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NEED AND IMPORTANCE OF INTERNATIONAL MARKETING


NEED AND IMPORTANCE OF INTERNATIONAL MARKETING
       Need and importance of international marketing has been increasing due to liberalization, privatization and globalization. With faster communication, transportation and financial flows the world is rapidly shrinking. Product developed in one country are finding enthusiastic acceptance in others. Lee Adler is the opinion that the following factors have made the opportunities of international marketing more comprehensive or wide:

(a) Increase in urbanization.

(b) Rapid growth of developing or underdeveloped countries.

(c) Increase in standard of living.

(d) Increase in consumer’s buying power and knowledge.

(e) Continuous increase in customer’s desires.

       Kotler opines that many companies may prefer to remain in domestic marketing if their domestic markets are enough large. They do not need to learn other languages and laws, deal with volatile currencies, face political and legal uncertainties, or design their product to suit different consumer needs and expectations. Business would be safe and easy. In spite of it, many companies are attracting into international arena due to the following reasons:

(a) Global firms offering better products or lower prices can attack the company’s domestic market. The company might want to counter-attack these competitors in their home markets.

(b) The company discovers that some foreign markets present higher profit opportunities than the domestic market.

(c) The company needs a larger customer base to achieve economies of scale.

(d) The company wants to reduce its dependence on any one market.

(e) The company’s customers are going abroad and require international servicing.

          Roger Benett feels that there are many specific reasons for doing business abroad in which include the saturation of domestic markets, discovery of lucrative opportunities in other countries, the need to obtain material or technological not available in the home nation, increase in the flow of information about condition in foreign states, desires to expand the volume of a firm’s operations in order to obtain economies of scale or the need to find an outlet for surplus stocks of outputs. Further motives are as follow:

(a) Commercial risks can be spread across several countries.

(b) It can facilitate in cost reduction and efficiency increase.

(c) Economies of scope (as opposed to economies of scale) might become available. Economies of scale are reduction in unit production cost resulting from large scale operation.

(d) The cost of new product development could require so much expenditure that the firm is compelled to adopt an international perspectives.

(v) There might be intense competition in the home market but little in certain foreign markets.

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