KOTLER, CHAPTER 20

1. Which markets to enter?

2. Choices
Indirect exporting
Direct exporting
Licensing
Joint Ventures
Direct investment

3. Indirect and direct
export
Domestic based export
merchants
Domestic based export
agents
Cooperative
organisations
Export management
companies

4. WAYS OF
DIRECT
EXPORT
•
Domestic-based exportDomestic-based export
departmentdepartment
•
Overseas sales branchOverseas sales branch
•
Traveling export salesTraveling export sales
representativesrepresentatives
•
Foreign-basedForeign-based
distributors or agentsdistributors or agents

5. LICENSINGLICENSING

6. •
Licensor issues a license to aLicensor issues a license to a
foreign company to use aforeign company to use a
manufacturing process, trademark,manufacturing process, trademark,
patent for a fee or royalty.patent for a fee or royalty.
•
Licensor gains entry at little riskLicensor gains entry at little risk
•
Licensee gains production expertise/Licensee gains production expertise/
well-known brandwell-known brand

7. Contract manufacturingManagement contracts
Franchising

8. Joint VenturesJoint Ventures

9. One of the most powerful
strategic tools
Good partners share
“brand values” help
maintain brand
consistency across
markets.

10. Direct InvestmentDirect Investment

11. Foreign investment
Ultimate goal is direct ownership
1. Secures cost economies through
cheaper raw materials, incentives, etc
2. Strengthens image in host country
because it creates jobs
3. Deepens its relationship with
government, customers,local suppliers,
etc.
4. Retains full control over its investment
Firms assures itself itself of access to
the market