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Market Entry

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INTERNATIONAL MARKETING
MARKET ENTRY METHODS

There are a number ways businesses can sell their products in international markets. The most appropriate method will depend on the business, its products, the outcome of its Marketing Environment analysis and its Marketing Plan. This article talks you through market entry options.
Diagram showing international marketing market entry methods

Direct Export

The organisation produces their product in their home market and then sells them to customers overseas.

Indirect Export

The organisations sells their product to a third party who then sells it on within the foreign market.

Licensing

Another less risky market entry method is licensing. Here the Licensor will grant an organisation in the foreign market a license to produce the product, use the brand name etc in return that they will receive a royalty payment.

Franchising

Franchising is another form of licensing. Here the organisation puts together a package of the ‘successful’ ingredients that made them a success in their home market and then franchise this package to overseas investors. The Franchise holder may help out by providing training and marketing the services or product. McDonalds is a popular example of a Franchising option for expanding in international markets.

Contracting

Another of form on market entry in an overseas market which involves the exchange of ideas is contracting. The manufacturer of the product will contract out the production of the product to another...

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