4.6 - International Marketing (HL - Unit 3)

Question 1

International Marketing

Answer 1

The marketing of a business’s products outside of their domestic market

Question 2

Opportunities for International Marketing

Answer 2

• Domestic market is saturated → New customer
• Higher sales revenue
• Economies of scale
• Spreading risks between multiple markets
• Less dependent on one country’s market
• Potentially lower costs
• International Brand Recognition

Question 3

Threats for International Marketing

Answer 3

• Initial costs of entering new markets
• Government may favor local businesses
• Cultural issues
• Costs of adapting products
• Legal differences
• ER fluctuations

Question 4

Some Methods of Entering International Markets

Answer 4

Exporting

• Direct to consumers, or through export agents

Direct Investment

• Set up factory, retail outlet in a foreign country
• Or Merge/Acquire a local business

International Franchising

• Allow a business in the target country to use the name of a brand its processes, in return of a license fee and share of profits

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 Marketing Mix to each country

• Product → e.g. religion, local tastes
• Pricing → e.g reflect average income levels