Last Weeks Lecture: Market Selection

1
Last Weeks Lecture Market Selection

• Marketing Research Sources
• Marketing Research Problems
• Market Selection Process
• Ad-hoc or Systematic
• Macro and Micro Filters
• Final Criteria

2
Market Entry Contents

• Market Entry Criteria
• Methods of Market Entry
• Evolving Strategy

3
Market Entry Criteria

• Time
• Cost
• Control
• Overall Risk

4
Major Methods

• Indirect
• Export
• Overseas manufacture-Contract
• FDI

5
Indirect

• Trading Company/Buying Houses
• Piggybacking/Complementary Mkt
• Advantages Disadvantages

6
Export

• Direct to Client
• Overseas Sales Office
• Via Agent
• Via Distributor

7
Overseas Manufacture Contracting

• Subcontract
• Franchise
• Licence
• Joint Venture

8
Foreign Direct Investment

• Acquisition / Takeover
• Greenfield site
• Screw driver plant
• Controlled subsidiary
• Autonomous subsidiary

9
Evolving Strategy

• Minimise risk
• Test the market
• Enhance market presence
• Provide full commitment
• Employment
• Research
• Employ locals rather than expats
• Agent sales office overseas manufacture

10
Market Entry Summary

• Market Entry Criteria
• Methods of Market Entry
• Evolving Strategy