International Marketing

INTERNATIONAL MARKTING IS PERFORMANNCE OF BUSINESS ACTIVITIES THAT DIRECT THE FLOW OF GOODS AND SERVICES TO THE CONSUMERS OR USERS IN MORE THAN ONE NATION. -Prof. HESS and EASTEORA

DIVERSITY HETEROGENEITY ROLE OF POLITICS GOVERNMENT INTERVENTION TRANSPORT COSTS BUSINESS RISKS MOBILITY OF FACTORS REMITTANCES PATRIOTISM VARIED ECONOMIC CLIMATE MULTIPLE CHAIN OF INTERMEDIARIES

 MARKET SATURA TI ON  AMBITION TO RISE  EXPA NSIO N OF B USINE SS  TO M AINT AIN M ARK ET S HARE  TO U TIL IS E F ULL CAPACITY  TO TA KE A DVANT AGE OF TAX CON CES SION  TO EF FEC T SAVING IN COS T  TO C OM PET E C OM PET ITO RS  TO D EV ELOP AND TES T NE W PROD UCT  TO H AVE ACCES S TO INT ERNA TION AL TECHNOL OG Y,R AW M ATE RIA L A ND ECONO MIC GROU PS

AMBITION TO RISE

EXPANSION OF BUSINESS

TO MAINTAIN MARKET SHARE

TO TEST AND DEVELOP NEW PRODUCTS

– FOREIGN MARKETS PRESENT HIGHER PROFITS THEN DOMESTIC MARKET – COMPANY NEEDS LARGE CUSTOMERS – COMPANY CUSTOMERS ARE GOING ABROAD

RISK INVOLVED • CUSTOMERS PREFERENCES • BUSINESS CULTURE • LAWS AND REGULATIONS

Ayal&zif have argued that a company should enter fewer countries when

 Market entry and market control cost are high  Product and communication adaption cost are high  Population and income size and growth are high in the initial countries chosen.  Dominant foreign firms can establish high barrriers to entry

FACTORS INFLUENCE INTERNATIONAL MARKETING • ECONOMIC FACTORS • SOCIAL AND CULTURAL FACTORS • POLITICAL AND LEGAL FACTORS • MARKET ATTRACTIVENESS • CAPABILITY OF THE COMPANY

DIRECT INVESTMENT JOINT VENTURES LICENSING DIRECT EXPORTING INDIRECT EXPORTING FRANCHISE

JOINT VENTURE

FRANCHISE •IT REFERS TO THE METHODS OF PRACTICING AND USING ANOTHER PERSON’S PHILOSOPHY OF BUSINESS.

DECIDING ON MARKETING ORGANISATION

•EXPORT DEPARTMENT •INTERNATIONAL DEVISIONS •GLOBAL ORGANISATIONS

HALLMARKS CARDS FAILED WHEN THEY WERE INTRODUCED IN EUROPEAN COUNTRIES. THEY DISLIKE SYRUPY SENTIMENTS AND WRITING THEIR OWN CARDS.

SC JHONSONS SC JOHNSONS wax floor polish intially failed in JAPAN.

TANG TANG INITIALLY FAILED IN FRANCE BECAUSE IT WAS POSITIONED AS A SUBSTITUET FOR ORANGE JUICE AT BREAKFAST.

Latin American Toothpaste • An American toothpaste maker ran an advertisement in Latin America saying that the firm’s toothpaste makes users more "interesting". In Latin American nations, the term "interesting" suggests being pregnant. This of course resulted in an unsuccessful.

Locum • Locum is a Swedish company. In 1991, they sent Christmas cards to all of their customers. They thought they would give their logo a little holiday spirit, by substituting a little heart for the letter "o". For some reason, they also used all lowercase letters. The lowercase "L" can therefore be easily misunderstood to be an "i", and the locum logo looked like one of those "I love ..." bumper stickers, with an unfortunate pornographic sentiment to it.

Nike Air • Nike offended Muslims in June, 1997 when the "flaming air" logo for its Nike Air sneakers looked too similar to the Arabic form of God's name, "Allah". Nike pulled more than 38,000 pairs of sneakers from the market.

CONCLUSION •

international trade means exchanging goods and services across international boundries. In international trade, goverments and other organisations may impose restrictions on what goods can come and go out of the country. This may be for a number of reasons. There are disadvantages for international trade like when one country is importing goods the emerging domestic company in the local market loses out and is disadvantaged. however where there are disadvantages, there are also benefits and some firms believe that benefits over the costs of international trade. International trade gives the firms a large platform

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to introduce their goods and services. They have access to a larger market enabling them to take a greater advantage of economies of scale. They will be able to purchase raw materials and other component parts more easily and more cheaply. It is not only the producers that benefit but also the consumers. They can purchase goods from other countries in their local market . They have more variety to choose from. Because of competition each consumer will benefit from low priced better quality products. International trade increase world output.