INTERNATIONAL MARKETING

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Global Marketing Integration

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International Marketing
Total world trade volume in goods and

services is around $8 trillion. The worlds five exporting countries are the United States ($700 billion), Germany ($560 billion), Japan ($390 billion), France ($320 billion), and Britain ($260 billion), collectively accounting for 42 percent of global trade.

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Global Marketing Integration

Fords made in Mexico with Japanese parts, Honda, Toyota, BMW, and Mercedes Benz open USA plants, and Isuzu of America makes Troopers and Rodeos with GM engines via joint venture. Honda manufacturing cars in USA, TI manufacturing semiconductors in Japan. Macintoshs PowerBook 100 designed and manufactured by Sony.

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International Marketing Intro

The Trade Regions (North America, Western Europe,

and Japan) of the world collectively produce more than 80% of world GDP. In the next ten to twenty years, Emerging Markets the Chinese Economic Area (CEA: including China, Hong Kong, region, and Taiwan), India, South Korea, Mexico, Brazil, Argentina, South Africa, Poland, Turkey, and the Association of Southeast Asian Nations (ASEAN: including Indonesia, Brunei, Malaysia, Singapore, Thailand, and the Philippines, and Vietnam) will provide many opportunities in global business.

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2.THE NATURE OF INTERNATIONAL MARKETING

What is international marketing?

Export marketing Foreign marketing Multinational marketing International marketing

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Export marketing
The international marketing dimension involves marketing across national borders. This is different from domestic marketing because the mere fact of crossing the border confronts with new economic, political, and legal constraints, such as floating exchange rates, boycotts, and international law. These constraints will usually force modification of the firms marketing program as it crosses national boundaries.

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Foreign marketing
The foreign marketing dimension involves marketing within foreign countries, as a U.S firm markets in Belgium or Brazil. Such marketing is unlike domestic marketing because that firm faces different kinds of competition, consumer behavior, distribution channels, and promotional possibilities in Belgium or Brazil from what it is familiar with at home. The tasks are further complicated because each country has an individual characteristic marketing environment.

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Multinational marketing
The multinational marketing dimension emphasizes the coordination and integration of the firms marketing in many diverse foreign environments. The unique nature of each foreign market remains the international marketing effort and brings diseconomies of scale. The international marketer must plan and control carefully to maximize the integration and synergy in the global marketing program while minimizing the Moun Marketing costs of adapting to each foreign

International Marketing Defined

International marketing: the performance of business activities that direct the flow of a companys goods and services to consumers or users in more than one nation for a profit.

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DEFINITION OF I.M.
DEFINITION of International Marketing

( as per American Marketing Association (AMA): International Marketing is the Multinational process of planning & executing the conception, pricing, promotion & distribution of ideas, goods & services to create exchanges that satisfy individual (consumers) & organizational (sellers)objectives. International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a companys goods and services to consumers or users in Moun Marketing 1111

The International Marketing Task

Foreign environment (uncontrollable) Political/legal forces

Economic forces

Domestic environment (uncontrollable)

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Cultural forces Political/ legal forces

Country market C environment (uncontrollable)

Price

(controllable )

Competitive Competitive Forces structure

Product

3 6
Geography and Infrastructure Promotion Channels of distribution

Country market A environment (uncontrollable)

Economic climate

4
Structure of distribution

Level of Technolog y

Country market B environment (uncontrollable)

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Meeting International Challenges

Be prepared and develop active

responses. Develop new strategies. New plans are needed. Adaptation to the new environment and markets.

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MARKETING-MIX
4 Ps 4Cs 1. Product Customer value 2. Price Cost to the customer 3. Place Convenience 4. Promotion Communication -------------------------------------------------------------

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The activities in international marketing include:

1. Detailed analysis of current markets and

potential markets; 2. Planning and development of products that the consumers want, clearly defined in suitable package; 3. Distribution of products through channels which provide the services or conveniences demanded by purchases;

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The activities in international marketing include:

4. Promotion of products to inform and educate consumers about products or services; 5. Setting of prices which reflect both a reasonable value (or utility ) of product to consumers; and 6. Technical and non-technical services given to the consumers-both before and after a sale is made.

