Important Features of International Marketing:
Large Scale Operations: International marketing is always conducted on a large scale. It is done on a wholesale basis and not on a retail basis, to get the advantage of large scale operations regarding transportation, handling and warehousing.
Dominance of MNCs and Developed countries: MNCs having world wide contacts dominate the scene of international marketing. MNCs conduct business more efficiently and economically. MNCs adopt global approach which is needed in international marketing.
International Restrictions: In domestic marketing, there are no restrictions. In international marketing, there are various trade restrictions (tariff and non-tariff) due to the protective policies followed by different countries. Trade barriers are adopted practically by all countries.
Presence of Trading Blocs: Certain nations of a region have come together to form trading bloc for and their mutual benefit, economic development and to reduce or eliminate trade barriers among member nations. International marketing is influenced by the presence of such trading blocs. The most powerful trading blocs are NAFTA (North American Free Trade Area) and EU (European Union).
Three-faced competition: Suppliers have to face competition from three angles in international marketing. They have to face competition from the other suppliers of the exporter’s country, from the local producers of importing country and from the exporter’s of competing nations.
International Forums: International trade is regulated by international forums like WTO and UNCTAD. International marketers should have a deep knowledge of the forums rules and regulations.
International Marketing Research: In international markets, it is required to know about customers, dealers and competitors. In international marketing, marketing research is a must due to different social, cultural, economic and political environment of far off markets.
Sensitive and Flexible: International marketing is very sensitive and flexible in character. Due to political and economic reasons, a product may suddenly become unpopular or market may come down quickly. The sale at the international level may be affected by competitors or due to the introduction of a new product by a competitor
Advanced Technology: International marketing is very dynamic and competitive. Thus, an organization must be able to sell goods of the best quality, at competitive prices. Advanced countries like U.S.A., Japan and Germany dominate in international marketing because they use advanced or sophisticated technology in production and marketing of goods.
Lengthy and Time-consuming: International marketing is lengthy and time consuming due to long distances, restrictions imposed by different countries, payment difficulties because of the use of different currencies, and lengthy procedural formalities.
Wide Scope: International marketing has a wide scope. The important areas covered by international marketing are product planning, product development, pricing, packaging, branding, advertising, marking, labeling, communication, procedural formalities, sales promotion, international marketing research etc.
Long term marketing planning: International marketing needs long term marketing planning. The need for long term planning in international markets is because the marketing situation in different countries changes due to social, economic and political factors.
Advantages to all participating countries: International marketing is advantageous to all the countries participating in international marketing. It helps in having smooth and good relations between countries and thereby ensures world peace. But, the advantages of international marketing are not shared in a fair proportion by all participating countries rich and poor countries. But, some benefits are availed by all participating countries.