International marketing

International marketing is the marketing of goods and services across national borders — that is, promoting and selling a product in more than one country, often tailoring elements of the marketing mix to each foreign market.

A global (standardised) marketing strategy is one in which a business uses essentially the same marketing mix — the same product, brand, promotional message and similar price — in every country it operates in, treating the world as a single market.

(1) To access a larger market and increase sales and growth. (2) To spread (diversify) risk across several countries. (Other valid reasons: to extend the product life cycle; to gain economies of scale; to escape a saturated home market.)

The relevant Hofstede dimension is individualism vs collectivism, and China scores highly on collectivism — identity is centred on the family and group rather than the individual. Coca-Cola should therefore adapt its promotion so the advertising imagery and message focus on the FAMILY and shared occasions: gatherings, festivals such as Chinese New Year, and multiple generations celebrating together with the drink. Because this reflects collectivist values of belonging and togetherness, the message is more persuasive and culturally appropriate than an individual-focused 'express yourself' campaign, raising the effectiveness of the promotion.

A 25% import tariff is a tax India charges on imported cars, so it raises the landed cost of every car the European manufacturer ships in. This directly affects PRICE: to protect its margin the firm would have to raise its selling price, which makes its cars less competitive against locally-produced Indian rivals that do not pay the tariff, likely reducing sales volume; alternatively it can absorb the tariff and accept a much lower margin. Either way the tariff weakens the firm's position from simple exporting. This can push a change in strategy: to 'jump' the tariff, the manufacturer may decide to produce inside India — for example through a joint venture or by building its own plant (direct investment) — so its cars are no longer classed as imports and escape the 25% tax, while local production also helps it meet Indian regulations and adapt the product. So the tariff influences not only price but the firm's whole method of entry and where it locates production.

Netflix adapts its content because entertainment is deeply tied to LANGUAGE and CULTURE — the two strongest reasons to adapt the marketing mix. Audiences in South Korea and Spain prefer stories, humour and settings that reflect their own language and cultural context, so purely English-language US content would have limited appeal there. By commissioning local-language originals, Netflix makes its product culturally relevant, attracting and retaining local subscribers who would not pay for foreign-only content — a PRODUCT adaptation that grows the subscriber base in each market. At the same time it keeps the brand, interface and subscription model STANDARDISED for global recognition and economies of scale. This is a 'glocal' approach: a standardised global platform with a locally adapted product. It works because local content both wins domestic audiences and, when a series becomes a global hit, adds value worldwide — so the adaptation supports rather than fragments the global brand.

Whether McDonald's should standardise or adapt depends on how different the target country is from its existing markets, so the decision must be judged against that evidence rather than assumed. The case for STANDARDISATION is real: McDonald's global brand, golden arches, service system and core operating model are hugely valuable — they deliver instant recognition, consistent quality and large economies of scale, and adapting everything would be costly and could dilute the brand. However, in a lower-income, culturally distinct country a purely standardised mix would fail. The PRODUCT usually must be adapted for cultural and religious reasons — for example vegetarian menus and the removal of beef or pork where religion requires it, and locally-flavoured items to suit taste. PRICE must be adapted to lower incomes through value menus and smaller portions so the food is affordable to the local market. PROMOTION should reflect local culture, often emphasising family and shared occasions in more collectivist societies. Weighing the two sides: the differences in income, taste and culture are large, so ignoring them (full standardisation) would alienate consumers and lose sales; but abandoning the global brand and system (full adaptation) would waste McDonald's greatest asset and its cost advantage. The justified conclusion is a 'GLOCAL' strategy — the approach McDonald's actually uses: STANDARDISE the brand, layout and service model to keep global recognition and efficiency, while ADAPTING the product (local and vegetarian options), price (value pricing for lower incomes) and promotion (culturally relevant messaging). Standardisation and adaptation are not all-or-nothing; McDonald's should standardise the core and adapt precisely the elements the cultural and economic evidence shows the market requires.

IKEA's decision should follow the specific cultural and economic evidence for this market. The case for STANDARDISATION is that IKEA's global brand, flat-pack product range, showroom format and self-assembly model are efficient and instantly recognisable, giving economies of scale and a consistent identity that a fully localised approach would sacrifice. But the evidence points to targeted adaptation. On PRICE, incomes are lower than in IKEA's home market, so the economic difference requires more affordable price points, entry-level ranges and perhaps smaller product formats, or the range will be unaffordable. On PROMOTION and service, HIGH POWER DISTANCE (acceptance of hierarchy and status) means status and quality cues, and possibly more staff assistance rather than pure self-service, may appeal more than an egalitarian DIY message; and HIGH UNCERTAINTY AVOIDANCE (risk aversion) means promotion should stress guarantees, product warranties, clear instructions, delivery and assembly services and strong reviews, reassuring cautious buyers — a standardised 'do it yourself, save money' message may feel too risky or too much effort. PLACE may also need adapting (home delivery and assembly services where self-transport and self-assembly are less accepted). Weighing this: the core product and brand can stay largely standardised for efficiency, but price, promotion and service must adapt to the lower incomes and the two cultural dimensions, or IKEA risks weak sales and a poor cultural fit. The justified conclusion is a 'glocal' mix — STANDARDISE the product range and brand for scale and recognition, but ADAPT price (for lower incomes), promotion (status cues for high power distance; reassurance and guarantees for high uncertainty avoidance) and added services (delivery/assembly). Adapting exactly the elements the evidence identifies, while standardising the rest, is more appropriate than either extreme.

Trade protectionism reshapes the MNC's international marketing strategy across price, product and method of entry, and its overall impact depends on how the firm responds. First the direct effects: the TARIFF (a tax on imports) raises the landed cost of the MNC's goods, forcing it to raise prices — hurting competitiveness against protected local firms — or absorb the tariff and lose margin. The QUOTA (a limit on the quantity that can be imported) caps how much the MNC can sell by exporting, restricting its market share regardless of demand and possibly pushing local prices up. The strict REGULATIONS force product and promotion adaptation — reformulating, re-testing, relabelling in the local language and meeting local advertising rules — adding cost and delaying launch. Taken together, these barriers can make simple EXPORTING uncompetitive. This is where the strategic evaluation lies: rather than accept high prices and capped volumes, the MNC may change its METHOD OF ENTRY to produce inside the market — a joint venture with a local partner, licensing/franchising, or direct investment — so its output is no longer an import, escaping the tariff and quota and complying with regulations more easily (a 'tariff jump'), while a local partner supplies the cultural and regulatory knowledge to adapt the mix. Weighing the impact: in the short term protectionism clearly disadvantages the MNC (higher prices, capped volumes, compliance costs) and may deter entry altogether; but in the longer term it can push the firm into local production that gives it tariff-free access, local knowledge and a stronger, adapted market position — potentially a better outcome than exporting. Overall, protectionism has a significant NEGATIVE impact on a pure export strategy but does not necessarily block the market: its true effect depends on whether the MNC is large and committed enough to switch to producing inside the country. For a well-resourced MNC the barriers are surmountable and may even lead to a more localised, competitive presence; for a smaller firm reliant on exporting, the tariffs, quotas and regulations may make the market unviable.