The paper 'Rapits & Sons Pty Ltd International Marketing Plan" is a good example of a marketing case study. Typically, the process of penetrating as well as developing into an international market is often challenging thus, a firm must consider all strategies in place in order to succeed. As Ekeledo and Sivakumar (2004) point out entering into a new country-market can be compared with a start-up situation. Penetrating into a new country-market can be equated to a start-up scenario as a firm has to put new marketing infrastructure in place and learn about the new market.
However, entering into a new country-market should be considered as an extension of the business. Raptis & Sons Pty Ltd should treat the entering of a new market as a potential source of additional revenues for its existing products and services. More often than not firms, which opt to enter new country-markets, approach this situation from two main aspects. First, firms always pursue a new business opportunity with an emphasis on limiting risks as well as investment. Second, companies with the intention to enter new country-market rely heavily on the founding principle of marketing.
The marketing principles involves analyzing the market after which, a company will decide on its offer with regard to products, services as well as marketing programs. Thus, strategies associated with international market entry define or plots on how a firm can sell, distribute as well as distribute its products and services in a new country. In effect, there are a variety of strategies which a firm can employ in entering into a foreign market. However, it must be noted that there is no specific strategy that works for international markets as these markets have various features.
One strategy may work for as certain new country-market and fail to work for another. For instance, a firm may need to employ a direct exporting market entry strategy in entering Asia while consider using joint venture market entry strategy in entering the U. S market. Figure1. International Market Entry Strategy Source: Brassington and Pettit (2000), Principle of Marketing. The common international market entry strategies include licensing, strategic alliances, joint ventures, piggybacking as well as exporting (direct and indirect exporting).
Notably, there are often various factors that influence a firm’ s choice of international market entry. According to Czinkota, (2001), these factors can be categorized into internal and external factors. The internal factors include costs involved, speed, payback; the firms long term objectives, the company size, the firm’ s international experience, control, risks, the product differentiations ad complexity as well as flexibility. On the other hand, the external factors include geographical distance, laws and regulations, market size and growth, competitive environment, socio-cultural distance, direct and indirect trade barriers as well as country risk and demand uncertainty.
Having looked at the aforementioned factors, Raptis & Sons Pty Ltd will export its products to Malaysia. The company can either used direct or indirect exporting strategies to enter into the Malaysia market. 1.1 Direct exporting strategy To begin with, direct exporting involves selling products to patrons in new country-market by establishing an export sales department thus creating an opportunity to develop a closer relationship with the foreign buyer and market. Additionally, the firm can use an export manager to handle various sales approaches in its target market such as getting to understand the viability of selling directly to the ender-user.
In circumstances where the products cannot be sold directly to the end-user, the export manager will use a local agent, who will, in turn, sell them to the end-user. Direct exporting has many advantages. First, through direct exporting the firm benefits from great potential profits as intermediaries would be eliminated. The other benefit associated with directed is that the firm has a considerable degree of control with regard to all transaction aspects. Further, the firm will get to know its customers well thus understanding their behavior.
Notably, customers often feel more secure when they are associated directly with the company as they feel appreciated. In addition, through direct exporting, the firm will benefit from customers’ direct feedback on its feedback as well as its performance in the new marketplace. The other advantage is that direct exporting helps the company to learn more as well understand the marketplace. Moreover, with direct exporting the firm the company can secure better protection for is trademarks. Direct exporting also helps the firm to gain greater flexibility to improve or even divert its marketing efforts.
The company will also be in the position to notice any slightest problem in case it occurs thus avoiding escalated situations, which can cause great damage.
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