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Aspects of International Marketing
Aspects of International Marketing
International Marketing
International Marketing is :
Why Go International?
1. Market Saturation Ex: cigarettes, entertainment, fast food, consumer electronics. 2. Foreign Competition Ex: cars, copying machines, photographic, construction 3. Emergence of new markets Ex: China, India, Eastern Europe, NICs
Why Go International?
4. Globalization of Markets 5. Opportunities via Foreign Aid programs 6. Other reasons a. Economies of scale b. Labor cost c. Tax incentives d. The desire to test products overseas e. The desire to have access to technological advances
1. 2. 3. 4. 5. 6.
Product
Price
International Customers
Promotion
Socio Cultural Environment
Place
Technological Environment
MNE
Definition An MNE is a firm that owns, manages, and controls income generating assets in more than one country. Number of nations In more than 6 countries.
At least 25% of its sales, assets, and profits are generated outside the home base.
Management Attitude
Ethnocentric = Are home country oriented
MNE: Characteristics
Economic Power. Oligopolistic Market structure. Large percentage of sales, assets, and profits are generated outside the home base. The product of developed nations.