Individual Report
International Marketing: An introduction
Outcome 1 and 2
Candidate Name: Candidate Class: Candidate SCN:
Table of contents
1 Introduction ....................................................................................................................... 3 2 Findings ............................................................................................................................. 3 2.1 Explain Wildhorse Automobile entering international markets reasons .......................... 3 2.2 Two sources of information that Wildhorse Automobile .................................................. 4 2.3 Key opportunities and threats associated with entry international market ...................... 5 2.4 Wildhorse Automobile would use to select which markets to enter .................................. 7 2.5 The modes of market entry available to Wildhores Automobile ....................................... 8 2.6 The most appropriate method for Wildhorse Automobile to entry market错误!未定义书签。
3 Conclusion ....................................................................................................................... 12 4 Reference ......................................................................................................................... 13
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1 Introduction
This report describes the Wildhorse Automobile to enter the overseas market. This report consists of six parts. Reported the contents of the package wild horse why enter the international market. Wild horse company identified two markets to enter the source of information. Of the wild horses. What methods of automobile companies to enter the overseas market. Select the appropriate methods to enter the overseas market and evaluate the criteria you use in marketing. Wild horse car companies choose the right way to enter the overseas market. The wild horse of the car to assess the standard of your marketing in the market.
2 Findings
2.1 Explain Wildhorse Automobile entering international markets reasons
International marketing is the application of marketing principles in more than one country, by companies overseas or across national borders. International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to marketing identification, targeting, and decisions internationally.
China's production costs rise, the price of the Wildhorse Automobile’s car prices will lead to a decline in sales. Therefore, the wild horse car companies should look for the production of low-cost overseas countries.
National policy restrictions on the country's resources. Company responds to the government's policy. So Wildhorse Automobile company to build factories in overseas countries.
The Wildhorse Automobile company products due to ecological causes of poor sales.
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Ecological factors influence the production efficiency of the company. So company's products are sold overseas.
The Wildhorse Automobile Company in order to compete with rivals. Wildhorse Automobile Company to increase the share of overseas markets and enhance the company's influence. Wildhorse Automobile Company to expand overseas markets.
2.2 Two sources of information that Wildhorse Automobile
Company research methods include primary research and secondary research. Companies can use secondary research ways to gather information. The advantages of secondary research includes convenient save money and research staff do not need to have too much experience. But secondly research information with uncertainty.
Companies can be used through two international organizations to do secondary research.
The European Union was founded in November 1, 1993. EU to set up Brussels. EU official website: Europa.eu The EU's aim is the establishment of internal borders by a space, strengthen coordination to develop and establish the eventual introduction of a unified currency Economic and Monetary Union economic, social, and promote balanced economic and social development of Member States through the implementation of the Common Foreign and Security Policy. EU car emissions has strict criteria. European Emissions Directive certification stands for non-road mobile machinery emissions certification, the English translation of \"Emissions From Non-road Mobile Machineryo reduce automobile exhaust emissions. China's auto exports emissions must comply with EU vehicle emission standards
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International Organization for Standardization be called for short is ISO. ISO was founded in 1946. ISO official website: www.iso.org/iso/home.html. ISO's purpose is: to promote worldwide development of standardization to facilitate international exchange of goods and mutual assistance and to expand cooperation in intellectual, scientific, technological and economic aspects. ISO's headquarters in Geneva, Switzerland. ISO / TS16949-2002 the International Automotive Task Group (IATF) in ISO9001: 2000 quality management system based on the combination of the requirements of the international automotive industry, automotive production, enacted in 2002, the service member organization of international quality system requirements standard. China's automobile companies supporting plant requirements more stringent, requiring high quality, but also requires the supplier to strictly control costs and improve efficiency. TS16949 provides a unified can develop quality management system model for the automotive industry. Chinese auto companies continue to deepen the implementation of continuous improvement, strengthen defect prevention, reduction of variation and waste, will make the management system more optimized, so that auto companies in the market competition continued to maintain a competitive advantage.
