1. © 2004 Mark H. Hansen International Marketing

2. © 2004 Mark H. Hansen Why Expand Internationally? limited domestic market opportunities achieve economies of scale/global volumes access factors of production economically leverage the competencies of the firm

3. International Marketing © 2004 Mark H. Hansen Successful international marketing depends on: the product is the product a ‘standard’ product, or will the product require customization the message can the message be the same, or must the message be altered

4. International Marketing © 2004 Mark H. Hansen Successful international marketing depends on: the foreign culture the foreign infrastructure the foreign government the foreign economic conditions

5. International Marketing © 2004 Mark H. Hansen Standardization vs. Customization depends on the product depends on needs (tastes and preferences) this choice influences international strategy and mode of entry decisions the choice is a continuum, not either/or

6. International Marketing © 2004 Mark H. Hansen International Expansion Motivations Deterrents market size stabilize risk profit potential unsolicited orders proximity excess capacity scale economies smoothing cycles red tape trade barriers transportation human resources governments slow payments culture barriers language barriers

7. International Marketing © 2004 Mark H. Hansen The International Expansion Choice Corporate Level Decision Is this a business we should be in? Business Level Decision stakeholder expectations situation analysis positioning decisions mode of entry

8. International Marketing © 2004 Mark H. Hansen The International Expansion Choice Functional Level Analysis & Decisions Do we have the necessary resources to carry out the decisions taken at the corporate and business levels?

9. International Marketing © 2004 Mark H. Hansen Marketing Mix Decisions The International Expansion Choice Functional Level Analysis & Decisions Product/Promotion one product, one message, worldwide product extension, promotion adaptation product adaptation, promotion extension dual adaptation product invention

10. International Marketing © 2004 Mark H. Hansen The International Expansion Choice Functional Level Analysis & Decisions Marketing Mix Decisions Pricing relative to prices in other countries what the market will bear dumping

11. International Marketing © 2004 Mark H. Hansen The International Expansion Choice Functional Level Analysis & Decisions Marketing Mix Decisions Distribution & Logistics infrastructure differences (refrigeration) control issues

12. International Marketing © 2004 Mark H. Hansen International Expansion Strategies Global Strategy high level of standardization Multidomestic Strategy high level of customization highly centralized highly decentralized

13. International Marketing © 2004 Mark H. Hansen Modes of Entry Exporting Licensing Joint Ventures Direct Investment (Wholly Owned Subsidiary)

14. International Marketing © 2004 Mark H. Hansen Modes of Entry Cost Control Exporting Licensing Franchising Joint Venture Wholly Owned Subsidiary Low High Acquisition In general, there is a cost/control tradeoff in choosing which mode of entry to use.

15. International Marketing © 2004 Mark H. Hansen Cultural Differences Language Colors Customs Religious Beliefs Values

16. International Marketing © 2004 Mark H. Hansen Government / Political Issues Tariffs Trading Blocks Expropriation Commercial Centers Monetary Policy