INTERNATIONAL MARKETING 92% of the world’s consumers live outside the U. S. Thus, international marketing is very important. When selling to foreign markets, one must realize that there are major differences between other countries & the U.
S. Aside from political and legal differences, there are economic, technological, social (family, religion, education, health… ) & cultural differences. Each 1 billion in trade deficit yields a loss of 25, 000 jobs. [See text for how international trade is measured and protectionism vs. free trade.
] Gray Goods – Goods imported from unauthorized dealer; problem = no manufacturer’s warranty. Dumping = Sale of export goods at less than “normal” value (less than cost or less than home-country price).
Strategic Adaptations Of The Marketing Mix 1 Keep The Product & Promotion The Same Worldwide (Global Marketing) – e. g. , world brands such as Coca Cola and Marlboro. – Theodore Levitt is the guru of the “globalization” or “global marketing” approach.
– Promotion mix elements such as advertising present the biggest problem to standardizing a marketing strategy across all borders because promotion is based on a communication process, which can differ from country to country – even if the languages are the same (e. g. , the U. S. & the U. K.
The Business plan on Marketing and International Students
2 Coordinate, Implement and Manage Promotional Activities Budget Work Action Plan Monitor Promotional Activity 3 Review and Report on Promotional Activity Effectiveness of Work Action Plan Survey Feedback Outcomes of the Promotional Activity Comparison of Objectives to Outcomes Conclusions and Recommendations Step 1 – Plan Promotional Activities Identify a Product or Service:- -Pizza Hut ...
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2 Adapt Only The Promotion – e. g. , in most of the world, bicycles are promoted as transportation; in U. S. as leisure.
3 Adapt Only The Product – e. g. , Canadians prefer a more bitter beer; Barbie looks Asian in Japan. 4 Adapt Promotion & Product – e. g. , American cereals in Asia = snack food; therefore, need different flavors (e.
g. , tofu).
5 Backward Invention – Simplify product & use less technology. This makes the product more affordable & usable in certain foreign markets. Some Ways To Operate In Foreign Markets 1 Exporting – A company sells what it produces to foreign markets via export merchants (e. g.
, export trading companies) or export agents (e. g. , export management companies) or a firm’s own sales branches. [Risk of tariff & devaluation.
] 2 Direct Investment & Ownership – Investment in production and or distribution facilities can occur either through a wholly-owned foreign subsidiary or a joint venture with a foreign company. [Risk of nationalization. ] Joint Ventures – domestic & foreign firms become partners. Strategic Alliance – a formal long-term agreement between firms in order to accomplish global objectives without formal ownership by either company. 3 Contracting (Licensing, Franchising, Contract Manufacturing & Management Contracting) Licensing = selling rights to name, process or patent for a fee or royalty; e. g.
, magazines such as Cosmopolitan & Playboy; Am pex licensed VCR technology to Japan. Contract Manufacturing – Domestic firm contracts with a foreign firm to do production; marketing is done by domestic firm. Management Contracting – Seller provides management skills only; e. g. , Hilton Hotels. 3 Major Risks In Int’l Mktg: 1 Radical Change In Government – a company’s factories may be nationalized.
2 Change In Export Rates – foreign currency may be devalued; a firm may want to hedge with options. [E. g. , many tech firms hurt by Asian economic crisis. ] 3 Foreign Markets May Impose Tariffs, Taxes, Quotas On Your Product – They do so to make imports more expensive relative to domestic goods.
The Term Paper on Registration Contract Company Pre Law
" Section 131 of the corporations act 2001 has changed the common law in respect of pre-Registration contracts ." Explain the common law view of pre-registration contracts and then explain how section 131 has changed the common law. Then analyse and discuss the effect of section 131 and 132 in respect of the rights and obligations of promoters, companies and third parties. Your answer should make ...
