International Marketing Entering & Operating in International Markets
Entering & Operating in International Markets
Three Main Market Segments
High purchasing power, High End Products with advances features
Pay for basic products at low prices
Mid-level income, choosing "good enough" performance
Modes of entry
May enter through a range of ways
Global Strategic Partnership
Link-ups between companies from 2 or more rejoins, which jointly decide to pursue a marketing opportunity, share resources or combine ideas. I.E. Technology / Automotive
Organisation selling the rights to use its technology, patent or trademark, to 1 or more organisations in foreign markets, for an agreed time in exchange for royalties.
Cooperation between 2 or more industrial corporations, belonging to different countries.
type of licensing, companies in foreign markets, pay to use the product or trade name belonging to an organisation. Difference is it offers franchisee's more control.
Involve 2 or more organisations forming a partnership. Costs / risks & profits are shared.
Equity Joint Venture
separate entity for the partnership
Contractual joint venture
pool resources to offer an extensive offering
contracting a manufacturer in a foreign market to produce an organisations product of service.
- Exporting the offerings and managing contracts them self in the international market. Domestic or foreign-based offices offer more control and greater commitment to the market.
Export of management services rather than products, I.E. Hilton Hotel, use the Double Tree name locally but managed by Hilton
- through an independent organisation based in the domestic market. Using expertise, less investment and risk.
Greatest level of commitment to a foreign market, highest level of control through ownership of foreign division.
Gloablisation Vs Customisation
Distribution networks can vary, depending on local customs and infrastructure.
The need to adapt offerings and communications to local preferences and conditions.
Differences in advertising regulations, marketing communications will differ depending on country / market.
Globalisation, more than just goods and services, its also social and cultural trends.
Some products can use different levels of dialogue, visual with disclaimer or verbal word play which is less standardised.
Organisations need to decided how much they standardise the approach or how much adaptation is needed when entering a foreign market.