answer 9 questions with online sources for each question

1 BAD 351 -01 February 7, 2017 International Marketing 11e: Terpstra, Foley, Sarathy 2 Spaxel TOC Part Chapter Description 1 1 Intro: The Global Marketing Manager 2 Global Economic environment 3 Political -Legal environment 4 Cultural Environment 5 Ethics and International Marketing 2 6 Global Marketing Research 7 Foreign Marketing Selection 8 Foreign Marketing Entry, Partner Select, Distribution 9 International Product Policy 10 International Branding, Advertising and Promotion 11 Supply Chain Management and Intl Marketing 12 International Pricing 13 Global Marketing of Services 3 14 Global Marketing Strategy 15 Planning, organization and control of International Marketing 4 International Marketing 11e: Terpstra, Foley, Sarathy 1 of 2 Discuss the types of information required for global marketing research. Detail the differences in the marketing environment and how marketing research can be used to understand those differences. Evaluate how international research may be used to impact marketing mix decisions. Review the range of tasks involved in international marketing research by outlining the problems encountered in conducting research overseas and discussing ways to solve those problems. 5 International Marketing 11e: Terpstra, Foley, Sarathy 2 of 2 Present techniques, such as analysis of demand patterns and estimation by analogy, for dealing with problems with primary data, as well as incomplete data or market indicators. Review various sources of data and how each can be used to find data on countries, industries, trade statistics, and companies. 6 International Marketing 11e: Terpstra, Foley, Sarathy 7 International Marketing 11e: Terpstra, Foley, Sarathy 8 International Marketing 11e: Terpstra, Foley, Sarathy The Firm’s Corporate Environment The Marketing Environment The Competition The Product Marketing Mix Firm -Specific Historical Data The international marketing manager needs to gather data on six categories of information: In many cases, research would be done on a market -by -market basis. 1 2 3 4 5 6 9 International Marketing 11e: Terpstra, Foley, Sarathy The Firm’s Corporate Environment 1 Internal strengths to expand internationally Internal weaknesses regarding international expansion Level of current international expertise Management commitment to internationalize Employee commitment to internationalize 10 International Marketing 11e: Terpstra, Foley, Sarathy Economic Dimensions •Economic performance •Current performance and trends Political Dimensions •Political structure and ideology •National objectives Marketing Infrastructure •Market structure •Legal and regulatory Technology and Culture Government Regulation The Global Marketing Environment 2 11 International Marketing 11e: Terpstra, Foley, Sarathy • Strength of domestic competitors in that market • Strength of foreign competitors in that market Data can be found at: Country -level : World Economic Forum’s Global Competitiveness Report, U.S. Department of Commerce Country Commercial Guides Industry -level : NAICS (U.S.), CPA (EU), or harmonized tariff codes provide a means of getting aggregated industry (product) data; U.S. Department of Commerce Country Commercial Guides Firm -level : Kompass , OneSource, competitor’s websites, local and international news sources The Competitive Landscape 3 12 International Marketing 11e: Terpstra, Foley, Sarathy • Industrial and consumer buyer characteristics • Size , age, sex, and segment growth rates • Purchasing power and intentions • Customer response to new products, price, and promotion • Switching behavior • Role of credit and purchasing • Future needs • Impact of cultural differences The Product 4 13 International Marketing 11e: Terpstra, Foley, Sarathy Consumer Behavior • Segmentation by user needs, demand, and behavior • Benchmarking your products with competitors’ products • Market trends in the medium - and long -term Marketing Mix Options • Distribution channels • Comparative pricing strategies and tactics • Advertising and promotion • Media research • Service quality issues • Supply chain Consumers and the Marketing Mix 5 14 International Marketing 11e: Terpstra, Foley, Sarathy • Sales trends by: • product and product line • sales force • customer • Trends by country and region • Contribution margins • Innovation , experience, and results • Customer retention rates and techniques Firm - Specific Historical Data 6 15 International Marketing 11e: Terpstra, Foley, Sarathy • The firm’s mission, scope, and long -range objectives • Anticipating environmental changes and their effects as well as the resulting opportunities and threats • The firm’s capabilities versus the strengths and weaknesses of competitors Global marketing research can influence strategic planning issues and SWOT analysis Marketing research provides the information to create a global marketing strategy. 1 of 5 16 International Marketing 11e: Terpstra, Foley, Sarathy Secondary Data - published and third -party sources , often quantitative in nature. Primary Data - gathered firsthand through interviews and field research. Quantitative Data - numbers or statistics. Qualitative Data - words often representing opinions, preferences, or behaviors. 17 International Marketing 11e: Terpstra, Foley, Sarathy  Definition error - the way the problem is defined in each country.  Instrument e rror - questionnaire and the interviewer.  Frame error occurs when sampling frames are available from different sources in different countries .  