Read the summary and the most important questions on Deciding how to enter the market

• 4 Deciding how to enter the market

• What forms exist? (from low to high commitment, risk, control and profit potential)

  - Indirect export

  - Direct export

  - Foreign production

  - Joint ventures

  - Direct investment

• What forms of foreign production exist?

  - Licensing

  - Franchising

  - Contract manufacturing

  - Assembly

  - Integrated local production operations

• How do the main export forms differ in terms of control, asset level, variable cost, fixed costs, total costs and market share.

  - Indirect exporting

  - Direct exporting

  - Foreign production

  - Joint venture

  - Direct investment

  
  

  All increase except variable costs decrease

• 5 Deciding on the marketing program. International marketing mix

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• What is key when designing international marketing strategy?

  - International companies must decide how much to adapt their marketing strategy to local conditions

  
  

  - At the one extreme there is the standardized marketing program worldwide, which promises the lowest costs

  - At the other extreme is the adapted marketing program in which the company believes the consumer needs vary from country to country.

• What are the advantages of globally standardized marketing

  - Economies of scale in production and distribution

  - Uniformity of marketing programs; lower marketing costs

  - Consistency in brand image

  - Ability to implement ideas quickly and efficient

• What are the disadvantages of globally standardized marketing?

  - Ignores differences in:

  - Consumer needs, wants and usage patterns

  - Consumer response to marketing programs

  - Brand and product development

  - The legal environment and administrative procedures

• What is segmenting in international markets about?

  1 Process of segmenting international markets

  2 Specific global segmentation's

  3 Targeting different segments in each country

  4 Selecting the right segments to target

  5 Special considerations in different markets

• What are the benefits of segmenting international markets?

  - Target market selection

  - Differentiation

  - Opportunities and threats

  - Tailored marketing mix

• What involves the process of segmenting international markets?

  1. Decide the market to be segmented

  2. Determine the segmentation variables based on the objectives

  3. Conduct the market research to obtain segmentation

  4. Identify the segments, their characteristics and their market potential

  5. SWOT analysis for every segment analyzing the competing brands in each one of them

  6. Decide which segments to target

• What are the most common segmentation variables?

  - Geographic

  - Demographic- socioeconomic

  - Lifestyle- Psycho graphic

  - Behavioral- Usage/Consumption