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Lecture Global marketing management (7th edition): Chapter 9 - Masaaki Kotabe, Kristiaan Helsen

Chapter "global market entry strategies". After studying this chapter you will be able to understand: The importance of problem defi nition in international research, the problems of availability and use of secondary data, sources of secondary data, quantitative and qualitative research methods, multicultural sampling and its problems in less-developed countries, using international marketing research. | Chapter 9 PowerPoint Global Market Entry Strategies Chapter Overview 1. Country Selection 2. Scale of Entry Choosing the Mode of Entry Exporting 5. Licensing 6. Franchising 7. Expanding through Joint Ventures and Alliances 8. Wholly Owned Subsidiaries 9. Dynamics of Entry Strategies 10. Timing of Entry 11. Exit Strategies Chapter 9 Copyright © 2017 John Wiley & Sons, Inc. Introduction The need for a solid market entry decision is an integral part of a global market entry strategy. Entry decisions will heavily influence the firm’s other marketing-mix decisions. Global marketers have to make a multitude of decisions regarding the entry mode which may include: (1) country selection (2) the scale of entry (3) the mode of entry (4) The time of entry (5) A marketing-mix plan Chapter 9 Copyright © 2017 John Wiley & Sons, Inc. 1. Country Selection A crucial step in developing a global expansion strategy is the selection of potential target markets (Exhibit 9-1). A four-step procedure for the initial screening process: 1. Select indicators and collect data 2. Determine importance of country indicators 3. Rate the countries in the pool on each indicator 4. Compute overall score for each country Chapter 9 Copyright © 2017 John Wiley & Sons, Inc. Exhibit 9-1: Logical Flowchart of the Entry Decision Process Chapter 9 Copyright © 2017 John Wiley & Sons, Inc. 2. Scale of Entry Factors influencing scale of entry Large-scale entry may induce volume-driven cost advantages Where location matters, large-scale entry can lead to lock-up of more attractive locations Existing players less likely to respond aggressively when entrant has made substantial investments Large-scale entry may deter other prospective players from entering market Chapter 9 Copyright © 2017 John Wiley & Sons, Inc. 3. Choosing the Mode of Entry Decision Criteria for Mode of Entry: Market Size and Growth Risk Government Regulations Competitive Environment Cultural Distance . | Chapter 9 PowerPoint Global Market Entry Strategies Chapter Overview 1. Country Selection 2. Scale of Entry Choosing the Mode of Entry Exporting 5. Licensing 6. Franchising 7. Expanding through Joint Ventures and Alliances 8. Wholly Owned Subsidiaries 9. Dynamics of Entry Strategies 10. Timing of Entry 11. Exit Strategies Chapter 9 Copyright © 2017 John Wiley & Sons, Inc. Introduction The need for a solid market entry decision is an integral part of a global market entry strategy. Entry decisions will heavily influence the firm’s other marketing-mix decisions. Global marketers have to make a multitude of decisions regarding the entry mode which may include: (1) country selection (2) the scale of entry (3) the mode of entry (4) The time of entry (5) A marketing-mix plan Chapter 9 Copyright © 2017 John Wiley & Sons, Inc. 1. Country Selection A crucial step in developing a global expansion strategy is the selection of potential target markets (Exhibit 9-1). A .