International Marketing Definitions Flashcards
International marketing
the process of selling goods and services in more than one country
Exporting
the process of selling overseas without establishing production units in another country; the simplest form of international expansion
Direct exporting
the process in which a business exports their products directly to the customer in a foreign market
Indirect exporting
the process in which a business sells their products to an intermediary(e.g. distributor, agent, etc.) that resells those products in foreign markets
Licensing
a process which involves a licensor permitting a licensee to use its intellectual property(e.g. brands, patents, etc.) as well as produce its products under license in exchange for fees
Direct investment
a situation where a company opens operations in another market
Foreign direct investment
the long-term investment by a multinational corporation in a foreign country; involves either setting up factories and expanding operations in the new country or the purchase of at least a 10% share of a foreign company
Subsidiary
a company that belongs to and is controlled by another company
Equity stake
ownership of a company as a shareholder
Standardisation
an undifferentiated use of the marketing mix in many different countries(i.e. one produce is marketed the same way across many countries)
Global marketing strategy
a strategy whereby the same marketing mix is used for every country; products are not tailored to meet the needs of local markets
Adaptation
the process of changing the marketing mix of a product to better meet the needs of customers in different markets
Privatization
the process by which a piece of property or business goes from being owned by the government to being privately owned
