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Objectives: Define Global Marketing Factor Influencing entry in the overseas market Method to entry in the Global Market Global Marketing is A Global Firm A global firm is one that operates in more than one country and captures R&D, reduction, logistical, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
Factors Influencing Entry to Overseas Market Market Growth: Most of the large, established markets, such as the US, Europe, and Japan, has more or less reached a point of saturation for consumer goods such as automobiles, consumer electronics. Therefore, the growth of markets in these countries is showing a declining trend. Therefore, from the perspective of long-term growth, firms invest more resources in markets with high growth potential.
Image Support Requirements: In some industries, companies that want to build and sustain the image of a leading global supplier have got to be present in leading markets Flexibility: Marketing Barriers: Methods of Entry in Foreign Market 0 Exporting Indirect and Direct 0 Joint Venturing Licensing Contract manufacturing Management contracting Joint ownership O Direct Investment Exporting Indirect Export working through independent home-based international marketing intermediaries. Direct Exporting through the company’s own branch, department, or safe representatives or agents
Joint Ventures Joint ventures is entering foreign markets by Joining with foreign companies to produce or market a product or service. Licensing: The licensing method is a method of entering a foreign market in ‘which the company enters into an agreement with a licensee in the foreign market, offering the right to use a manufacturing process, trademark, patent, trade secret or other item of-value for a fee or royally. Contract Manufacturing: A Joint venture in which the company contracts with manufacturers in the foreign market to produce its product or provide its service.
Management Contracting: Under management contracting, the domestic firm supplies management know how to a foreign company that supplies the capital. The domestic firm exports management services rather than products. 0 Joint ownership: A Joint venture in ‘which a company Joins investors in a foreign market to create a local business in which the company shares Joint ownership and control. Direct Investment Direct investment is entering a foreign market with the development of foreign-based assembly or manufacturing facilities. Conclusion