What Is Multinational Marketing?
Multinational marketing, also known as international marketing, is when a business directs products and services toward potential consumers in other countries. Seeking new markets helps to offset domestic saturation and increase revenue.
Businesses use one or more core methods of multinational marketing: entering joint ventures with foreign companies, exporting goods or services from another country, licensing trademark and patent rights to foreign companies and creating manufacturing plants in companies abroad. There is no single best practice.
There are both advantages and disadvantages to this type of marketing. Advantages include establishing a global presence, increasing revenue and minimizing the effect of negative domestic financial situations such as recessions.
Disadvantages include foreign trade policy changes, cultural challenges and the host country’s laws, infrastructure and technology level. Much research and planning must be done before a company enters a foreign market.