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HOW DOES AN ORGANIZATION ASSESS MARKETING OPPORTUNITIES IN FOREIGN MARKETS?

To analyze global market opportunities, a marketing organization considers a host of factors, including the economy, culture, language barriers, varying consumer needs, politics, laws and regulations, technology, and competition in countries where potential markets exist. Before entering a foreign market, a firm must understand that market if it is to develop appropriate marketing strategies for penetrating it.

WHAT BUSINESS STRATEGIES ARE COMMONLY USED TO ENTER A FOREIGN MARKET?

Several options are available to a firm going into an international market. Among the more common strategies are direct investment and acquisition, and such joint ventures as partnerships, licensing agreements, franchising, and contract manufacturing. Exporting goods indirectly through intermediaries or directly by the company are other options.

HOW DOES A MARKETING ORGANIZATION FORMULATE A MARKETING STRATEGY FOR A FOREIGN MARKET?

The company can use either a global strategy, in which a standardized product is marketed in a uniform manner in all markets where it is available; a country-centred strategy, in which case the marketing mix is tailored to the specific needs of individual countries; or a hybrid type of strategy that combines the best elements of both of these strategies. Where possible, the global approach should be used because it saves money, but necessary changes should be made as dictated by local market circumstances. As in domestic marketing, a company developing a marketing strategy for a foreign market employs the elements of the marketing mix: product, price, marketing communications, and distribution.