This action might not be possible to undo. Are you sure you want to continue?
Submitted By: Ashish Sharma (Roll. No. 59) UNDER THE SUPERVISION & GUIDANCE OF
Dr.Rishipal Sharma (H.O.D MBA Dept.)
INDUS Institute of Engineering and Technologies
Kinnana (Jind) Affiliated to K.U.K
Table of Contents
I. Certificate II. Dedication III. Acknowledgement
This is to certify that Mr. Ashish Sharma has satisfactorily submitted his project report entitled ³³GLOBAL MARKETING STRATEGIES´ in partial for the award of degree of ³ M.B.A. Marketing ´. This is a record of student¶s own work carried out by him under my guidance and supervision. His performance is good. This dissertation report has been found quite satisfactory and is approved for submission.
Dr.Rishipal Sharma (H.O.D MBA Dept.)
Date : Place: Jind
I would like to dedicate this work to God Mahavira and my family. It is through God that I have learned to stand still and learn from this world. It is through my family that I have learned to appreciate God, education, and life.
I would like to thank everyone who has been a help at Embex Technologies Private Limited throughout my two months summer training at the marketing Department.
Index: 1) Embex Technologies Profile 2) Executive Summary 3) Global Marketing Strategies 4) Global Market Entry Strategies 5) Appendices 6) References 8 .
At Embex we help people develop sharp technical skills and professional attitude to stay ahead even in the most challenging circumstances. II. to become competent enough for global technical challenges. I. our engineers need to develop experience of real projects and products. implement and discover. Embex aims at providing our trainees maximum exposure to industry and its trend. Embex Technologies Private Limited.Company profile Embex is a company of qualified & committed professionals who are working with a vision of developing technical excellence in young engineers and technocrats. India is a powerhouse of technical workforce and has acquired a lead in providing technical manpower worldwide. The company provides future technocrats with initial platform to learn . The Embedded Experts company is delivering quality products and services in Embedded Systems. Figure(i) Figure(ii) 9 . However.
Data acquisition. Test & measurement instruments and data acquisition hardware. 10 . robotics. handheld instruments are some of the categories of the projects. Trainees have hands on experience on industrial projects which we run as pilot projects. We design & develop customized hardware for our clients for their industrial and scientific applications. experimental kits for college laboratories. They specialize ina) Embedded training kits b) VLSI training kits c) Lab instruments d) Customized products Figure (iii) Training The young engineers and technical enthusiasts provide training and project guidance in embedded system hardware and software design & development.Products Embex has a range of products in microcontroller training kits. sensor interfacing. VLSI kits.
exporting finished goods to a variety of countries.Domestic: Operate exclusively within a single country. it is opportunistic. If activity occurs outside the home region. 4.1) Executive Summary: Usually. to use Peter Drucker`s more refined construction to create and keep a customer. selling focuses on the needs of the seller. marketing and sales are 11 . some marketing. but key decisions are made and coordinated from the central office in the home region. The purpose of business is to get and keep a customer.International: Regional operations are somewhat autonomous. (through product differentiation and price competition) International marketing involves the marketing of goods and services outside the organization`s home country. Multinational marketing is a complex form of international marketing that engages an organization in marketing operations in many countries. 3. marketing on the needs of the buyer (customer). Or. sales and distribution outside the home region.Regional exporter: Operate within a geographically defined region that crosses national boundaries. Global marketing refers to marketing activities coordinated and integrated across multiple markets. 2. Manufacturing and assembly. Markets served are economically and culturally homogenous.Exporter: Run operations from a central office in the home region. A firm`s overseas involvement may fall into one of several categories: 1.
decentralized beyond the home region. sourcing. financing) are decentralized. marketing and sales is performed in the location(s) around the world most suitable for that function. low price and technology are key points for successful globalization. 6. and so does the multinational corporation. The multinational corporation operates in a number of countries and adjusts its 12 .International to global: Run independent and mainly self-sufficient subsidiaries in a range of countries. 5. While some key functions (R&D. The first helps determine human preferences. the multinational commercial world nears its end. Nobody is safe from global reach and the irresistable economies of scale (reduction of costs and prices) and scope. Both finished goods and intermediate products are exported outside the home region. sourcing. manufacturing. This makes the multinational corporation obsolete and the global corporation absolute. economic realities.Global: Highly decentralized organization operating across a broad range of countries. Technology and globalization shape the world. With that. the second. Standardized consumer products. Each function including R&D. the home region is still the primary base for many functions. The multinational and global corporation are not the same thing. No geographic area (including the home region) is assumed a priori to be the primary base for any functional area. The globalization of markets is at hand. The world`s needs and desires have been irrevocably homogenized (market needs).
Whether to compete globally is a strategic decision (strategic intent) that will fundamentally affect the firm. (think globally. many global firms produce the same products the same way for a global market but tailor their selling approaches to local variations in the global market. Instead of adapting to superficial and even entrenched differences within and between nations. The global corporation operates with resolute constancy at low relative cost (price) as if the entire world (or major regions of it) were a single entity. The right answer is that companies must learn how to enter foreign markets and increase their global competitiveness. the decision to globalize remains an important and difficult one 13 . it will seek sensibly to force suitably (more or less) standardized products and practices on the entire globe. it sells markets the same high-quality things similarly everywhere. Firms that do venture abroad find the international marketplace far different from the domestic one. buyer behavior and marketing practices all vary. (Standardization vs Localization) The modern global corporation contrasts powerfully with the aging multinational corporation. For many companies. including its operations and its management. act locally) 2) Global Marketing Strategies: Although some would stem the foreign invasion through protective legislation. protectionism in the long run only raises living costs and protects inefficient domestic firms (national controls). Market sizes.products and practices in each at high relative costs. meaning that international marketers must carefully evaluate all market segments in which they expect to compete. But.
etc.) d) Exploiting different economic growth rates (gaining scale and scope) e) Exploiting product life cycle differences (technology) f) Pursuing potential abroad g) Globalizing for defensive reasons h) Pursuing a global logic or imperative (new markets and profits) Moreover. To 14 . etc. the stage in the product life cycle. space. To succeed in global marketing companies need to look carefully at their geographic expansion. For some firms. demographic conditions. there are many issues behind a company`s decision to begin to compete in foreign markets. Typically. there can be several reasons to be mentioned including comparative advantage. it is a reaction to a specific business opportunity (global financial turmoil.(global strategy and action). competition at home. for others. a decision of this magnitude is always a strategic proactive decision rather than simply a reaction (learning how to business abroad). topography. But. tax structures and peace.) or a competitive challenge (pressuring competitors). Reasons for global expansion are mentioned below: a) Opportunistic global market development (diversifying markets) b) Following customers abroad (customer satisfaction) c) Pursuing geographic diversification (climate. economic trends. going abroad is the result of a deliberate policy decision (exploiting market potential and growth).
