International Marketing Strategies PDF

4.6 International marketing  International marketing is the process of marketing goods and services in more than one country International marketing creates International global opportunities for companies. If it is d...

4.6 International marketing  International marketing is the process of marketing goods and services in more than one country International marketing creates International global opportunities for companies. If it is done well, it can lead to marketing massive sales revenues. On the other hand, mistakes can damage brands and increase costs.  International markets Many successful businesses can generate revenue from outside their home country. Entry into international markets is achieved through successful marketing strategies that take advantage of globalization, the merging of cultures and the trend towards worldwide markets for goods and services. This has been a consequence of fortunate economics, stable political conditions, the removal of trade barriers by national governments, improved technology in transport and communication and more unified laws across countries  When a business decides to operate in other countries, it needs to choose a strategy for entry into foreign markets. To do this, it should answer the following three fundamental questions: What level of control do we want to have over our marketing activities abroad? International market entry What level of risk are we willing to take? strategies Can we bear the costs of such activities? Businesses can enter international markets in different ways with various outcomes in terms of control over marketing activities, level of risk, and costs of both entry to and withdrawal from the overseas market Exporting + Exporting can be either direct or indirect. + Indirect exporting occurs when a business or an exporting agency purchases products from a country with the purpose of trading those products overseas. + Direct exporting is the most common approach for companies that wish to ensure a long-term place in international markets and build up expertise and knowledge about their foreign customers. Direct exporting can be done through agents, distributors or direct marketing and online sales. + Exporting is the lowest risk strategy of entry into international markets and requires few resources.  Franchising is a form of external growth where a franchisee buys the rights to use the name and business model of a franchisor. The franchisor is usually a company with a successful and proven business Franchising model that wishes to expand. This is a quick, relatively easy and cost-efficient route into foreign markets, and the franchisor retains a high degree of control over the marketing of its products.  Licensing involves one company producing another company’s products and using its brand name, patents and expertise under license. Licensing Film, television and sports industries have used this strategy successfully to enter international markets.  Direct investment Direct investment, or foreign Another example of direct direct investment (FDI), is a investment is when a business The company can establish long-term investment in a decides to develop its own assembly operations in the foreign country by a foreign subsidiary, known as a foreign country to assemble multinational company (MNC) wholly owned subsidiary, thus components that are produced and involves setting up indicating a long-term domestically. factories and distribution commitment to the foreign facilities in the foreign country. market.  In a 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. Each partner will hold an equity stake in the newly formed company and will Joint ventures provide expertise to enable the company’s development and operation. International joint ventures provide a route of entry into markets where the government restricts foreign ownership or where speed of market entry is crucial. BMW Brilliance - China  A merger occurs when two companies legally consolidate into one company. An acquisition occurs when one Mergers and company purchases the shares of another company. acquisitions International mergers and acquisitions provide a fast route of entry into international markets and have been used recently by businesses from emerging markets. Heinz & Kraft Disney & Fox (2015) (2017)  + A takeover occurs when Takeovers one company purchases a majority or all of the shares of another company in order to gain control of the business. When 50% of the shares are acquired, the acquirer becomes the main shareholder and has decision-making control in the business. Elon Musk takeover Twitter International marketing strategies + Once a company has decided to operate internationally, there is one fundamental question to answer: Should its products, services and communications be standardised across different overseas markets?  Standardization A business that has a global marketing strategy aims to standardize everything in its marketing activities for all markets. The most successful companies using this strategy of standardization offer their customers high added value by providing them with better benefits than those of competitors, especially local competitors.  Adaptation Most businesses use the marketing strategy of adaptation when entering foreign countries. This approach ensures that some or all elements of the marketing mix are adapted to meet the needs of local consumers.  Opportunities from entering and operating internationally LARGER POOL OF LOWER COSTS OF SPREADING RISKS IMPROVED BRAND CUSTOMERS AND PRODUCTION AND REPUTATION GREATER SALES ECONOMIES OF SCALE REVENUE  Threats for entry into international markets Technologica Sociocultural l and Economic factors economic factors factors Environment Political Legal factors al factors factors