International Marketing Essay

440 Words2 Pages
Unit 4.7 – International marketing
 Selling products in markets other than the original domestic market Why sell in other countries? * Saturated home markets * Potential to increase profits through rapid sales growth and low costs in emerging markets * Spreading risk between different markets * Poor trading conditions in the home market Why international marketing is different * Political differences – changes in governments can cause instability and increase risk of doing business there; acts of terrorism or threats of civil violence might lead to destruction of company’s assets * Economic and social differences – average living standards, tax rates, interest rates, age structure, role of women, importance of marriage * Legal differences – some goods might be illegal in other countries, some forms of advertisement may be illegal in other countries, product safety and labeling controls are stricter in some regions 
 * Cultural differences – failure to recognize cultural and language differences can have a disastrous effect on marketing strategies 
 * Differences in business practices – Accounting standards and rules can differ; the ease of setting up a limited company varies widely 
Entry into international markets 
 * Exporting – selling the product directly to foreign customer or indirectly through an agent etc. * International franchising * Joint ventures * Licensing – business allowing another firm in the country being entered to produce its branded goods or patented products under license * Direct investment in subsidiaries – Setting up company-owned subsidiaries in foreign countries can achieve higher success rates than taking over emerging with locally based businesses International marketing * Pan-global marketing Adopting a standardized product across the

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