Different Market Entry Methods and Sources of Communication Failure in Global Marketing

The article discusses different market entry methods used by big companies in the world such as exporting, licensing, countertrade, franchising, and joint ventures. It also evaluates the sources of communication failure in global marketing such as unclear language, too much information, assuming knowledge, and excessive ego.

Global Marketing

TABLE OF CONTENTS
.........................................................................................................................................................1
Question 2 .......................................................................................................................................3
Question 5........................................................................................................................................5
REFERENCES................................................................................................................................9

Question 2
Different market entry methods might be adopted by different firms entering the
same market or by the same firm in different markets.
As we all know that every business use different market entry strategies to offer their
products in foreign markets so that it can easily attract more customers. Whenever, organisation
decide to enter an overseas marketplace, there are large numbers of options available. All the
available options are totally vary with risk, cost, degree of control. The present study will be
based on different market entry methods used and adopted by big companies in the world. With
the help of market entry strategies, companies can use to sell their products at global level which
helps them to achieve their desired goals and target market (Market entry strategies, 2022). by
having types of market entry strategies companies can easily plan and distribute proper goods to
customers in the marketplace. For example- if the company is using exporting method then cost
of the firm and distribution depends on chosen method. Nowadays, in business environment,
companies usually select and adopt a strategy based on the product type and sell it. While
implementing any strategy, companies must consider the strategy used by its competitors and
needs of clients.
Exporting- exporting means selling products in international markets without the
involvement of third party. This is the most simplest form of entry strategy used by companies
either directly or indirectly. Many big companies use exporting methods in order to sell their
products or services. With the help of international distributors firms can export indirectly. They
pay to agents for their services and support because the agents understand the market situation
and know about what the company should do to be successful in the international markets. The
major advantage of using this method is it decrease the risks of operating in the foreign areas and
overseas. For example- Amazon is focusing on entering into the markets that are growing
quickly in terms of ecommerce and the markets which are adopting retail businesses. With the
help of this method, Apple who is largest export company grasp an opportunity to learn new
things overseas markets.
Licensing- licensing occurs when one firm transfers the rights to utilize the products or sell
it to another brand in the marketplace. Nowadays, many companies are using this method
especially those who knows about the demand of products and the firm to which it plans to

license the items has a huge market. for example- EON production company in UK may use this
method in order to sell a school supply firm the right to use photos and picture of movie
characters on books.
Countertrade- this method is a common form of indirect strategy used by company for
international marketing (Blackburne and Buckley, 2019). Basically, it functions as a barter
system in which the brand trade each other products instead of providing their goods for buying
in the market. like other types of method, this countertrade does not have any specific legal rules
and regulations. Companies who want to focus on cost effectiveness may choose this method
because the practice may exempt them from quotas related to import method.
Franchising- This is a method used by company in which a group of people or single
person pays for the right to handle the brand branches on the behalf of organisation
(Schellenberg, Harker and Jafari, 2018). The best example is McDonalds which is a fast food
franchises having international marketplace. This is the best way to expand business in the
foreign countries and overseas. This method requires strong brand recognition as the customers
which the company targets should understand what they are offering and have a desire to buy it.
By using this method, companies can easily earn more profits and manage the expand of
business.
Joint ventures- As few firms attempt to reduce the risk of entering in the foreign counties by
creating joint ventures with another brands that plan to sell products and services in the global
markets (Ghanbari, Zakery and Heidaryd Dahooie, 2022). With the help of this method
companies can have the potential to earn more profits and revenue than other individual brands.
Nowadays, two companies work together to earn good market position and establish fair and true
systems and support the brand issues in the competitive market. Walmart follows acquisition
strategy in order to entry foreign markets. With the help of joint ventures, the firm acquire good
market position in ownership majorly in brazil and Mexico markets where competition is more.
Examples of different companies includes:
In order to expand business, the Tesco plc, UK decided to enter the market of UK without any
guidance from a local counterpart as they follow cost leadership strategy of porter generic
strategies. The company aggressively expand its business into overseas markets of grocery sector
which helps them to achieve success and earn more profit as compared to its competitors.

While on the other side, amazon focus on expanding its business just by investing in
technologies, innovation, logistics and working on web services. This makes the company
different from others and enhance their position in the international markets. The firm also focus
more on research and development activities in some areas such as logistics and use different
methods in different markets. The company follows concentric diversification and cost
leadership as its porter generic strategic in order to gain competitive advantages. It allows clients
to shop in 25 currencies this makes the brand most favourite among all.
While on the another side, ASDA decided to follow low price strategy which makes them
different from other retail brands. The company believes in mass selling so they have followed
up affordable pricing method as it has attracted so many customers in a very large scale in UK.
By using cost leadership and differentiation both at the same times the company ensure to
maximize its profits and focus on important aspects related to market entry strategies.
To conclude, every company has its own objectives and goals for developing its market
position at international level and they dream to enter into the foreign country as soon as
possible. By evaluating the study, it has been identified that there are lots of options available in
the market as discussed above such as exporting, venturing and licensing. Depending on the size
of company and cost they can put they can choose from this as it can provide opportunity to find
one that best fits its requirements.
Question 5
Evaluate the sources of communication failure in global marketing. Use relevant theory
and examples to support your answer.
Global marketing refers to marketing that is been carried on the worldwide scale that
handles various types of cultural differences, face similarities and identifies opportunities in
between the new regions (Niu and et.al., 2020). Moreover, in the context of the communication it
can be said that it plays a very vital role in the global marketing as if people are not
communicated in proper format than there are chances that marketing strategies of the company
might fails to attract new people for the business. Furthermore, some sources of the
communication failure is been described as follows:
Unclear language: Global marketing requires that all the communication that is done
from the sender to the receiver need to be done through using proper and clear languages so that

