Marketing

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1. Introduction ……………………………………………………………………..1 2.0 Procedures……………………………………………………………………….1 3.0 Reasons for enter international market ……………………………………….1 4.0 The two sources of information………………………………………………...1 5. The two factors that PK Electrics would face…………………………………2 6. The process for market selection……………………………………………….2 7. The entry modes…………………………………………………………………3 1. Exporting…………………………………………………………………….3 7.2 Overseas production………………………………………………………...3 7.3 Contract manufacture ……………………………………………………...3

7.4 Direct foreign investment…………………………………………………...3 8.0 The more appropriate method for PK Electrics enter the international market………………………………………………………………………………...4 9.0 Bibliography…………………………………………………………………...…5

1. Introduction
The aim of this report is that according to the PK Electrics’ current situation to decide whether and how to enter the international market. It contains the reasons, the sources of information, the factors, the process, the entry modes and why choose this entry mode for enter international market. 2.0 Procedures

The sources of this report include a number of books in marketing were consulted; information on e-marketing was taken from internet websites. 3.0 Reasons for enter international market
There are three reasons for PK Electrics is considering entering international markets: The firm may benefit from the image of being an ‘international player’, because the urban population PK Electrics has seen demand for its products grow as people seek improvements to their homes and living standards. The domestic market does not offer any prospects for significant growth, because over the last two years the rate of growth has begun to decline with sales rising 5% and profits by 2%last years. There may be an opportunity for the firm to extend the lift cycle of its products, because over the last 10-15 years with the Chinese economy becoming more market-based and the more recent impact of China joining the World Trade Organization in December 2001. 4.0 The two sources of information

There are two sources of information for the companies can collect. The first one is primary sources which is information fathered first hand by the organization for a specific purpose. It includes trade seminars, trade missions, face-to-face interview, and so on. The second one is secondary sources which is information that already exists. This information should always be checked first as it is readily accessible and saves time and effort being used in collecting primary information. The websites are the main sources of the secondary sources. Overseas embassies of the national government are a very useful source of information. Up to 70%of diplomats work may be trade related. The overseas embassies can provide the PK Electrics the information of local policy, the information of local enterprises and the information of the opportunities of the local market. International business forum aims to provide information about business opportunities in the international marketplace. It is intended for companies wishing to export to expand into foreign markets as well as those interested in acquiring produces and services from other countries. It can provide PK Electrics some relevant information of business’ opportunities and the information of the local customers’ interests and needs. It can let PK Electrics easily make decisions according to the IBF’s information. 5. The two factors that PK Electrics would face.

The PK Electrics would face political and economic factors in the macroeconomic market. Over the last 10-15 years with the Chinese economy becoming more market- based and the more recent impact of China joining the World Trade Organization in December 2001, so the trade policy in china changed. This policy made the barriers in the international trade become lower. The PK Electrics has the opportunities enter the international market more easily. Maybe the lower tax in...
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