REASONS FOR INTERNATIONAL TRADING BETWEEN COMPANIES
Subject :MARKETING
Topic :International marketing
Class :SS3
Term :FIRST TERM
Week :2
Instructional Materials :
- Pictures
- Wall Chart
Reference Materials
- Scheme of Work
- Online Information
- Textbooks
- Workbooks
Previous Knowledge :
The pupils have previous knowledge of
Behavioural Objectives : At the end of the lesson, the pupils should be able to
- explain international marketing
- exp[lain different levels of marketing
- define marketing
Content :
REASONS FOR INTERNATIONAL TRADING BETWEEN COMPANIES
Amongst individual companies there is an increasing need for them to expand their markets into the international arena for a number of reasons,namely;
To increase the overall level of total profits,
Because the home market might be saturated,
To take advantage of an in novative world product or service
To enjoy the funding benefits from setting up the manufacturing and assembly bases in certain overseas countries which might also offer access to the trading block to which that country belongs
The reason a company might wish to enter the international arena is to escape competition in the home market,
I MPORTANCE OF INTERNATIONAL MARKETING,
Counteract slowing Growth; companies in some industries have found that the rate of growth of their traditional markets is slowing or even stagnant,
To sustain the revenue growth which the company has achieved in the past,it is necessary to build the international side of their business,
for companies which have gone public,slower growth in earnings per share can result in a declining price for the companys stock
Entering markets before competitors do; A first to market advantage means bringing your company’s goods to service to a new market segment ahead of your competitors,over time a company may lose this advantage domestically as new competitors arise and begin to gain market share ,but international markets for these same goods or services may not yet be exploited,The company can be a trailblazer in the new international market and rapidly build revenues there,
Better utilize productive capacity; Building international sales allows a manufacturing company to increase its factory utilization and lower its unit production costs for the company as a whole,because fixed operating costs are now spread over more units produced
Synergies between domestic and oversea operation; A successful international marketing strategy brings about synergistic,benefits that strengthen the organization as a whole,by establishing sales operations overseas,the company may discover opportunities to save costs by having some of the manufacturing or assembly of products done in the foreign country where labour costs are lower,The company’s international presence may open up opportunities to secure raw materials at favorable prices for both its parent country and international manufacturing activities,
International markets also makes goods and services produced in domestic market available in foreign markets
Presentation
The topic is presented step by step
Step 1:
The class teacher revises the previous topics
Step 2.
He introduces the new topic
Step 3:
The class teacher allows the pupils to give their own examples and he corrects them when the needs arise
Evaluation :
- Mention Four reasons for international trade
- Write out four importance of International trade
- Write out the levels in marketing
Conclusion :
The subject teacher wraps up or conclude the lesson by giving out short note to summarize the topic that he or she has just taught.
The subject teacher also goes round to make sure that the notes are well copied or well written by the pupils.
He or she does the necessary corrections when and where the needs arise.
