ahmad adel@2012

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ahmad adel@2012

Major International Marketing Decision Major International Marketing Decision

ahmad adel@2012

Global industry Global industry

• An industry in which the strategic positions of competitors in given geographic or national markets are affected by their overall global positions .

Global firm Global firm

• A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors .

ahmad adel@2012

Looking At The International Looking At The International Marketing Environment Marketing Environment

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- The International Trade SystemTariff Tariff • A tax levied by a government against to certain imported

products, which is designed to raise revenue or to protect domestic firms .

Quota Quota

• A limit on the amount of goods that an importing country will accept in certain products categories; it is designed to conserve on foreign exchange .

Embargo Embargo • A ban on the import of certain product .

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Exchange controls Exchange controls

• Limits placed by a government on the amount of its foreign exchange with other countries and on its exchange rate against other currencies .

No tariff trade barriers No tariff trade barriers • No monetary barriers to foreign products, such as biases

against foreign company’s bids or product standards that go against foreign company’s product features .

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Economic community Economic community • A group of nations organized to work toward common goals in

the regulation of international trade .

- - Economic EnvironmentEconomic Environment

- - Political-Legal Environment Political-Legal Environment

Counter trade Counter trade • International trade involving the direct or indirect exchange of

goods for other goods instead of cash .forms include barter, compensation (buy-back), and counter purchase .

- - Cultural Environment Cultural Environment

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Deciding Whether to go Abroad Deciding Whether to go Abroad

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Deciding which markets to enterDeciding which markets to enterMarket-entry StrategiesMarket-entry Strategies

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Deciding how to enter the market Deciding how to enter the market

- - Exporting Exporting

Exporting Exporting

• Entering a foreign market by exporting products and selling them through international marketing middlemen (indirect exporting) or through the company’s own department, branch, or sales representatives or agents (direct exporting) .

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- - Joint Venturing Joint Venturing

Joint venturing Joint venturing

• Entering Foreign markets by joining with foreign companies to produce or market a product or service.

Licensing Licensing

• A method of entering a foreign market in which the company enters into an agreement with a licensee in the foreign market, offering the right to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty .

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Contract manufacturing Contract manufacturing • Joint venturing to enter a foreign market by contracting with

manufacturers in the foreign market to produce the product .

Management contracting Management contracting • A joint venture in which the domestic firm supplies the

management know-how to foreign company that supplies the capital; the domestic firm exports management services rather than products .

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Joint ownership Joint ownership

• Entering a foreign market by joining with foreign investors to create a local business in which the company shares joint ownership and control .

Direct investment Direct investment • Entering a foreign market by developing foreign-based

assembly or manufacturing facilities .

- - Direct Investment Direct Investment

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Deciding on the Marketing Deciding on the Marketing Program Program

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Standardized marketing mix Standardized marketing mix • An international marketing strategy for using basically the same

product, advertising, distribution channel, and other elements of the marketing mix in all the company’s international markets .

Adapted marketing mix Adapted marketing mix

• An international marketing strategy for adjusting the marketing mix elements to each international target market, bearing more costs but hoping for a larger market share and return .

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Straight product extension Straight product extension

• Marketing a product in the foreign market without any change .

- - Product Product

Product adaptation Product adaptation • Adapting a product to meet local conditions or wants in foreign

markets .

Product invention Product invention

• Creating new products or services for foreign markets .

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Five International Product and Promotion Five International Product and Promotion Strategies Strategies

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- - Promotion Promotion

- - Price Price

Whole-Channel Concept for International Whole-Channel Concept for International Marketing Marketing

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- - Distribution Channel Distribution Channel

Whole-channel viewWhole-channel view• Designing international channels that take into account all the

necessary links in distributing the seller’s products to final buyers, including the seller’s headquarters organization, channels between nations, and channels within nations .

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Deciding on the Marketing Organization Deciding on the Marketing Organization

- - Export Department Export Department

- - International Division International Division

- - Global Organization Global Organization

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Three Types of Marketing in service Industries Three Types of Marketing in service Industries