The Relationship Between International Trade Systems & Marketing

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  • 0:03 International Trade
  • 1:14 International Marketing
  • 2:46 Culture & Marketing
  • 4:26 Lesson Summary
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Lesson Transcript
Instructor: Natalie Boyd

Natalie is a teacher and holds an MA in English Education and is in progress on her PhD in psychology.

How can marketing increase a company's market share in different countries and regions? And what should companies keep in mind when approaching international marketing? In this lesson, we'll look at marketing in the international trade systems.

International Trade

 Diana is a marketing executive for a large company that makes health and personal care products, like shampoo and toothpaste. Her company is doing really well here in the United States, so they've decided to expand to other countries. As a result, Diana has to figure out how to sell their products to a non-American market.

International trade is the exchange of money and products among different countries. When Diana's company makes their shampoo here in the U.S. and then sells it in another country, that is international trade. The international trade system is the combination of rules, regulations, and agreements among countries that relate to international trade and business. These rules can vary from country to country and region to region.

With technology becoming better and travel being easier, the world is getting smaller. As a result, international trade is a bigger part of companies' businesses. But how can marketing help a company (like Diana's) grow into international markets? To help Diana answer that question, let's look at international marketing, including some of the elements involved in it and some of the cultural issues that companies can come across.

International Marketing

As we've seen, Diana's company is expanding into international trade. This is a big deal, and Diana is at a loss for how to market. What should she do?

International marketing involves promoting products or services in multiple countries and/or across international borders. So when Diana wants to take out an ad in a different country, she's engaging in international marketing. International trade relies on marketing. If a country does not market their products in the countries that they want to sell in, they are not going to sell very many products! So there's a strong relationship with how well a company engages in international marketing and how many sales they make internationally.

So, how should Diana approach international marketing to promote international trade for her company? Applying the same or similar marketing principles across international borders can work well for Diana. For example, focusing on branding and brand recognition is important, no matter where the marketing is being done.

However, there are some tweaks that Diana might need to make, depending on where she's marketing. For example, her company does a lot of television ads in America, but in one of the countries they'll be marketing in, many people don't have televisions. However, many people in that country ride the bus, so a bus ad might work better than a television ad. But no matter the specific medium, the marketing goals remain the same: she wants to familiarize people with her company's brand so that people will buy the company's products.

Culture & Marketing

As Diana has already seen, marketing across international borders can get complicated. Remember how she had to change her plan from television ads to bus ads because of the way people live in another country? Well, that's just the beginning.

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