The first step is to understand the international marketing environment. home-country. this 15 . (constant innovation) Tracking the development of the large global corporations today reveals a recurring. The third step is to decide on which particular markets to enter and this calls for evaluating the probable rate of return on investment against the level of risk (market differences). An industry in which firm competes is also important in applying different strategies. a firm makes a conscious decision about its extent of globalization by choosing a posture that may range from entirely domestic without any international involvement (domestic focus) to a global reach where the company devotes its entire marketing strategy to global competition. Second. joint-ventures and finally direct investment. Each level of globalization will profoundly change the way a company competes and will require different strategies with respect to marketing programs. In the development of an international marketing strategy. Many companies start as indirect or direct export exporters and then move to licensing. the company has to decide how to enter each attractive market. it has to set its own strategies to deal with global competitors.some extent. For example. the company must consider what proportion of foreign to total sales to seek. when a firm which competes in the pharmaeutical industry which is heavily globalized. particularly the international trade system. planning. Then. organization and control of the international marketing effort. host-country or regional/global-oriented. the firm may decide to be domestic-only. sequential pattern of expansion. whether to do business in a few or many countries and what types of countries to enter.
Companies must next decide on the extent to which their products. these companies began their business development phase by entrenching themselves first in their domestic markets. the companies increasingly distributed their assets into many markets and achieved what was once termed the status of a multinational corporation (MNC). it often discounts national differences. usually on an export basis. this process may vary dramatically with the size of the domestic market. After that phase. when we contrast the Netherlands market for Philips vs the US market for GE. companies began to enlarge and build considerable local presence. we see that smallness of Netherlands`s market resulted in rapid globalization of Philips` activities when compared with GE`s activities in US. Most firms start with an export department and graduate to an international division. price and distribution should be adapted to individual foreign markets. Pursuing multidomestic strategies on a market-by-market basis. Typically. these firms began to turn into companies with some international business. Regions are treated as single markets and products are standardized by region or globally. But. Often. A few become global companies which means that top management plans and organizes on a global basis (organization history). Finally.company evolution has been called the internationalization process. Although this orientation improves coordination and control. the company must develop an effective organization for pursuing international marketing. promotion projects a uniform image. For example. As the international side of their sales grew. promotion. The French automobile industry offers a good 16 . international development did not occur until maturity was reached domestically.
some companies may prefer to pursue primarily developing countries in Latin America. according to an industry analyst for Eurofinance: ³For years. it developed a Europewide market. But. the Volvo deal fell apart which is one of the reasons that they went to Nissan. However. Now it finds it must crack the world market if it expects to survive. Africa or Asia. Once a company commits to extending its business internationally management is confronted with the task of setting a geographic or regional emphasis. A company may decide to emphasize developed nations such as Japan or those of Europe or North America. Only during their latest phase have these firms begun to transform themselves into global marketing behemoths whose marketing operations are closely coordinated across the world market rather than developed and executed locally. some newer firms are jumping right into the latest or global category and not necessarily going through the various stages of development (management vision). It purchased 10 percent of Sweden`s Volvo and planned to design a new car in conjunction with Volvo. In the 1980s. And it is getting a late start. Management must make a strategic decision to direct business development in such a way that the company`s overall objectives are congruent with the particular geographic mix of 17 . Alternatively. the French industry depended on the domestic market. Then in the 1970s.´ France`s Renault was moving quickly into the world market.illustration of the evolution of an international marketing strategy. to multi-domestic or multinational to global seems to be followed by most firms and also by many newly formed companies. This traditional sequencing of the growth from domestic to international.
convertibility of currency. the Middle East and Asia are also characterized by a higher degree of risk than markets in developed countries. technology. firms with technology-intensive products have concentrated their activities in the developed world. huge 18 . development. Developed economies account for a disproportionately large share of world gross national product (GNP) and tend to create many new companies. micro-environmental issues such as market attractiveness and company capability profile (skills. etc.its activities. Other factors in this decision of foreign market selection include in addition to macro-environmental issues (economic. socio-cultural and politicallegal factors). telecommunications. Although competition from both other international firms and local companies is usually more intense in those markets.) in those areas. employment. Africa. enforceability of contracts. Moreover. protection of Intellectual Property Rights. a company`s operation can be expected to be subject to greater uncertainty and fluctuation. and transparency in the legal system (government agencies&systems. stable banking. Emerging markets differ substantially from developed economies by geographic region and by the level of economic development. Because the business environment is more predictable and the investment climate is more favorable. doing business in developed countries is generally preferred over doing business in developing nations. product adaptation and competitive advantage). Because of the less stable economic climates (income. etc. The issues are infrastructure such as transportation. laws and ordinances. In particular. Markets in Latin America. prices.). resources.
Consequently. in 19 . Many countries are changing from a centrally planned economy to a market-oriented one. bureaucracy. some markets that may have experienced high growth for some years may suddenly experience drastic reductions in growth.) often affect operating results negatively. foreign government entry requirements. Furthermore. however. largely because competition is often less intense in those markets. In many situations. Many of the reforms have increased foreign trade and investment. The economic liberalization of the countries in Eastern Europe opened a large new market for many international firms. unstable governments. Although many companies consider this market as long-term potential with little profit opportunity in the near term. The market typically represents about 15 percent of the worldwide demand in a given industry. etc. Eastern European nations like Hungary and Poland have also been moving quickly with market reforms. nationalism. a number of firms have moved to take advantage of opportunities in areas where they once were prohibited from doing business. tariffs and other trade barriers. For example. As a result. the frequently changing political situations in developing countries (war.foreign indebtedness. about two-thirds of that accounted for by Russia and other countries of the former Soviet Union. East Germany has made the fastest transformation because its dominant western half was already there. corruption. companies need to balance the opportunity for future growth in the developing nations with the existence of higher risk. technological pirating and high cost of product and communication adaptation can be issues in those countries. foreign exchange problems. the higher risks are compensated for by higher returns.
foreigners are now allowed to invest in all areas of industry. each additional country also represents both a new business opportunity and risk. manufacturing and trade. Lead market is the market where a company should place extra emphasis. In the context of selecting markets for special emphasis. the lead market concept can help in identifying those countries. Why is country selection a strategic concern for global marketing management? Adding another country to a company`s portfolio always requires additional investment in management time and effort and in capital. Poland even gives companies that invest in certain sectors some tax advantages. Although opportunities for additional profits are usually the driving force. They can analyze the investment climate of the country and determine market attractiveness of it. It is essential for globally competing firms to monitor lead markets in their industries or better yet to build up some relevant market presence in those markets. the development of any global marketing strategy will come down to selecting individual countries in which a company intends to compete. Consequently. It takes time to build up business in a country where the firm has not previously been represented and profits may not show until much later on. companies need to go through a careful analysis before they decide to move ahead. There are more than two hundred countries and territories from which companies have to select.Poland. At some point. The decision on where to compete. but very few firms end up competing in all of these markets. the country selection decision is one of the components of developing a global marketing strategy. including agriculture. 20 .
