What is International Marketing?

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Introduction to International Marketing.
International marketing is simply the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. For the purposes of this lesson on international marketing and those that follow it, international marketing and global marketing are interchangeable.

The intersection is the result of the process of internationalisation. Many American and European authors see international marketing as a simple extension of exporting, whereby the marketing mix is simply adapted in some way to take into account differences in consumers and segments. It then follows that global marketing takes a more standardised approach to world markets and focuses upon sameness, in other words the similarities in consumers and segments. So let's take a look at some generally accepted definitions.

What is International Marketing?
"At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe."
Doole and Lowe (2001).

Note: Doole and Lowe differentiate between international marketing (simple mix changes) and global marketing (more complex and extensive).

"International Marketing is the performance of business activities that direct the flow of a company's goods and services to consumers or users in more than one nation for a profit."
Cateora and Ghauri (1999)

Note: Cateora and Ghauri consider international marketing in the absence of global marketing.

"International marketing is the application of marketing orientation and marketing capabilities to international business."
Muhlbacher, Helmuth, and Dahringer (2006)

Note: Muhlbacher et al consider international marketing in relation to marketing orientation and competences (see also Global Marketing).

"The international market goes beyond the export marketer and becomes more involved in the marketing environment in the countries in which it is doing business."
Keegan (2002)

Note: Keegan's definition is typical of those that see international marketing a one stage of an internationalisation process.

What is Global Marketing?
"Global marketing refers to marketing activities coordinated and integrated across multiple country markets."
Johansson (2000)

Note: Jonny K. Johansson defines global marketing as a bigger brother to international marketing i.e. more of an extension.

. . . The result is a global approach to international marketing. Rather than focusing on country markets, that is, the differences due to the physical location of customers groups, managers concentrate on product markets, that is, groups of customers seeking shared benefits or to be served with the same technology, emphasizing their similarities regardless of geographic areas in which they are located.
Muhlbacher, Helmuth, and Dahringer (2006)

Note: Muhlbacher et al delineate international marketing (adapted) and global marketing (standardised).

"Global/transnational marketing focuses upon leveraging a company's assets, experience and products globally and upon adapting to what is truly unique and different in each country."
Keegan (2002)
Note: Keegan takes a strategic, corporate overview to define the transnational nature of global marketing.

So, as with many other elements of marketing, there is no single definition of international marketing, and there could be some confusion about where international marketing begins and global marketing ends. These lessons will assume that both terms are interchangeable, and will define international marketing as follows:
International marketing is simply the application of marketing principles to more than one country.

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If you talk in general, both the terms Global and International marketing are used interchangeably nowadays. But if you are talking in terms of marketing theories, International Marketing was a stage in the evolution of Global Marketing. Let us see how,

Stage 1 : Domestic Marketing : Companies manufacturing products and selling those within the country itself. So, no international phenomenon at all.

Stage 2 : Export Marketing : Company starts exporting products to another countries also. This is the very basic stage of global marketing. Approach of marketer in this stage is said to be ‘ethnocentric’ because although he is selling goods to foreign countries, product development is totally based upon the taste of local customer. So, focus is still on domestic market

Stage 3 : International Marketing : Now, company starts selling products to various countries and the approach is ‘Polycentric’ i.e. making different products for different countries.

Stage 4 : Multinational Marketing : Now, in this stage, the number of countries in which the company is doing business gets bigger than that in earlier stage. And so, instead of producing different goods for different countries, company tries to identify different regions for which it can deliver same product. So, same product for countries lying in one region but different from product offered in countries of another region. e.g. a company may decide to offer same product to India, Sri lanka and Pakistan if it thinks the taste of people of these countries is same but at the same time offering different product for American countries. This approach is called ‘Regiocentric approach’.

Stage 5 : Global Marketing : This is the final stage of evolution. In this stage company really operates in a very large number of countries and for the purpose of achieving cost efficiencies it analyses the requirement and taste of customers of all the countries and come out with a single product which can satisfy the needs of all. This approach is called ‘Geocentric approach’.

So, one main difference between International and the Global marketing is the approach of marketer. A truly global company instead of offering different products to different countries (as in International Marketing), develops and offers a single product to the world.

You should note one more very interesting fact that in the early stage of Export marketing also, the company was offering a single product to each of the countries as in the final stage of Global marketing. But it was entirely different because in export marketing you produce according to taste of your country and force that on other countries but in Global approach, you take care of entire countries and develop a product which can satisfy the need of all.