MARK442 Lecture Notes - Lecture 6: Royalty Payment, Franchising, Investment

• School: University of Alberta
• Department: Marketing
• Course: MARK442
• Professor: Jim Swaffield

Document Summary

Lecture objectives: to introduce five primary strategies for entering a foreign market, to show the pros and cons of different entry strategies, to show how different strategies can be used to reduce risk. Indirect exporting means that the exporting firm uses an export management company or a trading company to distribute and sell their products in a foreign market: export management companies. Domestic firms that specialize in performing international marketing services on behalf of a domestic company. Export management companies may act as an agent or distributor: as agents or brokers. Purchases products from domestic firms, take title to goods and assume all trading risks; operating internationally on their own. Emcs can seldom afford to make the kind of market investment needed to establish deep distribution for products. The manufacturer may have little control over the way the product is marketed in the foreign country.