Day 1 finals review: Scope of international marketing

Internal factors (push) for firms to internationalize

excess capacity

exploit resources better

learning

management expertise

diversifiation/spread risk

external (pull) reasons to export

respond to requests

difficult home market conditions

economic opportunities abroad

foreign gov incentives

challenges for internationalization

liability of newness, liability of foreigness, liability of outsidership

liability of newness

related to age, size, experience of firm

liability of foreignness

related to firms foreign status and lack of local knowledge

liability of outsidership

related to lack of connections in networks required for growth

psychic distance

sum of factors preventing the flow of information from and to the market, like the differences in language, education, business practices…

firms expand to markets that are culturally close with low

psychic distance; reduces liability of foreigness

new product stage

exporting; uncertainty and low production

maturing product

exporting and FDI; production in other industrialized countries

standardized product

FDI; move production to developing countries

domestic environment uncontrollables

political/legal forces

economic climate

competitive forces

cultural forces

domestic environment controllables

price

product

promotion

channel of distribution

rick’s starters

fresh baked bread

jumbo shrimp cocktail

hand-shucked oysters

crab stuffed mushrooms

tempura fried calamari

blazing boatyard shrimp

baked goat cheese

crab cakes

oysters rockefeller

rico’s dip

louisiana crab and shrimp dip

chicken cordon bleu fingers