International Marketing Modes Of Entry1

International Marketing
Management

Foreign Market Entry Strategies

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Overview
1. Target Market Selection
2. Choosing the Mode of Entry
3. Exporting
4. Licensing
5. Franchising
6. Contract Manufacturing
7. Joint Ventures
8. Wholly Owned Subsidiaries
9. Strategic Alliances
10. Timing of Entry
11. Exit Strategies
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Introduction
 The need for a solid market entry decision is an integral part of a global market entry strategy.
 Entry decisions will heavily influence the firm’s other marketing-mix decisions.
 Global marketers have to make a multitude of decisions regarding the entry mode which may include:
– (1) the target product/market
– (2) the goals of the target markets
– (3) the mode of entry
– (4) The time of entry
– (5) A marketing-mix plan
– (6) A control system to check the performance markets in the entered

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1. Selecting the Target Market
 A crucial step in developing a global expansion strategy is the selection of potential target markets
(see Exhibit 9-1 for the entry decision process).
 A four-step procedure for the initial screening process: 1. Select indicators and collect data
2. Determine importance of country indicators
3. Rate the countries in the pool on each indicator 4. Compute overall score for each country
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1. Selecting the Target Market

Chapter 9

Copyright (c) 2007 John Wiley & Sons, Inc.

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2. Choosing the Mode of Entry
 Decision Criteria for Mode of Entry:
– Market Size and Growth
– Risk
– Government Regulations
– Competitive Environment/Cultural Distance
– Local Infrastructure

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2. Choosing the Mode of Entry

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2. Choosing the Mode of Entry

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2. Choosing the Mode of Entry

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 Classification of Markets:
– Platform Countries (Singapore & Hong Kong)
– Emerging Countries (Vietnam & the Philippines)
– Growth Countries (China & India)
– Maturing and established countries (examples:
South Korea, Taiwan & Japan)
Company Objectives
Need for Control
Internal Resources, Assets and Capabilities
Flexibility
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