4.6 International Marketing HL

Question 1

International Marketing

Answer 1

the marketing of a business’ products outside of their domestic market
* has been aided by globalisation

Question 2

opportunities of entering and operating internationally

Answer 2

• domestic market is saturated - new customers
• higher sales
• economies of scale - lower unit costs
• spreading risks between multiple markets - less dependent on one country’s market
• potentially lower costs
• international brand recognition

Question 3

threats of entering and operating internationally

Answer 3

• initial costs of entering market - hiring labour etc.
• government may favour local businesses
• cultural issues - cost of adapting products
• legal differences
• exchange rate fluctuations

Question 4

methods of entering international markets

Answer 4

1. exporting - direct to consuemrs or through export agents
2. direct investment - set up factory, retail outlet in foreign country - or merge/acquire a local business
3. international franchising
4. joint venture with local partner

Question 5

Pan global marketing

Answer 5

selling the same good in every market

Question 6

global localization

Answer 6

adapting the market mix to each country - product (e.g. religion, local tastes), pricing (e.g. to reflect average income levels)