Chapter 9: Selecting Marketing Strategies

Part 2 of Chapter 9

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  • Selecting Marketing Strategies
    • Methods of expanding into international markets
      • exporting
        • business manufactures in their own country but then sells abroad
      • franchising
        • reduces risk to franchisor
      • setting up a base overseas
        • organic growth by funding establishment of overseas factory or outlet
      • joint ventures
        • two or more companies agree to act as one organisation
      • licensing
        • permission to make a product in a certain country
    • Benefits to a business from international marketing
      • achieving growth
        • difficult to sustain growth in domestic maret
      • boosting profitability
        • increased growth from international marketing will help to increase profit
      • spreading risks
        • may reduce firm's dependence on a single market
      • helping international competitiveness
        • countries with large domestic markets provide their industries with great potential growth, which enables these businesses to achieve greater economies of scale
      • improving understanding of markets
        • increase businesses understanding of developments in products and markets
    • Risks to a business from international marketing
      • cultural factors
        • business must recognise cultural differences
      • social factors
        • may have big impact if product is targeted at particular market segment
      • language factors
        • biggest cultural difference is language
      • legislation
        • can be big difference in legislation in non-EU countries
      • political factors
        • most international marketing by UK businesses tends to be with countries that the UK has strong political links with
      • operational factors
        • involves complexities that do not occur in international markets
      • economic factors
        • can be influenced greatly by economic variables
      • business practice
        • cultural differences within business practice

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