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Reading 21- International marketing- entering plus operating in…
Reading 21- International marketing- entering plus operating in international markets
mode of entry
Indirect exporting
export through an independent organisation- agent
Direct exporting
organisation exports itself
export via the internet- online website
Joint venture
involve two or more organisations forming a partnership, costs, risks and profits are shared
domestic and foreign firms
Seperate entity- equity joint venture
Contractual joint venture
Advantages
single point of contact- all airlines
travelers benefit from special fares and additional seating
harmonised, combinable fares and joint marketing
joint marketing flights reduce economic risk of adding new routes
coordinating key areas- airlines make better use of available capacity
Strategic alliances
cooperation between two or more industrial corporations
belonging to diff countries
each partner adds its competencies, combine resources
Global strategic partnerships
link ups between companies from two or more regions
jointly decide to pursue a marketing opportunity, share resources and combine ideas
Licensing
involves a firm selling the rights to use its technology, patent, trademark or know how to foreign organisation.
does this for an agreed time period in exchange for royalty payments
Franchising
type of licensing
firm in foreign markets pay to use the product or trade name belonging to an organisation
more control over use of international property
management contracting
involves the export of management services
domestic firm supplies the know how, foreign firm supplies the capital- HILTON HOTEL
Contract manufacturing
contracting a foreign market firm to produce an firm product or service
save costs on plant investment
loss of control on operations
Direct investment
ownership of foreign subsidiary or division-
Unliver- adapt to local markets
Henkel and TK
3 main market segments
Premium segment
middle market
Low end