国际营销导论1.docx
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国际营销导论1.docx
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国际营销导论1
1.0Introduction
ThefollowingreportwilldiscusssomethingofPKelectrics,whichincludesknowledgeandskillsinvolvedintheinternationalmarket.Forthepurposeofprovidingareport,itwillexplainwhyPKElectricsisconsideringenteringinternationalmarkets.ToknowwhichsourcesofinformationwouldhelpPK,thePKElectricsshouldselectappropriateinternationalmarkettoenter.Thenthereportdescribeskeyopportunitiesandthreatsofentryintointernationalmarket.ItalsoexplainstheprocessPKElectricswouldusetoselectwhichmarkettoenter.Furthermore,themodesofmarketentryavailabletoPKElectricsareidentified.Last,itevaluateswhichmethodofmarketentrywouldbemostappropriateforPKElectrics.
2.0Findings
2.1Enteringinternationalmarket
TherearesomefactorsforPKelectricstoconsiderenteringinternationalmarkets.
Fortheproductlifecycle,therearemanymarketingmistakesbecausefirmfailstoacknowledgethefactthattherearedifferentcountiesandaproductmaybeondifferentstagesinitsPLC.
Fortheproduction-relatedfactors,beclosetorawmaterials,availabilityofresources,advancedtechnology,beabletoforcefulattractandencouragefirmtoinvestabroad.
Forthepersonnel-relatedfactors,highunemploymentratesandweaktradeunionsinthetargetareascouldbeagoodreasonforforeigndirectinvestment.
FortheMarket-relatedfactors,manyfirmsmakedecisionstogetintointernationalmarketbecausethecompanyisplanningtogotherealreadyandtheydonotwanttobeatadisadvantageliketherushentryofmanycompaniesfromthecapitalistworldtotheex-communistcountriesinEasternEurope.
Fortheexternal,marketsaturationshouldbeconsidered.Fiercecompetitionfromdomesticandforeigncompanies,highcostofproductionandshortageoftherequiredmanagerialandtechnicalskillsaresomereasonswhyfirmsmightfindfurtherinvestmentsinhomemarketslessattractivethenforeignmarkets.Overall,domesticmarketisfacingthemarket’sintensecompetitionandnotenoughrawmaterials
2.2Sourcesofinformation
EconomistIntelligenceUnit:
AlthoughsomesectionsoftheEconomistIntelligenceUnitwebsitearerestrictedtosubscribers,thissiteprovidesalargenumberofusefularticlesonthelatestcountryanalysis.Allregionsarecoveredandtopicsincludeglobalfinance,economicoutlook,venturecapital,politicalstability,industrysectors,businessculture,tourism,ande-commerce.Thissiteisamustforcountryresearch.
ForeignInvestmentAdvisoryService:
FIASworksonlyattherequestofgovernments,ontopicsidentifiedbythatgovernmentandagreedtobybothparties.Thisensurestherelevanceoftheassistanceandlaysthebasisforactivepartnership.Theserviceoffersmuchmorethanone-wayadviceandwrittenreports:
throughinteractiveworkshopsandroundtablemeetingsthatoftenincludebusinessexecutivesandotherstakeholdersithelpsgovernmentscharttechnicallyandpoliticallypracticalpathstochange.
TheEuropeanUnion:
TheEUcurrentlyhas27members.Itbeganlifeasanorganizationwithsixmembersandsinceitsinceptionin1957hasgrownnotonlymembershipbutalsointermsofeconomicwealth,beingthelargesttradingblocintheworld,inco-operationmovingfromafreetradeareatocustomsunionwithanincreasingconvergenceoflegal,socialandeconomicfactors.Thereisalsoacommoncurrencyinuse,theeuro,whichhascurrentlybeenadoptedby12oftheEUmembers.Thereisrevisedinterestinacommonconstitutionforallmembercountries.
PKElectricsneedstofindoutsomeinformationonthisway,whichisgoodforthecompanytoentertheinternationalmarkets.Beforethecompanywantstoentersomecountries,thecompanymustknowaboutalltheinformationofthemarketinthecountry.
2.3Keyopportunitiesandthreats
PKElectrics’keyopportunitiesandthreatsareassociatedwithfourreasons.That’sPEST.
Politicalfactors:
Atsometime,mostcompaniesengagedininternationalmarketingsufferbecauseofthepoliticalorlegalstructureofacountry.Acountry’spoliticalsystemparticularlyimportantwhenthefirm’sbusinessrequiresbiginvestments,suchasintheoilindustry,whichcouldbeseverelycompromisedbypoliticalunrestorwhenbusinessisdonedirectwithgovernmentdepartments.
Economicfactor:
theeconomicwealthofacountryisbasedonitshuman,naturalandtechnicalresource.Theseresourcesaffectacountry’sabilitytoproducegloballycompetitivegoodsandservicesandtoofferaviablemarketforsuchproducts.
Technologicalfactor:
nowhereistheregreaterchangethanintheenvironmentofinformationandcommunicationtechnologies(ICTs).ICTsincludethevarioustypesofcomputers(mainframes,desktops,laptopsandworkstations),localandwideareanetworks,intranetsandtheinternet,mobiletelephonesandthevarioussoftwareapplications.
