Session 6
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/1
Levels of involvement
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/3
SUCCESSFUL MARKET ENTRY #2 Criteria for Selecting Appropriate Market Entry Method
The nature of existing and anticipated tariff and non-tariff barriers The nature of the product itself, particularly any areas of competitive advantage, such as trademark or patent protection The timing of the move in relation to the market and competitive situation
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/4
Manufacturing
Own subsidiary Acquisition Assembly
Direct Exporting
Distributors Agents Direct marketing Franchising Management contracts
Indirect Exporting
Piggybacking Trading companies Export management companies Domestic purchasing
Risk
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/5
INDIRECT EXPORTING #1
Domestic Purchasing
Foreign organisation purchases the product for export to another country Gives access to and limited knowledge of the international market Little control over choice of markets entered For longer term, need a more proactive approach
ch7/6
INDIRECT EXPORTING #2
Trading Houses
Their extensive operations and controls enable operation in more difficult trading areas Manage countertrade activities
Piggy Backing
An established international distribution network of one manufacturer used to carry products of a second Particularly good for firms from developing countries Often poorly considered terms and conditions
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/7
Promotion:
Corporate promotions & local selling, trade shows & literature
Product:
Selection, development & sourcing
Technical:
Specifications, testing & product quality
Distribution:
Sales force management, agents, distributors & logistics
Services:
Market research, training & sales servicing
Finance & Administration: Budgets, order processing, insurance & credit control
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/8
IMPORTANT FACTORS FOR SUCCESSFUL EXPORTING Commitment of the firms management Exporting approach reliant on strong skills base Good marketing and information communication system production capacity & capability, product superiority, competitive pricing Effective market research Effective national export policy
Source: Katsikeas et al (1996)
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/9
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/10
SELECTION CRITERIA FOR FINDING A SUITABLE AGENT Financial strength of the agent Their contacts with potential customers The nature and extent of their responsibilities to other organisations Their premises, equipment and resources (including sales representatives)
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/11
ch7/12
ch7/13
MINIMISING THE POTENTIAL PROBLEMS OF LICENSING #1 Develop a clear policy and plan Allocate licensing responsibility to a senior manager Select licensees carefully Draft the agreement carefully to include duration, royalties, trade secrets, quality control and performance measures
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/14
MINIMISING THE POTENTIAL PROBLEMS OF LICENSING #2 Supply the critical ingredients Obtain equity in the licensee Limit the product and territorial coverage Retain patents, trademarks, copyrights Be an important part of the licensees business
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/15
FOREIGN MANUFACTURING STRATEGIES WITH DIRECT INVESTMENT Reasons for investment in local operations
To gain new business: local production demonstrates strong commitment To defend existing business To move with an established customer To save costs: e.g. labour, raw materials and transport To avoid government restrictions
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/16
Use with INTERNATIONAL MARKETING STRATEGY: Analysis, development and implementation 4TH edition ISBN 1-84480-8025-3 Published by Thomson Learning DOOLE AND LOWE
ch7/17