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International Marketing (Modes of entry (Direct investment (high level of…

- - - - domestic firm buys offering and sells abroad on behalf of org acting as an agent
        
        org can use firm's exporting expertise
        
        lowers risks
        
        less investment required
  - - - may use
        
        intermediaries
        
        in int. market
        
        via the internet
        
        may be more cost effective when the size of market within in numerous countries is small
        
        easier/ expensive/ complex
        
        domestic or foreign based office
        
        offers control
        
        demonstrates commitment to the market
        
        cost vs size of market should be assessed
    - - contracts in int. markets
      - marketing mix
      - transport
      - documentation
  - - - 2+ firms
        
        risk, cost, profits shared between domestic & foreign firms
        
        contractual joint venture
    - - separate entity for the partnership
  - - - each firm adds competencies
        
        combining resources
        
        partners could be previous competitors
  - - - 2+ regions
        
        working towards common goal
        
        pursue marketing opps
        
        share resources
        
        combine ideas
        
        split market or use brand to pursue opps individually
  - - - time period pre-agreed
        
        receive royalty payments based on volume of sales or other consideration
  - - - allows domestic firm to enter foreign market
        
        access to local knowledge and local resources
    - - via provision of support services
  - - - cost effective (plant investment & transport)
      - reduces export/import tariff costs
      - reduction in control
  - - - domestic firm provides know-how
      - foreign firm provides capital
- - - - same brand
      - same ingrediants
      - same marketing comms
  - - - cultural conventions
      - national contexts
      - level of adaptation will depend on the offering itself e.g. perfume (more visual) vs Financial product (more verbal)
      - different countries have different marketing comms channels
        
        advertising regs
        
        national vs local coverage of newspapers, magazines, internet penetration
        
        cultural differences in taste, humour and what is considered acceptable e.g. HOT vs Reading
    - - higher
        
        transport
        
        tariffs
        
        may hinder ability to sell if customers cannot afford
        
        price vs cost analysis is ncessary
    - - dependent on customs and infrastructure
  - - - Premium
        
        high purchasing power customers
        
        willing to pay int. prices for admired brands
        
        want high end products with advanced features
        
        shrinking market
      - middle market
        
        mid level incomes
        
        seek value
        
        choose ave. performance vs price ratio
        
        popular market for multinationals
      - low end
        
        able to pay for basic products and meagre price
        
        MNCs find it difficult to compete with local co's
        
        encourages innovation
    - - lack of operational infrastructure
      - weak legal protection of intellectual property
      - capabilities of suppliers limited
      - unpredictable customer behaviour
      - may weaken brand image
      - ethical concerns when marketing to developing & emerging markets
      - access to market research & intelligence