choosing a strategy, in a given situation, to develop a global market
8.2 Marketing Strategy – International Marketing
Objective: Choosing a strategy, in a given situation, to develop a global market.
1️⃣ Understanding the Global Market Landscape
Think of the world as a giant pizza 🍕. Each country is a slice with its own taste preferences, cultural toppings, and crust thickness. To sell a product worldwide, you need to know which slice you’re targeting and how to adapt your pizza to fit the local palate.
2️⃣ Market Entry Strategies
- Exporting – Ship your product from home country. Low risk, low control. 🚢
- Licensing – Let a local firm use your brand and technology. You earn royalties. 📜
- Franchising – Similar to licensing but includes a full business model. Ideal for fast‑food chains. 🍔
- Joint Venture (JV) – Partner with a local company. Shared risk, shared control. 🤝
- Direct Investment (FDI) – Build your own factory or office abroad. Highest control, highest cost. 🏗️
3️⃣ Choosing the Right Strategy: Decision‑Making Framework
- Assess Company Resources – What can you afford? Capital, expertise, brand strength. 💰
- Analyze Target Market – Size, growth, cultural fit, regulatory environment. 📊
- Evaluate Risk – Political, economic, currency, competitive. ⚠️
- Consider Competition – Who’s already there? What’s their market share? 🏁
- Decide & Plan – Match strategy to resources, market, and risk. Draft a timeline. ???
4️⃣ Case Study Example: “TechCo” Launches a New Smartphone in India
TechCo is a mid‑size electronics firm. They want to sell their new phone in India.
| Factor | Options | Recommendation |
|---|---|---|
| Capital Availability | $2M for marketing, $5M for manufacturing | Export + Local Assembly (low cost) |
| Market Size | Large, growing smartphone market | Joint Venture with local distributor |
| Risk Level | Political stability moderate, currency volatility high | Licensing to reduce currency risk |
TechCo chooses a Joint Venture with a local partner who already has a distribution network. This balances control and risk while leveraging local knowledge.
5️⃣ Exam Tips & Common Questions
Tip 1: Use the Decision‑Making Framework to structure your answer. Show a clear step‑by‑step process.
Tip 2: When comparing strategies, create a table to highlight pros and cons. This demonstrates analytical skills.
Tip 3: Remember to link company resources with market opportunities. The examiners look for a balanced approach.
Tip 4: Use real‑world examples (e.g., Apple, McDonald’s) to illustrate how global brands adapt.
Tip 5: Keep your language simple and avoid jargon. Use emojis sparingly to make the answer memorable, but ensure they don’t distract from the content.
6️⃣ Quick Flashcard Review
- 🚀 Exporting – Low cost, low control.
- 📜 Licensing – Use brand, earn royalties.
- 🍔 Franchising – Full business model, high brand consistency.
- 🤝 Joint Venture – Shared risk, local expertise.
- 🏗️ FDI – Highest control, highest investment.
Revision
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