MKTG209 Final

Question one: If an organization has decided to enter into the market in the overseas countries, there are various options which are open to it. Such options will always vary with the associated costs, degree of control and the risk that is associated with the exercise. The most common form of marketing entry strategy is the use of either direct or indirect export method such as an agent in the case of direct export or the counter trade in the case of indirect method. Other methods which are little bit complex include global operations, such as export processing zones or joint ventures. After deciding on the form of export strategy, other decisions have to be made on the specific channels. In most cases, agricultural products such as commodity nature or raw materials use government distributors or agents while processed goods usually rely on a more sophisticated way of access to other foreign countries.ExportingThis is the most established, traditional way of operating in the foreign market by a particular organization or a country. Export here means the marketing of goods and services produced in a certain country in to another country. Exporting is an advantageous method of marketing entry in to foreign markets, given the fact that manufacturing of the product is home based, hence it is less risk than overseas based. Another advantage of export is that it gives an organization an opportunity to learn on the overseas market before investing in it, and it also lowers the potential risks of operating in the overseas markets. However one of the demerits of export is that there is no direct control of the market. One can be at the mercy of the overseas agents. There is a clear distinction between the passive exporting and aggressive exporting. A passive exporter comes across the order by chance or waits for them, while an aggressive exporter develops his or her marketing strategies which provide a clear picture on what the firm plans to do in the foreign markets.CountertradeThis is an indirect method of export which is the largest. The higher the competitive intensity means the higher the investment in marketing. Where this situation exists, the organization can expand its operation by operating in a market where competition is not highly intensive but the exchange on currency based is not possible. Counter trade is the modern form of batter trade only that contracts are not legal and it is not covered by the exporting laws. Counter trade can take different forms. There is basically two different contracts that are involved. One is for the delivery and payment of the goods supplied and another one is for the purchase and payment of the imported goods.Apart from exporting, there are other various ways of entering in the foreign market which includes licensing, participation in the export processing zones, ownership, contract manufacture and joint ventures.LicensingThis involves a method of operation where a firm in one country agrees to allow a company in a different country to …