? Consider the costs and benefits of the research effort
? Gather relevant data from secondary or primary sources, or both ? Analyze, interpret, and summarize the results
? Effectively communicate the results to decision makers
6.Why is the formulation of the research problem difficult in foreign market research?
? The major difficulty is converting a series of often ambiguous business problems into tightly
drawn and achievable research objectives
? The first, most crucial step in research is more critical in foreign markets because an
unfamiliar environment tends to cloud problems definition
? Other difficulties in foreign research stem from failures to establish problem limits broad
enough to include all relevant variables
7.Discuss the problems of gathering secondary data in foreign markets.
? Availability of data Reliability of data Comparability of data
8.What are some problems created by language and the ability to comprehend the questions in collecting primary data? How can a foreign marketer overcome these difficulties? P191
? ? ? ?
Ability to communicate opinions Sampling in field survey
Language and comprehension
Other difficulties after the data was collected, such as the response bias
9.Discuss how decentering is used to get an accurate tranlation of a questionnaire.
Decentering is a hybrid of back translation, which is a successive process of translation and retranslation of a questionnaire, each time by a different translator.
10.Discuss when qualitative research may be more effective than quantitative research.
? ? ? ?
If questions are asked, they are almost always open-ended or in-depth
Seeks unstructured responses that reflect the person's thoughts and feelings on the subject. Qualitative research interprets people in the sample
Qualitative research is helpful in revealing the impact of sociocultural factors on behavior patterns and in developing research hypotheses
11.Sampling presents some major problems in marketing research. P193
? The great problem stems from the lack of adequate demographic data and
available lists from which to draw meaningful information
? The effectiveness of various methods of communication in survey is limited
? The adequacy of sampling techniques is also affected by a lack of detailed social
and economic information
? Inadequate mailing lists and poor postal service can be problems for the market
researcher using mail to conduct research
12.\foreign market researcher must possess three essential capabilities to generate meaningful information\
? A high degree of cultural understanding of the market in which the research is being
conducted
? A creative talent for adapting research methods
? A skeptical attitude in handling both primary and secondary data
13.Problems in international marketing research ? Stem from differences among countries
? Range from inability or unwillingness of respondents to communicate their opinions ? Inadequacies in questionnaire translation
14.Three keys to successful international marketing research ? The inclusion of natives of the foreign culture on research teams ? The use of multiple methods and triangulation
? The inclusion of decision makers, even top executives, who must on occasion talk directly to
or directly observe customers in foreign markets
Chapter 9 global marketing management: Planning and Organization
1. Define the following words
Global marketing management
Marketing Management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities.
Global market concept
Tactical planning The process of taking the strategic plan and breaking it down into specific, short term actions and plans.
Operate planning
A subset of strategic work plan. It describes short-term ways of achieving milestones and explains how, or what portion of, a strategic plan will be put into operation during a given operational period, in the case of commercial application, a fiscal year or another given budgetary term.
Strategic planning
? An organization's process of defining its strategy, or direction, and making decisions on
allocating its resources to pursue this strategy, including its capital and people.
? Various business analysis techniques can be used in strategic planning, including SWOT
analysis, GE/McKinsey portfolio analysis, COPE analysis, PEST analysis, STEER analysis, and EPISTEL.
Direct exporting
the company sells to a customer in another country
Indirect planning
the company sells to a buyer (importer or distribution) in the home country, who in turn exports the product
Licensing
? A means of establishing a foothold in foreign markets without large capital outlays ? A favorite strategy for small and medium-sized companies
? Legitimate means of capitalizing on intellectual property in a foreign market
Franchising
? Franchiser provides a standard package of products, systems, and management services ? Franchise provides market knowledge, capital, and personal involvement in management ? Expected to be the fastest-growing market-entry strategy
International joint ventures (IJVs)
A partnership of two or more participating companies that have joined forces to create a separate legal entity
SIA(strategic international alliance)
? A business relationship established by two or more companies to cooperate out of mutual
need
? To share risk in achieving a common objective
? a way to shore up weaknesses and increase competitive strengths
Consortia
? Similar to joint ventures and could be classified as such except for two unique characteristics ? Typically involve a large number of participants
? Frequently operate in a country or market in which none of the participants
is currently active
? Consortia are developed to pool financial and managerial resources and to lessen risks
2. Define strategic planning. How does it for international marketing differ from domestic marketing?
? Strategic planning is a systemized way of relating to the future. It is an attempt to manage the
effects of external uncontrollable factors on the firm’s strengths, weaknesses, objectives, and goals to attain a desired end. Further, it is a commitment of resources to a country market to achieve specific goals.