Socio-Culturalfactor:
culturemaybedefinedasthestandardsorbeliefs,perception,evaluationandbehaviorsharedbythemembersofasocialgroup.Someauthorsevendefinecultureasthecollectiveprogrammingoftheminds’thatdistinguishesthemembersofongroupofpeoplefromanother.
PKElectricswouldfacethekeyopportunitiesandthreatsassociatedwithentryintointernationalmarkets.
Forthekeyopportunities:
thecompanywillhavenewcustomerforthenewmarket.Theyshouldbeabletounderstandwhatthenewcustomerneedsto,andwhichisgoodforthecompanytorapidlyexpandthemarket.
Forthethreatsassociated:
thecompanyenterstothenewcountrythatwillhavethenewenvironment.Thecompanymustbeabletoadapttothenewenvironment.Thatisoneofthreatsassociatedwithinthecompany.Secondlythenewcustomerwillhavenewrequestwhichisthecompany’schallenge.Thirdly,thecustomersaredemandinghigh-qualityproducts.
PKElectricsshouldmakegooduseofthekeyopportunitiesanddaretofacethethreatsassociatedwith.
2.4Processtoselecttheinternationalmarket
Step1:
PKElectricsneedscollectsomeinformationandsourcetoknowallthemarketsituationthatmaybeselected,theirculture,countryeconomicdevelopmentlevelandpeople’sconsumelevelandsoon.
Step2:
ThePKCompanyhastosieveouttheinappropriatemarkets.
Step3:
PKCompanyhasselectedsomecountriesthatmayenter,then,weneedtoanalyzeallthecountrieswhichwillbringwhatopportunity,threatsandthecompany’sstrengthandweakness.Baseonanalysis,discussionoronthespotinvestigation’sresults,wechoseamostappropriatemarketthatwewillenter.
Step4:
Siftouttheinappropriatemarketssecondtime.
Step5:
Makesurewhichcountrytochoose.Thatisveryimportant.Thecompanyshouldre-affirmwhichcountryfitsthecompanytoenterandwhetheritisconducivetothedevelopment.Finally,thecompanyshoulddeterminethechoice.
Step6:
Decidewhichentrymodeisuseful,andmakedecisiononthemarketingmix:
thecompanymustchoosethebestconsortoftheentrymodewhichdeterminesthecompanytomakeprofitinthemarket.
2.5Marketentrymodes
ThePKElectricshasmanyavailableentrymethodsforinternationalmarket,includingdirectexporting,indirectexporting,jointventureandfranchising.
Directexportingoccurswheretheproducingorganizationitselfperformstheexporttasksratherusinganintermediary.Itmeansthecompanycandirectlysellsomethingtotheoverseascustomer.Thecustomermayberetailers,usersandwholesalers.ThePKcansetsomeforeigndistribution.Itcanmorecontrolovertheexportprocess,potentiallyhigherprofitsandcloserrelationshiptotheoverseasmarket.ButthePKwillspendmanycostsontheinitiallyenteringnewmarket.
Indirectexportingresultsinthecompany’sproductsbeingsoldoverseasbuttheexportingcompaniesarenotparticipatingintheexportprocess.ItmeansthePKCompanyisnotinvolvedintheactualexportprocess.ItismadebythethirdpartsuchasExportManagementCompany,exporttradingcompany,exporthouseandsoon.Itwillsavesomecostsonthepart,butthePKmaynotknowsomeinformationoftheforeignmarket,andcannotmakecloserelationshipwiththeoverseamarket.
Jointventureentrytakesplacewhenaninternationalcompanysharesintheownershipofanenterpriseinatargetcountrywithlocalprivateorpublicinterests.Itmeanstwoormoreparentcompaniesagreetosharecapital,technology,humanresources,risksandrewardsinanewentitylakeacompany,sometimestherewillbemanyconflictsoccurred.
Franchisingisaformofmarketapproachinwhichacompany,thefranchisor,grantsanotherindependentorganizationtherighttodobusinessinaparticularway.Thisrightcaninvolvethesellingofthefranchisor’sproductorserviceusingitsname,productionanmarketingtechniquesorgeneralbusinessapproach,oracombinationofthese.
2.6ThemostappropriatemethodforPKElectrics
Thesuitabilityoftheentrymodeisdeterminedbaseonthefollowingconditions:
Investment,Sales,Costs,ProfitContribution,MarketShare,Reversibility,ControlandRisk
Theindirectexportinghasmanyfactorssameasthedirectexport,thedifferenceisthat,duetothethirdpartjoiningintheexportprocess,thenetprofitwillbelowerthandirectexport,andthePKCompanycannotgainadequateinformationfromtheforeignmarket,soitwillinfluencethePKtoplantheirproduction..
Jointventureentrycansharecapital,technology,humanresources,andrisksofthehostcompany.Thecompanywillnotinvestinallsources.Itwilldecreasethecompany’spressureanddecreasethecompany’srisk.Thecompanywouldn’tbeinfluencedbythemonetaryexchangerates.However,initiallythecompanywillspendsomuchtime
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