Steve Carter defines marketing as the act of establishing enduring relationships by executing, controlling, and planning the creation, pricing, promotion, and distribution of ideas, products, and services to generate reciprocated exchanges that fulfill individual and organizational necessities and goals. It is widely acknowledged that each company adopts its unique marketing approach. Consequently, businesses in diverse nations must consider cultural values when formulating their marketing strategies. This includes understanding the mindset, demands, and needs of the foreign population.
Marketing can be divided into three dimensions: domestic, international, and global. Domestic marketing focuses on the local market within a specific country, while international and global marketing are considered foreign marketing. While some authors view international and global marketing as synonymous, others distinguish between them based on the literal definition of international marketing as marketing between nations. However, some authors argue that there are differences between the two when examining the theory of marketing more closely.
In the following paragraphs, we will discuss international and global marketing. Although both dimensions share similar things in common, such as marketing research, there are notable differences. For instance, international marketing faces more risk variables such as exchange rates, different incomes of consumers or legislations.
What is meant by International Marketing? International marketing is simply the application of marketing principles to more than one country by focusing on markets outside of a country’s local market. Of course, there are some similarities between nations including traditions, religion or behaviour.
However, there are variations among countries, and foreign companies need to consider these differences when introducing their products overseas. An instance of this is the controversial campaign by Oliviero Toscani for United Colors of Benetton, which featured an image of a newborn baby in their advertising. Upon the initial release of this campaign, protests arose in Italy, leading to the subsequent censorship of the campaign. This was primarily due to cultural disparities in Italy, including religious and ethical beliefs. As a result, companies often tailor their strategies or products based on specific regions.
International marketing is vital for businesses as it involves creating effective campaigns and promotions that are tailored to different country environments. This entails making decisions about the countries to enter and the products to offer. To succeed, companies must customize their marketing strategies and adapt their products to the unique needs and regulations of each country. By understanding and respecting diverse cultural values, businesses can gain a competitive edge over both domestic and foreign rivals. The significance of international marketing lies in its ability to ensure success in the global marketplace.
The motivation behind this is straightforward – companies diversify their business and prevent potential issues in various countries. Additionally, there are different approaches to international marketing depending on managers or companies’ attitude towards the global market. Firstly, an ethnocentric approach focuses on domestic marketing. Secondly, a polycentric-oriented manager differentiates between domestic and foreign markets, adapting their approach for foreign countries. Lastly, a regiocentric approach considers countries that are part of a group.
All over the world, countries with similarities can be grouped together to form regions (e.g., Sweden, Norway, Finland, and Iceland can be grouped as NORDIC). These groups of countries can then have a shared policy. Additionally, the geocentric orientation believes that there is a single global market. This means that marketing policies are applied worldwide. While companies may make some exceptions in their policies, the changes are not significant.
3. The concept of Global Marketing is often confused with international marketing, but there are significant differences between the two. According to marketing theories, international marketing is a precursor to global marketing. The Oxford University Press defines global marketing as the practice of marketing on a global scale, leveraging global operational differences, similarities, and opportunities to achieve global objectives. While international marketing primarily focuses on selling products worldwide, global marketing considers other important factors such as marketing strategy and production. Unlike international marketing, which treats different countries as separate markets, global marketing views the entire world as a single market and does not differentiate between local and foreign markets.
Global marketing aims to launch one product that meets the needs of all consumers in every country, disregarding their diverse requirements. It centralizes production and specialization to establish a cohesive system that leverages cost reduction. Unlike international marketing, global marketing also strives to implement a standardized marketing strategy that is applicable worldwide. This can be the most challenging aspect as the company must establish a similar competitive position in all markets when developing a global marketing plan.
The definition of global marketing by Muhlbacher, Helmut and Dahringer encompasses all the mentioned aspects. They view global marketing as a global approach to international marketing, where managers shift their focus from country markets to product markets. This means that managers prioritize groups of customers seeking shared benefits or those to be served with the same technology, regardless of their geographic location. For example, international companies and large chain stores that sell specific products often utilize global marketing. These companies would typically not create products specifically catering to religious, cultural, or ethical values. In conclusion, international and global marketing are components of foreign marketing, with some experts distinguishing between the two terms while others consider them interchangeable.
The aim of these terms is to concentrate on markets outside the company’s home country and consequently adapt their marketing strategy based on the distinct requirements and cultural values of consumers. McDonald’s is an illustration of the international marketing approach, as they personalized their menu in India. Given religious reasons, they abstain from serving beef in their establishments, which requires them to account for these disparities when venturing into the Indian market.
Coca Cola can be cited as a prime illustration of a worldwide marketing corporation due to its sale of identical products worldwide. Moreover, Coca Cola’s advertisements are produced globally and only translated into each country’s national language. The company also employs a geocentric approach and world market strategies for product manufacturing, resulting in an integrated system and specialized production in different locations.
