4.7 International marketing

Question 1

Why would a firm want to sell products in other countries?

Answer 1

• Larger market, more consumers to target
  –> build up customer loyalty
• Make more consumers aware of your brand (brand recognition)
• Increased global market share
• Increase in sales –> possibly more profit
• Spreading risk
• In emerging market –> opportunity to gain market
• Diversification

Question 2

What do companies need to consider when entering new markets?

Answer 2

• Average disposable income (potentially different prices)
• Laws and regulations
• Competitors
• How far it is from where it is manufactured, how would it be transported
• Culture

Question 3

What is “Pan-Global Marketing”?

Answer 3

Adopting a standardised product across the globe as if the whole world were a single market - selling the same goods in the same way everywhere. (eg. Apple)

Question 4

What is “Global Localisation”?

Answer 4

Adapting the marketing mix, including differentiated products, to meet national and regional tastes and cultures. (eg. McDonalds)

Question 5

Why does “price” vary across the world?

Answer 5

Why does price vary?
- Different costs of living
- Stage in the business cycle
- Amount of disposable income

Question 6

How could “place” vary across the world?

Answer 6

Japan - The importance of Vending machines
–> 1 vending machine per 30 people in Japan

Question 7

How could “promotion” vary across the world?

Answer 7

Promotions/ adverts in countries change to fit that particular country
- in UK the cola advert is often very simple and has a link to CSR
- advert in China if far more “scream” and uses many celebrities