Assignment on Marketing Entry Strategy

Running head: MARKETING ENTRY STRATEGY
MARKETING ENTRY STRATEGY
Student’s Name
University Name
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1
MARKETING ENTRY STRATEGY
Question 2: Market entry strategies
There are various methods of entering into a foreign market. There are various factors
that are needed to be taken into consideration while implementing a marketing entry strategy
such as the tariff rates, degree of adaption of the product or service in the particular country of
expansion, cost of business operations execution, transportation cost, marketing costs and
infrastructure costs.
Direct exporting
Direct exporting is one of the most common methods of entering in the foreign market. It
involves selling the products and services directly into the foreign Market. The business
organization can directly offer the products and services in Russia rather than involving a third
party distributor (Chung & Enderwick, 2013). This is the most convenient method of entering a
new market, as the company can directly deal with the consumers in Russia. The company can
have direct control over the transactions, operations, and profitability of the business
organization. However, the company will be held responsible and accountable for the entire
business activity. In case there is a loss, the organization has to bear it by itself (De Villa,
Rajwani & Lawton, 2015).
Greenfield investments
Greenfield investment is similar to foreign direct investment, where the business organization
operates in a foreign country. However, this requires greater involvement of the business
organization in the operations and functions of the business (De Villa, Rajwani & Lawton,
2015). It requires buying a space in Russia, build facility, and carry out its functions on an
ongoing business in Russia. This strategy of business expansion is highly expensive and requires