Transcript Diapositiva 1

Entry into international markets
 Once a business has decided to market its products
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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
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
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
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
Issues and problems in entering
internationalmarkets
 Political issues
 Quotas: Quantitative restrictions on imported goods
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(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
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