Notes

4.6 - international marketing:

Key term - Definition

Business etiquette: This refers to the mannerisms and customs by which business is conducted in different parts of the world.

Cultural exports: This refers to the extensive availability and consumption of traditionally domestic products in overseas markets.

Demographics: This is the study of population trends in relation to its impacts on international marketing.

Direct investment: This involves a business setting up operations in other countries, such as production facilities or distribution services.

E-commerce: This refers to the buying and selling of goods and services via electronic means, most notably the Internet.

Exporting: This method of entering international markets involves a business selling its products to overseas customers without having to physically establish production or distribution facilities abroad.

Franchising: This involves international marketers seeking a third-party organization (the franchisee) to supply the goods and services of another business (franchisor).

Globalization: This is the process of the integration and interdependence of the world’s economies, in terms of social, political, and economic convergence.

Joint venture: International marketers use this method to sell their products in overseas markets by two or more parent companies forming a new business entity in its own legal right.

International marketing: This refers to the marketing of an organization’s goods and services in overseas markets.

Legal constraints: These rules and regulations of a country set the permissible parameters that international marketers can operate within, such as consumer protection laws.

Opportunities: These are factors in the external business environment that create prospects or openings for a firm’s growth and development.

Strategic alliance: This method is used by international marketers to sell their products in overseas markets by using partner firms in other countries, working in collaboration on a specific project.

Strategic implications: This refers to the longer-term operations of a business, e.g., the formation of a strategic alliance or joint venture as part of an international marketing strategy.

Threats: These are the external factors that create challenges for an organization wishing to expand in overseas markets.