International Marketing is marketing products and services outside of one’s local domain. When a brand that is already performing well in the domestic market aims to expand its horizon and enter into newer, foreign territories, it is called International Marketing.
Branding is the development of the brand in such a way that it resonates with an international audience. From the brand’s image to the text’s font to the various minute details that enhance the look and speak to the audience, all form part of branding.
So, why is International Marketing and Branding relevant in today’s day and age, and what is its future potential?
Any company or brand will only look to go global when they already have a thriving or booming business where they are established. This would require a thorough understanding of their products and services and intense research about the new territory. Thereby, International Marketing involves various tactics and methods applied to find a stronghold in a new market. It is done to meet the global potential of a brand.
As small businesses and brands have grown exponentially in recent times, they have seen the potential to expand. This became the major reason for the rise of International Marketing. Jobs opened up in various sectors, and it subsequently drove the need for a specialized course in multiple MBA colleges. However, it isn’t just about studying a new market and opening up a store there. There’s much more at stake.
It involves tailoring the products, messaging, and distributing them via suitable channels. Quite simply, the biggest benefit of International Marketing is that it drives sales to an unprecedented number. Brands nowadays weigh the pros and cons of going global and decide on it without fear of any pushback. Tapping into an untapped market can have tremendous benefits for a brand if successful.
Besides building its physical presence, brands also engage in International Marketing by the following methods – Import, Export, Franchising, Licensing, and Online Sales. It can also be done with the following purposes in mind: Expanding Brand Awareness, Economic Growth in a New Country, New Commerce Laws, Untapped or Underserved Markets, and International Partnerships or Joint Ventures. But to truly tap the potential of a new market, a brand must show its presence and its availability to customers at all times. Getting into a market won’t be enough, but also reaching the regional and local level and studying the locals’ preferences.
It allows a brand to learn new cultures, new languages, existing traditions, and, more importantly, the competition at hand. One of the huge benefits of International Marketing is that it allows brands to identify market gaps. A global company that has existed for a while often hits a ceiling point. Their old ways of doing business slowly lose their relevance, and they find it difficult to adapt or adopt new ways. This creates a massive opportunity for newer, rising brands. This way, International marketing acts as an important tool for the rise and fall of brands. Nevertheless, opportunities never seem to seize in this field.
It also allows for free trade in the global market and creates a homogenized marketplace. Fast food chains like McDonald’s, KFC, Burger King, and supermarket chains like Walmart are the best examples.
A major push for a brand to go global is launching an International Marketing Campaign. This is where Branding plays a major part. So what is Branding?
Branding isn’t just about designing a logo, creating an identity, or playing with fonts or typography. It is so much more than that. American author Marty Neumeier, who has helped companies like Apple, Google, Netscape, HP, Adobe, etc., to build their brands, has a unique definition for branding.
He says, “A Brand is a result. It’s a customer’s gut feeling about a product, service, or company. It ends up in their heads, in their hearts.” In other words, more than the logo, typography, or look, it is the image that a brand creates inside a customer’s mind. This adds value to the brand, and it leaves a lasting impact.
When any brand decides to go international before it even taps into the market, it is important to convey to the audience who they are and what they stand for. It helps build trust and develop a strong relationship between the brand and its consumer base over time.
Overall, with all its tactics and methodologies in place, International Marketing and Branding has its advantages. But it doesn’t come without challenges.
Cultural differences, such as customs, traditions, and religious beliefs of a new place, should be respected, and the brand values should align with those. The economics of the place must be studied and predicted before venturing into it. Other aspects, like legalities and regulations that vary from one region to another, must be taken into consideration. The cost of operation, the politics of that place, and the people in that area are just some of the final hurdles that an international brand might face.
Despite that, several brands have gone international and have done it with grace and sophistication. Take Lays, for example, who created a unique flavor respective to the region where it’s applicable. Dunkin’ Donuts did something similar by launching the pork and seaweed flavor donuts in China, whereas Saffron flavored ones in India. Spotify, Airbnb, and Red Bull are just some of the other examples of successful International Marketing.
Finally, Grant Thornton’s International Business Report has shown that 52% of domestic or local market firms are intensely focused on the International market. Brands no longer have a limited vision or ambition to grow locally, and with the boom of the online world, studying and venturing into newer geographical regions has become much easier. This only indicates one thing – International Marketing and Branding are destined to rise.
