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International Marketing Entering & Operating in International Markets
International Marketing
Entering & Operating in International Markets
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
Licensing
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.
Strategic Alliances
Cooperation between 2 or more industrial corporations, belonging to different countries.
Franchising
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.
Joint Ventures
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
Contract Manufacturing
contracting a manufacturer in a foreign market to produce an organisations product of service.
Direct Exporting
- 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.
Management Contracting
Export of management services rather than products, I.E. Hilton Hotel, use the Double Tree name locally but managed by Hilton
Indirect Exporting
- through an independent organisation based in the domestic market. Using expertise, less investment and risk.
Direct Investment
Greatest level of commitment to a foreign market, highest level of control through ownership of foreign division.
Gloablisation Vs Customisation
Organisations need to decided how much they standardise the approach or how much adaptation is needed when entering a foreign market.
Some products can use different levels of dialogue, visual with disclaimer or verbal word play which is less standardised.
Globalisation, more than just goods and services, its also social and cultural trends.
Differences in advertising regulations, marketing communications will differ depending on country / market.
The need to adapt offerings and communications to local preferences and conditions.
Distribution networks can vary, depending on local customs and infrastructure.
Three Main Market Segments
Middle-Market Segment
Mid-level income, choosing "good enough" performance
Low-End Segment
Pay for basic products at low prices
Premium Segment
High purchasing power, High End Products with advances features