Selection e rror -the way the actual sample is selected from the frame.  Non -response e rror - different cultural patterns of non - response are obtained . 2 of 5 18 International Marketing 11e: Terpstra, Foley, Sarathy Frequent absence of secondary data or outdated data. Secondary data is often easily and cheaply obtainable. This data may not be available for all markets, reliable for all markets, nor comparable across markets. Data analysis techniques may help fill in the gaps for missing or unreliable data. 3 of 5 19 International Marketing 11e: Terpstra, Foley, Sarathy Costs and challenge of gathering primary data: • Skilled interviewers (researchers) • Ensuring that the same construct or idea is being communicated to different cultures (equivalence ). • Telephone , mail, and internet surveys may not be practical. • Translating and cross -translating. • Different social organizations = different influences on buyers’ decision processes. • Potential consumers vary in their willingness to participate in market research. • Potential consumers may not give their real opinion. 4 of 5 5 of 5 20 International Marketing 11e: Terpstra, Foley, Sarathy Acquiescence Bias - occurs when respondents feel obliged to give responses that will please the interviewer rather than state their true opinions or beliefs . Social Desirability Bias - occurs when respondents answer questions based on what makes them look good, or is socially acceptable, rather than state their true opinions or beliefs. 21 International Marketing 11e: Terpstra, Foley, Sarathy Substituting macro -level indicators for micro - level indicators Analysis of Demand Patterns Using more variables and more finely grained variables Multiple - Factor Indexes • Cross -section comparison (using a ratio from other countries to apply it to a country with missing data) • Time -series approach (using data from a country that has a similar level of consumption at the same level of development) Estimation by Analogy 1 of 2 22 International Marketing 11e: Terpstra, Foley, Sarathy Developing an equation of variables to predict demand Regression Analysis Clustering similar countries together, sometimes by diffusion patterns Cluster Analysis 2 of 2 REGRESSION ANALYSIS Plot two variables to get a correlation New Prod. Mktg 23 • The coefficient of determination, R 2, is useful because it gives the proportion of the variance of one variable that is predicted by the other variable. • Value of "r": A correlation greater than 0.8 is generally described as strong , whereas a correlation less than 0.5 is generally described as weak . (.75) r=0.75 GAP MAP - CLUSTER ANALYSIS 7/20/15 New Prod. Mktg 24 Twizzlers 40% Cape Cod Chips Criteria for Successful Segmentation © 2016 Cengage Learning. All Rights Reserved. 8 -3 Substantiality Identifiability and Measurability Accessibility Responsiveness Segment must be large enough to warrant a special marketing mix. Segments must be identifiable and their size measurable. Members of targeted segments must be reachable with marketing mix. Segment responds to a marketing mix differently than other segments. © 2016 Cengage Learning. All Rights Reserved. 26 CRITERIA FOR SEGMENTATION SIMAR Substantiality Identifiability and Measurability Accessibility Responsiveness S I M A R 27 International Marketing 11e: Terpstra, Foley, Sarathy Geographic City (e.g., Shanghai) Region (e.g., western India) Collection of countries (e.g., the EU) Psychographic Behaviors (e.g., play sports) Values (e.g., environmentally friendly) Behavioralistic Brand loyalty Early adopters International market opportunities are often less defined by political borders (countries) and better defined by other methods of grouping such as: 1 of 10 28 International Marketing 11e: Terpstra, Foley, Sarathy • Examples: Export.gov, World Bank, NationMaster , CIA World Factbook , OECD, GlobalEdge , World Economic Forum Country or Market Information Use these sites to answer questions such as: • What is the GDP of a given country? • How many households are in this market? • What is this country’s population? 2 of 10 29 International Marketing 11e: Terpstra, Foley, Sarathy • Examples: Export.gov , World Bank, GlobalEdge , Euromonitor , Lexis -Nexis, Factiva Industry Information Use these sites to answer questions such as: • What is the size of the retail market in this country? • What percentage of growth has occurred in the automobile industry in this market? • Is there enough transportation infrastructure for another airline? • What are local consumer behaviors? 3 of 10 30 International Marketing 11e: Terpstra, Foley, Sarathy • Examples: U.S. International Trade Commission, USA Trade Online, U.S. International Trade Administration, Global Trade Information Services Trade Statistics Use these sites to answer questions such as: • How many exports did this country have last year? • How many imports did this market have? • What are the top ten importing countries for a particular commodity? 4 of 10 31 International Marketing 11e: Terpstra, Foley, Sarathy • Examples: Kompass , OneSource / Infogroup , Alibaba , Hoovers, Dun & Bradstreet, Mergent Online Company Information Use these sites to answer questions such as: • What company is already in Germany that would be good to partner with for medical supplies? • Where is financial strength of a particular firm? • How many other companies are already in South Africa with a product similar to Pepperidge Farm cookies? 