International marketing ? Exporting, Licensing and Franchising
Why Firms Go International
PROACTIVE Motivators
? Profit
? Unique products (competitive edge)- but may not be on global scale
? Technological advantages ? but firms can copy
? Exclusive information (through contacts) ? competitors catch up with time
? Tax Benefit
? Economies of scale (increased production globally = lower domestic)
REACTIVE Motivators
? Competitive pressures (insufficient preparation = hasty entry/ quick withdrawal) and fear of domestic/foreign market
? Overproduction (in recession provide domestic but once returned excess goods)
? Declining domestic sales (may be in decline stage of cycle ? but good use in developing economies)
? Excess capacity (unused equipment)
? Saturated domestic markets (Sales decline)
? Proximity to customers and ports (Physical US and Mexico) or (psychological UK and US ? Language )
? R & D
? High start up costs
? Marketing
Change agent
- Someone/thing initiates change and helps through implementation (e.g. marketing dept)
Internal factors to the firm
? New management
? Significant internal event
? Managers best if have urge/desire to succeed and are enthusiastic of change
? High level of commitment from manager
External factors to the firm
? Demand
? Other ...