Need and Importance:
In relation to the need or importance of international marketing, views of Philip Kotler are worth noting. According to him, two forces essentiality the international marketing are pull forces and push forces. Push forces lead to force the nation to sell its goods and services in other nations.
The push forces include lower national income, low per capita income, low domestic demand, the unfavorable approach of government, high rates of tax and duties, government force to export to earn foreign exchange, tough local market, etc. These forces force the marketer to opt for the international market.
Another set of forces is pull forces. The pull forces pull (attract) businessmen to sell their products in the foreign market to exploits attractive opportunities in the foreign countries. To take benefits of more profitable opportunities, they are pulled to business in other nations. The variable lead to international market may fall either in pull forces or push forces or both.
Let’s have a brief explanation of several benefits available due to international marketing:
- It ensures survival for a company and a country.
- Nations can get benefits of division of work and specialization.
- It also helps in balancing the unequal distribution of natural resources.
- Extending product life cycle by selling products in other nations.
- It is important for controlling inflation and achieving price moderation.
- Balancing demand and supply.
- Promotion of invention and innovation globally.
- Companies can take benefits of taxes and duties.
- Technological Transmission among countries of the world is easily possible.
- International marketing can improve the standard of living of people.
- The growth of international marketing results into social and cultural development.
- Worldwide peace is possible due to interdependence among countries of the world
- Global employment opportunities can help ease unemployment problems.
- The growth of overseas market leads to global prosperity.