people are able to understand the message and are attracted towards the services and products of
nay particular company. Furthermore, using too much of jargon, slogans etc. might only create
problems and misunderstanding among the customers that would further affect the purpose of the
marketing that is thought by the company. For instance : Dove is famous company that is known
for the real beauty campaign once expanded its marketing in England where packaging sent the
wrong message to the audience as it was designed to present diverse representation of the female
bodies but instead it only created problems in delivering the unclear messages through marketing
that decrease the sales of the company in the future.
Too much information: This is also one of the major reason of the communication
failure when too much information about certain particular product is given through the global
marketing. Moreover, this is major reason because of which the actual message relating to the
product is not understood by the audiences and also due to information overload the product
reliability is also decreased to larger extent (Hassan, 2019). Also, the communication channel
that is used by the company helps in determining the information that need to be given in the
marketing. For instance : If marketing of the company is done through online (medium) than
only limited and precise information need to be provided about the product so that direct
message might be conveyed to the target audiences. Furthermore, this might be linked to the
cognitive dissonance theory that states that communication relating to any topic is perceived by
the people based on amount they want to consume and in accordance with the certain beliefs and
norms. Thus, it can be said in the global marketing it is very essential that proper communication
is been done so that chances of failure are very less and the message is easily conveyed to the set
or group of people in most effective manner.
Assuming knowledge: Marketing involves lot of cost and hence it is required for any
company to assure that communication is done in right manner so that there is no wastage of
resources and efforts. Also, the major reason of the communication failure is because certain key
details are skipped by the company while promoting it certain products to the target audience.
Hence, it is due to this reason that company assumes that people know about the brand and hence
not much interaction is required in making the product knowledge available to the public in
general (Deryabin and et.al., 2021). However, this is the reason that marketing efforts are totally
failed as some people that are new to the company are not able to gather relevant information
regarding the new product line of the company making the communication ineffective and not

useful in due course of time. For instance: Nivea post that posted and ad through marketing
campaign of invisible black and white deodorant and due to lack of the complete information in
the ad it as misinterpreted and considered the bad sign in-spite of having the developed brand
image in the market.
Excessive ego: This is another major factor that cause communication failure as when the
person is not interested in listening to other points of view and is only focused on presenting its
own view points in front of the public than marketing is ineffective on the large level. Moreover,
it is very vital for any company to hear the customer point of view towards certain products or
the services so that coordinating the marketing efforts might be directed towards in well-defined
manner (Kjeldgaard and et.al., 2021). However, it is seen that most of the times lack of this only
creates confusion and lack of engagement between the sender and the receiver of the message as
customers are not interested in looking to the messages of those products that are no use to them.
For example Mc Donald systematic measures to offer the new range of product without taking
the opinions from the public only results in the closure of this particular product line. Thus, such
type of communication failure only result in wastage of time and efforts of the company that is
planning for the growth in the future.
Thus, it can be said that communication plays very vital role in the ear where people
purchase the products that are not only reliable but are trusted through means of the
communication by the company (Sharman, Padwal and Campbell, 2020). Moreover, marketing
of the company might be made successful only when the company has established the best
customer relationships through various marketing channels and using various sources of the
communication. Moreover, while conducting the business globally it is required that
communication failure are been avoided so that maximum benefits are derived in limited time-
frame and also misunderstanding are not created with the message that is intended to be given by
the sender. Also, communication failure results in the breaking the emotional connection and
breaks the values that company hold for the longest time period. Thus, various sources of the
communication that are evaluated above are the major reasons for the failure of marketing efforts
by any company during the given time period.

REFERENCES
Books and Journals
Blackburne, G. D. and Buckley, P. J., 2019. The international business incubator as a foreign
market entry mode. Long Range Planning. 52(1). pp.32-50.
Deryabin, D.G., and et.al., 2021. Plant-Derived Inhibitors of Density-Dependent
Communication in Bacteria: Diversity of Structures, Bioactivity Mechanisms, and
Sources of Origin. Microbiology. 90(6). pp.702-720.
Ghanbari, M., Zakery, A. and Heidaryd Dahooie, J., 2022. Foreign market entry mode of
technology-based companies using multi-criteria decision-making techniques. Journal of
International Business Administration. 5(1). pp.123-146.
Hassan, M., 2019. Globalized World and the Facilitative Role of Modern Media and Sources of
Communication in the Process of Ijtehad & Ijma. Islamic Sciences. 2. pp.53-61.
Kjeldgaard, D., and et.al., 2021. Failure: Perspectives and prospects in marketing and
consumption theory. Marketing Theory. 21(2). pp.277-286.
Niu, Z., and et.al., 2020. Interference Sources Localization and Communication Relationship
Inference With Cognitive Radio IoT Networks. IEEE Access. 8. pp.103062-103072.
San-Juan-Rodriguez, A. and et.al., 2019. Assessment of price changes of existing tumor necrosis
factor inhibitors after the market entry of competitors. JAMA internal medicine. 179(5).
pp.713-716.
Sharman, J.E., Padwal, R. and Campbell, N.R., 2020. Global marketing and sale of accurate cuff
blood pressure measurement devices. Circulation. 142(4). pp.321-323.
Schellenberg, M., Harker, M. J. and Jafari, A., 2018. International market entry mode–a
systematic literature review. Journal of Strategic Marketing. 26(7). pp.601-627.
Online
Market entry strategies. 2022. [Online]. Available through: <
https://www.fao.org/3/w5973e/w5973e0b.htm>