The need for international marketing arises from several key factors:
Market Saturation: As domestic markets become saturated with competitors and growth opportunities diminish, companies seek international markets to find new revenue streams and expansion opportunities. Entering foreign markets helps businesses to diversify their customer base and reduce dependency on a single market.
Economies of Scale: Expanding into international markets allows companies to increase their production volumes, leading to lower per-unit costs and enhanced operational efficiency. By leveraging larger production runs and broader market reach, firms can achieve economies of scale and improve profitability.
Diversification of Risk: International marketing helps companies mitigate risks associated with economic downturns, political instability, or market fluctuations in their home country. By diversifying their operations across multiple countries, businesses can balance out potential losses in one region with gains in others, stabilizing overall performance.
Competitive Pressure: To remain competitive in a globalized economy, companies must pursue international markets to keep pace with rivals who are already expanding globally. If competitors establish a strong presence in international markets, it can create pressure for others to follow suit to avoid losing market share.
Access to Resources: Companies often seek international markets to access resources not available domestically, such as raw materials, advanced technologies, or specialized skills. This access can enhance a company's production capabilities and innovative potential.
Market Potential: Many emerging markets offer significant growth potential due to increasing consumer spending power, urbanization, and economic development. Companies look to tap into these fast-growing markets to capitalize on new opportunities and drive future growth.
In summary, international marketing is driven by the need for market expansion, cost efficiency, risk diversification, competitive positioning, resource acquisition, and tapping into new growth potential.
Subscribe on YouTube - NotesWorld
For PDF copy of Solved Assignment
Any University Assignment Solution
.webp)
