INTERNATIONAL MARKETING

Question 1

International Marketing

Answer 1

Refers to the marketing of goods and services accross national boundaries. Porducts are marketed to other countries.

International marketing, allows businesses to change their marleting approach accordig to the different counteies.

International Marketing has risen due to globalization.

Question 2

How can businesses enter international markets?

Answer 2

The Internet → Also known as e-commerce. It has a great global reach and it has a low cost.
Exporting → Can be direct or indirect. In direct exporting there aren’t any intermediaries present. The business is completley in charge of the products and operations. In indirect marketing, an exporting intermediary is hired.

There is another strategy called piggybacking → When already exsiting distirbution channels of a domestic business is used by another business from another country, to market its new product abroad.
Joint Ventures
International Franchising
Direct Investment → Setting up production plans abroad. The business gains access to local markets and their info and the products are more available to customers.

Question 3

Opportunities

Answer 3

Larger Market → Larger customer base, Higher sales, Higher profits
Economies of scale
Enhanced Brand image → Seen as more successful, therefore seen as more pretigious. Increases customer loyalty.
Business contacts → Can help with efficiency and profitability.
Diversification → Doesn’t depend on the home country anymore.

Question 4

Threats

Answer 4

Political Challenges → Political instability and global terrorism threats affect the countries that businesses negociate with.
Economical Challenges → Fluctuating exchange rates, intrest rates differeing and inequitable distribution of income all affect international marketing.
Social Challenges → Differences in demographics and population structure.
Tech Challenges → LEDCs don’t have access to tech. This really affects how a business chooses to operate.
Legal Challenges → Businesses have to adhere to other country’s laws such as; Consumer protecting laws or Intellectual Porperty laws. They have to adapt.