4.6 International Marketing

Exporting

when a business sells its goods or services to customers in another country, usually without setting up a physical presence abroad. It is a low-risk, low-cost method for testing foreign markets and expanding sales internationally.

Direct Investment

involves a business establishing operations or acquiring assets in a foreign country. It provides full control and local market access but carries high risk.

Standardization Strategy

a global marketing strategy where a firm sells the same product with the same branding, pricing, and promotion across all markets. It helps reduce costs and maintain brand consistency but may ignore local preferences.

Adaptation Strategy

involves adjusting a product and its marketing to suit the cultural, legal, or economic conditions of a specific country. It helps better meet local customer needs and improve market acceptance.

Opportunities from entering and operating internationally

Larger pool of customers and greater sales revenue
Lower costs of production and economies of scale
Spreading risks
Improved brand reputation

Threats from entering and operating internationally

• Language and culture barriers

• Falling behind digital trends

• Incomes, inflation, and costs vary

• Climate risks and bans

• Instability increases business risk

• Trade barriers and laws differ

Licensing

One company producing another company’s products and using its brand name, patents and expertise under license