5 Reasons Why International Marketing Is So Important

The world is more connected than at any other time in history.  

And with the right international marketing strategy, there are more opportunities for you to reach new customers than ever before. 

In this article, we are going to review why international marketing is so important, and then we’ll develop a plan to help you get started properly.

Why International Marketing Is So Important
International marketing is important to your business for these 5 reasons:
1. Promotes brand awareness
2. It increases your competitive advantage
3. New opportunities
4. Protects against economic downturns
5. Raises living standards

This guide will help you understand why International marketing is important and provides some simple steps you’ll need to get started to develop your best international marketing strategy.

As we get started, it is suggested that you review these two helpful articles:

1. Market penetration vs market expansion (the difference)
2. How Do I Expand My Business Internationally? (+examples)

Also, whether you are focused on targeting customers in Singapore, India, Germany, Costa Rica or somewhere else, this is a very good article to help you focus on the importance of developing value to the international marketplace: 

Why is Deglobalization Good? (Answered!)

Ok, let’s get started.

5 Reasons why international marketing is so important

Some of the benefits of international marketing include the following:

1. International marketing promotes brand awareness

When you promote your brand internationally, you increase awareness of your company's name, products and services among customers who may not know them yet. If a customer is satisfied with their experience with one of your products or services, they may be more open to trying another in the future.

In addition to promoting brand awareness, international marketing increases brand loyalty among existing customers who have already purchased something from you. This encourages them to continue buying from you, which can lead to higher profits over time. This goes back to our core definition of marketing: 1. Gain a customer, and 2. Keep a customer.

2. International marketing increases your competitive advantage

To survive and thrive, a company must provide value to its customers. This means understanding their needs and delivering products or services better than anyone else. It also means responding quickly to changing conditions in the marketplace and the economy at large.

Companies that cannot understand their customers' needs or adapt swiftly enough in today's global marketplace will fail no matter how good their products are. And those who adapt will be more successful than ever because they'll sell domestically and internationally.

The ability to offer products tailored to particular countries' needs can greatly enhance sales volume and profitability for businesses that pursue international markets.

3. International marketing creates new opportunities

International marketing allows you to reach out to new markets and expand your business beyond the borders of your home country. 

This can be a great way to increase sales and diversify your product offerings. 

Suppose you're selling a product that's already popular overseas. In that case, international marketing allows you to reach a wider audience at a lower cost than starting from scratch in another country.

For example, if you are affiliated with one of the 15 nations that is a member of the world’s largest free trade agreement, you could open your company up to huge new opportunities. Go here for more information on this massive new trade agreement:

What is the RCEP trade agreement in simple terms? (15 nations, $26 tril)

4. International marketing protects against economic downturns

When an economy starts to go downhill, your company will be immune to this downturn. If one market slows down or suffers an economic downturn, you can still sell your product in another country doing well. You don't want all of your eggs in one basket!

This also means that if there is any fluctuation in currency exchange rates, you won't lose money on exports as much as companies that only operate domestically. In addition, imports won't impact your business either because most imports tend to come from other nations.

5. International marketing raises living standards

International marketing helps people earn more money. It enables them to access goods and services they wouldn’t otherwise be able to afford. For example, if a German company decides to sell its products in China, this will lead to higher living standards for Chinese consumers.

Also, economic growth leads to increased tax revenues that can be used for public services like education and health care. They will be able to afford more goods and services than they could before. This means they will have more money to spend on other things such as food, healthcare and education.

Here is an excellent article on how international marketing can provide more value to local consumers:

How Will CAFTA-DR Benefit Consumers? (Costa Rica vs Honduras vs US)

What is the first step of international marketing?

Your international marketing strategy starts before you even start going international. Here are some key steps in international marketing.

1. Research the target market

The first step in international marketing is to research the target market. This means looking at the characteristics of the people who are your potential customers.

This helps you determine what kind of products and services they want, how much they're willing to pay for them and what language they speak. Getting this information right is important because it will affect everything else you do in your business.

The best way to learn about your target market is through surveys, interviews or focus groups. You can also talk with distributors and other businesses that sell similar products or services in other countries.

These sources of information will help you make decisions about how to position your product or service in foreign markets, how much it should cost and whether there are any barriers to entry (such as tariffs) that will make it difficult for you to compete against local companies or distributors from other countries.

Here is an excellent resource to help you do market research:

8 Market Research Strategies used by Marketing Professionals

2. Know your customers

The second step in international marketing is to know your customers. If you don’t know who your customers are, you won’t be able to sell them anything. You also have to understand what they want and what they like. This will help you create a marketing strategy that resonates with them and makes them want to purchase from you instead of someone else.

3. Know your competition

The third step in international marketing is knowing who your competitors are and what they do differently than you or offer better. This will help ensure that your business has a competitive advantage over other businesses in the industry and allow you to market yourself effectively as a choice for consumers looking for products or services like yours.

4. Product testing

Before you market your product abroad, it's important to test its viability in the market. You can do this by introducing a small quantity of your product and observing how customers react to it. You can also test the price of your product by offering it at different prices in different regions and then comparing sales figures.

Whether you are in Canada, Mexico or Malaysia, marketing testing is core to any marketing plan. Here is a very helpful article that will walk you through this process:

What is the first rule of marketing? (Solved!)

Conclusion

International marketing is important for companies that have ventured overseas and any business looking to expand its reach. The world is getting smaller daily, with new opportunities opening up in countries far from home.

Even if you don’t plan on expanding internationally anytime soon, it’s still wise to have at least some knowledge about how international marketing works. And if you do want to go global? Well, then, there’s no better time than right now.

References

1. The Internet and international marketing: https://www.emerald.com/insight/content/doi/10.1108/02651339710184280/full/html 
2. Perspectives on International Marketing: https://books.google.co.ke/books?hl=en&lr=&id=IcVY4_6njgwC&oi 
3. The role of international marketing in international business strategy: https://www.researchgate.net/publication/338752307_The_role_of_international_marketing_in_international_business_strategy 
4. Empirical Research in International Marketing: 1976–1982: https://link.springer.com/article/10.1057/palgrave.jibs.8490479