An analysis of marketing penetration and indirect exporting methods of entering a foreign market

an analysis of marketing penetration and indirect exporting methods of entering a foreign market After being well informed about the country you’re entering, the company has several choices on how to enter the foreign market indeed, there are three main market entry methods and many subcategories included.

Exporting methods include direct or indirect export in direct exporting the organisation may use an agent, distributor, or overseas subsidiary, or act via a government agency in effect, the grain marketing board in zimbabwe, being commercialised but still having government control, is a government agency. Exporting and licensing are indirect ways to enter a market and rely on a foreign company in the host country these methods are lower risk and require minimal investment the potential profits are lower. The market penetration strategies make benefit of reduced prices to upsurge product demand and increase your market share as the demand for your product increases, your business saves money on product manufacturing costs due to the larger volume of produce. It is a non-equity method of international business operations and can be broadly classified into direct exporting, indirect exporting and cooperative exporting (wach, 2014) with direct exporting, the exporter makes direct contact with customers in the foreign market and has control over its product and distribution. A vital step in managing your international risk is identifying the potential risks your firm could face in target foreign markets these risks can be categorized in a general way as affecting property, income, liability and personnel.

The principal advantage of indirect marketing for a smaller company is that it provides a way to penetrate foreign markets without the complexities and risks of direct exporting several kinds of intermediary firms provide a range of export services. A market entry strategy is the method in which an organization enters a new market busy tech quickly realizes that they have several options, each fit for a variety of business scenarios. Exporting is the simplest way to enter a foreign market, but it usually offers less control and much lower profits the two major forms of exporting are direct and indirect exporting direct exporting is when a company handles their own exports. Exporting is the easiest, most cost effective and most commonly used method of entering a new international market some businesses do not actively plan to become exporters, they may simply start accepting orders from overseas customers.

Direct exporting the advantages of direct exporting for your company include more control over the export process, potentially higher profits, and a closer relationship to the overseas buyer and marketplace, as well as the opportunity to learn what you can do to boost overall competitiveness. Direct export the organisation produces their product in their home market and then sells them to customers overseas indirect export the organisations sells their product to a third party who then sells it on within the foreign market. Foreign market entry modes or participation strategies differ in the degree of risk they present, the control and commitment of resources they require, and the return on investment they promise [1] there are two major types of market entry modes: equity and non-equity modes. There are a variety of ways in which a company can enter a foreign market no one market entry strategy works for all international markets direct exporting may be the most appropriate strategy in one market while in another you may need to set up a joint venture and in another you may well license your manufacturing.

Market entry strategies sam c okoroafo – modes of entering foreign markets okoroafo produced an article detailing a four step strategic model that firms should take into account when deciding modes of entering foreign markets. The in indirect export modes motive of entering foreign markets is the ability to make profits in these markets, as the manufacturer uses the firm gains more and more profits in the domestic market the sale of goods –– low staffing requirements foreign market(s) or services through indirect export –– lack of marketing costs. Chapter 11 global marketing management: planning and organization 54 if phase 3 of the international planning process is successfully completed, which of the following will generally occur next in the planning process cycle 55 which of the following is the simplest and cheapest method to enter a foreign market. Direct exporting involves exporting directly to a customer interested in buying your product (rather than to a third party distributor) you are responsible for handling the market research, foreign distribution, logistics of shipment, and invoicing.

An analysis of marketing penetration and indirect exporting methods of entering a foreign market

an analysis of marketing penetration and indirect exporting methods of entering a foreign market After being well informed about the country you’re entering, the company has several choices on how to enter the foreign market indeed, there are three main market entry methods and many subcategories included.

Methodology in order to complete this analysis, we used web-based global marketing management system online (gmmso), which is a strategic planning and marketing tool designed to help complete global marketing analysis. There are two main methods for international market entry – indirect and direct exporting indirect market entry means turning over international sales to a third party generally speaking, this third party “manages” the exporting for the manufacturer. Chapter 12: strategies for analyzing & entering foreign markets to the unique opportunities and needs of that market foreign market analysis in order to successfully increase markets share, revenue, and profits in a new market, firms must follow 3 steps: indirect exporting occurs when a firm sells its product to a domestic customer,. An introduction to the subject of market entry mode decision in the connection with an organisation's internationalisation process 4 sets of factors, which influence an organisation's choice of.

  • Franchising franchising is when the owner of the business providing a product and/or service (the franchiser) assigns to independent people (the franchisees) the right to market and distribute the franchiser's products and/or service, and to use the business name for a specified period of time, and under specified conditions.
  • A theoretical approach to the methods introduction to international markets assist prof dr yakup durmaz indirect exporting the market-entry technique that offers the lowest level of risk and the least market control is indirect export, in the firm becomes directly involved in marketing its products in foreign markets (lambin, 2007: 3.

Indirect exporting the principal advantage of indirect exporting for a smaller us company is that an indirect approach provides a way to enter foreign markets without the potential complexities and risks of direct exporting. Exportingthe internet is becoming increasingly important as a foreign market entry methodinitially, internet marketing focused on domestic sales, however, a surprisingly large number of companies started receiving orders from customers in other countries, resulting in the concept of:international internet marketing. Finding your way into a foreign market is a challenge, but there are many ways to approach it you might find partners for a joint venture, license your products to an overseas company, export your products directly, sell them online, or simply acquire a company or its assets in your target market. Modes of entry in foreign market → (1) exporting – it is the process of selling goods and services produced in one country to other country exporting may be direct or indirect.

an analysis of marketing penetration and indirect exporting methods of entering a foreign market After being well informed about the country you’re entering, the company has several choices on how to enter the foreign market indeed, there are three main market entry methods and many subcategories included. an analysis of marketing penetration and indirect exporting methods of entering a foreign market After being well informed about the country you’re entering, the company has several choices on how to enter the foreign market indeed, there are three main market entry methods and many subcategories included.
An analysis of marketing penetration and indirect exporting methods of entering a foreign market
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2018.