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GMM Lecture 7
Management
> Global Marketing Management >
Lectures >
Emerging Markets > Emerging Markets continued
Emerging Markets continued
Entry considerations:
- Leapfrogging
- Timing of entry
(For example, after a lifting of trade restrictions, such as China’s
Open Door policy of 1978)
- Distribution
network/strategies (Look at
infrastructure. In India it is not well developed, for example)
- Target media
(If illiteracy is high, then use visual media. If many people do not
have televisions, use media which they have access to, like posters
or the radio)
- Customer education
(similar choices to target media)
- Pricing
(Based on national/individual economic situation and similar
existing firms)
Foreign market entry methods:
- Exports
– low investment, but low return
- Licensing
– (patent, process and trademark rights etc.) low investment, but
low return
- Franchising
– (provision of standard package of products, systems and management
services) low investment, but low return
- FDI
- Sole venture
– high investment, but high risk/return and high degree of
control
- Joint venture
– lower relative investment than solve venture
(See Understanding the Global
Firm and Global Strategic Management notes for different reasons for
each method)
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