In fundamental terms, entering a new country-market is very like a start-up situation, with no sales, no marketing infrastructure in place, and little or no knowledge of the market. Despite this, companies usually treat this situation as if it were an extension of their business, a source of incremental revenues for existing products and services. Two aspects of the typical approach are particularly striking. First, companies often pursue this new business opportunity with a focus on minimizing risk and investment—the complete opposite of the approach usually advocated for genuine start-up situations. Second, from a marketing perspective, many companies break the founding principle of marketing—that a firm should start by analyzing the market, and then, and only then, decide on its offer in terms of products, services, and marketing programs. In fact, it is far more common to see international markets as opportunities to increase sales of existing products and so to adopt a “sales push” rather than a market-driven approach. Several phases of the process of market entry and development, including the following: * The objectives of market entry, which will have implications for the strategy and organization adopted. * The choice of market entry mode (i.e., the form of marketing organization through which the company participates in the market). Particular attention will be paid to the low-intensity modes of entry most commonly favored in market entry situations. * The marketing entry strategy, with a particular focus on the lessons learned from the strategies of western multinationals in emerging markets. * A framework for the overall evolution of an international marketing strategy. Popular strategy for entering new businesses
The most popular strategy for entering new businesses and accomplishing diversification is: a. Forming a joint venture with another company to enter the...