Marketing
Evonth
Podcast1Exportinglicensingfranchising.pptxSession 7 – Podcast 1: Exporting, licensing, franchising
BUS 343 International Marketing
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Learning Objectives
After studying this topic, you should be able to understand and explain:
Understand and evaluate possible market entry strategies
Understand the factors influencing foreign direct investment
Identify preferred design and structure of channels of distribution
Understand the role and function of intermediaries
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The internationalisation process
3
Motivations to internationalise
4
Change agents in the internationalisation process
5
Export intermediaries
6
Export intermediaries
Distributors
Agents
Indirect exporting
Direct exporting
Integrated distribution
Licensing
Advantages:
No capital investment, knowledge, or marketing strength
Huge profit potential
Minimal risk of government intervention
A stage in internationalisation
Pre-empt market entry before competition
Increasing global protection of intellectual property rights
Disadvantages:
International marketing experience for licensor
The licensor may create its own competitor
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Franchising
Benefits include:
Market potential
Financial gain
Saturated domestic markets
Reduces the risk; proven concept
Governmental perspective
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