Marketing is essential for international trade, requiring companies to adapt to local cultures and regulations. Market research is necessary to understand local habits and beliefs, and companies may need to modify their products to appeal to new markets.
International trade and marketing are related because marketing is an essential component of trading. A company needs to market its products to create awareness and promotion. This can be done by including local culture in products, translating advertisements and conducting market research. The organization may therefore wish to conduct business internationally, exchanging goods and services beyond the territorial boundaries of its home country. International trade is a consequence of globalization, which has created an accessible market beyond geographical borders.
This accessibility of foreign markets means that an organization must observe local customs and other regulations in order to position itself correctly and market its products effectively. This link between international trade and marketing is delicate and needs to be handled carefully if the company is to be successful. For example, a fast food chain looking to enter an international market might make concessions by including its own version of some popular local snacks on the menu. The company could use the inclusion of this local snack as an angle to market itself to the local market. Such marketing tactic may allow it to stand out among similar competitors by offering the same type of foreign fare.
The dynamics between international trade and marketing can be seen in the use of the local language to market the product in an international market. For example, if the company has an English origin, it won’t use its English jingles and TV commercials to market the same product to an Asian market. Such product must be promoted in the local language due to international trade and marketing laws. The company may even make different versions of the same TV and radio commercials if the country has several major languages.
A company that is looking to sell itself to a new market will also conduct market research on the connection between the habits of the local people in relation to their attitude towards products such as the company has to offer. For example, a canned beef or sausage factory might modify the contents of its sausage to reflect the beliefs and culture of the local people. If it is against people’s beliefs to eat pork, society will have to exclude it as an ingredient in the manufacture of products. The company will also study the average per capita income of its new market to understand how this will affect the spending habits of potential consumers. These are all marketing issues related to international trade.
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