Professional Documents
Culture Documents
Chapter 4.7 PPT International Marketing
Chapter 4.7 PPT International Marketing
Page 1
Objective
Explain the nature of International Marketing
Compare International Marketing with Domestic Marketing State & Explain major benefits of International Marketing Identify major activities of International Marketing
Page 2
In Continuum
The companys Always Low Price Policy upset German regulators, fearing small retailers out of business. German Cartel Office forced retail giant to raise its prices on loss leaders like flour, cooking oil & butter, which was sold below cost. It underestimated the ferocity of its primary German competitors, Aldi & Lidi, company did not carry on its expansion plans rather to be cautious & grow slowly. It kept them in reaching economies of scale to become profitable. Finally, in mid 2006, it announced ceasing operations in Germany. Though Wal-Mart failed in Germany, its overall international operations are paying dividends. Wal-Mart is doing very well in UK, Canada, Mexico & Brazil & have just opened an office in India.
Page 4
Viewed from this perspective, International Marketing & Domestic Marketing are similar, but there are differences.
Page 5
Overseas Markets
International Marketing
Diversification
Page 8
Page 11
Place
Place refers to distribution. Distribution involves two issues: decision on channels & mode of shipping
Mix of the four elements: Product, Price, Place & Promotion Promotion
Promotion includes all efforts undertaken to enhance acceptability of the product by potential buyers. Branding is part of promotion.
Price
International business can follow either standard policy, Two-tiered Pricing or Market Pricing
Page 12
1. Assess alternative Foreign Markets 2. Evaluate the respective costs. 3. Select those that hold the most potential for entry or expansion.
Page 13
Thank You
Page 17