Chapter 9: Selecting Marketing Strategies
Part 2 of Chapter 9
- Created by: humbuggirl
- Created on: 22-12-14 19:28
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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
- exporting
- 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
- achieving growth
- 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
- cultural factors
- Methods of expanding into international markets
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