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INTERNATIONAL MARKETING

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1. What are the advantages for a company of expanding beyond its domestic market?

-Economy of scale (экономия от масштаба)
-Reputation -> investments
-Division of labour
-Work experience exchange
-Taxes
-Diversification (products, risks,)
-Increase sales and profits
-Gain your global market share
-Reduce dependence on existing markets
-Exploit international trade technology
-Extend sales potential of existing products
-Stabilize seasonal market fluctuations
-Access to other sources in other countries (raw materials, labour force)
-Enhance potential for expansion of your business
-Expansion brought about by international trade could accelerate the advantages of taking your company public

 

 

2. What kinds of problem do companies face when they go international?

-Cultural differences
-You may need to wait for long-term gains
-Hire staff to launch international trading
-Modify your product or packaging
-Develop new promotional material
-Incur added administrative costs
-Dedicate personnel for traveling
-Wait long for payments
-Apply for additional financing
-Deal with special licenses and regulations

 

  1. What methods can companies use to enter overseas markets?

-sell direct

-set up subsidiary

-work out a deal with local distributers

-buy up a local company

-establish own operations

 

Philip Kotler:

1) Indirect export (through intermediary)

2) Direct export (set up your own agencies of offices)

3) Direct investments (buy up a company, establish your own production facilities)

4) Licensing (buy or sell a trade mark, a patent, etc. for a fee or royalty)

5) Joint-venture (two or more companies enter a temporary partnership)

 

  1. What are some of the main benefits of political stability?

 

Political stability leads to predictable patterns in economic policies, and allow investors, tax-payers, bankers, etc. to take long-term decisions, which also aids in long-term development in a country. It makes country more attractive for the investors, establishes conditions for employment, underpins the national currency.

 

5. How would you describe the present economic situation of your country compared to some decades ago?

The economy of Russia is the Eighth largest economy in the world by nominal value and the sixth largest by purchasing power parity (PPP). Russian economy is today considered by IMF and World Bank a developing one. Russia has an abundance of Fossil Fuels (Oil, Natural gas and coal) and precious metals. Russia has undergone significant changes since the collapse of the Soviet Union, moving from a centrally planned economy to a more market-based and globally integrated economy. Economic reforms in the 1990s privatized many sectors of the industry and agriculture, with notable exceptions in the energy and defense-related sectors. Nonetheless, the rapid privatization process, including a much criticized "loans-for-shares" scheme that turned over major state-owned firms to politically connected "oligarchs", has left equity ownership highly concentrated. As of 2011, Russia's capital, Moscow, now has the highest billionaire population of any city in the world.

In late 2008 and early 2009, Russia experienced the first recession after 10 years of experiencing a rising economy, until the stable growth resumed in late 2009 and 2010. Despite the deep but brief recession, the economy has not been as seriously affected by the global financial crisis, largely because of the integration of short-term macroeconomic policies that helped the economy survive, as well as low sovereign debt levels which made austerity unnecessary. The Russian Government predicts stable growth rates for future years of around 3.4% of GDP

6. How do companies differ in their approaches to develop and launch their products?

Companies also develop products in different countries in markedly – заметно/явно different ways. Japanese companies, for example, tend to believe much more in getting new products to market and then gauging - измерять the reaction to them. The product itself may have been developed with reference to observa tions of present and potential customers rather than conventional - обычный market research. US companies, on the other hand, tend to use more formal market no research methods. And for German companies, prod uct development schedules tend to be more important.

Clearly, companies de cide on different launch strategies for different cat egories of products. Toshiba launched the Digital Video Disk (DVD) in Japan in 120 November 1996, in the US in March 1997 and in Europe in autumn 1997. However, Intel launches its latest PC chips practically simultaneously in all coun tries. The launch decision also includes marketing mix decisions. When Citibank introduced its credit card in the Asia-Pacific region, it launched it sequentially and tailored the product features for each country while maintaining its premium posi tioning. The promotional, pricing and distribution strategies also differed from country to country.

As a contrast, consider Rolex. The genuine Rolex watch is the same certified chronometer anywhere in the world; its positioning - as the timepiece for the ele gant high achiever - is the same around the world, as is the advertising message. One will always find a Rolex in an upmarket dis tribution outlet and at a premium price. Or consid er Unilever's Lifebuoy soap, which has different ingredients in India com pared to East Africa. How ever, Unilever positions the soap in the same way in both markets - as an inexpensive everyday soap that has antibacterial proper ties and protects health.

 




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