International Market Entry strategies, Lecture notes of Marketing

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International

Market Entry

strategies

International Market

Entry

 A Market Entry strategy is the planned method of delivering goods or services to a new target market and distributing them there.

 When importing or exporting services, It refers to establishing and managing contracts in a foreign country.

Exporting

 Exporting is the most traditional & well established form of operating in foreign markets.

 Exporting can be defined as the marketing of goods produced in one country into another

 The tendency may be not to obtain a much detailed marketing information as compared to manufacturing in marketing country.

 Forms of exporting include-

a) Direct Exporting

b) Indirect Exporting

Franchising

 Franchising is the practice of using another forms successful business model.

 Examples: Starbucks, Subway, McDonalds Etc.

 Franchiser issues the Franchisee. (Allows the operator to use the brand name and other facilities for which the operator is being charged certain amount)

 Every country have different policies and laws for franchising

Contract Manufacture

 Company doing International marketing contacts with firms in foreign countries to manufacture /Assemble the products while retaining the responsibility of marketing the product.

 This is a common practice in international market.

 Many multinational employ this in India.

Ex – Hindustan lever, Park Davis, Ponds

Management Contracts

 Management Contracts is agreement between two companies, whereby one company provides managerial assistance, Technical expertise & Specialized service to the second company of the Agreement for a certain period in return for monetary compensation.

 It Emphasize the growing importance f the services, business skills & management expertise as sellable commodities in international trade.

Strategic Alliances

 The Strategy seeks to enhance the long term competitive long term advantage of the firm by forming alliance with its competitors instead of competing with each other.

 The Goals are to leverage critical capabilities, increase the flow of innovations & increase flexibility & responding to market and technological changers.

Mergers & Acquisitions

 This Strategy is also known as expansion strategy & have been important & powerful driver of globalization.

 Merger & Acquisitions are major aspects of corporate strategy which help dealing with the buying, Selling, dividing & Combining of different companies having similar entities which help an enterprise to grow rapidly in its sector.

For Example – Telecom sector, Banking Sector etc.

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