Class notes
Market Strategies
- Course
- Institution
- Book
Global Marketing - Market Strategies Notes from Global Marketing - Hollensen
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Class notes International Marketing MKTE401 Hollensen, ISBN: 9781292251806
-
summary global/international marketing
-
Summary Global Marketing by Svend Hollensen, International Branding Exam Year 4 (2020/2021
Seller
Followammaarahshafirapatel
Content preview
Global Marketing Management - Market Entry Strategies:Week Three Lecture - Part 1
1.1 MARKET ENTRY STRATEGY:
businesses who want to expand their operations into foreign markets need
an appropriate ‘Market Entry Strategy’ - this can be: Export Mode,
Intermediate Mode & Hierarchical Mode. trade-offs to consider with each
approach:
• Risk Approach - the amount of risk an organisation is willing to take
on when pursuing a market entry approach
• Control Approach - the amount of overall control an organisation would
like to have when entering new markets
• Flexibility Approach - the degree of flexibility required by an
organisation in order to carry out the strategy on their own terms
• opting for export strategy
- low levels of risk, low
levels of control & high
flexibility
• opting for hierarchical
strategy - high levels of
risk, high levels of
control & low levels of
flexibility
1.2 FACTORS INFLUENCING THE CHOICE OF ENTRY MODE:
a business’s decision to use a specific form of market entry is based on
conflicting factors e.g. centred on a business’s contribution to profit.
,four categories that factor the choice of market entry mode:
• internal factors, desired mode characteristics, transaction-specific
factors & external factors
• Internal Factors - firm size (resources available), internal experience
(obtained by management), product complexity (physical features of
product/service) & product/service differentiation advantage (increase
price levels to absorb contribution costs
• Desired Mode Characteristics - risk-averse (managers who are risk-
averse favour the export mode) & control and flexibility (the degree of
each needs to be judged)
• Transaction Specific Factors - tacit nature of know how (a firm’s know-
how is tacit supports the hierarchical modes as it is easier to
communicate throughout the organisation), opportunistic behaviour &
transaction costs
• External Factors: sociocultural distance (language & education),
country risk (domestic markets are less risky than foreign markets),
market size and growth, direct and indirect trade barriers (import
tariffs & quotas encourage domestic production) & intensity of
competition (greater intensity reduces potential profit)
, Global Marketing Management - The Export Modes:
Week Three Lecture - Part 2
2.1 EXPORT MODES OF MARKET ENTRY:
the company will continue to manufacture in their existing markets & send
over goods or products to a new market which they are intending to enter;
the cost of doing this is modest & the business model is unchanged
export options below:
• Indirect Export - sending goods to an external buying agent or
piggybacking
• Direct Export - sending goods directly through a distributor
• Co-Operative Export - sending goods through an export marketing group
Key Considerations:
regardless of which export strategy a firm deploys, it needs to have
trust, commitment & co-operation from the agents and partners they are
working with - known as ‘Partner Mindshare’
Gibbs (2005) defines the drivers of Partner Mindshare:
• commitment & trust
• collaboration
• mutuality of interest & common purpose
other considerations to take into account:
• Brand - the reputation & brand of both the exporter and partners
• Product - the quality of the product & value it adds
• Profit - the amount of margin that is achievable in different markets
2.2 THE INDIRECT EXPORT:
the key entry modes for indirect exporting:
• Export Buying Agent - a representative of foreign buyers who is based
in the home country of the exporter
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ammaarahshafirapatel. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.05. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now