The concept has been widely used by writers on business and corporate strategies including Michael E. Porter. the presence of substitute products and the intensity of the rivalry between firms in the industry. Five forces determine the attractiveness of an industry: the threat of new entrants. ³must win´ markets can not be avoided if global market leadership is at stake. markets that can determine the global winners among all competitors.As global marketers eye the array of countries available for selection. Industry structure is the framework within which companies compete. markets that companies can ill afford to avoid or neglect-such markets are ³must win´ markets. Generic strategies are general classifications of prototype strategies that help us understand different approaches to globalization. the bargaining power of buyers. cost leadership and the like are archetypes that describe fundamentally different ways to compete. Firms need to understand their competitors because corporate success results from providing more value to customers than the competition. Generic strategies such as differentiation. Firms need to manage these factors so that industry structure is favorable. Contrary to other markets. they soon become aware that not all countries are of equal importance on the path to global leadership. Firms can gain a competitive advantage through differentiation of their product offering or marketing mix which provide superior customer value or by managing for lowest 21 . Markets that are defined as crucial to global market leadership. the bargaining power of suppliers. Creating and sustaining a competitive advantage can be achieved by offering superior value through a differential advantage or managing for cost leadership.
Analysing these factors can lead to the definition of the company`s core competences. the term ³global marketing strategy´ probably suggests a company represented everywhere and pursuing more or less the same marketing strategy. differentiation focus and cost focus. The differentiation and cost leadership strategies seek competitive advantage in a broad range of market or industry segments whereas differentiation focus and cost focus strategies are confined to a narrow segment. although they may be the same in some situations.delivered cost. These are the skills and resources at which the company excels and can be used to develop new products and markets. many of these advantages are only temporary and can easily be copied. To many readers. These two means of competitive advantage when combined with the competitive scope of activities (broad vs narrow) result in four generic strategies: differentiation. When we consider the idea of sustainability of competitive advantage here. However. As a result. cost leadership. It may include but does not require similarity in products or in marketing processes. A global marketing strategy represents the application of a common set of strategic marketing principles across most world markets. Globalization deals with the integration of the many country strategies and the subordination of these country strategies to one global framework. A company that pursues a global marketing strategy looks at the world market as a whole rather than at markets on a country-by-country basis which is more typical for multinational firms. The sources of competitive advantage are the skills and resources of the company. global marketing strategies are not to be equated with global standardization. 22 .
Although some key strategic decisions with respect to products and technology are made at the central or head office.it is conceivable that one company may have a globalized approach to its marketing strategy but leave the details for many parts of the marketing plan to local subsidiaries. Few companies will want to globalize all of their marketing operations. changes in consumer attitudes and behavior and the rise of generic brands have all contributed to a decline in brand loyalty. Companies might globalize production or "back office" operations while maintain multiple local brands. At the extreme. Many of today`s large internationally active firms may be classified as pursuing multi-domestic strategies. this leads to an organization that runs many different businesses in a number countries-therefore the term multi-domestic. profit and loss responsibility tends to reside in each individual country. the initiative of implementing marketing strategies is left largely to local-country subsidiaries. Each subsidiary represents a separate business that must be run profitably. Multinational corporations tend to be represented in a large number of countries and the world`s principal trading regions. Such a modular approach to globalization is likely to yield greater return than a total globalization of a company`s marketing strategy. More consumers have been selecting products from 23 . Economic conditions. As a result. international firms operating as multi-domestic firms have organized their businesses around countries or geographic regions. The difficulty then is to determine which marketing operations elements will gain from globalization. To a large extent.
distributors` brands and generic products. Formulating Global Focus Strategies: Geographic extension is one of two key dimensions in the strategy of an international company. companies have several choices to make: first. the global business unit. they are not global because the coordination takes place across one single region only. doing this in most major markets around the world? 24 . To what extent should a company become a supplier of a wide range of products aimed at several or many market segments? Should a company become the global specialist in a certain area by satisfying one or a small number of target segments. Often a coupon. political-legal factors. with pan-European strategies standing out as the first real regional marketing strategies created because of the run up to the European Union integration.among manufacturers` brands. These factors include: economic-financial factors. price special or a desire for variety will influence the purchase decision. The marketing research surveys study and analyze various factors within foreign markets and their importance to the decision about which foreign markets to enter. Regional marketing strategies focusing on Europe. (economic integration) (See appendix 1) Integrated Global Business Strategies: Looking at global business strategies. The second dimension is concerned with the range of a firm`s product and service offerings. demographic factors and trade agreements. the global focus strategy and second. Conceptually. Asia or Latin America represent a halfway point between multi-domestic and truly global strategy types. cultural factors.
on the other hand. we have the narrowly-based firm marketing a limited range of products to a homogenous customer group around the world. international firms have either retrenched to become regional specialists or changed their business focus to adopt global niche strategies. selective globalization or complete globalization. Since traditional multinational firms often competing through a multi-domestic strategy have realized the weakness of their unfocused patterns of global coverage. Resources for most companies are limited. Creating Global Business Units: Many firms have come to realize that a strong global presence in one given product was becoming a strategic requirement. they have begun to assemble business units that have a better global focus. We can distinguish between two models: on the one hand. both domestic and overseas. A strategy of complete globalization is selected by firms that essentially globalize all of their business units. Both types of companies can be successful in their respective markets.Even some of the largest companies can not pursue all available initiatives. Resolving this question is necessary to achieve a concentration of resources and efforts in areas where they will bring the most return. Avoiding globally unfocused strategies. Selective globalization is adopted by firms that globalize several or many businesses but also exit from others because financial 25 . we have the broad-based firm marketing a wide range of products to many different customer groups. often requiring a tradeoff between product expansion and geographic expansion strategies. Many are striving to change their business to reflect more a coherent market position whereby a business consists of strong units in major markets.
