1. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/1
MARKET ENTRY STRATEGIES
Session 7

2. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/2
MARKET ENTRY METHODS & THE LEVELS
OF INVOLVEMENT IN INTERNATIONAL
MARKETS

3. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/3
SUCCESSFUL MARKET ENTRY #1
• Criteria for Selecting Appropriate Market
Entry Method
– The company objectives and expectations relating
to the size and value of anticipated business
– The size and financial resources of the company
– Existing foreign market involvement
– The skills, abilities and attitudes of the company
management towards international marketing
– The nature and power of the competition with the
market

4. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/4
SUCCESSFUL MARKET ENTRY #2
• Criteria for Selecting Appropriate Market
Entry Method
– The nature of existing and anticipated tariff and
non-tariff barriers
– The nature of the product itself, particularly any
areas of competitive advantage, such as
trademark or patent protection
– The timing of the move in relation to the market
and competitive situation

5. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/5
RISK & CONTROL IN MARKET ENTRY

6. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/6
INDIRECT EXPORTING #1
• Domestic Purchasing
– Foreign organisation purchases the product for export to
another country
– Gives access to and limited knowledge of the international
market
– Little control over choice of markets entered
– For longer term, need a more proactive approach
• Export Management Companies / Export Houses
– Specialist companies act as the export department for a
range of companies
– Help SMEs to initiate/develop/maintain international sales
– Deal with documentation, government regulation

7. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/7
INDIRECT EXPORTING #2
• Piggybacking
– An established international distribution network of
one manufacturer used to carry products of a
second
– Particularly good for firms from developing
countries
– Often poorly considered terms and conditions
• Trading Companies
– Their extensive operations and controls enable
operation in more difficult trading areas
– Manage countertrade activities

8. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/8
THE COMPONENTS OF THE EXPORT
MARKETING MIX
EXPORT
MARKETING
MIX
Product:
Selection, development &
sourcing
Pricing:
Policy, strategies, discount
structures & trading terms
Promotion:
Corporate promotions & local
selling, trade shows & literature
Distribution:
Sales force management,
agents, distributors & logistics
Services:
Market research, training &
sales servicing
Finance & Administration:
Budgets, order processing, insurance & credit
control
Technical:
Specifications, testing &
product quality

9. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/9
IMPORTANT FACTORS FOR SUCCESSFUL
EXPORTING
• Commitment of the firm’s management
• Exporting approach emphasising the skills base
• Good marketing and information
communication system
• Production capacity & capability, product
superiority, competitive pricing
• Effective market research
• Effective national export policy
Source: Katsikeas et al (1996)

10. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/10
SELECTION CRITERIA FOR FINDING A
SUITABLE AGENT
• Financial strength of the agent
• Their contacts with potential customers
• The nature and extent of their
responsibilities to other organisations
• Their premises, equipment and
resources (including sales
representatives)

11. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/11
ACHIEVING SATISFACTORY
MANUFACTURER-AGENT RELATIONSHIP
• Achieving Satisfactory Manufacturer-agent
Relationship
– Allocate time and resources to find a suitable
agent
– Ensure that both understand what each expects of
the other
– Ensure that the agent is motivated to improve
performance
– Provide adequate support on a continuing basis
– Ensure that there is sufficient advice and
information transfer in both directions

12. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/12
REASONS FOR SETTING UP OVERSEAS
MANUFACTURE
• Product
– avoiding problems, e.g.
perishability
• Services
– Dependant for success on
local intellectual property,
knowledge &sensitivity
• Costs of transporting and
warehousing
• Tariff barriers and quotas
• Government regulations e.g.
local investment
• Market
– Local manufacture viewed
favourably by market?
• Government contacts
• Market information feedback
• International culture in firm
• Local manufacture
– faster response and just-in-
time delivery
• Lower labour cost

13. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/13
MINIMISING THE POTENTIAL PROBLEMS OF
LICENSING #1
• Develop a clear policy and plan
• Allocate licensing responsibility to a
senior manager
• Select licensees carefully
• Draft the agreement carefully to include
duration, royalties, trade secrets, quality
control and performance measures
Sarathy et al (2006)

14. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/14
MINIMISING THE POTENTIAL PROBLEMS OF
LICENSING #2
• Supply the critical ingredients
• Obtain equity in the licensee
• Limit the product and territorial
coverage
• Retain patents, trademarks, copyrights
• Be an important part of the licensee’s
business
Sarathy et al (2006)

15. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/15
FOREIGN MANUFACTURING STRATEGIES
WITH DIRECT INVESTMENT
• Reasons for investment in local
operations
– To gain new business: local production
demonstrates strong commitment
– To defend existing business
– To move with an established customer
– To save costs: e.g. labour, raw materials
and transport
– To avoid government restrictions

16. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/16
Who provides what in partnerships between firms
from developed and developing countries

17. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch7/17
DRIVING FORCES FOR THE FORMATION &
OPERATION OF STRATEGIC ALLIANCES
• Insufficient resources
• Pace of innovation and market diffusion
• High research and development costs
• Concentration of firms in mature industries
• Government co-operation
• Self protection
• Market access