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Marketing Arrangements - Assignment Example

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Marketing Arrangements

Under licensing, the licensor does not have to forego the ownership of the property (the brand name etc); hence its usefulness lies in a situation where the owner is not willing to lose his ownership. Also, the responsibilities of marketing, investing and manufacturing rests on the firm receiving the license.
Franchising is another form of contractual arrangement between parties concerning the use of a firm's brand name, logo, trademark etc. In case of franchise, the owner firm (franchiser) backs up the firm acquiring rights (franchisee) in all the standardised marketing and management activities against the payment of some royalty for permanent time period (Roof, 1994).
Exporting is of three kinds, viz. direct, indirect and own. Direct exporting connotes a firm or a manufacturer reaches the market and sells its product with the help of an intermediaries or middlemen. On the contrary, indirect exporting implies a firm selling its products and maintaining direct relationship with the customers in the foreign markets. Own exporting refers to a firm that reaches its customer internationally without any involvement of middlemen in the trade. All the three exporting methods do not imply any sort of ownership and manufacturing in the international market (Czinkota et al, 1992). ...Show more

Summary

The major possible marketing arrangements available to a company willing to get its product to a foreign market are discussed below. These are fundamentally the various international market entry modes that can be opted by a company depending upon its situation and strategy.
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