What is the importance of advertising to international business?
Advertising is essential for every business, be it national or international. As long as a business has a market it can serve, then it should advertise to it. It matters more if that market is international, even. With growing digitization, the world has now become a global village, especially for trade and commerce. The right kind of international advertising is far cheaper than it once was. Let’s cover the reasons advertising is important to international business.
Out of many reasons, here are five:
- It helps with market expansion.
- It improves and builds a brand’s reputation. That helps a business in its own country also, as its existing customers feel proud to be associated with an international brand.
- It provides better competitive advantages. Sometimes unexpectedly good customers come from specific international markets.
- It improves the effectiveness of a company’s products and services, by researching and taking into account what a greater pool of customers potentially want.
- It raises foreign investment opportunities.
There are many examples of businesses like Coca Cola, Johnson & Johnson, etc. who are performing well after they have opted to advertise globally, but smaller businesses and entrepreneurs can benefit from it as well. I feel that there is a need to look for cost-effective advertising strategies, simply because you’re not going to find a bigger, more competitive market than the global market.
It might help to supplement this answer with my post: Welcome to a World Without Advertising, which discusses the importance of advertising by imagining a hypothetical situation of a world with literally none.
In conclusion, international businesses should advertise in their target markets after doing thorough research on the available opportunities.
Please feel free to reply to me if you need more information on any of the points discussed above.