Some of those were much less complicated and exposed a smaller aspect of a marketing strategy to globalization. Integrated Global Marketing Strategy: When a company pursues an integrated global marketing strategy. It also 26 . As marketers gained more experience. In the early phases of development. companies with a narrow product or business focus but globally marketed perform better than firms with a broad product line. In general. product designs and brand names) and localize distribution and marketing communication. pricing and distribution as well as such strategic elements as segmentation and positioning. Global Marketing Strategies: A global marketing strategy that totally globalizes all marketing activities is not always achievable or desirable (differentiated globalization). Such a strategy may be advisable for companies that face completely globalized customers along the lines. Global niche strategies are selected by firms that focus on one or very few businesses worldwide and exit from others to make up for a lack of resources. offering the same marketing strategy across the globe.resources may be limited. many other types of global marketing strategies became apparent. global marketing strategies were assumed to be of one type only. most elements of the marketing strategy have been globalized. many firms have begun to adopt the narrow focus model by spinning off business no longer viewed as part of the company`s core operations. Globalization includes not only the product but also the communications strategy. Since the establishment of strong global marketing positions requires substantial resources. A more common approach is for a company to globalize its product strategy (product lines.
there are many other types of partially globalized marketing strategies. branding. Companies competing in the multi-domestic mode are frequently applying the global category strategy and leveraging knowledge across markets without pursuing standardization. That strategy works best if there are significant differences across markets and when few segments are present in market after market. Global Product Category Strategy: Possibly the least integrated type of global marketing strategy is the global product category strategy.assumes that the way a given industry works is highly similar everywhere. consistent and integrated global marketing strategy that covers almost all elements of its marketing program from segmentation to positioning. advertising and branding according to local market requirements. Reality tells us that completely integrated global marketing strategies will continue to be the exception. However. Selecting the form of global product category implies that the company while staying within that category will consider targeting different segments in each category or varying the product. advertising and more. each may be tailored to specific industry and competitive circumstances. One company that fits the description of an integrated global marketing strategy to a large degree is CocaCola. thus allowing a company to unfold its strategy along similar paths in country by country. distribution. That company has achieved a coherent. Leverage is gained from competing in the same category country after country and may come in the form of product technology or development costs. Several traditional multinational players who had for decades pursued a multi-domestic 27 . bottling.
have been moving toward the global category strategy. The company may develop an understanding of its customer base and leverage that experience around the world. place. The choices may consist of competing always in the upper or middle segment of a given consumer market or for a particular technical application in an industrial segment. Unilever and Procter&Gamble. the most important ones are global product strategies. Global Marketing Mix Element Strategies: These strategies pursue globalization along individual marketing mix elements such as pricing. Among them are Nestle.marketing approach-tailoring marketing strategies to local market conditions and assigning management to local management teams. Typically companies globalize those marketing mix elements that are 28 . Global Segment Strategy: A company that decides to target the same segment in many countries is following a global segment strategy. In both consumer and industrial industries significant knowledge is accumulated when a company gains in-depth understanding of a niche or segment. three large international consumer goods companies doing business in food and household goods. They are partially globalized strategies that allow a company that customize other aspects of its marketing strategy. global advertising strategies and global branding strategies. distribution. Although various types of strategies may apply. brands or advertising although some standardization is expected. communications or product. promotion. A pure global segment strategy will even allow for different products. Segment strategies are relatively new to global marketing.
expected features and required product functions be largely identical so that few variations or changes are needed. This is often the case for industrial marketing customers who may read industry and trade journals from other countries. which will make the original investment easier to justify. Companies pursuing a global product strategy are interested in leveraging the fact that all investments for producing and developing a given product have already been made. Companies want to leverage the creation of such brand names across many markets. global branding has become important also for consumer products where cross- 29 . A company facing strong global purchasing logic may globalize its account management practices or its pricing strategy. Global Product Strategy: Pursuing a global product strategy implies that a company has largely globalized its product offering. Global branding strategies also become important if target customers are exposed to advertising worldwide. Global product strategies require that product use conditions. Global strategies will yield more volume. key aspects or modules may in fact be globalized. Although the product may not need to be completely standardized worldwide. because the launching of new brands requires a considerable marketing investment. Global Branding Strategies: Global branding strategies consist of using the same brand name or logo worldwide. Increasingly.subject to particularly strong global logic forces. Global branding strategies tend to be advisable if the target customers travel across country borders and will be exposed to products elsewhere. Another firm facing strong global information logic will find it important to globalize its communications strategy.
Many global firms have made acquisitions in other countries resulting in a number of local brands. Global advertising themes are most advisable when a firm may market to customers seeking similar benefits across the world. Composite Global Marketing Strategy: The above descriptions of the various global marketing models give the distinct impression that companies might be using one or the other generic strategy exclusively. Global branding allows a company to take advantage of such existing goodwill. Once the purchasing reason has been determined as similar. many consumers had become aware of brands offered in Western Europe before the liberalization of the economies in the early 1990s. the company may want to leverage a certain theme or advertising approach that may have been developed as a result of some global customer research. Even in some markets such as Eastern Europe. a common theme may be created to address it. Reality shows. that few companies consistently adhere to only one single strategy. These local brands have their own distinctive market and a company may find it counterproductive to change those names. Global Advertising Strategy: Globalized advertising is generally associated with the use of the same brand name across the world. A 30 . however.border advertising through international TV channels has become common. a company may want to use different brand names partly for historic purposes. More often companies adopt several generic global strategies and run them in parallel. Companies pursuing global branding strategies may include luxury product marketers who typically face a large fixed investment for the worldwide promotion of a product. Instead. However.
game pits a global company versus a local company. With some global firms requiring several years before a product is introduced in all markets. Global firms are able to leverage their experience and market position in one market for the benefit of another. local competitors in some markets can take advantage of such advance notice by building defenses or launching a preemptive attack on the same segment. Although global firms have superior resources. The second. Many firms are a mixture of different approaches. In general.a situation frequently faced in many markets. the world`s largest soft drink companies. One of the longest running battles in global competition is the fight for market dominance between CocaCola and PepsiCo. the global firm is often a more potent competitor for a local company. 3) Global Market Entry Strategies: 31 . there are a number of heated global marketing duels in which two firms compete with each other across the entire global chessboard.company might for one part of its business follow a global brand strategy while at the same time running local brands in other parts. the global firms` strongest local competitors are those who watch global firms carefully and learn from their moves in other countries. thus the term composite. they often become inflexible after several successful market entries and tend to stay with standard approaches when flexibility is called for. Consequently. First. Competitive Global Marketing Strategies: Two types of approaches emerge as of particular interest to us.