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The the Marketing Process Stages in Process

Analysis:

Collect data from sources- primary and secondary, internal and external, formal and informal. Screen data for opportunities to employ company resources for competitive advantage. Develop a marketing plan which includes a situation analysis, goals and objectives, long-term strategies and short-term tactics, cost and profit estimates, and anticipated changes in organizational structure.

Planning:

Implementation:

Control:

Take actions to put the plan into action. Adjust implementation activities to account for environmental changes in market conditions. Use annual planning (sales to forecast), profitability, and efficiency controls to monitor the plans successes and failures.

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DOMESTIC MKTG. V/s. INTL.MKTG.

DOMESTIC MKTG.

INTL. MARKETING

Relatively simpleProcess Mkt.CharactristicKnow n Cultural pref. Known Legal system is known Political systemTrusted Known Monetary system Moun Marketing

Complex Mktg. Processes Many uncontrollable Diverse cultural issues Different legal system Political System Unknown Diff. Monetary Systems Multiple Strategy needed since diverse markets catered
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Scope & challenges of I.M.

WORLD HAS BECOME A GLOBAL VILLAGE Scope is enormous for Emerging Market

COUNTRIES called `BRIC : Brazil- Russia - India- China Challenges are compliance with WTO norms & satisfy FDA & ISO-9000 quality norms for drugs & food products etc. Trade Barriers created to protect local Industries are to be overcome Most Favoured Nations (MFN ) treatment for Import Duties Increasing REGIONAL TRADE CO-OPERATION/AGREEMENT E.g. SAARC=SOUTH ASIAN Association for Regional Cooperation LAFTA =Latin American Free Trade Association ASEAN=Association of South East Asian Nations-India trying to enter Moun Marketing 1919

Challenges of International Trade

International Marketing is often mistaken

as Domestic Marketing on a global scale Cos.Like McDonald/Kentuky FriedChicken(KFC) marketing globally has to respect local religious sentiments of consumers e.g. avoid Beef as an ingradient in INDIA. * Pure Veg.( Green Dot)was challenged in USA court since Animal fats were used for frying & case won by an Indian Dr. McDonald had to apologize & also pay heavy compensation. Marketing Moun 2020

ENVIRONMENTAL FACTORS in International Trade to 2000 Indias relations were From 1947

very good with previous USSR & we were identified more friendly compared to USA However, after disintegration of USSR into Confederation of Independent States(CIS) countries, in last decade our trade/political relations has greatly improved with USABeing largest trade partner for Export of services/Imports of high technology products
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The Dynamic ENvironment of International Trade.

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Global perspectives: Trade barriers-An

international market minefield. The twentieth to twenty first century:

World trade & US multinationals. The first decade of the twenty first century & beyond.

Balance of payments Easing the trade restriction.

General agreement on trade & Tariff - GATT
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Basis for reestablishment of the world following

World war two. Importance of balance of payment figure on world economy Effect of protectionism on world trade Seven types of trade barriers Importance of GATT & WTO Emergence of IMF & World bank group

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TWENTITH TO TWENTY FIRST CENTURY

First half of twentieth century o Depression o World war 1 & World war 2 Last half of twentieth century o Marshall plan o Establishment of GATT o Formation of WTO o Formation of IMF & world bank World bank estimation regarding India, Brazil,

Indonesia, china & Russia

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WORLD TRADE & US MNCs

Era between 1950 to 1960 Problem faced in era of 1960 o Resistance to direst investments o Increasing competition in export marketing Major threats o NIC Newly industrialized countries o SOE state owned enterprise

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WORLD TRDE & US MNC,s

Balance of Merchandise trade US trade deficient US encouraging efforts for open trade Role model as open market AFTA Anemia free trade area GATT General agreement on tariff & trade WTO World trade organization APEC Asia pacific economic cooperation

conference

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FIRST DEACDE OF TWENTY FIRST CENTURY

NIC Newly industrialized countries World bank estimation regarding new emerging

countries Brazil, India & Indonesia OECD Organization of economic cooperation devolvement Changes in intensity of competition Emerging markets Regional trade areas Established market in Europe, Japan & US
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1. 2. 3. 4.

