The Definition of an International Marketing Strategy
International marketing is the ability to market effectively to a variety of markets, both foreign and domestic. It may be an important aspect of your company's overall growth strategy. It's important, however, to understand that not every market will respond the same way to the same strategy. Instead, a tailored approach for each foreign region you plan to target is essential.
Why Market Internationally?
Marketing internationally is an essential aspect of growth for many companies. By effectively strategizing and developing the right marketing mix for a variety of markets around the world, it's possible to be very successful. These strategies should vary by region and culture. It isn't enough, for instance, to just change your market campaign by translating it into another language.
To market internationally, it’s best to revert to the four basic marketing strategies known as the four Ps — product, price, parts and promotion. The four main components of a good marketing strategy are also the components of a good international marketing strategy. As a result, you must take what has been working and marry it with new techniques to stay competitive. The strategy should then be adjusted by region as appropriate.
A marketing department must have something to market. Your job as a marketer is to make your company’s product appear more desirable than any of the alternatives on the international scene and in each specific region.
After all, products are developed for a reason. Their inventor saw a need – they wanted something to exist that didn’t currently exist on the market or they were let down by other products and thus focused on making something to fill that gap. When looking at the product, we can define it as anything (goods/services) that's offered by a company to the customers.
Price in Marketing
The price of a product is more than simply what the consumer will pay for the product, which may vary from country to country. Prices are set using a metric that has been developed by the company. The first thing that a business will look at when factoring price is cost — what did the product cost them to make or acquire?
Setting Price Points
Now you need to consider how much money you can afford to earn from your product, so you'll need to determine how much profit per item you want to have before you finally set the price. When setting your price, you also need to factor in supply and demand, which will fluctuate as you gain footholds in various markets.
Forming a Brand Identity
The other aspect of your price sorting falls under the category of brand identity. If you want to be seen as an accessible brand, you don’t want to raise your prices, and therefore your profit margin, by too much. Consider also sales and corporate taxes, as well as money for bonuses, shareholders and other business needs.
Examples of International Industry Changes
The importance of being seen on an international scale is underscored by the example of streaming services for films and television shows. For instance, Netflix has infiltrated and succeeded in markets around the world and actually changed the face of the international film and television industries.
With this service, customers can watch an enormous catalog of movies without ever leaving home. Netflix operates in 190 countries all over the globe. As a result, the video store has gone out of fashion in many countries, and in the United States, finding one is nearly impossible. Netflix has acted as a major disruptor to the film and television industry and continues to innovate across international markets by offering more variety and even open-ended, interactive shows.