Thendy Essay Example For Students

Thendy Essay INTERNATIONAL MARKETING92% of the worlds 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 manufacturers warranty. Dumping = Sale of export goods at less than normal value (less than cost or less than home-country price). We will write a custom essay on Thendy specifically for you for only $16.38 $13.9/page Order now Strategic Adaptations Of The Marketing Mix1Keep 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.). 2Adapt Only The Promotion e.g., in most of the world, bicycles are promoted as transportation; in U.S. as leisure. 3Adapt Only The Product e.g., Canadians prefer a more bitter beer; Barbie looks Asian in Japan. 4Adapt Promotion Product e.g., American cereals in Asia = snack food; therefore, need different flavors (e.g., tofu). 5Backward Invention Simplify product use less technology. This makes the product more affordable usable in certain foreign markets. Some Ways To Operate In Foreign Markets 1Exporting 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 firms own sales branches.Risk of tariff devaluation.2Direct 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. 3Contracting (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; Ampex 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 Intl Mktg:1Radical Change In Government a companys factories may be nationalized. 2Change 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.3Foreign Markets May Impose Tariffs, Taxes, Quotas On Your Product They do so to make imports more expensive relative to domestic goods. Words/ Pages : 498 / 24