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8/9/2019 Marketing Management Chapter 24
1/11
SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases,S H H Kazmi24-1
International Marketing
Marketing Management Text and Cases
Excel Books24-1
International
Marketing
24Chapter
8/9/2019 Marketing Management Chapter 24
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SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases,S H H Kazmi24-2
International Marketing
Definition of International Marketing
International marketing is the performance of marketing activities across
national borders.
International marketing is the performance of business activities that directthe flow of companys goods and services to consumers or users in more than
one nation for a profit.
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International Marketing
Levels of International Marketing InvolvementSome companies decide to keep their degree of involvement in international
marketing low-key and some other may become totally involved. Companies
generally move gradually through different phases of involvement in international
marketing. However, it is not necessary for every company to follow the sequenceof phases and some companies may bypass one or more stages:
No Involvement
Infrequent International Marketing
Regular International Marketing
International Marketing
Global Marketing Operation
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International Marketing
International Market Entry StrategiesThe approaches to international marketing include exporting, contracting,
joint ventures, and direct ownership.
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International Marketing
Exporting
Exporting is selling products to one or more foreign countries and is an
indispensable part of all international marketing.
Sometimes a distinction is drawn between direct and indirect export. Direct
exportmeans that the producer itself performs the tasks involved in exporting.
Indirect exportrefers to selling company products in its own country to another
party operating as an exporter. The difference is in the level of involvement in
export operations and related costs, risks, and benefits.
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SHH Kazmi, 2007
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International Marketing
ContractingVarious approaches with regard to contracting involve legal relationship that
international marketers enter into, to quickly establish market presence in a
foreign country. Licensing, contract manufacturing, and franchising are fairly
popular approaches.
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International Marketing
Major Approaches to
Operating in
International Markets
DirectExport
MultinationalCorporation
ForeignSalesBranch
LicensingForeign
Firm
ContractProduction
JointVentureStrategicAlliance
DirectOwnership
LowInvolvement
Abroad
HighInvolvement
Abroad
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SHH Kazmi, 2007
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International Marketing
Joint Venture
A joint venture is a partnership between a domestic company and a foreign
business house, or it can be between two countries. Joint venture partner
minimises risks associated with political, economic, and cultural aspects.
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SHH Kazmi, 2007
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International Marketing
Direct Ownership
This level of involvement in international marketing entails owning a foreign
subsidiary or division.
The parent company is often based in one country and carries
manufacturing, management, and marketing operations in different countries.
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International Marketing
Opportunity Analysis
Different foreign countries may present vastly different opportunities and risks
in comparison to what a company has been exposed to in the domestic
market.
Political/Legal Considerations
Economic Considerations
Social/Cultural Considerations
Technological Considerations
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International Marketing
Key Decision Areas
Product
Advertising and Promotion
Price
Distribution