INTERNATIONAL MARKETING ( MODULE 2)

BY S.SURYANARAYANAN

INTERNATIONAL MARKET RESEARCH

MARKET RESEARCH---systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services. MARKETING INFORMATION SOURCES Primary vs. secondary research The costs of collecting primary data in foreign markets are likely to be much higher given the lack of an appropriate marketing research infrastructure Qualitative research has been particularly useful as a first step in studying international marketing phenomena. Focus Groups Observation Quantitative research are more structured, involving either descriptive research approaches, such as survey research, or causal research approaches, such as experiments. Content Analysis Survey Research Experimental Research

Secondary sources

Researchers must determine if the information is available, and, if so, how reliable it is Internal data is useful only if company has collected similar info from relevant respondents in a country with similar environment

INTERNATIONAL MARKET RESEARCH.contd

PHASES OF A RESEARCH PROJECT

1.Problem definition 2.Develop a research plan--Exploratory Research Descriptive Research Causal Research 3.Collection of Data 4.Sampling 5. Analysis and interpretation

Challenges in international research

Cultural differences Very expensive Methodology suitability from one market to another.

MARKET SELECTION

Preliminary screening and short listing--preliminary screening (the potential of the market) fine-grained screening (firms competitive power is taken into account)

Evaluation of market Economic factorslike GDP, foreign exchange, per capita income Economic policy and stability Political stability and government policy Currency stability Infrastructure facilities ethnic factor Bureaucracy and procedure

PROFILE OF SELECTED MARKET

General characteristics like demographic,ecnomic,political etc. Relevant characteristics for specific product in a country

Trends in domestic production and forecast for future demand Competitive characteristics Market segment characteristics Customer characteristics Channel characteristics Promotion characteristics factors relevant to pricing

CLASSIFICATION OF WORLD MARKET

World market can be classified based on Region or cluster of countries Stages of economic development market segments on the basis of consumers, not countries differences between consumers exist inside the country similarities across boundaries exist)

REGIONAL MARKET CHARACTERISTICS Western EuropeEU,E EA,Switzerland,Gibralter,Green land and Malta Most prosperous, similar lifestyle, predominantly Christians ,different languages

CLASSIFICATION OF WORLD MARKETcontd.

EASTERN AND CENTRAL EUROPE-Albania,Bosnia,bulgaria,Romania,Yugoslavia,Estonia,CIS(Russia ) and many others Wage rates are lower, developing economies, buisness cuture to be developed. NORTH AMERICAUSA, Canada and Mexico US Canada most prosperous, developed market, Mexico developing

LATIN AMERICABrazil,Chile,Venezuela,Cuba and others Huge resource base,developing nations,cuturally similar,mostly roman catholics and language spanish and Portugese.

CLASSIFICATION OF WORLD MARKET---cotd

ASIA PACIFICIndia,China,Japan,Korea,Malaysia and many others Strong family ties, respect for elders, emergent economies MIDDLE EASTIran Iraq,Saudi Arabia,UAE,Afghanistan and others. Oil rich in some of them,traditionL, majority Muslims AFRICA Low income market, culturally different. Significant political risk.

Entry strategies

Licensing/franchising Exporting Contract manufacturing Management contract Assembly operations Fully owned manufacturing facilities Joint venturing Mergers and acquisitions Strategic aliance

References: 1.International Marketinganalysis and strategy by Sak Onkvisit and John Shaw 2.International Marketing by Francis Cherunilam 3.Global Marketing Management by Warren J Keegan and Naval K Bhargava