What Might Drive a Company to Create International Divisions or Subsidiaries

question 18

Essay

What might drive a company to create international divisions or subsidiaries? Discuss the three ways these divisions can be organized.

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Definitions:

Direct Marketing

A form of advertising where companies communicate directly with customers through a variety of media including cell phone text messages, email, websites, online adverts, database marketing, fliers, and catalog distribution.

Sales Promotion

Marketing activities that aim to increase sales in the short-term by offering incentives or discounts to consumers or resellers.

Cost Per Contact

A metric that measures the average expense incurred by a company to make a single contact with a potential or current customer, often used in marketing and advertising.