Les 7: Entry modes: sales management
Entry modes how to enter the market you want
Downstream: when they start mostly import and export
Learning objectives:
Distinguish between various export modes, including own export
o Know the various export modes
Understand the various export modes.
o Agent, distributor, EMC, trading company, piggyback, rep office, sales branch and
sales subsidiary.
Decide which export mode to use.
o Advantages and disadvantages
o Decision criteria
How to select and manage intermediaries
o Intermedior= someone else (extern someone)/ other firm does exporting for them
Often it is the combination of both, they often have many ways of doing things.
VIDEO CASE: IPEE
How would you go about the international market selection?
Countries with a higher GDP per capita
o Why? Innovativeness – focused
o Way to measure it? spending of government on R&D
High technology
o Sanitary countries like Japan, Taiwan,….
o Expenses on construction
Marketsaturation
o Measure: how many distrubuters there are
They have 3 segments:
1. Sell the sensor
2. Full packages which includes everything from sensor to toilet
3. Digitalization part: follow up the management for the sanitary for larger companies (airports,…)
Les 7 15/11/2022 Pagina 1 van 18
,How would you find and select partners?
When you do a trade mission it is to find out something about that country.
Les 7 15/11/2022 Pagina 2 van 18
, Advantages and disadvantages of different field research:
What entry mode would you choose and what type of partners/intermediaries would you be
looking for in the different regions? Why?
IPEE didn’t have an approach, they followed where the sales where
Distance really matters, because they want to keep the production in Belgium
Affectuation= rather than selecting the best location you’re building up the network and want to
build further on that
More focused on the fact that it is effective and the how and why is less important (skip the
best practice for now)
Are you going to make toilets for different countries?
Les 7 15/11/2022 Pagina 3 van 18
Entry modes how to enter the market you want
Downstream: when they start mostly import and export
Learning objectives:
Distinguish between various export modes, including own export
o Know the various export modes
Understand the various export modes.
o Agent, distributor, EMC, trading company, piggyback, rep office, sales branch and
sales subsidiary.
Decide which export mode to use.
o Advantages and disadvantages
o Decision criteria
How to select and manage intermediaries
o Intermedior= someone else (extern someone)/ other firm does exporting for them
Often it is the combination of both, they often have many ways of doing things.
VIDEO CASE: IPEE
How would you go about the international market selection?
Countries with a higher GDP per capita
o Why? Innovativeness – focused
o Way to measure it? spending of government on R&D
High technology
o Sanitary countries like Japan, Taiwan,….
o Expenses on construction
Marketsaturation
o Measure: how many distrubuters there are
They have 3 segments:
1. Sell the sensor
2. Full packages which includes everything from sensor to toilet
3. Digitalization part: follow up the management for the sanitary for larger companies (airports,…)
Les 7 15/11/2022 Pagina 1 van 18
,How would you find and select partners?
When you do a trade mission it is to find out something about that country.
Les 7 15/11/2022 Pagina 2 van 18
, Advantages and disadvantages of different field research:
What entry mode would you choose and what type of partners/intermediaries would you be
looking for in the different regions? Why?
IPEE didn’t have an approach, they followed where the sales where
Distance really matters, because they want to keep the production in Belgium
Affectuation= rather than selecting the best location you’re building up the network and want to
build further on that
More focused on the fact that it is effective and the how and why is less important (skip the
best practice for now)
Are you going to make toilets for different countries?
Les 7 15/11/2022 Pagina 3 van 18
