4.6 International Marketing is about the marketing overseas
- anticipate and identify needs of target market in foreign nations
Opportunities by entering/operating internationally
- lower cost of production (cheap labour)
- greater economies of scale (larger customer base)
- financial incentives (subsidies and tax allowances in different countries)
- spreading risks (if one place fails, you have backups)
- laws and regulations (less annoying)
- competitiveness (gain competitive advantages)
- higher profits (new opportunities to increase sales and profits)
Threats of entering/operating internationally
LEGAL CONSTRAINTS
- intellectual property rights (IPR)
- health and safety laws
- competition law
- consumer protection
- employment law
- codes of conduct on advertising
- international trade other stuff
- additional cost of operating in foreign countries (market research, workforce planning and training)
- established competition
- exchange rate fluctuations (high exchange rate means price of export is higher for foreign buyers. reduces firms profitability)
- cultural differences
- glocalization ⇒ changing your marketing to account for local tastes and cultures
