Figure 1

Major Decisions in International Marketing

 Several Factors can draw companies into the
International Arena

Counterattack Customers are

Reduce its
Better profit global competitors going abroad and
dependence on any
opportunities in their home require international
one market
markets service

Before making a decision to go abroad, the company must also

weigh several risks:

Underestimate Might lack

Fail to offer a Not understand the
foreign regulations managers with
competitively foreign country’s
and incur international
attractive product business culture
unexpected costs experience
 Export Licensing

• Refers to selling goods and services produced • The licensor issues a license to a
in the home country to other markets. foreign company to use a
Indirect Exporting entering foreign markets manufacturing process, trademark,
without being subjected to the risks and patent, trade secret, or other item of
complexities of direct exporting. value for a fee or royalty.
Direct Exporting requires the manufacturer to • Franchising (Ex. KFC, McDonalds)
make decisions about the entire export process,
such as marketing, distribution, sales, fulfilment
and payment.
Foreign
Direct
Joint Investment
Ventures
Foreign investors have often joined local The foreign company can buy part or full
investors in a joint venture company in which interest in a local company or build its
they share ownership and control. own manufacturing or service facilities.
 Global Product
Strategies
PRODUCT STANDARDIZATION
The process of setting generally "Pepsi Brings You Back to Life"
uniform characteristics for a China:
particular good or service. "Pepsi Brings You Back from the Grave"

PRODUCT ADAPTATION STRATEGIES

When changes and special
modifications are made in order
to adjust to each market.
(TAILORED TO FIT THE LOCAL
MARKET)

BRAND ELEMENT ADAPTATION

Marketers may need to change

certain brand elements when
they launch products and
services globally.
 • Are importers and exporters, they have no
INTERNATIONAL
investment outside of their home country.

• Have investment in other countries, but do not

have coordinated product offerings in each
MULTINATIONAL country.
• More focused on adapting their products and
service to each individual local market.

• Have invested and are present in many countries.

• They market their products through the use of the
GLOBAL
same coordinated image/brand in all markets.
COMPANIES • A company that operates in many countries but is
managed on its home country

• Are much more complex organizations.

• They have invested in foreign operations, have a
TRANSNATIONAL
central corporate facility but give decision-
COMPANIES
making, R&D and marketing powers to each
individual foreign market.
THANK YOU 