IB Business & Management
Unit 4.7 International
Marketing
LOOK AT THESE INTERNATIONAL
BRANDS THAT ARE MARKETED
UNDER DIFFERENT BRAND
NAMES INTERNATIONALLY
International Marketing
• The marketing mix
for the product may
have to be adapted
• This can be called
‘glocalisation’
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)
Ansoffs matrix (HL only)
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
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:
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
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
CHOOSING INTERNATIONAL
MARKETS – WHAT FACTORS
SHOULD FIRMS CONSIDER?
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
How to Enter International Markets:
• Exporting
o
Sell products directly to
overseas buyer
• Direct Investment
o
Setting up facilities in a
foreign country
• E-Commerce
o
Sell via the internet
• Joint Ventures
o Two companies pool resources and
create a 3rd company
How to Enter International Markets:
• Strategic Alliances
Businesses pool human,
capital & financial resources
in a shared project
o Do not form new business
o
• Franchise
• Licensing
o
Allow foreign country to
produce/market your
product
• Mergers
o
Two become one
o
Buy another company
• Acquisition/Takeover
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
PEST FACTORS REGARDING
INTERNATIONAL TRADE
Issues & Problems: Legal
• Copyright & patent
protection differ
o
o
Inventions
Ideas, logos, slogans, etc.
o
Advertising
o
Many countries pushing for
ban on junk food advertising
• Consumer protection laws
differ
 Children
 Weapons
 Smoking & Drinking
Issues & Problems: Political
• Trade barriers
•
o
o
o
o
o
Quotas
Tariffs
Embargoes
Regulation, licenses, visas
Subsidies
o
Visas etc
Administrative barriers
Issues & Problems: Social &
Demographics
•
•
•
•
•
•
Different Culture
Multicultural nations
Differing consumer tastes
Internet uptakes
Average age within nation
Incomes vary within &
among countries
• Pressure Groups
o Language
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.
Issues & Problems: Economic
• Things to watch out
for:
o Transportation
costs
o Longer Supply
Chains
o Communications
costs
o Interest rates
o Exchange rate
fluctuations
International Marketing Mix
How would the marketing mix of
the following products have to be
adapted for different markets
Price
Product
Place
Promotion
Physical
Evidence
• Processes
• People
• Packaging
•
•
•
•
•
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
Task
• IB Question
• 25 minutes