INTERNATIONAL MARKETING-RECENT TRENDS

INTRODUCTIONToday is the era of competition and expansion of the market activities is the demand of this hour. So we are expanding our activity area and today international market is also not a dream for any businessman. But exporter has to enter in international market very wisely because every foreign market has its own business environment. So businessmen should adopt different technique for every country.

RECENT TRENDS JOINT VENTURE ESTABLISHING BRANCHES ABROADAPPOINTMENT OF EXCLUSIVE AGENTDISTRIBUTERS CONSULTANCY SERVICES TECHNICAL AND MANAGERIAL

KNOWLEDGE

JOINT VENTUREJoint venture is an indirect method of

entering in foreign marketing. It means when two companies join ownership and management of the marketing project. The main feature of joint venture is that the ownership and management are shared between a foreign firm and a local firm.

ADVANTAGES &DIS ADVANTAGESADVANTAGES DISADVANTAGESLess costHigh returnsEasy way to enter in

foreign marketMutual benefitNew product for

consumer

RiskRisk for own goodwillHigh degree of

managerial skillConflicts and disputes

TYPES OF JOINT VENTURE

INTERNATIONAL SUB- CONTRACTING LICENCING ARRANGEMENT FRANCHISING COUNTERTRADE MERGERS AND ACQUITIONS STRATEGIC ALLIANCEASSEMBLY

INTERNATIONAL SUB- CONTRACTING SUB- CONTRACTING is an arrangement

between developed and developing countries. In this developed countries provide capital to developing countries for producing labour oriented product.

LICENCING ARRANGEMENT Under the system of licensing, rights are

given by a firm in one country to another firm operating in another country to use its trademark technology, technical know-how, marketing skills and copyrights etc.

FRANCHISING FRANCHISING is a form of licensing in

which a parent company grants another company the right to do business in a specified manner. Franchising also provide right to use its name, production and marketing techniques. E.g McDonalds, CocaCola

COUNTERTRADE When countries link their exports with the imports, it

is known as counter trade which is a type of barter arrangement. Various forms of countertrade are:-

barter compensation counter trade buyback arrangement counter purchase arrangement swap clearing switch trading evidence accounts blocked currencies

MERGERS AND ACQUISITIONS MERGERS AND ACQUISITIONS have been a

very important market entry strategy as well as expansion strategy. These are normally used by companies to mitigate the degree of competition and they can make use of already established market and distribution system of a company.

STRATEGIC ALLIANCE STRATEGIC ALLIANCE is another form to

enter foreign markets. alliances are different from joint ventures. In an alliance, two firms pool their resources directly in a collaboration that goes beyond the limits of a joint venture.

ASSEMBLY

ASSEMBLY is the last stage of manufacturing. Under this agreement a part of a product is manufactured by the domestic company and final product is produced by assembly in the foreign company.

ESTABLISHING BRANCHES ABROAD Through branches, the exporter establishes

sales and provides after sales services and other facilities in the foreign market. It involves a lot of investment. Foreign branches maintain ready stock. Necessary staff is also appointed.

APPOINTMENT OF EXCLUSIVE AGENT

Under this system an agent is appointed to collect orders from foreign country. The manufacture exports the goods direct to the customer in response to the orders forwarded by the agent.

DISTRIBUTERS

Under this system, exporter appoints the distributers as sales representatives. Distributor usually operates on his own account. They have their own godowns and showrooms in their country.

CONSULTANCY SERVICES In this system exporting company offers

consultancy services by undertaking turnkey projects in foreign countries.

TECHNICAL AND MANAGERIAL KNOWLEDGE In this system the technicians and

managerial personnel of the exporting company guide and train the technicians and managers of the importing company.

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