International marketing that is also known as global marketing has earned a great scope today. No business can survive in international market until they don’t have internal marketing plan. Thanks to globalization, the marketing strategies of today are not limited to stay confined within the borders of a country. Instead, the world is like an open market for marketers and they can enter whichever market they want. In other words, the scope of international marketing has grown wildly than it was in the past. Promoting a product internationally is rising up Indonesia, China, India, Mexico, Korea, Chile, Argentina, and Brazil in the form of new and potential markets. Moreover, increased power of purchasing and ever changing customer taste along with the assistance in gaining the knowledge about these taste has changed the shape of the world altogether.
Since the number of potential markets is growing, so it is important for any brand for having complete information about how messy it can get for them out there, if they are not fully aware of how far they can go for promoting their product. That’s why we wrote a full-fledged article for fulfilling the purpose of making you understand the limits and freed of international businesses.
Scope of International Marketing
Importing products for a brand works the same way like as it does for a whole country. Businesses buy up the products so that they can resale it to potential customer base inland that they have gathered with a lot of hard work and passing through tough times. But most of the times, companies take help from imports for their own use – creation and improving their own production line. They do so when they are pretty sure that using the product can let them achieve their objective or can be helpful in putting up a unique solution.
Exporting is similar in terms of concept for a brand as it is for a country. Companies export their finalized products to international markets or on to their other franchises in far off markets where they can sell the products to their localities for generating huge revenues. Not just this, even semi-finalized products are exported for getting an extra boost for the brand’s treasury. This revenue generated through exports is then used for paying up the costs of imports, covering up the costs of development as well as ripening profits. Both the imports and exports help in expanding the reach of the companies.
- Contractual Agreements
Whenever, business moves out to international level, its scope of international marketing exposes it to greater chances of doing a lot more business. In fact, the fun part starts there when you see your company making contractual agreements with many others. Those agreements can either be in terms of licensing or co-production or even of technical assistance.
Licensing then moves further down the road and includes even more agreements in the form of trademarks, patents, secrets of the brand and brand names, too, which those companies are allowed to use only if the fee is paid. Well! The fee part surely scares some of the traders but it’s better to give one-time sacrifice and once your business starts running normally, the fee for such licenses can be automatically covered.
- Joint Venturing
Joint Venture is the name of a collaborative association of two brands for a reasonable period of time. This association then gives birth to an even new firm that works individually and pursues goals other than parent companies. This new firm works under the banner of both the “venturing” brands and the division of profits and losses takes places between both in a certain ratio.
Most of the time, joint venture comes into being when a local company is of great interest for an investor out of the game field or sometimes, the case can go totally opposite. This technique is of extreme value to companies are interested in doing business in the countries where outsiders are not allowed to have their owned businesses and thus, raises the scope of international marketing.
- Contract Manufacturing
Contract manufacturing is one of the most used tactics and is pretty awesome as well since it reduced the costs of productions for the companies or better said the company takes off the responsibility of assembling the products, itself. The other company, with which the contract is made, assembles the product and keeps product marketing. This is what a manufacturing contract is called. This process cuts half the both the price and risk while encouraging easy exit at the same time.
- Fully Owned Manufacturing
This aspect of the scope of international marketing comes into play when it is in the best interests of the company to take full control over both the production and promotion in the target markets. For the purpose, the company sets up its own facilities for the creation and assembling the product (if possible). This lets the brand to work for long term interests instead of pursuing short term goals and keeping the quality and prices under their own consideration without having to rely on others.
Well! There are many other factors also that would force the company to take charge of everything. Such factors include trade barriers (and that, too, at their maximum extent), governmental policies and cost differences.
- Strategic Alliances
Gaining a long term competitive advantage over the competitors is not an easy task. But at that point, it’s important for you to learn that what you can’t achieve alone, you can do so by making some friends. It works just like the concept which says that enemy of your enemy can be your friend. It’s capabilities of increasing the innovative flow while boosting up the flexibility for making the responses back to the market and that’s what makes this thing to be included among the important points of the scope of international marketing.
- Management Contracts
There is yet another point that’s describable among the scope of international marketing and that’s the existence of management contracts. These contracts are helpful in achieving a skilled labor force for the brand from the brand with comparatively experienced workers. In this way, the company can save itself from greater dangers easily with that skill-filled package supplied by the supplier as the par contract.