When countries trade money flows into and out of each country The accounts that record a nations international financial transactions are called its balance of payments (BP) Records all financial transactions between a country and the rest of the world over a year The BP is maintained on a double-entry bookkeeping system

Balance of Payments

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Balance of The difference Payments and payments between receipts

BP Receipts BP Payments

costs of goods exported. money spent by foreign tourists. transportation. payments of dividends and interest from FDI abroad. new foreign investments

costs of goods imported. spending by tourists abroad new overseas investments. cost of foreign aid.

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Balance of Payments The Balance of Payments includes three accounts:

(1) current account

(2) the capital account

(3) the official reserves account

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Balance of Trade

(1) current account

(2) the capital account

If exports exceed imports, The Balance of Trade is positive If imports exceed exports, the Balance of Trade is negative Is a negative balance bad?

(3) the official reserves account

Balance of Payments and Exchange Rate

The Exchange Rate is

determined by Supply and Demand To buy Canadian goods, Canadian currency is demanded More exports or direct investment will increase the exchange rate As the value of the dollar increases, the price of exports increases.

Protectionism: Logic and Illogic Countries use protectionist measures to protect a

countrys markets from interruption by foreign competition and imports.

Arguments for Protectionism include:

1.

2. 3. 4. 5. 6.

Maintain employment and reduce unemployment Increase of business size Retaliation and bargaining Protection of the home market Need to keep money at home Encouragement of capital accumulation
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Protectionism: Logic and Illogic

Arguments for Protectionism include:

7.

8. 9. 10. 11.

Maintenance of the standard of living and real wages Conservation of natural resources Protection of an newborn industry Industrialization of a low-wage nation National defense

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Protectionism: Logic and Illogic In general, protectionism contributes to industrial inefficiency and makes a nation uncompetitive Protectionism is implemented through the imposition of trade barriers, which include tariff barriers and nontariff barriers
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The Impact of Tariff (Tax) Barriers

Tariff Barriers tend to Increase: 1. Inflationary pressures 2. Special interests privileges 3. Government control and political considerations in economic matters 4. The number of tariffs they cause via reciprocity

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The Impact of Tariff (Tax) Barriers

Tariff Barriers tend to Weaken: 1. Balance-of-payments positions 2. Supply-and-demand patterns 3. International relations (they can start trade wars)

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The Impact of Tariff (Tax) Barriers

Tariff Barriers tend to Restrict: 1. Manufacturer supply sources 2. Choices available to consumers 3. Competition

(1) Specific Limitations on Trade: 1. Quotas 2. Import Licensing requirements 3. Proportion restrictions of foreign to domestic goods (local content requirements) 4. Minimum import price limits 5. Prohibition

Six Types of Non-Tariff Barriers

(2) Customs and Administrative Entry Procedures: 1. Valuation systems 2. Antidumping practices 3. Tariff classifications 4. Documentation requirements 5. Fees
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(3) Standards: 1. Standard disparities 2. Intergovernmental acceptances of testing methods and standards 3. Packaging, labeling, and marking

Six Types of Non-Tariff Barriers

(4) Government Participation in Trade: 1. Government procurement policies 2. Export subsidies 3. Countervailing duties 4. Domestic assistance programs

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(5) Charges on imports: 1. Prior import deposit subsidies 2. Administrative fees 3. Special supplementary duties 4. Import credit discriminations 5. Variable taxes 6. Border taxes

Six Types of Non-Tariff Barriers

(6) Others: 1. Voluntary export restraints 2. Orderly marketing agreements

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Monetary Barriers In addition to the Six Types of Non-Tariff Barriers, monetary barriers are also used by countries

Three types of monetary barriers include:

1.

Blocked currency Differential exchange rates Government approval

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1.

1.

World Trade Organization (WTO)

Unlike GATT, is an institution, not an agreement

1. 1.

