MKTG 3650 Chapter 8 International Marketing

Exam 2 review

International Marketing

involves developing and carrying out marketing activities across national borders. Companies may enter foreign markets to reach new customers, grow sales or reduce reliance on one market

Sociocultural factors

Values, language, religion, family, and local customs can affect product features and promotion.

Economic Factors

Income, economic conditions, and currency values affect purchasing power and market potential.

What measures the value of a country’s total output of goods and services

GDP

Political, legal, and regulatory factors

Government policies, trade rules, and restrictions can affect whether and how a company can operate.

Technology

Digital access and technology use vary among markets.

Tariff

A duty or tax on imported goods

Quota

A limit on the amount of a product that may be imported

Embargo

A suspension of trade with a country or in a product

Exchange controls

Government restrictions on currency exchange

Balance of trade

The value of a country’s exports minus its imports

Exporting

Selling products made at home in a foreign market; typically requires less investment than owning foreign operations.

Licensing

Allowing another firm to use specified rights in exchange for fees or royalties

Franchising

Letting a local operator use a business format and operating standards

Contract manufacturing

Hiring a foreign firm to produce goods to the company’s specifications

Joint venture

Sharing resources and decisions with a foreign partner

Wholly owned subsidiary

Owning the foreign operation; offers greater control but requires more investment and commitment.

Companies also decide how much to adapt their ___

Marketing mix

what may they change in order to fit local needs

Product and promotion

to gain efficiencies across markets they must

standardizing other activities