Direct Marketing (4)

Collectivist culture
A culture in which emphasis is placed on the group as a whole. Example: Latin America, Asia, Middle East
Individualistic cultures
A culture in which emphasis and value is in the individual. Examples: USA, Europe, Canada, Australia
The practice of identifying particular segments, country groups, or individual consumer groups across countries of potential customers who display similar behavior in buying
Total market value of all final goods and services produced in a certain year within a nation’s borders
Is normally a leading indicator of economic development of a country and indicates the essential services that support business activities
when a company sells its products from its home base without any personnel physically located overseas (ex. L.L. Bean)
similar to franchising, local businesses become authorized to manufacture or sell specific brand products for another countries (Ex.Orvis, outdoor clothing)
A company located in the home or domestic country that permits overseas manufacturing to occur
the foreign business that enter into an agreement and becomes authorized to manufacture or sell specific brand products in its country on behalf of a licensor.
joint venture
2 or more investors join forces to conduct a business by sharing ownership and control (ex. E*Trade)
contract manufacturing
The process by which a company contracts a local manufacturer to produce goods for the company
direct investment
The process whereby a company entering a foreign marker acquires an existing company or forms a completely new company
management contracting
The process whereby a contract is signed with local foreign people or the foreign government to manage the business in the country market
A tax charged by a government, especially on imports
1st international direct marketer
Aldus Manutius of Venice 1498
published catalog (15)
Reasons companies go into international direct marketing
1) limited growth opportunities in domestic markets
2) shared global value
3) high cost of new product development at home
4) competitive forces
Models of market entry
Exporting, joint venture, direct investment, licensing, contract manufacturing
Most easy in Models of market entry
Most risky in Models of market entry
Direct Investment
Differences between domestic and international direct marketing


Market uncertainty
there is so many uncontrollable variables
5 step approach to conducting international marketing
1) Access your international potential
2)Conduct full market research
3)Select your trading partners
4) Develop an international direct marketing plan
5) begin international direct marketing activities
Pay special attention to target countries:
Infrastructure considerations
1) lists/ databases (who will be on list/privacy(strict or no))
2) Fulfillment (delivery product)
3) Media(To advertise; what can you advertise on TV)
4) Creative (Pictures that they are use)
Lists and Databases
1)Available for both consumer and business customers
2) Different kinds of lists available in different countries
3) Be aware of laws of privacy
Fulfillment: 2 main distribution options
1) ship product from home location
2) establish a bulk distribution operations overseas
other concerns:
determination of payment, customer service, and location of distribution enter
1) Must determine the most effective media mix based on consumer preferences in each foreign market
2) factors of determination include: media availability, legal restrictions, literacy rates, and cultural differences
1)Research the audience
2)test the offer and copy
3) translate message into proper language
4) adapt to local nuances of different cultures
2)Conduct full market research
1) population (marketers prefer to enter small populations such as Singapore)
2)Political Stability (exchange rates)
4)Distribution of wealth
5)age distribution
7)tariffs and taxes
8)Computer ownership
9)postal/delivery services