International Marketing

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Chapter 7&8 – International Market selection and Entry

Approaches to market selection ← incremental entry vs simultaneous entries ◦ incremental → usually for small companies with fewer resources that wants to lower their risk preclude economies of scale. ◦ simultaneous → extensive resource thus, resulting in higher operating risk, may decide to leverage across asia pacific area, facilitate economies of scale. ← Concentrated approach vs diversified approach ◦ concentrated → resources limited/concentrated in limited number of markets which will reduce cost and operating risks. Economies of scale. Only concentrating on a number of market ◦ Diversified → spread risks exposure, broadens market
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- barriers can be entry (tariff/non tariff)/exit (profit,dividends+capital, taxation) ← which remaining overseas market should be avoided because competitors (domestic and foreign) are already well established? - help to determine whether market should be included/not because of their potential competitive reaction. Also include entering a market n prevent others entering the market, entering the market where competition already exist-confronting them and entering market where competition doesnt exist. The latter strategy designed to build market share and gain experience by attacking competitive markets in other countries at a latter stage.
4. Market responsiveness → what are firms competitive advantage in OS market ← which remaining OS market are not large enough to justify the marketing effort that will be necessary to gain a satisfactory market share? - can we gain market share despite the competition? ← Which remaining OS market are unlikely to respond to those marketing activities that are considered necessary to establish the g/s in the marketplace effectively? - will the market prevent/allow firm the achieve its objtvs? ← Which remaining OS market prohibit forms of presence that the firm consider as optimal and can afford when entering a new overseas markt? ← Which remaining OS market are unattractive bcos of costs and problems of reaching them from home
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