INTERNATIONAL MARKETING DECISIONS (IM 25 Aug 2020)

Why International Marketing Decisions are taken ?

1. Market – First reason in because of no growth opportunities in the domestic market. To sustain its growth, an organization moves to lure customers in more attractive markets. Since the organization has a vast experience in marketing in domestic market, they rely heavily on the experience and brand value to enter new markets.

2. Competition – It is because of entry of competitors that can be domestic as well as international that an organization sees no new customer base in the domestic market. The organization tries to invest in international market to maintain its profitability and counter competition. Sometimes the organizations enter into the competitor country. This helps reduce the organizations dependence on one market.

3. Environment (technology, Government policies) – The world is constantly shrinking into a global village with the advent of technology in past few decades. The organizations today have ample of opportunities in different countries to market their products. To improve standard of living and invite investments in their country, governments have also relaxed their laws which paved the way for international trading and foreign investments.

4. Cost – Some of the foreign markets are more profitable than domestic markets. Exporting is most of the times favorable than domestic operations. To achieve economies of scale an organization needs high sales. This can be achieved by gaining more customers in new markets.

International marketing decisions are same as domestic marketing; only difference is that all marketing decisions are taken with reference to foreign or international markets (or customers). More clearly, product, price, promotion, and distribution decisions are made for international buyers.