INTERNATIONAL MARKETING

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MOVING INTO A NEW MARKET

EXPORTING DIRECT TO INTERNATIONAL CUSTOMERS

  • Online promotion = cost effective
  • You can choose which orders to accept
  • Establish direct customer relationship
  • Choose basis of payment e.g. currency/delivery options
  • Potentially beaureucratic
  • No direct physical contact with customer
  • Risk of non-payment

SELLING VIA OVERSEAS AGENTS/DISTRIBUTORS

  • Agent should have specialist knowledge of market and existing customers.
  • Fewer transactions to manage.
  • Cost-effective
  • Loss of profit margin
  • Harder to manage quality customer service
  • Agent/distributor keeps customer relationship

 

 

 

 

 

 

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INTERNATIONAL MARKETING

OPENING AN OPERATION OVERSEAS

  • Local contact with customers + suppliers
  • Quickly gain detailed insights into market needs
  • Direct control over quality and customer service
  • Avoid tariff barriers
  • Significant cost and investment of mamagement time
  • Understand and comply with legal + tax issues
  • High risk

JOINT VENTURES OR BUYING A BUSINESS ABROAD

  • Reduced risk
  • Buying into already existing expertise
  • Joint ventures often go wrong
  • Risk of buying wrong business or paying too much
  • Competitor response may be strong.
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