৪৯তম বিসিএস ⎯ মার্কেটিং [৭২১]

Ownership yields strategic and operational control but concentrates political/financial risk.

Reference: Kotler & Armstrong (14e), The Global Marketplace — Entry Strategies; Lecture‑10.

 Using intermediaries minimizes investment vs direct channels or contractual modes.

Reference: Kotler & Armstrong (14e), Exporting options; Lecture‑10.

Franchising extends brand, system, and continuous control/support; licensing is looser.

Reference: Kotler & Armstrong (14e), Contractual entry modes; Lecture‑10.

Acquisitions give speed but require expensive post‑merger integration.

Reference: Kotler & Armstrong (14e), Wholly owned: greenfield vs acquisition; Lecture‑10.

Local equity can be mandated or beneficial in gaining legitimacy and access.

Reference: Kotler & Armstrong (14e), Joint ventures (motives); Lecture‑10.

Licensing involves granting another firm the rights to use intellectual property (e.g., designs) for fees/royalties without equity ownership. 

Reference:

Kotler & Armstrong, Principles of Marketing (14th ed.), Chapter “The Global Marketplace” — Entry Modes. Lecture-10: Designing Global Market Offerings — “Deciding How to Enter the Market: Licensing, Joint Ventures, Direct Investment.”

Selling to an EMC is an indirect export (home-based intermediary).

Reference: Kotler & Armstrong (14e), Deciding How to Enter—Exporting; Lecture-10.

Contract manufacturers produce to spec while the brand manages demand.

Reference: Kotler & Armstrong (14e), Contract manufacturing; Lecture‑10.

The contractor manages operations for a fee, with ownership remaining local.

Reference: Kotler & Armstrong (14e), Management contracts; Lecture‑10.

JV = shared equity/ownership in a new (or existing) entity.

Reference: Kotler & Armstrong (14e), Entry Modes—Joint Ventures; Lecture-10.

Customs unions add a shared external tariff beyond an FTA.

Reference: Kotler & Armstrong  (2022), Trade blocs & integration levels; Lecture‑10.

The EU integrates policies and (partly) monetary union beyond a common market.

Reference: Kotler & Armstrong (Asian, 2022), Major trade blocs; Lecture‑10.

ASEAN started as an FTA; the AEC pushes toward deeper integration.

Reference: Kotler & Armstrong (Asian, 2022), ASEAN & AEC; Lecture‑10.

SAFTA reduces tariffs among South Asian members without a common external tariff.

Reference: Kotler & Armstrong (Asian, 2022), South Asian trade blocs; Lecture‑10.

Members trade freely but keep individual external tariffs.

Reference: Kotler & Armstrong (14e), Regional trade agreements; Lecture‑10.

The common market adds factor mobility to a customs union; the economic union adds policy integration.

Reference: Kotler & Armstrong (Asian, 2022), Trade Blocs & Integration; Lecture-10.

FTA lacks a common external tariff (unlike a customs union).

Reference: Kotler & Armstrong (14e), Regional Agreements; Lecture-10.

FTAs reduce internal tariffs, shifting purchases to efficient member suppliers.

Reference: Kotler & Armstrong (Asian, 2022), Effects of FTAs; Lecture‑10.

Regulations can limit entry even without tariffs.

Reference: Kotler & Armstrong (14e), Global environment—barriers; Lecture‑10.

Global edge comes from scale, scope, learning, sourcing, not local monopoly.

Reference: Kotler & Armstrong (14e), Competing Globally; Lecture-10.

No change in product or promotion.

Reference: Kotler & Armstrong (14e), Global marketing program—product & communication strategies; Lecture‑10.

Convergent needs enable scale economies and brand consistency.

Reference: Kotler & Armstrong (14e), Drivers of standardization; Lecture‑10.

Laws, culture, and usage conditions drive changes to the product/message.

Reference: Kotler & Armstrong (14e), Drivers of adaptation; Lecture‑10.

Simultaneous adaptation of offering and message.

Reference: Kotler & Armstrong (14e), Global product/communication strategies; Lecture‑10.

Added layers (tariffs, freight, importer/retailer margins) elevate shelf price.

Reference: Kotler & Armstrong (14e), Global pricing & escalation; Lecture‑10.

