International Marketing - Concept, Features, Benefits, Examples, and Challenges
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International Marketing refers to all the marketing activities that occur across the geographical borders of a country.
International Marketing includes joint venture, licensing, export, direct investment or franchising to satisfy the needs of customers in the global market.
Examples of International Marketing
Coca Cola
Netflix
Airbnb
McDonald's
Walmart
Starbucks
Facebook
Features of International Marketing
Large-scale operations
Supremacy of MNCs and developed countries
International trade restrictions
Trading Blocs
Foreign Exchange Regulations
High Competition
International Marketing Research
Benefits of International Marketing
Production occurs on a large scale that generates employment and leads to a better standard of living
Optimal use of resources as the excess can be exported
Industrial Development is fast
Lower prices because of specialization
Customers cannot be exploited because of a monopoly
Easy availability of Foreign Exchange
Expansion in tertiary sectors like insurance, banking, and shipping
Removal of the deficit in the balance of trade
Challenges in International Marketing
Foreign Indebtedness is high
Value of domestic currency drops and leads to Issues with Foreign Exchange
Government can levy regulations for foreign entry
High Tariffs and trade barriers imposed by the government
Corruption becomes easy
Technological pirating becomes very common
Challenge of transit as it depends on the availability of flights and seaports
Face the various challenges posed by different Target Group
Process of International Marketing
Assess the environment
Deciding to enter
Identify the market you wish to enter
Choose the method of entry
Implementing marketing mix
Agree to the marketing control
Methods of Entering International Markets
Exporting
Apple products in India are exported through contractors like Wistron, Pegatron and Foxconn
Licensing
Coco-cola has 13 licensed bottling partners in India who have approval for assembling, packaging, distribution and marketing beverages under the company brand name
Franchising
93% of McDonald’s restaurants operate under a franchise agreement
Mergers and Acquisition
Pfizer and Allergan merged to become the biggest drug company
Joint Ventures
Sony Mobile communications is a joint venture between Sony and Ericsson
Strategic Alliance
Uber has a strategic alliance with Spotify
Wholly Owned Subsidiaries
HUL is a Wholly Owned Subsidiary
Contract Manufacturing
Wistron, Pegatron and Foxconn are contract manufacturers for Apple
Turnkey Projects
Suzlon is the renewable energy solution provider in India
This video is on International Marketing and it has the following sub-topics.
Time Stamps
0:00 What is International Marketing?
00:34 Examples of International Marketing
01:00 Features of International Marketing
01:19 Benefits of International Marketing
01:21 Better Standard of Living
01:40 Optimum Use of Resources
01:48 Quick Industrial Development
02:01 Lower Prices
02:16 No Monopolistic Exploitation
02:30 Availability of Foreign Exchange
02:48 Expansion of Tertiary Sectors
03:02 Removal of the deficit
03:15 Challenges in International Marketing
03:17 Huge Foreign Indebtedness
03:26 Issues with Foreign Exchange
03:33 Foreign Government Entry Regulations and Bureaucracy:
03:56 Tariffs and Other Trade Barriers
04:14 Corruption
04:24 Technological Pirating
04:37 Challenge of Transit
04:46 Challenge of Target Group
04:56 Process of International Marketing
05:25 Methods of Entering International Markets
05:29 Exporting
05:50 Licensing
06:04 Franchising
06:15 Mergers and Acquisition
06:29 Joint Ventures
06:46 Strategic Alliance
06:57 Wholly Owned Subsidiaries
07:15 Contract Manufacturing
07:22 Turnkey Projects