5 of 10 32 International Marketing 11e: Terpstra, Foley, Sarathy • Good overview of countries guides to doing business in that country ExportGov http://www.export.gov • Compare over 200 countries on economic indicators The World Bank – Open Data http://data.worldbank.org • Key to finding lifestyle indicators and country competitiveness reports NationMaster http://www.nationmaster.com • Easy to use site for comparing key economic and demographic data CIA World Factbook https://www.cia.gov/library/public ations/the -world -factbook/ • Source for country development issues as well as for profiles of OECD members OECD Statistics Portal http://www.oecd.org/statsportal/ http://stats.oecd.org/ 6 of 10 33 International Marketing 11e: Terpstra, Foley, Sarathy • Easy way to find websites for information on countries Global Edge http://globaledge.msu.edu/ • An easy to use site to learn about Hofstede’s dimensions and to see how countries differ on each trait Hofstede Cultural Dimensions http://www.geert -hofstede.com / • Compares 120 countries on the “distance” between language, politics, and religion Psychic Distance Stimuli Indicators http:// www.mbs.edu/home/dow/research / • In -depth country reports with an emphasis on consumer goods Euromonitor International http://www.euromonitor.com 7 of 10 34 International Marketing 11e: Terpstra, Foley, Sarathy •U.S. imports and exports, classified by the 10 -digit harmonized code United States International Trade Commission (USITC) http://dataweb.usitc.gov/ •Classifies countries by competitiveness and by the five levels of economic development World Economic Forum's Global Competitiveness Reports http://www.weforum.org •U.S. imports and exports, classified by the 10 - digit harmonized code USA Trade Online http:// www.usatradeonline.gov/ •Global trade data such as imports/exports of a country for a particular product by the 6 -digit harmonized code United Nations Commodity Trade Statistics Database (UN comtrade ) http://data.un.org http://comtrade.un.org/ 8 of 10 35 International Marketing 11e: Terpstra, Foley, Sarathy • More specific information than UN Comtrade at the 10 -digit harmonized code level Global Trade Information Services, Inc. (GTI) http://www.gtis.com • Worldwide directory of companies categorized by producer, importer, and distributor Kompass http://kompass.com • Worldwide directory of companies with parent/subsidiaries linkages and their financial data OneSource/ Infogroup http://www.thereferencegroup.com • Good business -to -business platform to find partners Alibaba http://www.alibaba.com/ 36 International Marketing 11e: Terpstra, Foley, Sarathy Mega -websites that include data on many countries and industries as well as links to other websites for further research. Web Portals Examples of U.S. -Centric (or U.S. -Based) Web Portals: • U.S. Export.gov http://www.export.gov • U.S . Foreign Agriculture Service http://www.fas.usda.gov • GlobalEdge http://www.globaledge.msu.edu 9 of 10 37 International Marketing 11e: Terpstra, Foley, Sarathy Examples of Non -U.S. -Centric Web Portals: • European Commission Eurostat http :// epp.eurostat.ec.europa.eu • World Bank World Development Indicators http :// data.worldbank.org/indicator • World Trade Organization / UNCTAD http://www.intracen.org 10 of 10 Newspapers, Magazines, and Journals • Detailed information is often best available through local publications and/or industry journals 38 International Marketing 11e: Terpstra, Foley, Sarathy Trade Shows Visits to Potential Countries Focus Groups Surveys Outside Marketing Research In -House Primary Research: 1 of 6 Primary data is often more expensive (in time and money) than secondary data but can answer very specific questions. Trade Shows 39 International Marketing 11e: Terpstra, Foley, Sarathy 2 of 6 • Even shows in the domestic market have large international components • Meet potential customers or partners • Study competition • Meet with industry experts and government officials Reverse Trade Mission - meetings and seminars for in -bound international visitors at a trade show . 40 International Marketing 11e: Terpstra, Foley, Sarathy Visits to Potential Countries 3 of 6 • Set meetings with potential customers or partners • Study competition • Meet with industry experts and government officials 41 International Marketing 11e: Terpstra, Foley, Sarathy Visits to Potential Countries 3a of 6 • Contact US embassy in target country • Interview people in the US who lived in the target country 42 3b of 6 43 International Marketing 11e: Terpstra, Foley, Sarathy Focus Groups • Compared to surveys, focus groups are faster and cheaper • Care should be taken when translating across languages and cultures 4 of 6 Focus Group - a group of individuals gathered together to answer specific research questions. 44 International Marketing 11e: Terpstra, Foley, Sarathy Surveys • Survey potential international buyers about brand preferences, buying habits, or service expectations • Many online survey options are available • Care should be taken when translating across languages and cultures 5 of 6 45 International Marketing 11e: Terpstra, Foley, Sarathy Outside Marketing Research • Many firms specialize in conducting international market research • Table 6 -7 lists the top 25 market research firms 6 of 6 International Marketing 11e: Terpstra, Foley, Sarathy 46 Next week: Chapter 6 homework due tomorrow 2/8 Iran Case - group Read Chapters 7 & 8 Foreign Language 2 International Marketing 11e: Terpstra, Foley, Sarathy 47 Iran Case Groups Aljabr Venhuizen Alomayri Tapiero Chavez Sedano Davila Salazar Gonzalez, Naomi Rodriguez Gonzalez, Vanessa Ramos Lappo Plantin Ozaine Pescador