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Why Is International Marketing Important To The Growth Of Global And Domestic Companies?

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International marketing involves the firm making one or more marketing mix decisions with other nations. It involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (the application of marketing principles to more than one country).

This is very important to the growth of global and domestic companies for a number of reasons.

Many companies decide to go international because:

  • It can increase profit

Businesses may be able to receive goods from other countries for cheaper than what they would in their own country. This allows them to sell these products at their countries standard price and so a profit is made.

  •   The company is able to obtain more unique products for its nation

The firm may be able to receive goods from other countries, which do not exist or are not produced in their own. This provides more appeal from the people of the country and so more people would invest in their products.

  • Resources obtained from other nations could lead to technological advances

Places like Tokyo are very advanced in technology, and relatively less technologically developed countries could benefit from their products and technology.

  • The firm can receive exclusive information from another nation

Information on rates of sale for their particular products can be exploited in the firm's own country to boost their sales.

  • Could get tax benefit if the countries put tax on international trading

Tariffs may be placed on international trades and so the government of the firm's country can receive more money, which can be used to benefit companies within the country, i.e. Domestic companies.

  • Cost advantages that the business obtains due to expansion

As a business expands, the cost of their goods naturally increases and so more money is made from each sale.

There are many more reasons why international marketing is important for the growth of global and domestic companies, however these are the main reasons.

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