Indirect Exporting: Indirect exporting includes dealing through export management companies of foreign agents. Several types of intermediaries located in the domestic market are ready to assist a manufacturer in contacting international markets or buyers. it can use an intermediary located in the foreign marketan approach termed direct exporting. Since many countries do not offer a large enough opportunity to justify local production. The most common types of intermediaries are brokers. merchants or distributors. The major advantage for managers using a domestic intermediary lies in that individual`s knowledge of foreign market conditions. A firm has two basic options for carrying out its export operations. It can contact foreign markets through a domestically located (in the exporter`s country of operation) intermediary-an approach called indirect exporting.Exporting as an Entry Strategy: Exporting represents the least commitment on the part of the firm entering a foreign market (See appendix 2). since exports add volume to an already existing production operation located elsewhere. 32 . Exporting to a foreign market is a strategy many companies follow for at least some of their markets. for companies with little or no experience in exporting. Alternatively. the use of a domestic intermediary provides the exporter with readily available expertise. exporting allows a company to centrally manufacture its products for several markets and therefore to obtain economies of scale. Particularly. Furthermore. the marginal profitability of such exports tends to be high. The form of exporting can be directly under the firm`s control or indirect and outside the firm`s control.
With increasing volume. the margin the distributor earns represents an opportunity that is lost to the exporter. the independent distributor will be more efficient since sales are channeled 33 . Direct Exporting: Direct exporting includes setting up an export department within the firm or having the firm`s sales force sell directly to foreign customers or marketing intermediaries. Also. Although a direct exporting operation requires a larger degree of expertise. the incentive to start a sales subsidiary grows. the exporter saves considerable investment costs. possibly one or more for each country the company plans to enter. By switching to a sales subsidiary to carry out the distributor`s tasks. By building the relationship well. On the other hand. Group selling activities can also help individual manufacturers in their export operations. A company engages in direct exporting when it exports through intermediaries located in the foreign markets. Under direct exporting. the exporter can earn the same margin. The independent distributor earns a margin on the selling price of the products. Successful direct exporting depends on the viability of relationship built up between the exporting firm and the local distributor or importer. an exporter must deal with a large number of foreign contacts. if the anticipated sales volume is small. this method of market entry does provide the company with a greater degree of control over its distribution channels than would indirect exporting. The exporter may select from two major types of intermediaries: agents and merchants. the exporting company may establish its own sales subsidiary as an alternative to independent intermediaries. Although the independent distributor does not represent a direct cost to the exporter.combination export and manufacturers` export agents.
It requires the commitment of capital in a foreign country. Foreign Production as an Entry Strategy: Many companies realize that to open a new market and serve local customers better. The operation of a subsidiary adds a new dimension to a company`s international marketing operation. Also. Such control may be important if the company`s products require the use of special marketing skills such as advertising or selling. sidestepping independent intermediaries. The sales subsidiary assumes the role of the independent distributor by stocking the company's products and/or services. a commitment to a sales subsidiary should not be made without careful evaluation of all the costs involved. the operation of a sales subsidiary entails a number of general administrative expenses that are essentially fixed in nature. sometimes jointly advertising and promoting the products. exporting into that market is not a sufficiently strong commitment to realize strong local presence. The lack of control frequently causes exporters to shift from an independent distributor to wholly owned sales subsidiaries. these companies look for ways to strengthen their base by entering into one of several ways to manufacture. The exporter finds it possible to transfer or export not only the product but also the entire marketing program that often makes the product a success. primarily for the financing of account receivables and inventory. 34 . Many companies export directly to their own sales subsidiaries abroad. The sales subsidiary offers the manufacturer full control of selling operations in a foreign market.through a distributor who is maintaining the necessary staff for several product lines. selling to buyers and assuming the credit risk. As a result. As a result.
a company may not have the knowledge or the time to engage more actively in international 35 . a company assigns the right to a patent (which protects a product. trademarks. the licensee will make all necessary capital investments (machinery. Licensing also is an effective mode for testing the future viability of more active involvement with a foreign partner. For one. or licensee gains the right to commercially exploit the patent or trademark on either an exclusive (the exclusive right to a certain geographic region) or an unrestricted basis. inventory and so forth) and market the products in the assigned sales territories. which may consist of one or several countries. technology or process) or a trademark (which protects a product name) to another company for a fee or royalty. Due to advantages of low risk and low investment. a company can gain market presence without an equity (capital) investment. trade secrets or patents associated with products manufactured. Typically. Under licensing. as the foreign licensee receives specifications for producing products locally. Depending on the investment needed to enter the market. licensing is a particularly attractive mode for small and medium-sized firms. Licenses are signed for a variety of time periods. but the licensor generally receives a set fee or royalty rather than finished products. Licensing agreements are subject to negotiation and tend to vary considerably from company to company and from industry to industry. The foreign company. the foreign licensee may insist on a longer licensing period to pay off the initial investment. Companies use licensing for a number of reasons.Licensing: Licensing is similar to contract manufacturing. Using licensing as a method of market entry. Licensing may offer the foreign firm access to brands.
In other countries governments favor the granting of licenses to independent local manufacturers as a means of building up an independent local industry. The market potential of the target country may also be too small to support a manufacturing operation.marketing. Representing an export of technology rather than goods (as in exporting) or capital. licensing is an attractive mode in markets where political and economic uncertainties make a greater involvement risky. because other forms of entry may not be possible. Once a license is granted. A major disadvantage of licensing is the company`s substantial dependence on the local licensee to produce revenues and thus royalties usually paid as a percentage on sale volume only. a foreign manufacturer may prefer to team up with capable licensee despite a large market size. A company with limited resources can gain advantage by having a foreign partner market its products by signing a licensing contract. In some countries where the political or economic situation appears uncertain. some smaller companies with a product in high demand may not be able to satisfy demand unless licenses are granted to other companies with sufficient manufacturing capacity. a licensing agreement will avoid the potential risk associated with investments in fixed facilities. In such cases. royalties are paid only if the 36 . Licensing not only saves capital because no additional investment is necessary but also allows scarce managerial resources to be concentrated on more lucrative markets. A licensee has the advantage of adding the licensed product`s volume to an ongoing operation thereby reducing the need for a large investment in new fixed assets. Both commercial and political risks are absorbed by the licensee. Also.