It sets many rules governing trade between its 132 members WTO provides a panel of experts to hear and rule on trade disputes between members, and, unlike GATT, issues binding decisions

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1. 2. 3. 4.

The International Monetary Fund (IMF) IMF was created to assist nations in becoming and remaining economically viable It assists countries that seek capital for economic development and restructuring IMF loans come with stipulations that borrowing countries slash spending and impose controls to restrain inflation It helps maintain stability in the world financial markets Objectives of the IMF include: 1. stabilization of foreign exchange rates 2. establish convertible currencies to facilitate international trade 3. lend money to members in financial trouble
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The goal of WBG is to reduce poverty and the improvement of living standards by promoting sustainable growth and investment in people. The functions of the WBG include:
1. 2. 3. 4. 5.

World Bank Group (WBG)

lending money to countries to finance development projects in education, health, and infrastructure; providing assistance for projects to the poorest developing countries; lending directly to the private sector in developing countries with long-term loans, equity investments, and other financial assistance; provide investors with investment guarantees against noncommercial risk, so developing countries will attract FDI; and provide settlement and negotiation of disputes between governments and foreign investors

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In 1999 anti-capitalist protestors complained against the WTO and IMF, over the unintended consequences of globalization that include: 1. environmental concerns 2. worker exploitation and domestic job losses 3. cultural extinction 4. higher oil prices, and 5. diminished sovereignty of nations Moun Marketing

Protests Against Global Institutions

The Dynamic environment of international trade

EASING TRADE RESTRICTIONS

The collection trade & competitiveness act
Correction of perceived in justice in trade practices Openness of new market to US goods Barriers to enter in new market

Majors ongoing activities to support

growth of international trade

GATT WTO IMF World Bank
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The Dynamic environment of international trade

GENERAL AGREEMENT ON TRADE & TARIFF - GATT

Background & history Major functions
No discrimination Protection of domestic industry Consultancy will be primary method for problem solving

Establishment of trade related investment

measures
Investment restrictions as trade barriers
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The Dynamic environment of international trade

WORLD TRADE ORGANIZATION WTO

Development as an institution Equal representation of all member states Role in product standardization & in other

areas International Monetary fund

Objectives & role

World Bank
Objectives & functions

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Transition from Domestic to International Business

The Decision to enter foreign markets must be

based on strong economic factors. Temperamental decision to export is passing in character and totally unsuitable for export marketing. Success in exporting requires total involvement and determination, which can come only out of basic economic necessity as perceived by the corporate unit. They grouped as Pre-export behaviour and Motivation to Export.

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Transition from Domestic to International Business

1. Pre-Export Behaviour: Every firm at some point of time starts as a non-exporter. The point

to be studied is what made some o f these firms get involved in export business. This must give a clue to the question as to whether a p resent non-exporter will become an exporter and if so why and when. The factors, which influence a non-exporting firm's decision to go in for export business, can be classified under the following categories:
Firm characteristics:

Firm characteristics include product characteristics; size and growth of the domestic market, optimum scale of production, and potential export markets. If the firm is manufacturing a product, which is internationally marketable, and the present and future market prospects in the domestic market are not much encouraging, the motivation o f the firm to get involved in export business will be considerable.

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Transition from Domestic to International Business

(b)Perceived External Export Stimuli: This will include fortuitous order, market opportunity and government's stimulation in the form of incentives and assistance. (c) Perceived Internal Export Stimuli: This refer to the management's expectations about the effects of exports on the firm's business. This covers the level of capacity utilization, the higher level o f profits and the growth objectives of the firm. (d) Level of Organizational commitment: The decision makers must agree on the level of commitment. This is crucial because it will determine whether adequate resources will be made available for go aboard on international marketing. Resources will be required for hiring new staff specialized in international marketing, hiring of consultants for carrying out overseas market potential studies etc.

