International Marketing

For

Bachelor of Business Administration

Unit 10

Global Marketing
© 2005 John Wiley & Sons

Resource person

Sana-ur-Rehman

PPT 1-1
 Alternate Market Entry Strategy
• Exporting
• Accounts for 10% of global economic activity
• Could be direct or indirect
• Contractual Agreement
– Licensing
– For production process, trade name or distribution of imported
products (common in Pharma)

– Franchising
– Franchiser provide standard package of products, system,
management services,
– Franchisee provide market knowledge, capital and personal
involvement
– (Common in soft drinks, Motels, Automotive services, retailing, fast
food, recreational services)
IM by Sana-ur-Rehman PPT 1-2
 Alternate Market Entry Strategy
• Strategic Alliance
• Strategic International Alliance (SIA) is business relationship
established by 2 or more companies to cooperate out of
mutual need & to share risk in achieving common objective.
– Reasons for SIA
» Opportunities for rapid expansion in into new markets
» Access to new technologies
» More efficient production and innovation
» Reduced marketing costs
» Access to additional capital
• Oneworld alliance (AA, Cathay Pacific, British Airways,
Japan Airlines, Finnair, Mexicana, Malev, Iberia, Royal
Jordanian, Quantas)
• Star Alliance (United, Continental, Lufthansa)

IM by Sana-ur-Rehman PPT 1-3

 Alternate Market Entry Strategy
– JV
• Two or more participating companies that have joined forces
to create a separate legal entity
– Consortia
• Involves large no. of participants
• Frequently operates in counties or markets where none of
the participant is currently active. (e.g. huge construction
projects, Airbus, Semathch an R&D consortium)
• DFI
– Investment in foreign country

IM by Sana-ur-Rehman PPT 1-4

 Alternate Market Entry
Strategy

IM by Sana-ur-Rehman PPT 1-5

 Planning for Global Markets
– Company objectives and Resources
• International Commitments
– Planning Process
• Phase 1
– Preliminary Analysis and Screening-Matching company and Country
needs
• Phase 2
– Defining Target Markets & Adapting the marketing Mix
• Phase 3
– Developing the Marketing Plan
• Phase 4
– Implementation & Control

IM by Sana-ur-Rehman PPT 1-6

IM by Sana-ur-Rehman PPT 1-7