Conceptually. licensing fees in general are substantially lower than the profits that can be made by exporting or local manufacturing. Another disadvantage is the resulting uncertainty of product quality. the producer loses some control in certain situations. A thorough 37 . revenues from licensing may suffer accordingly. Although there is a great variation according to industry. The possibility of nurturing a potential competitor is viewed by many companies as a disadvantage of licensing. Ensuring a uniform quality requires additional resources from the licenser that may reduce the profitability of the licensing activity. Another potential problem is that the licensee may adapt the licensed product and compete head on with the licensor. with 3 to 5 percent being more typical for industrial products. a company has to guard against the situation in which the licensee will use the same technology independently after the license has expired and therefore turn into a competitor. Depending on the product.licensee is capable of performing an effective marketing job. licensing should be pursued as an entry strategy if the amount of the licensing fees exceeds the incremental revenues of any other entry strategy such as exporting or local manufacturing. A foreign company`s image may suffer if a local licensee markets a product of substandard quality. The risk of losing control of intellectual property and/or technological advantages can also be mentioned as another disadvantage of licensing. Thus. licensing fees may range anywhere between 1 percent and 20 percent of sales. Since the local company`s marketing skills may be less developed. With licenses usually limited to a specific time period.
it may be contract manufacturing. Local Manufacturing: A common and widely practiced form of market entry is the local manufacturing of a company`s products. logo. restaurants and real-estate brokers) to include less traditional formats such as travel agencies. used car dealers. About 80 percent of all McDonald`s restaurants are franchised and as of 1999 the firm operated about 24. It differs from licensing principally in the depth and scope of quality controls placed on all phases of the franchisee`s operation. Numerous factors such as local costs. market size. the video industry and professional and health improvement services.500 stores in 116 countries. The actual type of local production depends on the arrangements made. The franchise concept is expanding rapidly beyond its traditional businesses (such as service stations. Usually the franchise agreement is more comprehensive than a regular licensing agreement in as much as the total operation of the franchisee is prescribed. Franchising: Franchising is a special form of licensing in which the franchiser makes a total marketing program available including the brand name.investigation of the market potential is required to estimate potential revenues from any one of the entry strategies under consideration. Many companies find it to their advantage to manufacture locally instead of supplying the particular market with products made elsewhere. laws and political considerations may affect a choice to manufacture locally. Since local production represents a greater commitment to a market than other entry strategies. it deserves considerable attention before a final decision is made. tariffs. assembly or fully integrated production. products and method of operation. 38 .
Typically. Contract manufacturing differs from licensing with respect to the legal relationship of the firms involved. Afterward. contract manufacturing is 39 . Lower labor costs abroad are the major incentive for using this entry mode. Africa and Asia. Typically. contract manufacturing is chosen for countries with a low-volume market potential combined with high tariff protection. a company arranges to have its products manufactured by an independent local company on a contractual basis. This is an entry mode in which a firm contracts with a foreign firm to manufacture parts or finished products or to assemble parts into finished products. Of course. In such situations. The local producer manufactures based on orders from the international firm but the international firm gives virtually no commitment beyond the placement of orders. whether an international company avails itself of this method of entry also depends on its products. Usually. promotion and distribution. products are turned over to the international company which usually assumes the marketing responsibilities for sales. but the local market does not support the volume necessary to justify the building of a single plant. the contracting firm supplies complete product specifications to the foreign firm. local production appears advantageous to avoid the high tariffs. These conditions tend to exist in the smaller countries in Central America. the international company rents the production capacity of the local firm to avoid establishing its own plant or to circumvent barriers set up to prevent the import of its products. The manufacturer`s responsibility is restricted to production. In a way. sets production volume and guarantees purchase.Under contract manufacturing.
assembly consists only of the last stages of manufacturing and depends on the ready supply of components or manufactured parts to be shipped in from another country. To establish a fully integrated local production unit represents the greatest commitment a company can make for a foreign market. In many cases. By moving to an assembly operation. companies want to take advantage of lower wage costs by shifting the labor-intensive operation to the foreign market. the international firm locates a portion of the manufacturing process in the foreign country. supply interruptions can occur. companies only do so where demand appears assured.employed where the production technology involved is widely available and where the marketing effort is of crucial importance in the success of the product. this results in a lower final price of the products. the local government forces the setting up of assembly operations either by banning the import of fully assembled products or by charging excessive tariffs on imports. the primary reason is to take 40 . Often. Typically. foreign companies begin assembly operations to protect their markets. As a defensive move. International companies may have any number of reasons for establishing factories in foreign countries. This is often not guaranteed and in countries with chronic foreign exchange problems. Often. Since building a plant involves a substantial outlay in capital. successful assembly operations require dependable access to imported parts. However. Motor vehicle manufacturers and electronics industries have made extensive use of assembly operations in numerous countries. Assembly usually involves heavy use of labor rather than extensive investment in capital outlays or equipment. however.
Also.advantage of lower costs in a country. Changing economic or political factors may make such a move necessary. As mentioned above. Also. Thus. Such an aggressive strategy is based on the fact that local production represents a strong commitment and is often the only way to convince clients to switch suppliers. Japanese manufacturers` reasons for the local production were partly political as the United States imposed import targets for several years. The Japanese car manufacturers who had been subject to an import limitation of assembled cars imported from Japan. to defend market positions. companies establish production abroad not to enter new markets but to protect what they have already gained through exporting. Some companies want to build a plant to gain new business and customers. began to build factories in United States in the 1980s to protect their market share. exports from Japan became uneconomical compared with local production. In many industries. Moving with an established customer can also be a reason for setting up plants abroad. Japanese car companies instituted a longer-term strategy of making cars in the region where they are sold. important suppliers want to keep a relationship by 41 . Many times. with the value of the yen increasing to one hundred yen per US dollar. thus providing a better basis for competing with local firms or other foreign companies already present. Local production is of particular importance in industrial markets where service and reliability of supply are main factors in the choice of product or supplier. high transportation costs and tariffs may make imported goods uncompetitive.
