《国际市场营销实务（双语）Task Six International Markets Entry Mode Selection》由会员分享，可在线阅读，更多相关《国际市场营销实务（双语）Task Six International Markets Entry Mode Selection（33页珍藏版）》请在金锄头文库上搜索。
1、International Markets Entry Mode Selection When a company chooses the entry mode for a foreign market, it has three alternatives for selection, exporting entry mode, contractual entry mode and investment entry mode.Conditions Favoring Exportingthe import policy in the target country is liberalexport
2、ers are not experienced in marketing in foreign markets and find it difficult to obtain the distribution channels.exporters found it costly to build plants in target country because the labor costs in many countries are very highsome countries present high political risksIndirect exporting means tha
3、t the company sells its products to intermediaries who will sell the product overseas.Advantages and Disadvantages of Indirect ExportThe manufacturer can sell its product to a distributor with little investment without having to learn much about the international marketlack of control over the marke
4、ts of its products, which may result in losing sales and a loss of goodwillCompanies engaging in direct exporting have their own exporting expertiseSuch companies have more control over the marketing mix in the target marketDisadvantages of Direct ExportCompanies have to carry the cost of their expo
5、rt department staff and those involved in selecting and monitoring the freight forwarders, shipping lines, insurers, marketing researchers, and advertising companiesIn this type of export mode, a firm joins with others to effectively market a complementary product program to larger buyers.-Look at M
6、ini- Case 6.1PiggybackIn this type of entry mode, the inexperienced company, the “rider”, deals with a larger company, the “carrier”, which operates in some foreign markets and is willing to act on behalf of the rider who wants to export to those markets.Mansion Toys Co., Ltd. is a small toy manufac
7、turer, specializing in the design and production of handicrafts, all kinds of plush toys and short plush toys. Its products feature new product designs and are popular with consumers and the company enjoys a high reputation in home market. After several years of development, the enterprise had devel
8、oped into a large-scale toy manufacturer.To explore the foreign market, companies decided to export to European markets. Do you think the company should export directly or indirectly? Please state your reasons.2.1 Conditions Favoring Contractual Entry ModeFirms may find it impossible or expensive to
9、 supply all the foreign markets from domestic production.Contractual entry mode consists of licensing, franchising, contract manufacturing and turn-key project.Licensing is one of the entry modes in which a firm transfers its production knowledge and skills to produce goods locally.Licensing involve
10、s a licensor and a licensee.The licensor offers intangible property such as know-how, shares technology, and often a brand name with the licensee. The licensee, in turn, pays royalties based on a percentage of revenue generated by the intangible property.By licensing agreement, the licensor can supe
11、rvise the licensee to ensure the product quality.Licensing is a lower-risk entry mode that permits a company to sell a product all over the world, allowing for rapid international expansion and high brand awareness.A disadvantage of licensing is that it can produce a potential competitor from the li
12、censees.Franchising is a principal entry mode for the service industry, and it is the service industrys equivalent to licensing.The franchisor gives the franchisee the right to use its brand name and all related trademarks and its business know-how, such as secret recipes and customer interfacing te
13、chniques.A franchisor is selective when choosing a franchisee to ensure that the performance of franchisee can match the franchisors requirement- -Mini-Case 6.2The franchisor takes less risk and a higher level of control over operations. Franchising is an approach that facilitates rapid market penet
14、ration.On the downside, franchising could create future competitors who know the secrets of the franchises operations.Contract manufacturing is an entry mode in which a firm provides a foreign manufacturer raw materials, components or detailed specification for production and assembling, while the f
15、irm remains responsible for the product marketing and selling.Firms using this way can enter a foreign market quickly without having to build their own foreign plants.The downside is that the components imported to host countries may encounter some barriers.Besides, the firm may lost control over th
16、e production process and are affected as a delay in delivery.A turn-key project is a type of project that is designed, constructed and tested by a contractor and turned over to a foreign outsourcer in a ready-to-use condition.Advantages and Disadvantages of Turn-Key ProductThis type of entry mode provides opportunities to enter a foreign market.It may also create future competitors as the outsourcers may learn some technology know-how.If the
