What Is Markeitng Essay Research Paper MARKETING1L1WHAT — страница 9

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the host country bind the foreign company. 3.Economic system: you must know where this country is moving economically and in what stage does it stand on the international economical map. You must also understand the trade agreements in this country. 4.Political system: you must know the government attitude to wards business and degree of freedom, which allow the business to operate freely. Also the type of the political system is important (ex: library, democratic, national). 5.Technology: the technology level tends to be a major driving force to wards globalization. Also it reflects the ability to gather data and information, establishment of communication channels. 6.Competition: the competition is stronger in the international market, as the market is open for many nations.

Also the domestic products are cheaper and governmentally subsidized. B-Why should a company expand to the international market? 1.More money and profit potential. 2.Stability through diversification. 3.Large market size (ex: mineral water) 4.Proximity to market. 5.Unsolicited orders. 6.Utilize execs capacity. 7.The high level of competition in the local market, 8.An offer from a foreign distributor. 9.The position in the product life cycle. (Ex: cigarettes in usa) 10.The identification of a marketing niche. C-Barriers to international marketing 1.Bureaucracy or redtops. 2.Trade barriers (ex: Egypt will not allow the import of textiles) 3.Transportation difficulties. 4. Lack of trained personnel 5.Lack of export incentives. 6.Lack of coordinated assistance. 7.Unfavorable

conditions overseas. 8.Slow payments by buyers. 9.Payments default. 10.Communication. How do we enter the international market? (Ways and forms form entering the international market.) 1.Import and export agent: this form is the most common form in Egypt. Its main job is to sell goods form another party with a very little risk involved and they spend a small amount of money and effort. The problem in such form that these middle men is not aggressive marketers. 2.Company sales branch: this form usually is concerned about sales not marketing. This operating sales branch enables the company to promote its products more aggressively and develop foreign markets more effectively. The control of the sales effort is closer and stronger. The problem or disadvantage in this form is that

the sales men do not know the market in such foreign company. 3.Licensing: foreign producers produce the goods ?(my goods with their my name) for a fee or a royalty payment (ex: McDonalds and Bentton). 4.Contract agreement: foreign producer contract with foreign company to produce products that the foreign company will sell in the producer?s country. 5.Joint venture: it is a partner agreement where foreigner and local jointly own a company. (Ex fine foods 51% and unilever 49%) 6.Wholly owned subsidiary: it is opening a full companies factories. In that form there an absolute control of every thing. It is a very advanced stage. 7.Worldwide enterprise: example Microsoft. International marketing research 1- customer information: The willingness of people responds to accurately (they

will lie, suspicious of strangers, there is a distrust of the government, scarcity of reliable data in other countries is worse than Egypt). Cultural influences and differences are very important, when analyzing the consumer?s economic abilities to buy we must study 3 things: 1.Distribution of the income. 2.Rate of growth of buying power. 3.Extent of available financing. 2- cultural elements: It is elements that can influence a company ?s marketing program: 1.Family: the concept of what family is, as the family in some cultures is close (china), but in other are not. This affects the usage of the promotional tools. 2.Social costumes and behavior. 3.Educational system and liberty rate. 4.Language difference: you cannot always translate every thing. 5.Religion: you must find out

what is acceptable and what is not. ?All above gapes are in their way to close because of the increasing effect of globalization and standardization.?? The international marketing p?s 1.Product planning: Q: To what extent can a company market the same product in several different countries? (Ex: electronics) You have to be careful when branding and labeling. (You must write the label in another language. 2.Pricing Exporters face many currency conversions, lack of control over middleman pricing. The price in the foreign country is usually higher than in the original country, because of the additional expenses that are added to the original price like taxes and distribution. Dumping cartel is a group of companies that produce simile products that combine to restrain competition