1. The document discusses major decisions in international marketing including whether to enter foreign markets, which markets to enter, and how to enter those markets through options like exporting, joint ventures, foreign direct investment, and standardized or adapted marketing mixes. 2. It also covers factors in the international trade and marketing environments like tariffs, quotas, currency controls and economic communities that firms consider. 3. The document examines strategies for product, promotion, price, distribution channels and marketing organizations in global markets.

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Major International Marketing DecisionMajor International Marketing Decision

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Global industryGlobal industry
• An industry in which the strategic positions of competitors in
given geographic or national markets are affected by their
overall global positions .
Global firmGlobal firm
• A firm that, by operating in more than one country, gains R&D,
production, marketing, and financial advantages in its costs and
reputation that are not available to purely domestic
competitors .

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Looking At The InternationalLooking At The International
Marketing EnvironmentMarketing Environment

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- The International Trade System
TariffTariff
• A tax levied by a government against to certain imported
products, which is designed to raise revenue or to protect
domestic firms .
QuotaQuota
• A limit on the amount of goods that an importing country will
accept in certain products categories; it is designed to conserve
on foreign exchange .
EmbargoEmbargo
• A ban on the import of certain product .

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Exchange controlsExchange controls
• Limits placed by a government on the amount of its foreign
exchange with other countries and on its exchange rate against
other currencies .
No tariff trade barriersNo tariff trade barriers
• No monetary barriers to foreign products, such as biases
against foreign company’s bids or product standards that go
against foreign company’s product features .

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Economic communityEconomic community
• A group of nations organized to work toward common goals in
the regulation of international trade .
-- Economic EnvironmentEconomic Environment
-- Political-Legal EnvironmentPolitical-Legal Environment
Counter tradeCounter trade
• International trade involving the direct or indirect exchange of
goods for other goods instead of cash .forms include barter,
compensation (buy-back), and counter purchase .
-- Cultural EnvironmentCultural Environment

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Deciding Whether to go AbroadDeciding Whether to go Abroad

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Deciding which markets to enterDeciding which markets to enter
Market-entry StrategiesMarket-entry Strategies

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Deciding how to enter the marketDeciding how to enter the market
-- ExportingExporting
ExportingExporting
• Entering a foreign market by exporting products and selling
them through international marketing middlemen (indirect
exporting) or through the company’s own department, branch,
or sales representatives or agents (direct exporting) .

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-- Joint VenturingJoint Venturing
Joint venturingJoint venturing
• Entering Foreign markets by joining with foreign companies to
produce or market a product or service.
LicensingLicensing
• A method of entering a foreign market in which the company
enters into an agreement with a licensee in the foreign market,
offering the right to use a manufacturing process, trademark,
patent, trade secret, or other item of value for a fee or royalty .

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Contract manufacturingContract manufacturing
• Joint venturing to enter a foreign market by contracting with
manufacturers in the foreign market to produce the product .
Management contractingManagement contracting
• A joint venture in which the domestic firm supplies the
management know-how to foreign company that supplies the
capital; the domestic firm exports management services rather
than products .

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Joint ownershipJoint ownership
• Entering a foreign market by joining with foreign investors to
create a local business in which the company shares joint
ownership and control .
Direct investmentDirect investment
• Entering a foreign market by developing foreign-based
assembly or manufacturing facilities .
-- Direct InvestmentDirect Investment

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Deciding on the MarketingDeciding on the Marketing
ProgramProgram
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Standardized marketing mixStandardized marketing mix
• An international marketing strategy for using basically the same
product, advertising, distribution channel, and other elements of
the marketing mix in all the company’s international markets .
Adapted marketing mixAdapted marketing mix
• An international marketing strategy for adjusting the marketing
mix elements to each international target market, bearing more
costs but hoping for a larger market share and return .

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Straight product extensionStraight product extension
• Marketing a product in the foreign market without any change .
-- ProductProduct
Product adaptationProduct adaptation
• Adapting a product to meet local conditions or wants in foreign
markets .
Product inventionProduct invention
• Creating new products or services for foreign markets .

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Five International Product and PromotionFive International Product and Promotion
StrategiesStrategies
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-- PromotionPromotion
-- PricePrice
Whole-Channel Concept for InternationalWhole-Channel Concept for International
MarketingMarketing
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-- Distribution ChannelDistribution Channel
Whole-channel viewWhole-channel view
• Designing international channels that take into account all the
necessary links in distributing the seller’s products to final
buyers, including the seller’s headquarters organization,
channels between nations, and channels within nations .

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Deciding on the Marketing OrganizationDeciding on the Marketing Organization
-- Export DepartmentExport Department
-- International DivisionInternational Division
-- Global OrganizationGlobal Organization

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Three Types of Marketing in service IndustriesThree Types of Marketing in service Industries