Characteristic of the environment of the international marketing.

1. Characteristic of the environment of the international marketing.

2. International Commercial Terms (INCOTERMS) The INCOTERMS (International Commercial Terms) is a universally recognized set of definitions of international trade terms, such as FOB, CFR and CIF, developed by the International Chamber of Commerce (ICC) in Paris, France. It defines the trade contract responsibilities and liabilities between buyer and seller.

3. INCOTERMS Incoterms consist of 4 groups (E,F,C,D) and are listed below in order of increasing risk/liability to the exporter. Some Incoterms only apply to ocean/inland, not air, transportation modes.

4. INCOTERMS • EXW - Ex Works -- The only Incoterm in Group E, represents the minimum liability to the seller. Risk and expenses are borne by the buyer, including payment of all transportation and insurance costs from the seller's door. • GROUP “F” - Seller pays for pre-carriage at origin but does not pay for main carriage. • GROUP “C” - Seller arranges and pays for main carriage but does not assume risk. • GROUP “D” - Seller assumes the most cost/risk because goods must be made available upon arrival at agreed destination.

7. Looking at the Global MarketingEnvironment

8. WTO The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements which are signed by representatives of member governments and ratified by their parliaments.

9. WTO

10. The General Agreement, on Tariffs and Trade The General Agreement on Tariffs and Trade (GATT) is an international treaty designed to promote world trade by reducing tariffs and other international trade barriers. There have been eight rounds of GATT talks since its inception in 1948, in which member nations reassess trade barriers and set new rules for international trade.

11. Regional Free-Trade Zones The European Union EFTA AFTA NAFTA ANDEAN PACT SADC SAARC APAC MERCOSUR UEMOA

13. Economic Environmental Factors

14. Political-Legal Environmental Factors

15. Monetary and non-monetary regulation

16. Monetary and non-monetary regulation

17. Cultural Environmental Factors

18. Deciding which Markets to Enter • Indicators of market potential 1. Demographic characteristics • Size of population • Rate of population growth • Degree of urbanization • Population density • Age structure and composition of the population 2. Geographic characteristics • Physical size of a country • Topographical characteristics • Climate conditions 3. Economic factors • GNF per capita • Income distribution • Rate of growth of GNP • Ratio of investment to GNP

19. Establishing Market Entry Mode

20. Establishing Market Entry Mode Direct investment – is an entering a foreign market by developing foreign-based assembly or manufacturing facilities.

21. Establishing Market Entry Mode Exporting – is a faltering a foreign market by sanding products and selling them through international marketing intermediaries (indirect exporting) or through the company's own department, branch, or safes representatives or agents (direct exporting). Indirect Exporting Direct Exporting

22. Establishing Market Entry Mode Joint venturing – is an entering foreign, markets by joining with foreign companies to produce or market a product or service.

23. Establishing Market Entry Mode Licensing – is 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 royally.

24. Establishing Market Entry Mode Contract manufacturing – is a joint venture in which a company contracts with manufacturers in a foreign market to produce the product.

25. Establishing Market Entry Mode Management contracting – is a joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products.

26. Establishing Market Entry Mode Joint ownership – is a joint venture in 'which a company joins investors in a foreign market to create a local business in which the company shares joint ownership and control.

27. Deciding on the Global Marketing Program Five International Product and Promotion Strategies

28. Deciding on the Global Marketing Program Straight product extension means marketing a product in a foreign market without any change. Product adaptation involves changing the product to meet local conditions or wants. Product invention – is creating new products or services for foreign markets.Product invention consists of creating something new for the foreign market.This strategy can take two forms, it might mean re Intro dueling earlier product forms that happen to be well adapted to the needs of a given country.Or a company might create a new product 10 meet a need in another country.

29. Deciding on the Global Marketing Program Communication adaptation – is a global communication strategy of fully adapting advertising messages to local markets. Companies adopt a dual adaptation strategy when both the product and communication messages have to be modified to meet the needs and expectations of target customers in different country markets.

30. Distribution Channels

31. Deciding on the Global MarketingOrganization

32. Deciding on Global Marketing Organization Export department is an arm of international marketing organization that comprises a sales manager and a few assistants is to organize the shipping out of the company's goods 10 foreign markets. International division – is a form of international marketing organization in which tin: division handles alt of the firm's international activities. Marketing, manufacturing, research, planning and specialist staff are organised into operating units according to geography or product groups, or as an international subsidiary' responsible for its own sales and profitability. Global organization - affirm of international organization whereby top corporate management and staff plan worldwide manufacturing or operational facilities, marketing policies, financial flatus and logistical systems. The global operating unit reports directly to the chief' executive, not to an international divisional head.

33. Thank you for attention!