4.7 International marketing

________: growing trend towards worldwide markets in products, capital and labor, unrestricted by national barriers.

________: businesses that have operations in more than one country.

________: adapting the marketing mix, including differentiated products, to meet national and regional tastes and cultures.

________ is not a new process but it has accelerated in recent years with the rapid growth of multinational companies and the expansion of free international trade with fewer tariffs and quotas on imports.

selling products in markets other than the original domestic market

growing trend towards worldwide markets in products, capital and labor, unrestricted by national barriers

adopting a standardized product across the globe as if the whole world were a single market selling the same goods in the same way everywhere

adapting the marketing mix, including differentiated products, to meet national and regional tastes and cultures

businesses that have operations in more than one country

Selling products in markets other than the original domestic market

Growing trend towards worldwide markets in products, capital and labor, unrestricted by national barriers

5 methods of entry into international markets

Adopting a standardized product across the globe as if the whole world were a single market selling the same goods in the same way everywhere

Adapting the marketing mix, including differentiated products, to meet national and regional tastes and cultures

3 reasons why cultural differences exist

Businesses that have operations in more than one country

Exporting can be undertaken either by selling the product directly to a foreign customer (perhaps the order has been placed via the company website) or indirectly through an export intermediary, such as an agent or trading company based in the country

International franchising means that foreign franchisees are used to operate a firm's activities abroad. This can take the form of either one foreign company being used as franchisee for all the branches in their own country or individual franchisees being appointed to operate each outlet

Agreements between at least two companies to own and operate a new business venture

Licensing involves the business allowing another firm in the country being entered to produce its branded goods or patented products under license, which will involve strictly controlled terms over quality. This means that goods do not have to be physically exported, saving on time and transport costs and making food products fresher too

Studies have shown that setting up company-owned subsidiaries in foreign countries can achieve higher success rates than taking over or merging with locally based companies