The overseas car website includes Carmax.com. The overseas magazines includes 2.3 Key opportunities and threats associated with entry international market Primary research should pay attention includes: Primary research includes local policy local economy and local culture, Companies should be familiar with the culture of the target country is conducive to the acquisition of the target country information. It is convenient for the company to understand the local culture and communicate with the local people. The government policy of the 5 target country can affect the development of the enterprise. To understand local policies can avoid the loss of enterprises. The target country's economy will directly affect the income of the residents of the target country. The company produces the car that is suitable for the target country through the local economic level. The company's cars go more smoothly into the target country. The wildhorse automobile company can obtain the information in these 3 public places. For example, the office of the parking lot, car wash shops, toll stations. Companies from the office of the parking lot to get information, the company can understand the popular car models and the use of. Get information from the car wash shop, the company can get the popular car price information to record. Companies produce the most attractive cars through the acquisition of information. Companies can collect information from the toll station, the company can know the different car charges, speed and performance of a car running, you can find a long-distance car running models, which is conducive to the company's car sales. External environment includes six factors, divide into political, legal, social, natural, technological and economic. Politics, including the government's energy conservation and emission reduction policies, foreign policy and vehicle control policy. Economy includes per capita income, unemployment, consumption level. Society, including population, local education level and the proportion of local population age. Technology includes technical workers, technical optimization and updating of traditional technologies. 6 Nature, including air pollution, natural disasters and waste of resources. The law includes local laws to protect local car companies. The opportunity of Wildhorse Automobile Company in the overseas market includes: Technological: Target country’s government requires imported cars meet the standards of energy conservation. So target country has high demand for new energy vehicles. Chinese auto companies have great development in the new energy. China's auto can exports to target countries. Technology can help Wildhorse Automobile company increase sales. Economy: the target country's economic recovery, the target country's employment rate rises, the target country's public demand for the car increases. So the public demand for cars is working in the target country. Chinese cars have price advantage, which is conducive to the sale of the target country. The technical threat of Wildhorse Automobile Company to enter the overseas market includes: Social: Developed countries car brand is good in target country public’s heart. But, Chinese car brand has bad impression in target country public’s heart. Bad impression of brand can influence Chinese automobile efficiency in target country. \"Made in China\" in a part of the foreign market impression is inferior, China needs to change the impression of the brand. Promotion of brand image can promote the sales of Chinese automobile brand. 2.4 Wildhorse Automobile would use to select which markets to enter 7 1. When a company to overseas market need do market research. The research includes primary research and secondary research. Secondary research’s way includes collect information from a variety of reliable sources. At this stage such techniques can be used. 2. Screen the collected information using set criteria, e.g. as in the Business Environmental Risk Intelligence (BERI) index. 3. Select top-scoring countries or region 4. Apply secondary screening criteria using data from markets and the business, e.g. market attractiveness/competitive advantage(GE matrix) 5. Select best country (ies) and region(s) to enter. 6. Prepare an international marketing plan/strategy 6.1 The selection of the most appropriate entry mode 6.2 The selection of the most appropriate target markets 6.3 The selection of an appropriate marketing mix suited to the country and target market. 2.5 The modes of market entry available to Wildhores Automobile 1) The Internet The popularity of Internet computers and mobile phones has shortened the distance between people and improve people's working efficiency, which is good for international marketing. Internet makes international payments more convenient. The advantages of the international network of the buyer and the seller including security and fast. The Internet can monitor logistics, make logistics more secure, and promote trade between countries. 