Presentation Transcript

1. Chapter 8

   Research Sterling Brown Javier Landivar Terry Lovett
2. Outline Defining the Issue International VS Domestic Research Determining Research Objectives Secondary Information Primary Information The International Information System
3. The single most important cause for failure in the international marketplace is insufficient preparation and information.
4. The American Marketing Association (AMA) defines marketing research as “the function that links the consumer, customer, and public to the marketer through information– information used to identify and define marketing opportunities and problems: generate, refine and evaluate marketing actions: monitor marketing performances: and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications”.
5. International vs Domestic Research New Parameters New Environments Number of Factors Involved Broader Definition of Competition
6. Recognize the need for research Benefits of Research V(dr)-V(d) > C(r) V(dr) is the value of the decision with the benefit of research V(d) is the value of the decision without the benefit of research C(r) is the cost of the research
7. Determining Research Objectives Going international: Exporting Foreign-Market Opportunity Analysis Country Ranking Clustering Variables Total GDP Per capita GDP GDP Growth Mortality Rates Population Figures
8. Stage One Preliminary Screening for Attractive Country Markets Key Questions: Which foreign markets warrant detailed investigation?
9. Stage Two Assessment of Industry Market Potential Key Questions: What is the aggregate demand in each of the selected markets?
10. Stage Three Company Sales Potential Analysis Key Questions: How attractive is the potential demand for company products and services?
11. Going International: Importing Focus shifts from supplying to sourcing Reliability Consistency Delivery time Government Rules
12. Market Expansion Penetrating a market Designing or fine-tuning a marketing mix Monitoring the political climate
13. Determining Secondary Information Requirements Sources of Data Governments International Organizations Service Organizations Trade Associations Directories and Newsletters Electronic Information Services Other Firms
14. Evaluating Data Analyzing and Interpreting Secondary Data Data Privacy Issues
15. Primary Research Determining Information Requirements What is the market potential for our furniture in Indonesia? How much does the typical Nigerian consumer spend on soft drinks? What effect will a new type of packaging have on our “green” consumers in Germany? France? England?
16. Degree of Research Centralization Outside Research Services Research Techniques Interviews Focus Groups Observation Surveys
17. Designing the Survey Questionnaire Question Format Question Content Question Wording
18. Developing the Sampling Plan Data Collection Analyzing and Interpreting Primary Data Presenting Research Results Follow-Up and Review
19. Research on the web The International Information System Environmental Scanning Delphi Studies Scenario Building
20. Questions 1. What are the advantages and disadvantages of secondary data? What problems an international marketer may encounter in collecting secondary data? 2. What is environmental scanning? How does it relate to the entry strategies of the multinationals. 3. What are the various methods in demand estimation? How can we evaluate them?
21. QUESTIONS for CHAPTER 8?

