1 / 13

Chapter 2

Chapter 2. Marketing Research in the International Environment. Strategies to be clarified: What markets and target segments will be entered? What mode of entry should be adopted? What should be the timing of the entry? What is method of allocation of resources?

wylie-benson
Download Presentation

Chapter 2

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 2 Marketing Research in the International Environment

  2. Strategies to be clarified: • What markets and target segments will be entered? • What mode of entry should be adopted? • What should be the timing of the entry? • What is method of allocation of resources? • How to establish a control system to monitor • performance?

  3. Role of Research • in • International Marketing Strategy Formulation • Market Definition: In the marketing of industrial products, the following levels of marketing definition can be identified: • - customer level (micro-market) • - segment level (macro-market) • - country level (national) • - global level (worldwide market being the aggregate of markets on a segment or country level)

  4. Market Decision Process • The market decision process to evaluate target customer at the SBU level would involve the following: • Analysis of demand(customer’s requirement) • Analysis of competition offerings(differentiation analysis) • Setting of objectives (micro-market share, volume profit) • Definition of strategy • Planning • Implementation • Control and evaluation

  5. Issues Specific to International Marketing Research • Globalization: Marketing achievement is assessed in terms of achieving the right balance between integrated central marketing and strategic thinking and a flexible and more decentralized marketing approach adapted to national cultures. • Example: United Distillers and McDonald’s.

  6. Issues Specific to International Marketing Research (contd) • Complexity:Gaining familiarity with systems, structures and cultures radically different from one’s own is a complex maneuver. Companies have to restructure, assign their best people to co-ordinate international marketing, advertising, media and research activities.

  7. Issues Specific to International Marketing Research (Contd) • Major Decisions:The task of marketers in an international • setting is far more complex and multidimensional than that of • domestic marketers. Example: Adoption of Pan European • media approach by Unilever, Purchase of shares in British • Rail by SNCH • Fragmentation:Specialists and centralized market research • are becoming fewer and smaller. Example: traditional IT • industries are restructuring, reducing head-office staff and • dealing directly with customers.

  8. Issues Specific to International Marketing Research (Contd) • Speed and Actionability:As information is more extensive and complex, clients need to have a much greater degree of analysis of that information. But speed and actionability cannot be compromised.

  9. Complexity of International Marketing Research • Quality issues :Are more complex for international research suppliers than for those working solely within national markets. • Inadequate measures of comparability: There are a variety of standards used in different countries • Decentralization vs. Centralization: A balance between the two has to be reached according to the needs of the organization • Lack of adequate facilities abroad: Research conditions and facilities vary from country to country

  10. Characteristics of IMR Problems • Heavy behavioral and relationship orientation: Both the organization and the elements in its environment try to exert control over each other. • Reflection of the complexity of the environment : Degree of competitive production, marketing, technical, and regulatory variations and the number of relationships with multiple groups within and outside the organization reflect the degree of complexity in organizational environment. • Lack of structure:Behavioral interaction is necessary to reduce uncertainty and to define the environment. Complex unstructured problems cannot be studied easily.

  11. Characteristics of IMR Problems • Cost: • New clients that keep entering the field of IMR may be • reluctant to pay premium fees charged by major international networks. • Medium-sized companies must have comparable levels of quality control to stay competitive. • Equivalence:Acceptable and consistent quality standards must be maintained. • Personnel: Technological Resources • Personnel Resources • Systems

  12. Information on IMR Industry • Of top 25 global firms, 15 are based in the US • $6.6 billion in revenues by top 25 for 1997 • Up 9% over 1996 • Large European conglomerates looking for • acquiring US firms

  13. Coordination of Research: • Adapting to client organization structures • Adapting to the culture, history, and • development of foreign markets • Using comparable but truly relevant • techniques • Thorough understanding of subcontractors

More Related