Question

Define International Marketing. Explain nature and

scope of International Marketing.

Answer
Introduction

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 todays 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 companys 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.

Introduction
Do 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 Marketing

International 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 companys 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 Donalds is a well known
example of global marketing.

Definition of Foreign Marketing

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

Definition of Domestic Marketing

It is concerned with the marketing practises within the researchers or Marketers
home country (domestic market).