International marketing bears various characteristics that are both similar to and different from marketing locally. Just like in the case of global market, businesses are likely to face competition in the local markets. Whether operating locally or internationally, business management must develop effective strategies to satisfy the customer and remain competitive in their market. Companies should evaluate the business environment according to the 4 P’s of marketing mix: price, product, promotion and place. Companies must seek to identify and understand their customers and, thus, strive to deliver the expected services or products. Several key areas are similar in both the local and international markets including research and development, consumer satisfaction, non-human factors, and goodwill.
Various non-human factors present in both markets include cost, price and product. For instance, no matter the operating environment, every business must present a strategic product to the market. The product must have all the desirable characteristics expected by the customer. It must be of the right quality, quantity and nature. On the other hand, businesses should sell their product at a cost that generates sufficient returns to support growth and development. They ought to calculate breakeven costs to determine the most appropriate pricing strategy.
It is beneficial to build goodwill no matter the operating environment. The process would facilitate the development of a positive relationship with the customers through influencing trust and confidence. In every market, businesses must invest on research and development to influence product adaptation and improvement. Determination to improve the product facilitates creation of a better operating environment both internationally and locally.
Developing a strategic product helps businesses gain competitive advantage and, thus, win customers. Both local and international markets have various opportunities to support growth and development. Every business should strive to utilize all the available opportunities to support its operations. Consumer satisfaction is the only secret to success. It is all a matter of identifying what the market wants and providing just that in the right time, quantity and quality.
Although there are many similarities between domestic and international marketing, several differences are evident as well. In the global market, businesses should develop new strategies for penetrating and satisfying diverse markets. In case of place, for example, the business will face an environment that is different compared to local markets. For instance, businesses must learn about the specific laws and regulations applied in the foreign country. It is also likely that the foreign market will have varying requirements such as peculiar customers buying habits, tastes and preferences. Diverse religious and cultural mentality, beliefs and practices influence the market as well. These aspects have to be analyzed when conducting promotion, since some mottos or ads may be considered inappropriate or offensive by the public. Other factors that contribute to the market variations include competition, customers’ availability and financial powers. Countries have unique legal, political and government systems. Every government has unique policies governing products and services distribution. Such variations explain why businesses operating internationally must develop their products depending on the intended market.
On the other hand, the degree of technological advancement in the targeted countries determines the strategies to be applied to penetrate the market. A market that has not advanced technologically may not be appropriate for a sophisticated product. It is evident that a complicated product will be costly to manufacture and, thus, expensive. A market where most of the customers have low buying capability may not be appropriate for an expensive product. Just like technology, logistics such as infrastructure may differ from those of the local market. In addition, international marketing deals with diverse markets and environments, which requires better management systems to penetrate and dominate. It may necessitate a large volume of capital to finance operations compared to local marketing. Unlike local markets, influencing the global market requires the business to consider diverse promotional strategies. As a result, companies have to consider all 4 P’s thoroughly in order to conduct effective business operations.