What Is The Scope Of International Marketing?

Scope of International Marketing: According to the academic definition, marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.

Another definition of marketing narrates: Marketing is the action or business of promoting and selling products or services, including market research and advertising.

Accordingly, International Marketing is defined as “Global marketing is concerned with integrating and standardizing marketing actions across a number of geographic markets.” Another expert defines International Marketing as “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.”

A more elaborate definition of International Marketing is: “International marketing is the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”

There may be so many other definitions of International Marketing but in simple words, we can say that anything that falls under the ambit of Marketing and deals with more than one Country or Nation will be referred to as “International Marketing”.

While marketing itself is quite a broad-based terminology and may cover a variety of actions and processes, International Marketing is even more diverse in nature. Major components of International Marketing are Licensing, Franchising, Export, Joint Ventures and Direct Investment, integrated through a massive global web.

Scope of International Marketing

• International marketing provides an opportunity for different nations to get closer to each other. When you have common interests amongst the nations, it promotes a sense and desire for a peaceful environment; hence a global peace may be achieved.
• It can reduce the cost of production. When you explore the international markets, you may come across certain parts of the world where you can produce the same product at low cost, especially low-cost labor.

Nature of International Marketing

• In International Marketing, you get a wide range of opportunities owing to the diversified populations in different parts of the world, in contrast with local or domestic marketing.
• While you have to cater only with one type of variable in domestic marketing, you will face two or more sets of variables, while dealing internationally. Mostly these variables are beyond your control. So, this may be a drawback for you.
• When you have to deal with other Countries in International Marketing, you will definitely require a high level of skills and competence.
• You will have to face tremendous competition when you approach the global market. That compels you to bring the standard of your products at an extraordinary higher level. Similarly, you have to compromise on pricing in certain cases.
• The risk factor is quite high in international markets. This may be due to political differences, cultural variations and above all local regulations of that particular Country. Moreover, international circumstances are vulnerable and may change suddenly without any prior notice, as we have recently experienced with COVID-19

Why it’s important for you to explore International Markets

• Opportunities are limited/restricted at the local/domestic level. When you venture International Market you have great chances of success due to broadened customer base.
• Your brand may get greater acceptance if it is available globally, as compared to the one that is just a local brand
• It gives you an opportunity to get connected with other businesses in the world. This ultimately transforms into a higher market share.
• It carries future prospects. By way of learning from the experience of international markets, you get ample space to expand and diversify your line of business, in accordance with the international demands.

Factors that may have an impact on the Scope of International Marketing

• Emergence and influence of global trade/business organizations such as WTO and EU
• Global acceptance to free-market economies, especially in some underdeveloped countries of Asia and the Eastern part of Europe
• Increasing trend and usage of the Internet and other such facilities to reach out to the world market that has practically abolished the International Boundaries

When you enter into International Marketing, you get a wide range of business opportunities such as Imports, Exports, and Joint Ventures, Fully owned manufacturing, different contractual agreements and opting to go for franchises.