Business 4.6

Question 1

What is international marketing

Answer 1

marketing related to the sales of goods and services of one country into another.

Question 2

Methods of entry into international markets

Answer 2

• Identify which market they want to enter.
• Select how to enter.Internet → Exporting → Franchising → Joint venture → Direct investment. This is a gradual process of increasing cost and commitment.
• Enter the markets.

Question 3

What is Pan-global marketing strategy

Answer 3

Pan-global marketing strategy markets a product the same way in all markets.

• Offers marketing economies of scale. Though, does not respond to the requirements of different national markets.

Question 4

What is localized strategy

Answer 4

Localized strategy adapts the marketing mix for local conditions.

• May meet market needs more preciesly but may be more expensive and complex to manage.

Question 5

What are the factors to consider when entering international markets

Answer 5

• Costs.
• Risks.
• Competition.
• Understanding of the market.
• Time frame.
• Link with business’ strengths and experience.
• How to enter.
• Likely returns and profits.

Question 6

The opportunities posed by entering and operating internationally

Answer 6

• Saturated domestic market (the one the business originally operates in).
• Larger group of customers.
• Increasing brand recognition.
• Possible economies of scale.
• Low operating costs than home markets.
• Spread the risk over different markets.
• Forming new business relationships.
• Benefiting from government incentives or differnet laws and regulations.

Question 7

The threats posed by entering and operating internationally

Answer 7

• Social and cultural differences.
• Language differences.
• Exchange rate changes.
• Economic disparity.
• Technological challenges.
• Political issues.
• Infrastructure issues.
• Legal regulations.
• Reaction of existing competitors in the market.