"International Marketing is about convincing people to buy a product/service that they

didn't know they needed".

International marketing is the process of reaching the consumers universally by planning,

pricing, promotion and distribution of product and services of a local company. This helps

them to expand their business and also make their presence and products available

internationally to earn profits. The best example is Procter and Gamble (P&G) and Coca-

Cola. Both these companies are American companies with its presence globally through its

efficient distribution of products and services.

For reaching the consumers globally the international market penetration strategy are:

Demographics: Here the company tries to segregate the market through age, race, gender,

income level, traditions and on the basis of several other factors.

Identifying target customers: Targeting customers based on demographics and geographies

helps the company to identify and target the individuals of a particular country along with the

people of the country neighbouring it with the product they want to venture into.

Cost-benefit projections: Companies tries to make a feasibility study by analyzing the

revenue to cost incurred. If the study generates a profit, the company enters the country.

Localization: This strategy involves targeting the targeted consumers taste, preferences and

adapting to their culture. This also involves interacting and involving the local distributor for

making the product available to the consumers. It also involves providing information of their

products available to the consumers through websites and ads that suits the taste of the local

audiences. (Building and effective foreign market penetration strategy, BusinessWire,

Berkshire Hathaway Company, Aug 28, 2019, London)

Strategy how P&G markets their product domestically and internationally:

Domestic Internationally
Usage of local brand name, adapting to local Usage of English language on the product

situation and local labelling through usage of labels and common products for reaching

Spanish language in their product labels Internationally.

To combat the rising competition from the They offer wide range of prices to the

discount stores and local brands they offer international market. E.g.: Distributing

special discount coupons to the customers. classic products to the poor country and

premium products in the developing and

developed country.
The products are distributed locally through They have over 80 manufacturing facilities in

wholesalers, distributors and the retailers. different major markets which enable them to

distribute their products to over 180

countries.
They advertise their products locally through The advertise internationally through

radio stations and TV channels in local television and during special events and

language. Conducting CSR activity through social media like Facebook, YouTube,

educating the African on hygiene. Twitter etc.

They hire local people with good education They send their trained engineers and experts

background from different areas of to the international market for conducting

specialization. training on product quality and

standardization.

Reasons for which companies go for International marketing:

1. Improving the profit margins: This helps the company to expand their market beyond

local boundaries and increase their customer base along with enhancing their profits.
 2. Challenging for new sales: Entering a foreign market where your competitor hasn’t

reached helps you to gain control and presence in the market in advance and acquire

new sales opportunities.

3. Diversification of the business: It helps to expand your business. If in one country

your performance is not well you can enter a market where there are opportunities.

You can also utilize the resources and raw materials available in the foreign country

to manufacture your product at a much cheaper cost.

4. Hiring new talents: It helps to recruit new talents and employees with skills and

knowledge to market your product and establish your synergy as a global brand.

(BizFluent, Why do companies go International, Neil Kokemuller, Oct 20, 2018)

Disadvantages of International marketing:

1. It consumes a lot of time and huge costs to enter an international market.

2. There may be varied culture, languages, tastes and preferences which may hinder the

performance of the company.

3. It sometimes becomes difficult to get talented and skilled executives abroad.

4. Poor infrastructure of the international country may hinder the progress and growth of

the company.

5. Political, social and technological factors may hinder the existence of the international

company. (Global International marketing, MR1100, Chapter7, disadvantages of

international marketing)

Appendix:
Building and effective foreign market penetration strategy, BusinessWire, Berkshire

Hathaway Company,

https://www.businesswire.com/news/home/20190828005032/en/Building-Effective-Foreign-

Market-Penetration-Strategy-Experts

BizFluent, Why do companies go International, Neil Kokemuller, https://bizfluent.com/info-

8118618-definition-multinational-company.html

Global International marketing, MR1100, Chapter7, https://slideplayer.com/slide/7006269/