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Transition from Domestic to International Business

Motivation to Export: (Economic reasons) There are some basic economic reasons which might influence a firm decision regarding export business: These are under: Relative Profitability: The rate of profit to be earned from export business may be higher than the corresponding rate on the domestic sales. Insufficiency of Domestic Demand: The level of domestic demand may be insufficient for u tilizing the installed capacity in full. Export business offers a suitable mechanism for utilizing the unused capacity. This will reduce costs and improve the overall profitability of the firm. Recession in the domestic market often serves as a stimulus to export ventures. Reducing business risks: When a firm is selling in a number of markets, the downward fluctuations in sales in one market, which may be the domestic market, Moun Marketing 54 may be fully or partly counter balanced by a rise in the sales in other

Transition from Domestic to International Business

Obtaining imported inputs:
Nations have to pay for imports of materials, technology or processes not available within their national boundaries. Governments, therefore, may be compelled to impose export obligations on the firms, especially those in need of imported inputs. In other words, in order to import, the firms will have to export.

Social responsibility:

Sometimes businessmen themselves feel a

sense of responsibility and contribute towards the national exchequer by increasing their exports. They also build up their image in domestic marketing by their export activities. They also look at exporting to attain status and prestige.

Increased productivity:

Increased productivity is necessary for ultimate

survival of a firm. This will lead the firm to increase production and then move to export business. To meet the Moun Marketing of Research and Development, increased costs

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Strategic Orientation
Often companies are led into international and even global markets by burgeoning consumer or customer demands, and strategic thinking is secondary to filling the next order. But putting strategic thinking on the back burner has resulted in marketing failures for even the largest companies. The consensus of the researchers and authors in the area reveals three relatively distinctive approaches that dominate strategic thinking in firms involved in international markets

Domestic Market Extension Orientation domestic Market Orientation

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Multi

Global

International Market Orientation

INTERNATIONAL MARKET ORIENTATION EPRG FRAMEWORK: Dr. Howard Perlmutter of the University of Pennsylvania first observed that there were three basic orientations guiding the work of international executives: ethnocentric, polycentric, and geocentric. This was later expanded to include a regional orientation and became an EPRG schema (ethnocentrism, polycentrism, regioncentrism, geocentrism). This typology, summarized in Figure 1.4, is the basis for the stages of corporate development framework. The ethnocentric orientation is an assumption that the home country is superior. It believes that the products and practices that succeed in the home country are superior and, therefore, should be used everywhere. In the ethnocentric company, overseas operations are viewed as being secondary to domestic and primarily as a means of disposing of surplus domestic production. Plans for overseas markets are developed in the home office utilizing policies and procedures identical to those employed at home. There is no systematic marketing research conducted overseas, there are no major modifications to products, and there is no real attention to consumer needs in foreign markets.

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EPRG Frame work

Home Country is Superior, Sees Similarities In Foreign Countries

Ethnocentric

Polycentric Each Host Country is Unique Sees Differences Foreign Countries

Regocentric: Sees Similarities And Differences In a World Region is Ethnocentric or Polycentric in its Views of Moun Marketing the rest of the world

Geocentric World View Sees Similarities And Differences in Home and Host Countries 58

Ethnocentric Orientation extension concept: domestic market

Domestic strategies, techniques, and

personnel are perceived as superior International customers, considered secondary International markets regarded as outlets for surplus domestic production International marketing plans developed in-house by international division
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Polycentric Orientation
multidomestic market concept: Focuses on importance and uniqueness of each international market May establish businesses in each target

country Fully decentralized, minimal coordination with headquarters Marketing strategies = specific to each country Result:
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Regiocentric Orientation
are

global marketing concept: World regions that share

economic, political, and/or cultural traits

perceived as distinct markets Divisions are organized based on location Regional offices
coordinate marketing activities

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International Market Orientation

