Strategic Approach to Entering Foreign Markets

4315 WordsMay 18, 201318 Pages
Strategic Approach to Entering Foreign Markets Module: International Marketing Management International marketing - marketing of goods and services outside the country of deployment of the company 's head office (Cant et al, 2007). Multinational marketing is a complex form of international marketing, which relates to organizations conducting marketing operations in many foreign countries. Multinational firms include Nestle, Unilever, Shell, Exxon and Coca-Cola. These companies own the trademarks, well-known around the world as well as perform extensive international operations. Large multinational organizations often allocate company resources across national boundaries, although related to a particular country in terms of…show more content…
When making a decision to enter the foreign market it is highly important that all possible risks are carefully assessed. These risks can be the following: 1. Misunderstanding preferences of foreign consumers, offering uncompetitive, unattractive products. 2. Someone else 's business culture, the inability to communicate effectively in the "natives." 3. Ignorance of the rules regulating business abroad and unforeseen costs. 4. The lack of managers with international experience. 5. Foreign country can change trade laws, devalue the currency, it can happen coup that would expropriate the property of foreign firms. Competitive advantages in the country and the high risks of international activities delayed the company 's entry into the world arena, as long as someone: the domestic exporter, a foreign importer or a foreign government - do not push it to the export of goods. Another incentive can be a need to find new markets for products (Czinkota and Kotabe, 2001). When deciding on the foreign market should set goals and develop a policy of international marketing. Management company should ask the following questions and receive answers to produce its own marketing strategy: * How much output will be exported? * What is the scope in future overseas operations - minor or equal to the internal volume of the production company, or even more? * What

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