? The principles of planning are not in themselves different between international and domestic
marketing, but the intricacies of the operating environments of the MNC (host country, home, and corporate environments), its organizational structure, and the task of controlling a
multicountry operation create differences in the complexity and processes of international planning. Strategic planning on an international level allows for rapid growth of the international function, changing markets, increasing competition, and the ever-varying challenges of different national markets. The plan blends the changing parameters of external country environments with corporate objectives and capabilities to develop a sound, workable marketing program.
3. Discuss the benefits to an MNC of accepting the global market concept. Explain the three points that define a global approach to international marketing.
4. Discuss the effect of shorter product life cycle on a company's planning process.
? Global competition is placing new emphasis on some basic tenets of business. It is reducing
time frames and focusing on the importance of quality, competitive prices, and innovative products.
? Time is becoming a precious commodity for business, and expanding technology is
shortening product life cycles and creating greater opportunities for innovative products. A company no longer can introduce a new product with the expectation of dominating the market for years while the idea spreads slowly through world markets. In any given year, for example, two thirds of Hewlett-Packard’s revenue comes from product introduced in the prior three years.
? Shorter product life cycles mean that a company must maximize sales rapidly to recover
development costs and generate a profit by offering its products globally. Along with technological advances have come enhanced market expectation for innovative products at competitive prices.
? Today, strategic planning must include emphasis on quality, technology, and cost containment.
To achieve the flexibility and speed required under such conditions, many firms are entering collaborative relationships to shore up their weaknesses whether in distribution, technology or manufacturing that will enable them to respond to the problems created by shorter life cycles.
5. What is the importance of collaborative relationships to competition?
? The competitive environment of international business is changing rapidly. To be competitive
in global markets a company must meet or exceed new standards for quality and new levels of technology.
? The accelerating rate of technological progress, market demand created by global
industrialization, and the creation of new middle classes will result in tremendous potential in global markets. But, along with this surge in global demand comes an increase in competition as technology and management capabilities spread beyond global companies to new competitors from Asia, Europe, and Latin America.
? The environment facing multinational companies demands flexibility, quality, cost
containment, cutting edge manufacturing skills, and a rapid response to market changes to sustain a competitive advantage. The strengths and capabilities a company must have to be a major player are enormous and few companies can cover all the bases all of the time. To shore up weaknesses, companies are entering relationships with others to share what each does best whether in marketing, research or manufacturing. Collaborative relationships are becoming a common way to meet the demands of global competition and a successful collaboration means that each achieves more together than either can accomplish alone.
6. Discuss some of the conditions that may exist in a country that would lead a market to exclude a country in phase 1and phase 2.
? In phase one of the planning process, there are a host of reasons why a country would no
longer be considered. On balance, those countries that do not offer sufficient potential for further consideration will be eliminated.
? Some of the reasons why this may occur are that product acceptance within the country could
not be achieved without extensive investment and new product development, and the firm does not have sufficient resources to make that investment; the legal structure may be such that it would be impossible for the company to function within that country. Competition in the country is such that, based on the company’s objectives, resources, etc., it is felt that it would not be a profitable venture. In other words, any problem that would lead to minimum market potential, minimum profit, minimum return on investment, unacceptable competitive levels, unacceptable political stability, unacceptable legal requirements, etc., may all lead to the dropping of a country.
? While the major reasons for dropping a country in phase one center around general
environmental constraints, the reasons that a country may be dropped in phase two center around the more specific questions of what cultural environmental adaptations are necessary for successful acceptance of the company’s marketing mix, and will adaptation costs allow for profitable market entry. In phase two, the marketing mix is the focal point of analysis. Still, the final determination of whether or not a country is dropped depends upon the anticipated profitability of the market after necessary adaptations are made.
7. How will entry into a developed foreign market differ from entry into a relatively untapped market?
? Channels of distribution which may or may not be developed.
? Governmental attitudes toward business, foreigners, and industry may be very liberal in a
growing economy, while an established market may be very restrictive.