The polycentric orientation is the opposite. This is the unconscious belief that each host country is unique and different and that the way to succeed in each country is to adapt to each countrys unique differences. In the polycentric stage, subsidiaries are established in overseas markets. Each subsidiary operates independently of the others and establishes its own marketing objectives and plans. Marketing is organized on a country-by-country basis, with each country having its own unique marketing policy. In the regiocentric and geocentric phases, the company views the region or entire world as a market and seeks to develop integrated regional or world market strategies. The geocentric orientation is a synthesis of the ethnocentric and the polycentric orientation. The regiocentric or regional orientation is a geocentric orientation that is limited to a region; that is, management will have a world view toward its region, but will regard the rest of the world with either an ethnocentric or a polycentric orientation, or a AcroPDF -A Quality PDF Writer and PDF Converter to create PDF files. To remove the line, buy Moun Marketing 62 a license. combination of the two. The ethnocentric company is centralized in its

International Market Orientation

The ethnocentric orientation is based on a belief in home-country superiority. This leads to an extension of home country products, polices, and programs. The assumption of the Polycentric approach is that there are so many differences in cultural, economic, and market conditions in each of the countries of the world that it is impossible to attempt to introduce any product, policy, or program from outside or to integrate any countrys program in a regional or world context. To implement the geocentric orientations, experienced international management and a great deal of commitment are required. For companies with limited experience, it may be wiser to adopt a centralized or a decentralized strategy and wait until experience accumulates before attempting to design and implement integrated marketing programs.

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Developing a Global Vision Through Marketing Click to edit Master subtitle style Research

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Marketing Research
Market researchis the collection and analysis of

information about consumers, competitors and the effectiveness of marketing programs. Small business owners use market research to determine the feasibility of a new business, test interest in new products or services, improve aspects of their businesses, such as customer service or distribution channels, and develop competitive strategies.
In other words, market research allows businesses to

make decisions that make them more responsive to customers' needs and increase profits.

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Importance of Marketing Research

Information is a necessary component to

making good marketing decisions.

Marketing Research is the systematic

collection, recording and analysis of data that can be used to make marketing decisions.

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Complications In International Marketing Research Information must be gathered and understood

across cultural boundaries.
The research tools can be sensitive to the

environment you are collecting information in.

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Breadth and Scope of Marketing Research

A countrys political stability, cultural attributes

and geographical characteristics are some of the kinds of information not ordinarily gathered by domestic marketing research departments but which are required for a sound assessment of a foreign market. This broader scope of international marketing research is reflected in Unisys Corporations planning steps, which call for collecting and assessing the following types of information:
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Breadth and Scope of Marketing Research

Economic Sociological and political climate Market conditions Technological environment Competitive situation

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Breadth and Scope of Marketing Research Economic: General data on growth of the economy, inflation,
business cycle trends, and the like profitability analysis for the divisions products; specific industry economic studies, analysis of overseas economies; and key economic indicators for the United States and major foreign countries. Cultural, sociological, and political climate: A general noneconomic review of conditions affecting the divisions business. In addition to the more obvious subjects, it covers ecology, safety, and leisure time and their potential impact on the divisions business Overview of market conditions: A detailed analysis of market conditions that the division faces, by market segment, including international. Summary of the technological environment: A summary of the state of the art technology as it relates to the divisions business, carefully broken down by product segments. Competitive situation: A review of competitors sales revenues methods of market segmentation, products, and Moun Marketing apparent strategies on an international scope.

The Research Process

1) Define the research problem and establish research objectives. 2) Determine the sources of information to fulfill the research objectives 3) Consider the costs and benefits of the research effort 4) Gather the relevant data from secondary or primary sources or both. 5) Analyze, interpret and summarize the results 6) Effectively communicate the results to decision makers
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Defining the Problem and Objectives

It is essential to appropriately define the

problem you are researching and establishing clear cut goals that will help shed light on the problem.

This can be very difficult when the problem is complex.

Due to the complexity of the problem, it may

be difficult to establish the research boundaries.

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Issues with Gathering Data

Secondary Data Collection Primary Data Collection Data Collection in Multicultural Settings

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Secondary Data Collection

Secondary data is data that has already been

collected by someone else that will answer the research question you are trying to answer. The biggest issue to deal with secondary data is that there can be a large quantity of it to wade through and you are uncertain of its quality.

