels that are responsible for distributing products and services to the customer. Distribution channels are very important for organizations and companies. One of the main concerns of manufacturing companies is the distribution of their products to the customer.