8 2) Exporting (Direct and Indirect) Direct exports can enable enterprises to quickly sell their products in the international market at a very small start-up cost, in terms of fixed assets does not require or requires only a small amount of investment, so there is little risk. In the initial exploratory export, on the basis of previous success, the enterprise by increasing the export volume of export lines and enter the new international market, so as to gradually increase the export volume. Direct export can enable enterprises to accumulate a lot of international experience, so that enterprises in the process of internationalization of the more far away. Indirect export may be a good way for enterprises to enter the international market for the first time. Manufacturers need only a little knowledge of foreign or foreign markets, but also because of this, it has separated the manufacturers from foreign markets. Indirect exports reduce the risk. 3) Contractual Agreement Contract mode is a non-equity contract signed between the enterprise and the target country, the former patent, technology, experience, management, human resources and other intangible assets for the latter to use, and from the latter to obtain economic benefits to share. Contract is a way to enter the foreign market through the output of knowledge and technology. Contract mode mainly includes: license mode, franchise mode and project contracting mode, etc. Entry modes of international marketing Ways to enter the international market include international agent, licensing, franchising, joint venture, turnkey projects, and strategic alliance. Detailed three ways to enter the overseas market. Three ways includes international agent, licensing, and franchising. International agent: International export agency is a method for a company to employ 9 overseas agents to promote international sales. Agents have no title to the goods. Agents only charge a commission. International agent take less investment and get less money. The advantages of international agent includes international agent have expensive knowledge and experience of market. Little investment required and low political risk. The disadvantage of international agent includes international agent may lack commitment and motivation. International agent may be too small to exploit the whole market. And this method may be inefficient for large markets. Franchising: Franchising is the owner of the franchise is in the form of contractual agreement, which allows the franchisee to use its name, trademark, proprietary technology, product and operation management experience to engage in business activities. Franchising Take less capital investment, and get the amount of money earned moderate. The advantages of franchising includes high level of control, highly motivated business contact with market knowledge, money. And franchising can give protection of patents. The disadvantage of franchising includes problems with local legislation, high cost of marketing package to support franchisees. Cost and time involved in finding good franchisees. Licensing: Licensing is authorized to operate, charge to allow others to use their own brand of commercial operation mode in the specified time. Licensing in international market take less investment and get less return. The advantages of licensing includes a prolonged depreciation of a target country’s currency may also swing a manufacturer from export to licensing. Licensing overcomes the problem of high transportation cost, which make the export of some products non-competitive in target markets. Political risk is lower than with equity investments. Many host government favour licensing over foreign investment as a way to get technology. 10 The disadvantage of licensing includes lack of control by the licensor over the marketing plan and programme in the target country. Risk of creating a competitor in third markets or even in the manfacturer’s home market. Armed with the licensors technology, the licenses may become a formidable competitor in world markets. Absolute size of income from a licensing arrangement as compared to that from exporting to, or investing in, the target country. 2.6 The most appropriate method for Wildhorse Automobile to entry market Wildhorse Automobile Company have chosen the Malaysian market. Wildhorse can chose India market. India's political stability leads to social stability. India is Asia's anchor economy. India's economy is developing very fast. India's per capita income increased. Indian employment is rising, and the demand for cars is increasing. Due to the economic development of India, the road becomes better. More Indians are willing to drive. Wildhorse Automobile Company can choose an international agent in India. India's automotive industry has a great degree of development. Wildhorse Automobile Company can choose an international agent in India. India's automotive industry has a great degree of development. Wildhorse Automobile Company looking for international agents to sell the car is relatively low cost. Agents have shop facilities and sales of car service personnel so wild horse car companies can save costs. Wildhorse Company's human involvement is low in India market. The company needs to pay for the international agent to sell cars. The company has limited control for international agent. India local agents to understand the political economy and culture of India. Wild horse car companies through the agents can accelerate the sales of cars, agents to help the wild horse car companies to improve the speed of the occupation of overseas markets. So India agents can help companies reduce risk. But the Wildhorse Automobile Company's profits are low. Wildhorse Automobile Company need to bear the costs including agency fees, customs duties, transportation costs, and production and management costs. Wildhorse Automobile Company can reduce the profit to 11 increase sales. Increase in profits by increasing sales. 3 Conclusion In addition to the overseas market in Malaysia, I suggest the Wildhorse company to enter the overseas market in India by international dealers. Wildhorse automobile company through the investigation into the more successful entry into the overseas market, I hopes Wildhorse Company have a better future. 12 4 Reference 13 14 因篇幅问题不能全部显示，请点此查看更多更全内容