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Presentation on theme: "INTERNATIONAL MARKETING"— Presentation transcript:


2 Entry into international markets
Once a business has decided to market its products overseas, there are various strategies that can use. Exporting: The business operating in domestic country sells its products to an overseas buyer Direct Investment: This refers to a business setting up production and/or distribution facilities in foreign countries E-comerce Joint Ventures: This occurs when 2 or more companies invest in shared business project, putting their sources to form a separate business . The companies retain their separe legal identities but share the risks and returns from the joint venture

3 Entry into international markets
Strategic alliances: These are similar to joint ventures in that several businesses put their human, capital and financial ressources in a shared project. However, they do not form a new business with a separate legal identity. Franchising: This involves a business allowing others to trade under its name for a fee and share of profits Mergers: These take place when 2 businesses agree to integrate as a single organization Takeovers: this occurs when one business buys out another by purchasing a majority stake

4 Opportunities and benefits of international marketing
Cause a wider customer base: The size of the market can be enlarged by marketing products to overseas buyers Economies of scale: By operating on a larger scale, a business is likely to benefit from cost savings known to reduce their prices, there by giving them a price advantage Increase brand recognition Spread risks: By operating in various countries

5 Issues and problems in entering internationalmarkets
Cultural issues: language, ethics Legal issues: copyright and patent: legislation must be adhered to. This will cover issues such as brand names slogans,trademarks,inventions and processes already assigned to other businessses, pricingdecisions must take account of any regulation on marketpower. In the UK any form with at least 25% market share is classified as a monopoly Consumer protection law

6 Issues and problems in entering internationalmarkets
Political issues Quotas: Quantitative restrictions on imported goods (limits the number of foreign products entering to the country) Tariffs: Import taxes (increases the price of foreign products and raises government tax revenues) Embargoes: bans or certain products entering a country ( due to health and safety reasons or political conflict) Admistrative barriers: Barriers such as safety regulations Subsidies: Financial assistance given to local firms to lower their costs of production

7 Issues and problems in entering international markets
Social and demographic issues: different socio-economic and demograpic conditions in overseas markets mean that marketers must consider their marketing mix Pressure groups:activist groups Economic issues: An ecomomic argument for more and free international trade is that it enables people to have a greater choice of products at more competitive price. Another arguments that international trade allows citizens to have access to products that would be unaivalable in their own country


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