4.6 international marketing Flashcards
(16 cards)
what does a business have to consider when choosing to enter new foreighn markets
- What level of control do we want to have over our marketing activities abroad?
- What level of risk are we willing to take?
- Can we bear the costs of such activities?
exporting
can be direct or indirect
indirect- business or exporting agency purchases products from country with purpose of trading those products overseas
direct- long term place in international markets- using distributers or online sales
exporting analysis
low risk
requires little resources
retain control of products in direct exporting
franchising
external growth
licensing
e company producing another company’s products and using its brand name, patents and expertise under licence
direct investment
A situation where a company opens operations in another country.
when a business decides to develop its own foreign subsidiary (company that belongs to another company)
direct investment analysis
very expensive and high risk- allows business to control to achieve strategic marketingobjectives
joint venture
companies from two different countries combine their resources to create a new, larger company with the purpose of launching a product into a new market.
mergers and aquisitions
A merger occurs when two companies legally consolidate into one company. An acquisition occurs when one company purchases the shares of another company.
takeovers
when one company purchases a majority or all of the shares of another company in order to gain control of the business.
international marketing strategies
standardisation- An undifferentiated use of the marketing mix in many different countries.
adaptation- nsures that some or all elements of the marketing mix are adapted to meet the needs of local consumers.
opoortunities of international market
Develop marketing operations in expanding markets when the domestic market is saturated, mature or badly affected by external events such as pandemic
Take advantage of the potential to increase profits through rapid sales growth nd low costs in emerging markets
Take advantage of hugher consumer spending power in countries with a higher per capita gdp. Higher incomes can result in consumers disposable opportunitu to increase sales by using international marketing in countries.
Spread risks between different markets at different stages of the economic cycle
Diversity into other markets when there are poor trading conditions in the home market. This means international marketing van allow sales to continue to grow dispite increased competition in domestic market
Take advantage of increased economies of scale by expanding through selling international markets
threats of international markets
Differences in consumer needs and wants internationally change and can lead to increase in costs to adapt to differences or failure
Transportation costs
Differences in legal enviorment- meet legal requirements
High level of competition from national products
Counterfit products can be sold and create bad reputation
Failure to research and respond to culturl differences- different values, ideologies, tastes, perceptions
asic steps in conducting a force field analysis:
Basic steps in conducting a force field analysis:
Outline the proposed change
Identify the driving forces
Identify the restraining forces
Analyse each force to determaine their strength
Create an action plan to help reduce the strength of the restrining forces and even possibly increase the strength of driving forces
benefits of lewins forsefields
Managers are able to identify and analuse the forces for and against the chnage
Can help determaine if the change is worth persuing
Allows actions and timelines to be developed so restraining forces can be reduced
negatives of lewins forsfields
Difficult to identify allforces making it difficult to plan effectivley
Weightings are subjective which can influene decision making
