国际市场营销实务双语Task Six Interational Markets Entry Mode Selection.ppt

International Markets Entry Mode Selection ? When a company chooses the entry mode for a foreign market, it has three alternatives for selection, exporting entry mode, contractual entry mode and investment entry mode. ? Conditions Favoring Exporting ? the import policy in the target country is liberal ? exporters are not experienced in marketing in foreign markets and find it difficult to obtain the distribution channels. ? exporters found it costly to build plants in target country because the labor costs in many countries are very high ? some countries present high political risks ? Indirect exporting means that the company sells its products to intermediaries who will sell the product overseas. ? Advantages and Disadvantages of Indirect Export ? The manufacturer can sell its product to a distributor with little investment without having to learn much about the international market ? lack of control over the markets of its products, which may result in losing sales and a loss of goodwill ? Companies engaging in direct exporting have their own exporting expertise ? Such companies have more control over the marketing mix in the target market ? Disadvantages of Direct Export ? Companies have to carry the cost of their export department staff and those involved in selecting and monitoring the freight forwarders, shipping lines, insurers, marketing researchers, and advertising companies ? In this type of export mode, a firm joins with others to effectively market a complementary product program to larger buyers.----Look at Mini- Case 6.1 ? Piggyback ? In this type of entry mode, the inexperienced company, the “rider”, deals with a larger company, the “carrier”, which operates in some foreign markets and is willing to act on behalf of the rider who wants to export to those markets. ? Mansion T oys Co., Ltd. is a small toy manufacturer , specializing in the design and production of handicrafts, al