Basic Modes of Entry

Modes of entry into international markets are the Internet, Licensing, International Agents, International Distributors, Strategic Alliances, Joint Ventures, Overseas Manufacture and International Sales Subsidiaries.

●      Licensing − Licensing is where the own organization charges fee or royalty for the use of the technology or brand.

●      International agents and distributors − Agents are individuals or organizations those who deal with business/marketing on your behalf in any country. Agents represent more than one organization and for this one needs to set some targets to check the level of commitment of the agent. They tend to be expensive to recruit, retain and train.

●      Strategic Alliances − It describes a series of different relationships between companies that market internationally.

●      Joint ventures − It means working equally, i.e. a new company is set up with parties owning half of the business.

●      Overseas Manufacture or International Sales Subsidiary − It means the organization invests in plant, machinery and labor in the overseas market. This is also known as Foreign Direct Investment (FDI).

These were the basic modes describing how international marketing is initiated between two nations or more.

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