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Problems with Secondary Data

Availability of the Data Reliability of the Data Comparability of the Data Validating Secondary Data

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Data Availability
While the US maintains a large amount of

economic data, many countries do not. One of the biggest difficulties with data availability, is that most international studies are not in English.

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Reliability of Data
Much scrutiny must be done to international

data because it was collected in a bias fashion. Since you do not know who put together the data as well as their qualifications, sometimes it is difficult to gauge the reliability of the data.

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Comparability of Data
Since you may have only one source of data,

there may not be a way to compare it to other data to see if it is reliable. Data may be gathered infrequently causing it to be difficult to compare. Often data is not collected the same way.

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Validating Data
One should check the validity of the data,

when possible, by comparing it to known reliable data. One of the best tools to validate data is common sense.

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Questions to Ask to Judge the Reliability of the Data Who collected the data?
Is there a reason someone would want to

misrepresent the data? Why were the data collected? How were the data collected? Is the data internally consistent and logical to known facts?

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Primary Data
Primary data research is when you go out

and collect the data first hand. Usually primary data collection is needed when adequate secondary data does not exist. Primary data research can be broken up into two areas:
Quantitative Research Qualitative Research

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Quantitative Research
This data is collected by asking verbally or in

writing structured questions that have specified or formatted responses. This research tends to ask close-ended questions. Data is gathered usually using surveys or interviews.

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Qualitative Research
Qualitative research focuses more on open-

ended questions, which tend to be highly unstructured.

It tends to solicit a persons thoughts and

feelings on a subject.

Qualitative research can come in the form of

direct observation.

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Problems When Gathering Primary Data

Ability to Communicate Opinions Willingness to Respond Sampling in Field Surveys Language and Comprehension

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Ability to Communicate Opinions

difficult for the respondent to form a useful opinion due to:
Lack of foresight of the use of the product The complexity of the product

When doing research on a product, it may be

The newness of the product to their experience

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Willingness to Respond
There are many reasons why someone

would not want to respond or truthfully respond to a survey:

The person asking the question does not fit the

cultural norm of a person who should be asking that type of question. Topics of the questionnaire may be considered confidential to the respondent. There is no reason for the person to truthfully answer the questions.

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Sampling in Field Surveys

When dealing with different countries it

can be difficult to gather a sample base that is representative of the population you are trying to study.
This is primarily due to a lack of good

demographic information.

Methods for collecting information can be

severely limited. It can be difficult to verify if the sample is representative.

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Problems Encountered When Drawing a Random Sample No officially recognized census of the
population. No listings that can serve as a sampling frame. Incomplete and/or out-of-date telephone directories. No accurate maps of population centers.

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Language and Comprehension

The language barrier and literacy pose a

major problem when doing a survey abroad.

It may be that exact translations do not exist for

some survey questions. The population may not have a high enough literacy rate to understand the survey.

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Methods for Handling Language Barriers

Back Translation This is when one language is translated into another language, and then a second party translates it back. Parallel Translation This is where more than two translators are used for the back translation. This helps deal with idioms that occur in both languages.

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Methods for Handling Language Barriers Cont.

Decentering It is a successive process of translation and retranslation of a questionnaire, each time by a different translator. (Cateora)

This process keeps going until a suitable translation and retranslation are found.

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Multicultural Research: A Special Problem.

As companies become global marketers and

seek to standardize various parts of the marketing mix across several countries, multicultural studies become more important. A company needs to determine to what extent adaptation of the marketing mix is appropriate. Thus market characteristics across diverse cultures must be compared for similarities and differences before a company proceeds with standardization on aspect of marketing strategy.

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Using the Internet for Research

The internet can be a useful tool for

conducting marketing research. It can reach a multitude a people in a short amount of time. While it can be an effective tool, it also has a few large drawbacks.

