MKTG 310: Chapter 13

licensor

host country company

what is the biggest difference between domestic and international direct marketing

market uncertainty

5 step approach to conducting international marketing

1. access your international potential 2. conduct market research 3. select your trading partner/s 4. develop an international direct marketing plan 5. begin international direct marketing activities

modes of entry into the market

1. exporting 2. licensing 3. joint venture 4. contract manufacturing 5. direct investment 6. management contracting

why is there market uncertainty abroad?

1. infrastructure 2. technology 3. competitive dynamics 4. legal and governmental restrictions 5. customer preferences 6. culture 7. many more uncontrollable variables

reasons companies go into international direct marketing

1. limited growth opportunities in domestic markets 2. shared global values 3. high cost of new product development at home (the reason for outsourcing) 4. competitive forces (sometimes there is less competition abroad) 5. consumer preferences

infrastructure considerations (when conducting international direct marketing)

1. lists/databases 2. fulfillment 3. media 4. creative

the first international direct marketer

Aldus Manutius, from Venice, in 1498. He marketed through a catalog of 15 texts that he had published

how to develop creative materials for an international marketing campaign (words of wisdom)

a- RESEARCH the audience b- TEST the offer and copy c- TRANSLATE the message into the proper language d- ADAPT to local nuances of different cultures (ex- slang)

licensee

foreign country company

which country had a parcel post system and operated under cod (collect on delivery) in 1874

germany

contract manufacturing

this happens when a company outsources or contracts with a local manufacturer to produce goods for the company; this enables companies to take advantage of lower labor costs and faster market entry, while avoiding local ownership problems, and satisfying legal requirements

joint venture

this is created when two or more investors join forces to conduct business by sharing ownership and control; this is similar to a partnership in that one partner is located abroad and the other is domestic

exporting

this is when a company sells its products from its home base without maintaining any of its own personnel overseas

management contracting

this is when local business people or their governments sign a contract to manage the foreign business in their country's market Ex) an Australian works for the US company's branch in Australia because they're familiar with the culture

direct investment

this occurs when a company acquires an existing foreign company or forms a completely new company in a foreign country this is the most risky and time consuming

licensing

this occurs when a licensor allows a foreign firm to manufacture or service a product/service for sale in the licensee's country (similar to franchising in another country)

today, having a ________ on the internet is like opening a store in a foreign country

website