CASEAPPLICATION 149
Licensing Anagreementinwhicha firm(licensor)provides sometechnologytoa foreignfirm
(licensee)bygrantingthefirmtherighttousethelicensor'smanufacturingprocess.brandname,
orsalesknowledgeinreturnforsomepayment.
Jointventure Apartnershipbetweena domesticfirmanda foreignfirm.
Straightextension Theintroductionofthesameproductandthesamemessageineveryforeign
market.
Communicationadaptation Astrategyusedinforeignmarketswhenthesameproductcanbe
usedtosatisfydifferentneeds,orifa productisusedina differentwayinforeignmarket
Productadaptation A productischangedtomeetindividualforeigntargetmarketneeds.
DiscussionQuestions
1.Whatarethereasonsa firmmightengageinexporting?
2.Howdoestheeconomicenvironmentaffectinternationalmarketingactivities?
3.Howdoes theculturalenvironmentaffectinternationalmarketingactivities?
4.Howdoesthetechnologicalenvironmentaffectinternationalmarketingactivities?
5.Brieflydescribethemajorstrategiesafirmmightusetoentera foreignmarket.
6.Whyarepricesoftenlowerinforeignmarkets thanindomesticmarkets?
7.Whatarethedifferencesbetweenstraightextension,communicationadaptation, productadap-
tation,dualadaptation,andproductinventionstrategies?
8.Whatarethereasonswhya firmmightentera foreignmarketbymeansofa jointventure
strategy?
9.Brieflydesclibethemethodsofdistributionusedbydirectexporters.
- Whydoesdirectinvestmentinforeignmarketsaffordmarketersthegreatestdegreeofcontrol
overinternationalmarketingactivities?
Project
Identifya U.S.-madeproductthatis currentlysoldintheU.S.Developa marketingplanforthis prod-
uct,assumingtheyplantoexporttoCanada.
CASEAPPLICATION
UNILEVER'SGLOBALBRAND
UnileverdivisionUnipathistobegintheglobalrolloutofa contraceptiveproductthathasbeen 15
yearsinsecretdevelopmentandthatthecompanyis hailingasa majorbrandlaunch.
"Thebiggestthingtohappentocontraceptionsincethe'60s,"astheU.K.printandposterads
throughOgilvy&MatherWorldwide,London, de scribesit.Personaisthefruitoftensofmillions
ofdollarsinvestment.
