Chapter 12 International Marketing

Corporate planning

the formulation of long-term, generalized goals for an enterprise as a whole

Strategic planning

a type of planning conducted at the highest levels of management, dealing with products, capital, and research and the long- and short-term goals of a company

Tactical planning

a type of planning that pertains to specific assets and the allocation of resources used to implement strategic planning goals in specific markets; also known as market planning; generally conducted at the local level

Direct exporting

the type of exporting in which a company sells to a customer in another country

Indirect exporting

the type of exporting in which a company sells to a buyer (an importer or distributor) in the home country; the buyer in turn exports the product

Licensing

a contractual means by which a company grants patent rights and the rights to use technology to another company, often in a foreign market; a favored strategy of small and medium-sized companies seeking a foothold in foreign markets without making large capital outlays

Franchising

a form of licensing in which a company provides a standard package of branded product, system, and management services to another person, which in foreign markets has market knowledge; permits flexibility in dealing with local market conditions while providing the parent firm with a degree of control

Strategic international alliance (SIA)

a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective

Joint venture

a partnership of two or more participating companies that join forces to create a separate legal entity

Export model

not concerned with huge profits; keep unit costs low enough to cover transportation

In-country model

setting up shop in other countries with parallel company structures; "mini companies" manufacturing and marketing capabilities

Standardization model

response to extreme cost of previous approach; consumers can be targeted with the same products and brand messages

Glocalization model

balance the benefits of standardization with the need for local nuances and customization; usually keeping brand elements firm - name, logo, brand identity; modifying other elements as needed - target, positioning, communications

Co-creation model

building the very concept of brands from the bottom up across several markets at once (versus launching in US and then using a top-down strategy for adapting in other markets)

Contractual agreements

are long-term, non equity associations between a company and another in a foreign market; involve the transfer of technology, processes, trademarks, and/or human skills; means of transfer of knowledge rather than equity

Franchiser

provides a standard package of products, systems, and management services

Franchisee

provides market knowledge, capital, and personal involvement in management

Foreign direct investment (FDI)

direct investment within a foreign country

Global business units

global teams responsible for product marketing and sales throughout the world

Regional teams

geographical divisions responsible for all products and functions