Approaches to the International Market SS3 Marketing Lesson Note

APPROACHES TO INTERNATIONAL MARKETING

Exports: The easiest way to enter the market is through exports that can be indirect or direct. In Indirect Exports, the trading companies are involved that facilitates the buying and selling of goods and services abroad, on the behalf of the companies.

Whereas in Direct exports, the company itself manages to sell the goods and services abroad, by opting one of the following ways:

• By setting Domestic based Export Department, working as an independent entity
• Through Overseas sales branch, that carries out the promotional activities and facilitates sales and distribution.
• The sales representatives traveling abroad
• The distributors or agents in abroad working exclusively on the behalf of the company

 Global Web Strategy: Nowadays, companies need not go to the international trade shows to show their products, they can very well create the awareness among the customers worldwide through an electronic media i.e. internet. Through the company website, customers can read the detailed information, generally written in different languages, about the product and can order online.

Licensing and Franchising: One of the ways to globalize is through licensing, wherein the domestic company issues the license to the foreign company to use the manufacturing process trademark, patent, name of the domestic company while facilitating the sales. In licensing, the domestic company has a less control over the licensee. But, in the case of franchising, the domestic company enjoys the higher control as it allows the franchise to function on its behalf, and in line with the terms and conditions of the domestic company.

 Joint Ventures: The companies can go international by joining hands with other country based companies with the intention to monetize their existing relationships with the local customers.

 Direct Investment: Ultimately, the firms can establish their own business facilities or own a part of the local company to facilitate the sale of goods and services.

EVALUATION:    

1. List and explain the process of entering the international market.