1. IB Business & Management
Unit 4.7 International Marketing

2. Look at these international brands that are marketed under different brand names Internationally

8. International Marketing
The marketing mix for the product may have to be adapted
This can be called ‘glocalisation’

9. Task – Glocalisation at McDonalds
Each person in the group picks 2 countries and visits the appropriate McDonalds Website.
Identify any products you think are made specifically for the local market in this country
Create an A3 poster.
The title ‘McDonalds in _________’
Include images of the products and the names of them underneath
Include a border
Include the McDonalds Logo (top left corner)
Include a country flag (bottom right corner)

10. Ansoffs matrix (HL only)

11. Ansoffs Matrix and International Trade
Entry into overseas markets represents market development.
Existing products are sold in new markets.
It is appealing because:
- market penetration is difficult in saturated markets. - product development is costly. - diversification is risky

12. Why Enter International Markets?
Why do firms decide to sell their products abroad?
The reasons for entering overseas markets can be categorised into “push” and “pull” factors:

13. Push factors Saturation in domestic markets
Economic difficulty in domestic markets
Near the end of the product life cycle at home
Excess capacity
Risk diversification

14. Pull factors The attraction of overseas markets Increase sales
Enjoy greater economies of scale
Extend the product life cycle
Exploit a competitive advantage
Personal ambition

15. Choosing international markets – What factors should firms consider?

16. WHERE? Consumer behaviour? Cultural influences? Demographic trends?
Distance/transport costs?
Economic trends?
Market size?
Availability of agents?
Competition?
Infrastructure?
Trade barriers?
Skills/technology base of host country?
Labour/land costs

17. How to Enter International Markets:
Exporting
Sell products directly to overseas buyer
Direct Investment
Setting up facilities in a foreign country
E-Commerce
Sell via the internet
Joint Ventures
Two companies pool resources and create a 3rd company

18. How to Enter International Markets:
Strategic Alliances
Businesses pool human, capital & financial resources in a shared project
Do not form new business
Franchise
Licensing
Allow foreign country to produce/market your product
Mergers
Two become one
Acquisition/Takeover
Buy another company

19. Task
Get in groups of 3
Discuss issues companies may face in doing business overseas
List as many potential problems as you can
Now separate these into PEST factors

20. PEST FACTORS REGARDING INTERNATIONAL TRADE

21. Issues & Problems: Legal
Copyright & patent protection differ
Inventions
Ideas, logos, slogans, etc.
Consumer protection laws differ
Advertising
Children
Weapons
Smoking & Drinking
Many countries pushing for ban on junk food advertising

22. Issues & Problems: Political
Trade barriers
Quotas
Tariffs
Embargoes
Regulation, licenses, visas
Subsidies
Administrative barriers
Visas etc

23. Issues & Problems: Social & Demographics
Different Culture
Multicultural nations
Differing consumer tastes
Internet uptakes
Average age within nation
Incomes vary within & among countries
Pressure Groups
Language

24. Language barriers - examples
In Taiwan, the translation of the Pepsi slogan "Come alive with the Pepsi Generation" came out as "Pepsi will bring your ancestors back from the dead."
Also in Chinese, the Kentucky Fried Chicken slogan "finger-lickin' good" came out as "eat your fingers off."
When General Motors introduced the Chevy Nova in South America, it was apparently unaware that "no va" means "it won't go." After the company figured out why it wasn't selling any cars, it renamed the car in its Spanish markets to the Caribe.
When Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to say "It won't leak in your pocket and embarrass you." However, the company mistakenly thought the spanish word "embarazar" meant embarrass. Instead the ads said that "It wont leak in your pocket and make you pregnant."
In Italy, a campaign for Schweppes Tonic Water translated the name into Schweppes Toilet Water.

25. Issues & Problems: Economic
Things to watch out for:
Transportation costs
Longer Supply Chains
Communications costs
Interest rates
Exchange rate fluctuations

26. International Marketing Mix
How would the marketing mix of the following products have to be adapted for different markets

27. Price
Product
Place
Promotion
Physical Evidence
Processes
People
Packaging

28. Task Pick an international product
Outline how the marketing mix has been/would have to be adapted for the market in China
Refer to as many of the elements of the marketing mix as appropriate
Evaluate- To what extent has/would the marketing mix have to be adapted?
Present your ideas to the rest of the group

29. Task
IB Question
25 minutes