But going global has many drawbacks. First of all it is very risky venture. A full-scale research has to be done in a new market. Companies may face trade obstacles (such as embargo or taxes). It would be very difficult for a company to deal with political or economical instability. Organizations that market internationally have to bear in mind that there are cultural and law differences in other countries therefore some changes to strategy or product have to be done, which increases the cost.
Importance
International marketing is important because the world has become globalized. International Marketing is necessary because it is becoming increasingly impossible for any country to practice economic isolation. Failure to participate in the global marketplace will cause a nation to experience declining economic capability and result in its citizens experiencing a decrease in their standard of living.
Trade is increasingly global in scope today. Consumers and businesses now have access to the very best products from many different countries. Increasingly rapid technology lifecycles also increases the competition among countries as to who can produce the newest in technology.
In part to accommodate these realities, countries in the last several decades have taken increasing steps to promote global trade through agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU).
Key differences
The key difference between foreign and domestic markets lay in the context in which marketing takes place. Differences in culture, laws, communication, and economies all make for a dizzying venue for formulating marketing strategy.
CULTURE
Domestic marketing often takes culture for granted. We know how our fellow citizens think because we are one of them. But in foreign markets, culture is invariably different than our own. It is the marketer's job to be explicitly aware of these differences and how they impact consumer behavior.
For instance, in America we often joke about nagging mothers-in-law. It's not uncommon to hear or read such a joke in an advertisement. But in Japan, the mother-in-law is revered. That culture has a deep respect for the elderly, and would most likely resent a promotion that mocked that family member.
REGULATIONS
It's important to pay close attention to regulatory differences among countries. Some countries, for instance, regulate the number of ads a company can run per hour. This can hamper your strategy to build awareness for your product, for instance. Still more foreign countries forbid competitive advertisements.
When considering marketing abroad, it's important to consider how these and other seemingly small regulatory differences can help or hurt your strategy.
ECONOMIES
It's easy to forget that your country's economy may behave far different from foreign economies. A boom in your home country may spell a bust in another. Purchasing attitudes may be bullish in one country and bearish in another. In one country your product may be No. 1, and in another it could be hugging the bottom.
In short, countries and cultures are bleeding together. As a result, marketers are finding that customer needs are converging all over the world, and that customers increasingly react to products in a similar way. To send different messages across borders could lead to customer confusion. For this reason, marketers are developing a unified message to market their products.
Entry Strategies
Methods of entry. With rare exceptions, products just don’t emerge in foreign markets overnight—a firm has to build up a market over time. Several strategies, which differ in aggressiveness, risk, and the amount of control that the firm is able to maintain, are available:
CASE STUDY
Coca-Cola is certainly no stranger to global marketing. In fact, it has become an icon of globalization. Since the company went global in 1919 the company now sells its brands in more than 200 countries. In fact, in recent years, as its domestic markets have lost their fizz, Coca-Cola has revved up every aspect of its global marketing.
As of 1998, North America accounts for only 34% of Coca-Cola's sales — and only 24% of Coke's profits.
Originally designed as a cure for the flu in 1886, Coca-Cola has turned into the world's largest manufacturer, marketer and distributor of non-alcoholic beverages.
Coca-Cola spends $1 billion annually on advertising and marketing worldwide.
Incredibly, a single share of Coca-Cola stock purchased for $40 in 1919 would be worth $4,847,000 today.