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Uses for the Internet When Doing Research and buyer panels: These can include incentives for Online surveys
participation, and they have better branching (different questions based on previous answers)

Online focus groups: Bulletin boards can be used for this purpose Web visitor tracking: Servers automatically track and time visitors travel
through websites

Advertising measurement: Servers track links to other sites & their

usefulness can hence be assessed

Customer identification system: Many companies are installing

registration procedures that allow them to track visits and purchases over time, creating a virtual panel

E-mail marketing lists: Customers can be asked to sign up on e-mail lists to

receive future direct marketing efforts via the internet

Embedded research: The internet continues to automate traditional

economic roles of

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Drawbacks to Internet Research

There can be a large bias as to who fills out

the survey, i.e., it may not be representative of the typical consumer. Currently, there is not a large population of foreigners on the internet. It may generate too much costly data to analyze.

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Other Issues with Research

Problems with Analyzing and Interpreting

Research Information Responsibility for Conducting Marketing Research Estimating Market Demand

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Estimating Market Demand

In assessing current product demand and forecasting future

demand, reliable historical data are required. As previously noted, the quality and availability of secondary data frequently are inadequate. Nevertheless, estimates of market size must be attempted to plan effectively.

Expert Opinion: Analogy:

For many market estimation problems, particularly in foreign countries that are new to the marketer, expert opinion is advisable. Another technique is to estimate by analogy (similarity). This assumes that demand for a product develops in much the same way in all countries as comparable economic development occurs in each country.

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Problems in analyzing and interpreting research information

Once data have been collected, the final steps in the research process
are the analysis and interpretation of findings in light of the stated marketing problem. Both secondary and primary data collected by the market researcher are subject to the many limitations just discussed. In any final analysis the researcher must take into considerations these factors and despite their limitations produce meaningful for management decisions.
Accepting information at face value in foreign markets is irresponsible.

The meanings of words, the consumers attitude toward a product, the interviewers attitude, or the interview situation can distort research findings. Just as culture and tradition influence the willingness, so the information and they also influence the information given. Newspaper circulation figures, readership and listener ship studies, retail outlet figures and sales volume can all be distorted through local business practice. To cope with such disparities, the foreign market researcher must possess three talents to generate meaningful marketing information. Moun Marketing

Problems in analyzing and interpreting research information

First, the researcher must possess a high
degree of cultural understanding of the market in which research is being conducted. Analyze research findings, the social customs, semantics, current attitudes, and business customs of a society or a sub segment of a society must be clearly understood. Indeed, at some level it will be absolutely necessary to have a native of the target country involved in the interpretation of the results of any research conducted in a foreign market. a creative talent for adapting Moun Marketing research methods is necessary. A researcher in

Second,

Responsibility for Conducting Marketing Depending : foreign marketing Researchon the size and degree of involvement inrely on an outside a company in need of foreign market research can
foreign based agency or on a domestic company with a branch within the country in question. It can conduct research using is own facilities or employ a combination of its own research force with the assistance of an outside agency.

Many companies have an executive specifically assigned to the

research function in foreign operations he or she selects the research method and works closely with foreign management, staff specialists and outside research agencies. Other companies maintain separate research departments for foreign operations or assign a full time research analyst to this activity. For many companies, a separate department is too costly; the diversity of markets would require a large department to provide a skilled analyst for each area or region of international business operations.

Trend toward decentralization of the research function is apparent. In

terms of efficiency, local analysts appear to be able to provide information more rapidly and accurately than a staff research Moun Marketing department. The obvious advantage to decentralization of the research

Communicating with decision makers

Getting

information from or about consumers, customers and competitors. It should be clearly recognized, however that getting the information in only half the job. That information must also be given to decision makers in a timely manner. High quality international information systems design will be an increasingly important competitive tool as commerce continues to globalize and resources must be invested accordingly.

Decision makers, often top executives, should be directly involved not

only in problem definition and question formulation, but also in the fieldwork of seeing the market and hearing the voice of the customers in the most direct ways when the occasion warrants( as in new foreign markets). Top managers should have a feel for their markets that even the best marketing reports cannot provide.

Finally, international marketers face an additional obstacle to obtaining

the best information about customers. At the most basic level, marketing research is mostly a matter of talking to customers. Marketing decision makers have questions about how best to serve customers and those questions are posed and answered often through Moun Marketing the media of questionnaires and research agencies.