INTERNATIONAL MARKETING IB Business & Management A Course Companion (2009) P

The Attraction of International Marketing Businesses of appropriate size, offering suitable products, will want to expand internationally as this opens up a huge new potential market for their products. With more than 2 billon people in India & China alone, any business that could sell its products in these markets and is not doing so, is missing out on huge potential profits and sales.

The Challenges of International Marketing International marketing goes beyond simply exporting goods, but considers how the marketing mix needs to be adapted to fit the different cultural, political, legal, social and economic issues of each new market.

Advantages & Disadvantages of International Expansion AdvantagesDisadvantages There may be a huge potential untapped market Different markets may require significant product modification and cost increases. A successful business model in one country may be possible to replicate across the world Strong local competition may already exist. International marketing reduces dependence on sales in the home market – for example if recession hits one country, there may well be other markets that are still expanding. Cultural & language barriers may make an organization less efficient.

The 4 Ps & International Marketing Issues Product Some countries have very different needs and products can’t be rolled out in exactly the same format. For example, the Big Mac burger is identical in New York, Madrid or Bogota. However, in India where Hindus do not eat beef, the product was changed to a chicken burger to meet local customs and renamed the Maharaja Mac.

The 4 Ps & International Marketing Issues Place The distribution channels used may be different for various international locations. For example, when expanding into international locations, a business may try to increase its brand awareness by selling products through a partner before opening an expensive retail network.

The 4 Ps & International Marketing Issues Promotion Businesses may use different angles when deciding how to promote products in international markets The Persil brand of washing powder is owned by Unilever in the UK and France. In the UK it is marketed as a premium washing powder, with advertising that focuses on its quality and relatively high price. However, in France, Unilever markets Persil as much more down to earth brand, because it does not want to compete directly with another premium brand it owns there called Skip.

The 4 Ps & International Marketing Issues Price Businesses will often have different pricing strategies in different markets. This is often due to the different buying power of consumers in different countries, but may also be affected by the promotional strategy used, such as in the Persil example.