IB Business Management Marketing 4.7 International Marketing

Economies of Scale

Reductions in a firm's unit (average) costs of production that result in an increase in the scale of operations; i.e. by producing more

Direct Investment

A business setting up a production and/or distribution facilities in foreign countries

Franchising

A business allowing others to trade under its name in return for a fee and a share of the profits

Global Localisation

Adapting the marketing mix, including differentiated products, to meet national and regional tastes and cultures

Global marketing

Adopting a standardised product across the globe as if the whole world were a single market - selling the same good in the same way everywhere

Pan-Global Marketing

Adopting a standardised product across the globe as if the whole world were a single market - selling the same good in the same way everywhere

International Marketing

Selling products in markets other than the original domestic market

Business etiquette

The manner, social and cultural context in which business is conducted. International etiquette differs from one country to another so it is important for marketers to be aware of the different protocols that exist

Exporting

The practice of selling domestically produced goods and /or services to overseas buyers to gain access to international markets

Acquisitions

This is when another business buys out another by purchasing a majority stake in the target company

Takeovers

This is when another business buys out another by purchasing a majority stake in the target company

E-Commerce

Trading via the internet

Mergers

Two businesses (occasionally more) agree to integrate as a single organisation.

Strategic Alliances

When two or more businesses pool their human, capital and financial resources in a SHARED PROJECT. They DO NOT form a new business with a separate legal identity

Joint Ventures

When two or more companies invest in a shared business project, pooling their resources to form a SEPARATE BUSINESS. The companies retain their separate legal identities but share the risks and returns from the joint venture