Market Entry Strategies In International Marketing

1. Introduction

Marketers focus on desires and wants of individuals, groups and societies. They focus on individual demand, market demand and the trend in society. In marketing concept, market is not only a physical place but it is also a non-physical place. Joshi et al. (2005) points out that international marketing is firm-level marketing practices across the border which involves market identification and targeting, entry mode strategies, marketing mix, and making the right decisions to compete in international markets. Multinational marketing is a complex form of global marketing that engages a company in marketing operations in various countries. Globalisation has progressed significantly in the past decade, due to modern communication, transportation and improved legal infrastructure as well as the political choice to consciously open markets to international trade and finance. Various companies have been successful in global marketing such as Bosideng, which is a Chinese company which creates men's clothing and down wear.

Market Entry Strategies

One of the market entry strategies employed by companies which want to engage in international marketing is exporting. Exporting to a foreign market is a strategy various organizations employ for some of their markets. Since many countries produce enough goods to satisfy their local population, exporting enables a company to manufacture its products for several markets in various countries and therefore to obtain economies of scale production. Apart from direct exporting, a company can contact foreign markets via a domestically located intermediary and this is called indirect exporting.

Licensing is another market entry strategy. Licensing may offer the foreign firm access to bran...

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...ntributing a different element to the venture. Alliances can be in the forms of technology-based alliances, production based alliances or distribution-based alliances. Lastly companies can enter foreign market through be through mergers and acquisitions. Although international firms have always made acquisitions, the need to enter markets more quickly than through building a base from scratch or entering some type of collaboration has made the acquisition route extremely attractive. This trend has probably been aided by the opening of many financial markets, making the acquisition of publicly traded companies much easier. A major advantage of acquisitions is that they can quickly position a firm in a new business. By purchasing an existing player, a firm does not have to take the time to establish its presence or develop the resources it does not already possess.