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Entering new markets abroad (Problems (Cultural diferences : Products…
Entering new markets abroad
opportunities
markets in other countries have much greater growth potential than existing markets
home markets might be saturated and these new markets give the chance for higher sales
wider choice of location to produce products => encourages business to sell and produce in these countries
trade barriers have been lowered => easier and profitable to enter these markets
Methods to overcome
Join joint ventures
Licensing
Localize existing brands
Use international franchising
Problems
Cultural diferences : Products should fit with the religions and culture
Lack of knowledge : Aware of competitors ,
Exchange rates changes : price of products would be effects by the rate changes
Import restrictions : tariffs or quotas might reduce sales and profit
Increased risks of non-payment : methods of payment might effects the cost of imported goods
Increased transport cost : transport cost will increase follow by a reduction of sales and profis
Legals controls on marketing
Weight and measures
retailers and producer commit an offence if they sell underweight goods or the weighing is inaccurate
Trade descriptions
illegal to give the consumer a deliberately misleading impression about the product ill
Sale of good
illegal to sell the products that not satisfactory quality
Supply of good and service act
A service must be provided with reasonable skill and care
Consumer contracts regulations
allow the customers a cooling-off period of 14 working days when products are not bought in face-to-face .
misleading pricing claims
illegal to make misleading the price. E.g. $40 off for this week only. But the product was being sold the same price last week