Task Six International Markets Entry Mode Selection（课件）- 《国际市场营销实务》同步教学（对外经贸大学·2011）

Task Six International Markets Entry Mode Selection I Alternatives Of Entry Modes 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. 1. Export 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 Export 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 Direct Exporting 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 Cooperative Exporting 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. Skill Training 6.1 Mansion Toys Co., Ltd. is a small toy manufacturer, specializing in the design