International Marketing

Opportunity World has shrunk – increasing globalisation Technological advances facilitate international transport & telecommunications Expansion of the EU in 2004 Trade barriers between European nations lifted in 1992

Why market products internationally?

Why market products internationally? Ansoff matrix – new market development Potential to increase profits through increased sales (may also receive higher price overseas) Home market may be saturated (mobile phones) Unfavourable trading conditions in the UK market Spreading the risk Legal differences (develop markets in countries that have fewer restrictions – e.g. pharmaceuticals)

Major challenge Differences to home market may increase risk: Political differences Cultural differences Differences in legislation Economic & social differences Differences in business practice (e.g. accounting techniques)

Entering overseas markets Exporting Franchising Licensing Joint ventures Direct investment Mergers Takeovers

Ethics of international marketing Tobacco companies looking for new markets Western companies exploiting new markets in developing world?