Problems may also arise when the JV partner wants to maximize dividend payout instead of reinvestment or when the capital of the JV has to be increased and one side is unable to raise the required funds. In most cases. suppliers move too. If an international firm has strictly defined operating procedures. an investing firm owns roughly 25 to 75 percent of a foreign firm.establishing plants near customer locations. Another reason can also be shifting production abroad to save costs. or more recently in strategic alliance. with some companies accepting either a minority or majority position. They also need to arrange ownership. when customers build new plants elsewhere. the foreign company invites an outside partner to share stock ownership in the new unit. Under a joint venture (JV) arrangement. The particular participation of the partners may vary. which sometimes lead to inefficiencies and disputes over responsibility for the venture. once a joint venture partner secures part of the operation. allowing the investing firm to affect management decisions of the foreign firm. Ownership Strategies: Companies entering foreign markets have to decide on more than the most suitable entry strategy. the international firm can no longer function independently. planning and marketing. in a joint venture. getting the JV company to accept the same methods of operation may be difficult. such as for budgeting. Experience has shown that JVs can be successful if the partners share the same goals with one partner accepting primary 42 . Joint Ventures: In a joint venture. international firms prefer wholly owned subsidiaries for reasons of control. either as a wholly owned subsidiary.
A firm with advanced product technology may also gain market access through the JV route by teaming up with companies that are prepared to distribute its products. Strategic Alliances: A more recent phenomenon is the development of a range of strategic alliances. two entire firms pool their resources directly in a collaboration that goes beyond the limits of a joint venture. Furthermore. In other cases. And in many markets. Sometimes. Sometimes. the only viable access to be gained will be through JVs. But. the partner may be an important customer who is willing to contract for a portion of the new unit`s output in return for an equity participation. not all joint ventures are successful and fulfill their partners` expectations.responsibility for operations matters. it is not a requirement. In an alliance. Despite the potential for problems. Many international firms have entered Japan. Although a new entity may be formed. Successful international and global firms will have to develop the skills and experience to manage JVs successfully often in different and difficult environmental circumstances. the partner may represent important local business interests with excellent contacts to the government. Despite the difficulties involved. Alliances are different from traditional joint ventures in which two partners contribute a fixed amount of resources and the venture develops on its own. the JV partner may have important skills or contacts of value to the international firm. the alliance is supported by 43 . China and Eastern Europe with JVs. joint ventures are common because they offer important advantages to the foreign firm. By bringing in a partner the company can share the risk for a new venture. it is apparent that the future will bring many more joint ventures.
Typically. The challenge in making an alliance work lies in the creation of multiple layers of connections or webs that reach across the partner organizations. such as between western and Japanese firms. Predicting what the goals and incentives of the various parties will be under various circumstances is a critical part of effective planning. In an alliance. Eventually such connections will result in the creation of new organizations out of the cooperating parts of the partners. production-based alliances or distribution-based alliances. In that sense. each expects to profit from the other`s experience. alliances may very well be just an intermediate stage until a new company can be formed or until the dominant partner assumes control. Furthermore. 44 . technology transfers or production technology with each partner contributing a different element to the venture. many observers question the value of entering alliances with technological competitors.some equity acquisition of one or both of the partners. In particular. Experience suggests that alliances with two equal partners are more difficult to manage than those with a dominant partner. each partner brings a particular skill or resource-usually they are complementary-and by joining forces. the evidence is not yet in as to whether these alliances will actually become successful business ventures. Alliances can be in the forms of technology-based alliances. alliances involve either distribution access. Although many alliances have been forged in a large number of industries. it is important to recognize that the needs and aspirations of partners may change over the life of an alliance and do so in divergent ways.
45 . acquisitions can be a very expensive way to enter a market. Disposing of unwanted assets or maintaining them in the portfolio is often done at significant cost. making the acquisition of publicly traded companies much easier. only some of which are of interest to the acquirer. This trend has probably been aided by the opening of many financial markets. Nevertheless. Acquiring an existing firm also takes a potential competitor out of the market. First and foremost. Most recently even unfriendly takeovers in foreign markets are now possible. Although these obstacles are serious. Integrating an acquired company into a corporation is probably one of the most challenging tasks confronting top management. acquisitions pose a number of other challenges. international mergers and acquisitions are difficult to make work. By purchasing an existing player. This can be particularly important when the critical resources are difficult to imitate or accumulate. Most targets contain bundles of assets and capabilities. a firm does not have to take the time to establish its presence or develop for itself the resources it does not already possess. either in real terms or in management time.Entering Markets Through Mergers and Acquisitions: Although international firms have always made acquisitions. a number of acquisitions fail on another account: the post acquisition integration process fails. acquisitions can have serious drawbacks. A major advantage of acquisitions is that they can quickly position a firm in a new business. In addition to the likelihood of overbidding. the need to enter markets more quickly than through building a base from scratch or entering some type of collaboration has made the acquisition route extremely attractive. Despite these advantages.
costs and sales have to be evaluated over the planning horizon of the proposed venture. combined with currency control and difficulty of receiving new supplies from foreign plants. the analyst must take a long-term view of the situation. Financial data are collected not only on the proposed venture but also on its anticipated impact on the existing operations of the international firm. Asset requirements. assembling accurate data is the cornerstone of any entry strategy analysis. The data need to be assembled for all entry strategies under consideration. The combination of the two sets of financial data results in incremental financial data incorporating the net overall benefit of the proposed move for the total company structure. Furthermore. Such an analysis may consists of assuming several scenarios of international risk factors that may adversely affect the success of the proposed venture. The international company then has the 46 .Preparing An Entry Strategy Analysis: Of course. etc. a company can quickly spot the key variables in the environment that will determine the outcome of the proposed market entry. The necessary sales projections have to be supplemented with detailed cost data and financial need projections on assets (managerial. a thorough sensitivity analysis must be incorporated. typically three to five years for an average company. Another situation may assume a change in political leadership to a group less friendly to foreign investments. One scenario may include a 20 percent devaluation in the host country. With the help of a sensitivity analysis approach. The financial data can be adjusted to reflect each new set of circumstances. financial. For best results. resources).
