IB Business and Management Marketing 4.7 International Marketing

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IB Business and Management .com IB Business and Management T he IB Diploma Business and Management course delivered IN STYLE , ONLINE . ©

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z International marketing 4.7

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z International marketing The marketing of a firm’s products overseas External factors & constraints political systems, legislation & cultures change marketing mix to suit local market Global marketing – same product, same marketing approach Selling in foreign markets was once too risky & expensive for most firms, so only large businesses could do it successfully. Some Key features of globalisation has changed this: improved communications , transport links & freer international trade

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z International marketing

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z Why sell products overseas? Saturated home markets Spreading risks between different markets Potential to increase profits through rapid sales growth & low costs in emerging markets Poor trading conditions in home market (economic downturn, strong new competitor, etc ) Economies of scale

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z Why int. marketing is different Political differences Economic & social differences Legal differences Cultural differences Differences in business practices

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z Entry into int. markets exporting International franchising Joint ventures licensing Direct investment in subsidiaries

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z Pan-global marketing Adopting a standardised product across the globe as if the whole world was a single market Global localisation Adapting the marketing mix , including differentiated products, to meet national & regional tastes & cultures

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z Pan-global marketing advantages disadvantages A common identity for the product can be established & aid consumer recognition, especially as world travel becomes increasingly prevalent Despite growing similarities between consumer tastes in different countries, it may still be necessary to adapt products to have success in a new international market Cost reduction can be substantial. The same product can be produced for all market allowing economies of scale. The same marketing mix can be used (one marketing agency & strategy) Brand names do not always translate effectively into other languages It recognises that differences that differences between consumers in different countries are reducing, especially in the younger demographics. Setting the same price in all countries will fail to take into account different average income levels that exist

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z Global localisation marketing advantages disadvantages Local needs, tastes & cultures are reflected in the marketing mix, which could translate into higher sales & profits The scope for economies of scale is reduced There is no attempt to impose foreign brands, products, advertisements on international consumers The international brand could lose its power & identity if locally adapted products become more popular than the ‘international’ product question: 4.7.1, p. 589 question: 4.7.2, p. 591 question: 4.7.4, p. 595