MARKETING ENTRY STRATEGIES

Type of Exporting

Indirect Exporting
- Internal marketing middleman used

Direct Exporting
- International Marketing Middleman not used

Indirect Exporting
-Simplest and Cheapest method
-Exporters stop when home market sales improve
-Exporters lack control over how, when, where and whom product sold

Indirect Exporting Methods

Domestic Purchasing

-Foreign customer buys product at factory gate

-Foreign customer exports, markets and distributes product in one/many.coutries

Export Management Companies (EMC) / Export Houses

Act as export departments for various clients eg tudor rose international limited (UK) represents Ryvita and Unilever

PiggyBacking

-Manufacture benefits from carrier`s reputation, contacts and administration with little investment

-Carrier paid by commission

-Carrier may :

• act as agent
• buy product outright
• act as distributor

Trading Companies

• Buys and Sells various companies offerings
• A trading company is a business that connects buyers and sellers but does not involve itself in the ownership or storage of merchandise. In most cases a trading company is compensated on commission by the seller.
• A trading company is an organisation or a firm that connects buyers and sellers from different or same countries. It's a type of company involving two or more legal persons and doesn't get involved with the owning and storing of the merchandise. It's usually compensated by the sellers through the sales and   Commissions.
• A publicly traded company is a corporation that sells stock on the open market, meaning any member of the public can purchase stock in that company. The SEC (Securities Exchange Commission.
• Features An export trading company is an organization designed to support the export of trade overseas. It will help its clients with the shipping, storing, insuring and clearing.

Agents

• Independent individuals/companies representing exporter and various manufactures.
• Handles various non-competitive products.
• Paid through commission.
• No ownership of goods.
• Contributes towards forecast, strategy and tactics through local market knowledge.

Management Contract

• Installing management operating and control system.
• Local staff takes over when contract completed.
• Turnkey operation - factory an management team:
• installs and manages factory for first few months.
• trains local team to take over

Franchising

• Franchisee obtains rights to use branding, trademarks, products and operational method for a fee.

• Franchisor:
• Provides assistance, training sources components
• Has high control over franchisee`s operations

Contract Manufacturing

• Local manufacture contractor make foreign company`s product.
• Overcomes trade barriers
• Allows entry into politically unstable countries without high investments 
• Sometimes only entry method, host government wants local employment through local production

Licensing

• Licensing obtain rights to use patents, trademark, copyrights, marketing assistance and /or product / process knowledge.
• Licensor may continue to sell importance components/ services to licensee as part of agreement.

Assembly

• Foreign factory assembles completely knocked down (CKD) parts from home country.
• Factories moved globally to benefit from lower wages and government incentives

Acquisitions And Mergers

• Buying all / majority of foreign company`s shares
• Objectives of buying poor performing company:

1. Reduce cost
2. Improve performance

Joint Ventures

• Two/many companies starts a new company
• Common in politically restricted markets eg. India
• Each partner share equity and management
• Another choice to buying/building a foreign wholly owned operation

Wholly Owned Subsidiary

• Most expensive market entry method
• Highlight company`s long term view especially for production facilities
• High commitment show when R&D facilities created

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