Subsistence economies: vast majority of people engage in simple agriculture. consume most of their output and barter the rest for simple goods and services. offer few market opportunities. consist mostly of households with very low family incomes
Raw material exporting economies: rich in one or more natural resources but poor in other ways. much of the revenue comes from exporting these resources. ex. Chile (tin an copper) and the Democratic Rep of the Congo (copper, cobalt, coffee)
Emerging economies: fast growth in manufacturing results in rapid overall economic growth. as manufacturing increases, the country needs more imports of raw textile materials, steel, and heavy machinery, and fewer imports of finished textiles, paper products, and automobiles. ex. BRIC countries
Industrial economies- major exporters of manufactured goods, services, and investment funds. trade goods among themselves and also export them to other types of economies for raw materials and semifinished goods. The varied manufacturing activities of these industrial nations and their large middle class make them rich markets for all sorts of goods
Licensing: entering foreign markets through developing an agreement with a licensee in the foreign market. For a fee or royalty payments, the licensee buys the right to use the company's manufacturing process, trademark, patent, trade secret, or other item of value. The company thus gains entry into a foreign market at little risk; at the same time, the licensee gains production expertise or a well-known product or name without having to start from scratch.
Contract manufacturing: company contracts with manufacturers in a foreign market to produce the product or provide its service. The drawbacks are decreased control over the manufacturing process and loss of potential profits of manufacturing. The benefits are the chance to start faster, with less risk, and the later opportunity either to form a partnership with or buying out the local manufacturer.
Management contracting: domestic firm supplies the management knowhow to a foreign company that supplies the capital. The domestic firm exports management services rather than products. Management contracting is a low-risk method of getting into a foreign market, and it yields income from the beginning. The arrangement is even more attractive if the contracting firm has an option to buy some share in the manages company later one. The arrangement is not sensible, however, if the company can put its scarce management talent to better uses or if it can make greater profits by undertaking the whole venture. Management contracting also prevents the company from setting up its own operations for a period of time.
Joint ownership: Company creates a local business with investors in a foreign market, who share ownership and control. Joint ownership may be needed for economic or political reasons.
Direct investment: Entering a foreign market by developing foreign-based assembly or manufacturing facilities. A company may buy an interest in a local firm, or the two parties may form a new business venture. Advantages: lower costs, improved image in the host country, deeper relationships, full control over investment. Disadvantages: restricted or devalued currencies, falling markets
International marketing approach that adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return. The marketing concept holds that marketing programs will be more effective if tailored to the unique needs of each targeted customer group. If this concept applies within a country, it should apply even more across international markets. Despite global convergence, consumers in different countries still have widely varied cultural backgrounds. They still differ significantly in their needs and wants, spending power, product preferences, and shopping patterns. Because these differences are hard to change, most marketers today adapt their products, prices, channels, and promotions to fit consumer desires in each country.