Monday, July 6, 2009

DESIDING HOW TO ENTER THE MARKET

EXPORTING

the simplest way to inter a foriegn market is through exporting.the company may possively export its surpluses from to time,or it may make an active commitment to expand exports to a particular market.in the either case ,the company produces all its goods in its home country.it may or may not modify them for the export market . exporting involves the least change in the company's product lines,organization ,investments ,or mission.

companies typically start with indirect - marketing ,working through independent international marketing intermediaries .indirect exporting involves less investment because the form does not require an overseas sales force or set of contracts.it also involves less risk.international marketing intermedieries -domestic -based export merchants or agents ,cooperative organization ,and export-management companies -bring know -how and services to the relationship ,so the seller normally makes fewer mistakes.

sellers may eventually move into direct -exporting ,whereby they handle their own exports.the investment and risk are somewhat greater in this stategy ,but so is the potential return .

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