International Marketing (HL)

Selling, abroad, raises, two, questions:, how, to, enter, and, how, much, to, change.

Entry, methods, form, a, ladder., Each, step, increases, commitment,, cost,, control,, and, risk., Exporting, keeps, production, at, home., It’s, the, lowest-commitment, route., Licensing, allows, a, foreign, firm, to, produce, using, your, intellectual, property, for, a, fee., It’s, cheap, and, fast, but, hands, over, control, of, quality., Franchising, takes, the, entire, business, model, abroad, under, contract., A, joint, venture, shares, ownership, with, a, local, partner., This, brings, local, knowledge, and, connections, but, also, shared, control, and, potential, disagreements., Foreign, direct, investment, means, building, or, buying, operations, outright., This, option, gives, you, maximum, control, but, also, brings, maximum, commitment, and, risk.

The, second, question, is, a, well-known, argument., Standardisation, involves, selling, essentially, the, same, product, everywhere,, with, the, same, positioning., It, captures, economies, of, scale, in, production, and, advertising., It, builds, one, consistent, global, brand, and, is, simpler, to, manage., On, the, other, hand, adaptation, modifies, the, product,, price,, promotion,, or, distribution, to, fit, local, conditions., This, raises, relevance, but, also, increases, cost.

What, drives, adaptation, is, worth, noting., Scenarios, are, built, from, these, forces:, cultural, differences, in, taste,, color, meanings,, humor,, and, religion;, legal, requirements, for, safety,, labeling,, advertising,, and, ingredients;, economic, differences, in, income, that, affect, pricing, and, package, sizes;, infrastructure, differences, in, retail,, logistics,, and, internet, access;, and, language,, where, brand, names, and, slogans, can, translate, poorly, or, even, embarrassingly.

In, practice,, most, firms, don’t, do, either, purely., They, standardize, what, customers, don’t, see, or, care, about,, like, core, engineering,, the, brand, mark,, and, the, underlying, platform., They, adapt, what, is, culturally, loaded,, such, as, flavor,, size,, messaging,, payment, methods,, and, service, models.