An understanding of international marketing principles is essential for a successful career as a global business leader. Betty Berg, a subject matter expert and faculty member in Avila University’s online MBA in International Business program, offers valuable insights into the dynamic world of international marketing.
Betty’s background in manufacturing, customer service, project management, and business ownership enable her to bring real-world knowledge to the classroom that students can directly apply on the job. Read on as she shares how international marketing is different from its domestic counterpart.
Key Differences Between International Marketing and Domestic Marketing
Marketing on the international level can create a number of challenges not found with domestic marketing. Marketing across borders brings additional complexities such as cultural, economic, political, legal, and technological challenges.
Language Barriers in International Marketing
With culture, we encounter language barriers, customs, traditions, and even colors that can pose challenges. Translations may be misinterpreted. While gift-giving may resemble a bribe in the US, it is a customary practice in many countries as a means of doing business. Using a ‘cultural consultant’ may be the best way to avoid any blunders and insults.
Economic Differences in International Markets
Economic factors include income levels, which ultimately impact purchasing power for products. Strategies may also have to be adjusted based on whether a market is developed, in the process of developing or emerging, which will affect pricing. Developed markets prioritize quality and service over price, while affordability and how practical the product is are important in developing markets. Research must include unemployment, income distribution, and inflation before determining the right segments.
Regulatory and Legal Challenges
Countries have different laws regarding advertising, product labeling, and pricing, and marketers must comply with these regulations to conduct business. Some countries ban competitive advertising, making promotions challenging. If the product is food-related, there are formats for labels including ingredients and languages, and many countries have strict rules on collecting personal data and usage. Consulting legal teams or having local partners can be a great benefit.
Political Impact on International Marketing Strategy
Political influences can be particularly challenging, as we have seen recently in the US. Trade policies, restrictions, and tariffs will have a great impact on whether a company will want to market. Some countries restrict foreign ownership, or they may require a joint venture with a local firm to be able to do business. Doing a political risk assessment before entering new markets is essential.
Unique Communication Systems
Communication systems, internet connectivity, distribution channels, and logistics vary greatly between and within countries, with some having traditional retail and others moving to e-commerce. Companies will have to tailor their strategies to the available technology and infrastructure when determining how their products are distributed and marketed.
Understanding Competition in the Domestic and International Market
With any marketing, it is the consumer that drives the strategies and marketers on the international level must have a good understanding of the decision-making process and buying motives. Local market research must be conducted to have an understanding of what drives consumer behavior in all the different markets.
Global competition can be challenging, with the biggest coming from within the country. Consumers may be reluctant to go with an unknown company versus one that has been familiar and trustworthy. Local competitors may have a better cultural understanding, creating better customer loyalty and more established distribution. Companies wanting to market may need to adjust their pricing or promotions and even product features to stand out in a competitive environment.
Standardizing or adapting the marketing mix (product, price, place, promotion) can prove to be a costly and relative decision, depending on each market condition and particular target audience. Standardization saves money while adaptation increases the appeal but adds cost, so a ‘global’ strategy, or mix of both, is needed for success.
Global Team Management
Working with teams in different time zones, language barriers, and overall work cultures requires flexibility, sensitivity, and strong communication tools. Often, without an expatriate on the ground, the risk of meeting timelines and goals can be overwhelming. Here, respectful collaboration can be the key.
So, there is no simple answer to the question, but the best answer is what makes international marketing different? Everything!
Explore an International Marketing Career
Prepare for leadership roles in multinational corporations with the online MBA in International Business from Avila. This flexible program delivers advanced knowledge and practical experience for careers like business development manager and international sales manager.
Study economic theory, diversification strategies, international marketing, and more to prepare for success. Avila’s 100% online program is accredited by the International Accreditation Council for Business Education (IACBE) and offers the personalized support you need to achieve your goals.
Learn more about the online MBA from Avila today.