(survey of buyers` intentions. 47 . Each project has to be analyzed for the expected sales level. most entry strategies consist of a combination of different formats. Rarely do companies employ a single entry mode per country. many international firms grant licenses for patents and trademarks to foreign operations. etc. expert opinion) (SWOT Analysis-strenghts.opportunity to further add to its information on such key variables or at least to closely monitor their development. In order to do this. the entry strategy must support these goals. It is assumed that any company approaching a new market is looking for profitability and growth. The same foreign subsidiary may even export to other foreign subsidiaries. composite of sales force opinion. even when they are fully owned. Also. market test method). We refer to the process of deciding on the best possible entry strategy mix as entry strategy configuration. This is done for additional protection or to make the transfer of profits easier. customer segmentation on ability to pay especially in developing countries. In many cases. Consequently. profitability has to be estimated (past sales analysis. Furthermore. weaknesses. Sales. Market research that focuses on buying patterns. importing and local manufacturing into one unit. A company may open up a subsidiary that produces some products locally and imports others to round out its product line. maintaining flexibility and assessing total company impact are required. opportunities. costs and assets levels have to be estimated before. threats) Entry Strategy Configuration: In reality. combining exporting. costs and asset levels that will eventually determine profitability. assessing international risk factors.
e-mail. for instance. primarily web pages. it essentially divides its operations in a country into different companies. file transfer and related communications tools. A company that establishes a server on the Internet and opens up a web page can be connected from anywhere in the world. such strategies have become less typical-particularly in larger markets. Global firms granting global mandates to their product divisions will find that each division will need to develop its own entry strategy for key markets. When a company unbundles. the foreign company sets up a single company in one country and uses that company as a legal umbrella for all its entry activities. such as 48 . It also allows the company to run several companies or product lines in parallel. firms have begun to enter markets without ever touching down. Portal or E-Business Entry Strategies: The technological revolution of the Internet with its wide range of connected and networked computers has given rise to the virtual entry strategy. Using electronic means. When this occurs. The local manufacturing plant may be incorporated separately from the sales subsidiary. However. Germany and Japan. Bundling of entry strategies is the process of providing just one legal unit in a given country or market. allowing a JV in one operation while keeping full ownership in another part. In other words. many firms have begun to unbundle their operations. Such unbundling becomes possible in the larger markets such as the United States. companies may select different ownership strategies. in effect layering several entry strategy options on top of each other.companies have bundled such entry forms into a single legal unit. Consumers and industrial buyers who use modern Internet browsers.
This may mean a consolidation of factories from many to fewer such plants. substantial amounts of severance pay may have to be paid to employees and any loss of credibility in other markets can hurt future prospects. However. services or companies and in many instances even make purchases online. collecting funds and providing after-sales service to customers all over the world. Production consolidation when not combined with an actual 49 . Here. it is very likely that many more established firms will use the Internet as the first point of contact for countries where they do not yet have a major base. Exit Strategies: Circumstances may make companies want to leave a country or market. International companies have to be aware of the high costs attached to the liquidation of foreign operations. The second big challenge is the fulfillment side of the e-business. we are dealing with completing a sale. there are many challenges to would-be Internet-based global marketers. Other than the failure to achieve marketing objectives. Sometimes. shipping. Given the low cost of the Internet. there may be political. One of the biggest is language. economic or legal reasons for a company to want to dissolve or sell an operation (management myopia). The Internet will eliminate some of the hurdles that plagued smaller firms from competing beyond their borders. can search for products. an international firm may need to withdraw from a market to consolidate its operations. Whatever the forecasts. most experts agree that the opportunity for Internet-based commerce will be huge.Netscape.
For example. they may contact my organization. Because sometimes those tactics may fail and result in loss of profit or even closure of the company. our concern is a company`s actual abandoning its plan to serve a certain market or country. Exit strategies can also be the result of negative reactions in a firm`s home market.market withdrawal is not really what we are concerned with here. Rather. A firm can consolidate production elsewhere while retaining a strong brand and marketing presence. Changing political situations have at times forced companies to leave markets. Several of the markets left by international firms over the past decades have changed in attractiveness. A company must be careful in using those tactics before globalizing its operations. This is differentiation between production withdrawal or consolidation and brand withdrawal. I tried to analyze the ways a company competes in global environment by using different tactics. Summary: Global marketing is the process of focusing an organization`s resources on the selection and exploitation of global market opportunities consistent with and supportive of its short and long-term strategic objectives and goals. Changing government regulations can at times pose problems. Undersecretariat of Foreign Trade. making companies reverse their exit decisions and enter those markets a second time. prompting some companies to leave a country. 50 . Those tactics differ in a way a company¶s capabilities and willingness permit. I suggest to reader to obtain additional information about this subject. In this paper.
bir sirketin global cevrede farkli taktikleri kullanarak rekabet etme yollarini analiz etmeye calistim. Cunku. faaliyetlerini globallestirmeden once bu taktikleri kullanmada dikkatli olmalidir. bir sirketin yetenek ve istekliliginin izin verdigi bir yolla degisir. Ornegin. onlar benim kurumum Dis Ticaret Mustesarligiyla. Bu calismada. veya herhangi diger Turkiye`de veya yurtdisinda yerlesik kamu veya ozel kurumla temasa gecebilirler. bazen bu taktikler basarisiz olabilir ve kar kaybi veya sirketin kapanmasiyla bile sonuclanabilir. Onlar herhangi kutuphane veya internet kaynaklarini da kullanabilirler. bir orgutun kaynaklarinin onun kisa ve uzun donemli stratejik hedefleriyle uyumlu ve destekleyici global pazar firsatlarinin secimi ve kullanimina odaklanmasi surecidir. Ozet: (Turkce) Global pazarlama. en yakin Ticaret Odasiyla. Bu taktikler. 51 .closest Chambers of Commerce or any other public or private organization located in Turkey or abroad. They may also use any library or internet resources. Bir sirket. Okuyucuya bu konu hakkinda ilave bilgi bulmasini oneriyorum.
etc.) y y Stability of the workforce Political relations with trading partner Cultural Factors: 52 .4) Appendices: Appendix 1: Economic-Financial Factors: y y y y y Amount of foreign debt carried Income distribution within the market Amount of foreign investment already in the market Natural resource base Inflation rate Political-Legal Factors: y y y y y Role of government in business activities (free or not free markets) Stability of government Barriers to international trade (whether or not favorable trade policies) Laws and regulations affecting the marketing mix (marketing regulations) Laws and regulations affecting business activities (acceptance of foreign investment.
etc. religious groups. educational system. mass media. interdependence. family y Sociocultural (social interaction. geographic divisions Role of institutions.y y y y Style of business within the market Attitudes toward bribes and questionable payments Language.) Demographic Factors: y y y y y Number of organizations within the market Size and quality of workforce Population size and growth rate Composition of house holds Geographic distribution and density of population Trade Agreements (blocks): y y y y y y WTO EU NAFTA APEC MERCOSUR CIS 53 . hierarchies. race and nationalities.
Appendix 2: Entry modes into international markets: Exporting Contract Manufacturing Licensing the firm Joint Venturing Wholly Owned Subsidiaries Increasing involvement by 54 .
google.Marketing reference books 55 .com 3). Year report 2).Reference 1)Embex Technologies (P) Ltd.www.
This action might not be possible to undo. Are you sure you want to continue?