4.7 International Marketing Flashcards
1
Q
International Marketing
A
Selling products in foreign countries using a modified marketing mix to suit the local market
2
Q
Internal methods of entry into international markets
A
- exporting: selling products to overseas buyers without having to set up a new business abroad (low risk as they can withdraw with minimal losses)
- e-commerce: selling to foreign markets through the internet (low cost)
- direct investment: setting up a production facility in new country (closer to customers, however, high risk due to large capital investment)
3
Q
External methods of entry into international markets
A
joint ventures, strategic alliances, franchising, mergers, acquisitions
4
Q
Opportunities of International Marketing
A
- increased customer base (higher market share)
- economies of scale
- increase brand recognition/ loyalty
- spreads the risk of operating in a single market
- extend the product life cycle
5
Q
Threats of International Marketing
A
- social (change the marketing mix to suit the cultural differences and socioeconomic demographic profile)
- economic (markets become highly competitive, must consider transportation costs, exchange/ interest rates)
- legal (must comply with local laws for consumer protection, and IP rights)
- political (stability of the political climate and their receptiveness to MNCs)
6
Q
Role of cultural differences on international marketing
A
- alter their marketing approach to suit the cultural norms of the international market (language, values, education, access to technology)
- they must also abide by business etiquette (mannerisms and customs by which business is conducted in different countries)
7
Q
Implications of globalization on international marketing
A
the expansion of MNCs has contributed to a surge in international marketing because:
- they have access to greater customer bases
- they are able to exploit marketing economies of scale
- e-commerce has reduced barriers to international trade