22. Chapter 9

    Market Entry and Expansion
23. Outline Stimuli to Internationalize Change Agents and Intermediaries Going International Export Licensing and Franchising Foreign Direct Investment Types of Ownership
24. Model of International Entry and Expansion
25. Stimuli to Internationalize A variety of stimuli are constantly pushing and pulling firms towards the international path. The major motivation to go international are differentiated in two groups: Proactive and Reactive. Proactive firms go international because they want to and reactive firms go international because they have to.
26. Proactive Stimuli Profit advantage Unique products Technological advantages Exclusive information Economies of scale Market size
27. Reactive Stimuli Competitive pressures Overproduction Declining domestic sales Excess capacity Saturated domestic markets Proximity to customers and ports Psychological distance
28. Change Agents and Intermediaries Someone or something within the firm must initiate changes and shepherd it through to implementation. This intervening individual or variable is called a change agent. Change agents in the internationalization process are differentiated in two groups: Internal and External.
29. Internal Change Agents Enlightened managements New management Significant internal events
30. External Change Agents Demand Competition Domestic distributors Service firms Business associates Governmental activities Export intermediaries: Export management companies Trading companies
31. Going International Internationalization is a gradual process for many firms, specially firms in small markets. Some firms are “born global”, founded for the explicit purpose of marketing abroad. There are three major methods to enter new market: export, licensing and franchising, and foreign direct investment.
32. Export In most instance today, firms begin their operation in the domestic market. From their home location, they gradually expand, and over time, some of them become interested in international markets. The development of this interest typically appears to proceed in several stages called the Key Corporate Export Stages.
33. Key Corporate Export Stages Export Stages Awareness Interest Trial Evaluation Demand Adaptation Concerns Information Mechanics Communications Sales Efforts Service Delivery Regulations
34. How To Export Your Product Firms who chose to export their products may do so in a variety of ways. Firms may export directly or use export intermediaries such as export management companies or trading companies. Market intermediaries specialized in bringing firms or their goods and services to the global market.
35. Market Intermediaries Export Management Companies (EMCs) EMCs are domestic firms that perform international marketing services as commission representatives or as distributors for several other firms. EMCs either take title to goods and operates international on their own account, or they perform cervices as agents. Trading Companies General trading companies play a unique role in the world of commerce by importing, exporting, countertrading, investing, and manufacturing.
36. E-Commerce E-commerceprovide the ability to offer goods and services over the web. One key option is to develop a corporate website, available in different languages. Business to consumers (www.ebay.com) Business to business (www.alibaba.com) E-Commerce concerns
37. E-Commerce
38. Licensing and Franchising Licensing Under licensing agreement, one firm, the licensor, permits another firm, the licensee, to use its intellectual property in exchange of compensation designated as royalty. Key issues are the scope of the rights conveyed, compensation, licensee compliance, dispute resolution, and the terms and termination of the agreement. Trademark Licensingpermits use of names or logos of designers, literary character, sport teams, movie stars in merchandising such as clothing.
39. Licensing and Franchising Franchising In franchising a parent company, the franchiser, grants another independent entity, the franchisee, the right to do business in a specific manner. The Right to do business could be selling franchiser’s products or using name, production, preparation, and marketing techniques. Examples: manufacturer-retailer system, manufacturing-wholesaler systems, and service firm retailer system.
40. Key impediment to international Franchising Meeting and training qualified franchisees overseas Security and protection of industrial property and trademarks in foreign countries. Keeping current with market prospects overseas Familiarity with business practices overseas Foreign government regulation on business operations Collection and transfer of franchise fees Control of quantity and quality of product or services. Promotion and advertising opportunities overseas
41. Foreign Direct Investment Foreign Direct Investment Represents international investment flows that acquire property and plants to create or expand a long-term interest in an enterprise with some degree of control. Portfolio investment Focuses on the purchase of stocks and bonds internationally, which is of primary concern to the international financial community.
42. Foreign Direct Investment
43. Reasons for Foreign Direct Investment Marketing Factors Resource seekers Market seekers Efficiency seekers Government Incentives Fiscal incentives Financial incentives Nonfinancial incentives Top Performers HSBC Holding General Electric Bank of America JP Morgan Chase ExxonMobil
44. Types of Ownership Full Ownership 100% ownership. Joint Ventures Collaboration of two or more organizations for more than a transitory period. The partners share assets, risks, and profits. Equality of partners is not necessary.
45. Types of Ownership Strategic Alliance It is a special form of Joint Venture that consists of arrangements between two or more companies with a common business objective. The alliance is flexible and it can be form, adjusted, and dissolved rapidly. Government Consortia It is a form of cooperation that takes place at the industry level and is typically characterized by government support or even subsidization.
46. Questions 1. What are the criteria for evaluating entry strategy? Explain. 2. What is Joint Venture? When (under what circumstances) would a firm opt for a Joint Venture as an entry mode over Licensing.
47. Chapter 9 Market Entry and Expansion Questions?