国际营销导论1.docx

1、国际营销导论11.0 IntroductionThe following report will discuss something of PK electrics, which includes knowledge and skills involved in the international market. For the purpose of providing a report, it will explain why PK Electrics is considering entering international markets. To know which sources o

2、f information would help PK, the PK Electrics should select appropriate international market to enter. Then the report describes key opportunities and threats of entry into international market. It also explains the process PK Electrics would use to select which market to enter. Furthermore, the mod

3、es of market entry available to PK Electrics are identified. Last, it evaluates which method of market entry would be most appropriate for PK Electrics.2.0 Findings2.1 Entering international marketThere are some factors for PK electrics to consider entering international markets.For the product life

4、 cycle, there are many marketing mistakes because firm fails to acknowledge the fact that there are different counties and a product may be on different stages in its PLC.For the production-related factors, be close to raw materials, availability of resources, advanced technology, be able to forcefu

5、l attract and encourage firm to invest abroad.For the personnel-related factors, high unemployment rates and weak trade unions in the target areas could be a good reason for foreign direct investment.For the Market-related factors, many firms make decisions to get into international market because t

6、he company is planning to go there already and they do not want to be at a disadvantage like the rush entry of many companies from the capitalist world to the ex-communist countries in Eastern Europe.For the external, market saturation should be considered. Fierce competition from domestic and forei

7、gn companies, high cost of production and shortage of the required managerial and technical skills are some reasons why firms might find further investments in home markets less attractive then foreign markets. Overall, domestic market is facing the markets intense competition and not enough raw mat

8、erials 2.2 Sources of informationEconomist Intelligence Unit: Although some sections of the Economist Intelligence Unit web site are restricted to subscribers, this site provides a large number of useful articles on the latest country analysis. All regions are covered and topics include global finan

9、ce, economic outlook, venture capital, political stability, industry sectors, business culture, tourism, and e-commerce. This site is a must for country research.Foreign Investment Advisory Service: FIAS works only at the request of governments, on topics identified by that government and agreed to

10、by both parties. This ensures the relevance of the assistance and lays the basis for active partnership. The service offers much more than one-way advice and written reports: through interactive workshops and roundtable meetings that often include business executives and other stakeholders it helps

11、governments chart technically and politically practical paths to change.The European Union: The EU currently has 27 members. It began life as an organization with six members and since its inception in 1957 has grown not only membership but also in terms of economic wealth, being the largest trading

12、 bloc in the world, in co-operation moving from a free trade area to customs union with an increasing convergence of legal, social and economic factors. There is also a common currency in use, the euro, which has currently been adopted by 12 of the EU members. There is revised interest in a common c

13、onstitution for all member countries.PK Electrics needs to find out some information on this way, which is good for the company to enter the international markets. Before the company wants to enter some countries, the company must know about all the information of the market in the country.2.3 Key o

14、pportunities and threatsPK Electrics key opportunities and threats are associated with four reasons. Thats PEST.Political factors: At some time, most companies engaged in international marketing suffer because of the political or legal structure of a country. A countrys political system particularly

15、 important when the firms business requires big investments, such as in the oil industry, which could be severely compromised by political unrest or when business is done direct with government departments.Economic factor: the economic wealth of a country is based on its human, natural and technical

16、 resource. These resources affect a countrys ability to produce globally competitive goods and services and to offer a viable market for such products.Technological factor: nowhere is there greater change than in the environment of information and communication technologies (ICTs). ICTs include the

17、various types of computers (mainframes, desktops, laptops and workstations), local and wide area networks, intranets and the internet, mobile telephones and the various software applications.Socio-Cultural factor: culture may be defined as the standards or beliefs, perception, evaluation and behavio

18、r shared by the members of a social group. Some authors even define culture as the collective programming of the minds that distinguishes the members of on group of people from another.PK Electrics would face the key opportunities and threats associated with entry into international markets. For the

19、 key opportunities: the company will have new customer for the new market. They should be able to understand what the new customer needs to, and which is good for the company to rapidly expand the market.For the threats associated: the company enters to the new country that will have the new environ

20、ment. The company must be able to adapt to the new environment. That is one of threats associated with in the company. Secondly the new customer will have new request which is the companys challenge. Thirdly, the customers are demanding high-quality products.PK Electrics should make good use of the

21、key opportunities and dare to face the threats associated with.2.4 Process to select the international marketStep 1: PK Electrics needs collect some information and source to know all the market situation that may be selected, their culture, country economic development level and peoples consume lev

22、el and so on.Step 2: The PK Company has to sieve out the inappropriate markets.Step 3: PK Company has selected some countries that may enter, then, we need to analyze all the countries which will bring what opportunity, threats and the companys strength and weakness. Base on analysis, discussion or

23、on the spot investigations results, we chose a most appropriate market that we will enter.Step 4: Sift out the inappropriate markets second time.Step 5: Make sure which country to choose. That is very important. The company should re-affirm which country fits the company to enter and whether it is c

24、onducive to the development. Finally, the company should determine the choice.Step 6: Decide which entry mode is useful, and make decision on the marketing mix: the company must choose the best consort of the entry mode which determines the company to make profit in the market.2.5 Market entry modes

25、The PK Electrics has many available entry methods for international market, including direct exporting, indirect exporting, joint venture and franchising.Direct exporting occurs where the producing organization itself performs the export tasks rather using an intermediary. It means the company can d

26、irectly sell something to the overseas customer. The customer may be retailers, users and wholesalers. The PK can set some foreign distribution. It can more control over the export process, potentially higher profits and closer relationship to the overseas market. But the PK will spend many costs on

27、 the initially entering new market.Indirect exporting results in the companys products being sold overseas but the exporting companies are not participating in the export process. It means the PK Company is not involved in the actual export process. It is made by the third part such as Export Manage

28、ment Company, export trading company, export house and so on. It will save some costs on the part, but the PK may not know some information of the foreign market, and can not make close relationship with the oversea market.Joint venture entry takes place when an international company shares in the o

29、wnership of an enterprise in a target country with local private or public interests. It means two or more parent companies agree to share capital, technology, human resources, risks and rewards in a new entity lake a company, sometimes there will be many conflicts occurred.Franchising is a form of

30、market approach in which a company, the franchisor, grants another independent organization the right to do business in a particular way. This right can involve the selling of the franchisors product or service using its name, production an marketing techniques or general business approach, or a com

31、bination of these.2.6 The most appropriate method for PK ElectricsThe suitability of the entry mode is determined base on the following conditions: Investment, Sales, Costs, Profit Contribution, Market Share, Reversibility, Control and RiskThe indirect exporting has many factors same as the direct e

32、xport, the difference is that, due to the third part joining in the export process, the net profit will be lower than direct export, and the PK Company cannot gain adequate information from the foreign market, so it will influence the PK to plan their production.Joint venture entry can share capital, technology, human resources, and risks of the host company. The company will not invest in all sources. It will decrease the companys pressure and decrease the companys risk. The company wouldnt be influenced by the monetary exchange rates. However, initially the company will spend so much time