Geocentric orientation integrates across countries for global advantage.

Reference: Kotler & Armstrong (Asian, 2022), EPRG framework; Lecture‑10.

A modular template ensures brand consistency with local relevance.

Reference: Kotler & Armstrong (14e), Global promotion strategies; Lecture‑10.

Phonetic or localized naming preserves equity while avoiding offense.

Reference: Kotler & Armstrong (Asian, 2022), Branding across cultures; Lecture‑10.

External distributors lower investment but reduce control over execution.

Reference: Kotler & Armstrong (14e), Global place (channels); Lecture‑10.

“Follow-the-customer” is a classic rationale for going global.

Reference: Kotler & Armstrong (14e), Deciding Whether to Go Abroad; Lecture-10.

Direct investment (greenfield/acquisition) avoids tariffs by producing locally and preserves strategic and marketing control better than licensing or contract manufacturing; exporting incurs tariffs.

Reference: Kotler & Armstrong (14e), Deciding How to Enter the Market—Export, Licensing, JV, Direct Investment; Lecture-10.

Promotional diagnostics (GRPs/recall) are micro; early screening uses macro market/risk/access data.

Reference: Kotler & Armstrong (14e), Selecting Foreign Markets—Macro Screening; Lecture-10.

Local partners align interests and can lower political backlash.
Reference: Kotler & Armstrong (14e), Country risk & entry mode; Lecture‑10.

Regulatory/technical standards force mandatory product changes irrespective of positioning.

Reference: Kotler & Armstrong (14e), Designing Global Market Offerings—Product Decisions; Lecture-10.

Changing both the offering (formula) and the message is dual adaptation.

Reference: Kotler & Armstrong (14e), Global Product/Communication Strategies; Lecture-10.

A positive country of origin acts as a quality signal in certain categories.

Reference: Kotler & Armstrong (Asian, 2022), COO effects; Lecture‑10.

Ignoring local needs erodes relevance and adoption.

Reference: Kotler & Armstrong (14e), Balancing standardization–adaptation; Lecture‑10.

Firms usually increase commitment stepwise as learning builds.

Reference: Kotler & Armstrong (14e), Internationalization Process; Lecture-10.

Macro criteria narrow candidates before micro‑level analysis.

Reference: Kotler & Armstrong (14e), Selecting foreign markets; Lecture‑10.

FTA reduces internal tariffs; CET/ factor mobility belongs to higher levels.

Reference: Kotler & Armstrong (Asian, 2022), Regional Blocs; Lecture-10.

Alliances coordinate activities/knowledge without ownership stakes.

Reference: Kotler & Armstrong (14e), Alliances vs JVs; Lecture‑10.

Selling at unfairly low prices can trigger duties/sanctions.

Reference: Kotler & Armstrong (14e), Global pricing & dumping; Lecture‑10.

Readiness (including capacity, QA, and compliance) is a prerequisite for export.

Reference: Kotler & Armstrong (Asian, 2022), Export Readiness; Lecture-10.

Multinationals shift profits to support strategic battles elsewhere.

Reference: Kotler & Armstrong (14e), Competing on a Global Basis; Lecture-10.

Focused breadth manages risk/learning before scaling.

Reference: Kotler & Armstrong (14e), Which Markets—How Many?; Lecture-10.

Direct export = in-house export capability dealing with foreign buyers.

Reference: Kotler & Armstrong (14e), Deciding How to Enter—Exporting; Lecture-10.

Ownership maximizes control/learning (with higher risk/cost).

Reference: Kotler & Armstrong (14e), Entry Mode Trade-offs; Lecture-10.

Regulatory compliance drives product change; promotion unchanged.

Reference: Kotler & Armstrong (14e), Designing Global Offerings—Product; Lecture-10.

When asset specificity and opportunism risk are high, firms internalize cross-border activities to safeguard know-how, favoring wholly owned FDI over licensing/JV.

Reference: Kotler & Armstrong (14e), Deciding How to Enter — Internalization & Control; Kotler & Armstrong (Asian, 2022), Designing Global Market Offerings; Lecture-10.

JVs trade off speed, local resources, and shared risk/responsibility.

Reference: Kotler & Armstrong (14e), Entry mode trade‑offs; Lecture‑10.