International Marketing (Class-11


Arun Bhattacharyya
Faculty Member JIM, Noida

* Used to fill essential info. gaps that secondary
research does not address Complicati • Due to different environments, different attitudes, ons different market conditions Why required
• Primarily for market segmentation… • …beyond macro variables of income or consumer spending, to a/c for lifestyle, attitudes, factors influencing buying behaviour in a culture & consumer similarities • E.g. Secondary research might give the market potential for “furniture” in India, but primary research might be needed to know the needs for your product “ modular goods”. • Questions like: “What effect will a new type of packaging have on our “green” consumers in Germany & France?” Target audiences with similar needs, perceptions, attitudes & behaviour (concerning your offer and similar offers by others)

Primary Research Abroad

Primary Research Abroad (contd.)
* Issues in primary research • Centralised, coordinated, or decentralised research
How much central control?
approach? • Centralised: Control & analysis at HQ. Good for probing corporate policies & strategies; may lead to HQ culture bias • Coordinated: Uses an intermediary to bring HQ & country operations together; results in more interaction • Decentralised: HQ decide broad objectives & delegation of design & implementation to local country. • Size of international operation & global savvy internal staff • An outside researcher with global expertise can coordinate a large-scale project (Look in ) • Compare capabilities with in-house staff & look at previous experience in a particular country or industry

In house or outsource d service?

Primary Research Abroad (contd.)
* Issues in primary research
Which tools to use? Types of tools?
• Is data to be collected in real world or controlled env? • Historical facts or future devs & subsequent purchase intentions • Related research culture: Americans prefer quantitative • data, Japs both soft value but can have biases Interviews: Provide & hard • Focus groups: Might reveal hidden issues about perceptions, attitudes & emotions but requires skills to stimulate discussions. Doesn’t give statistical projectable info • Observation: Valuable for researcher in unfamiliar markets. If subject becomes aware of being watched, may act differently • Surveys: Attempt to to describe conditions among large groups. Statistically projectable; Can be done via mail, telephone or in person. Shortcomings- social constraints • Questionnaires should have appropriate content,

Primary Research Abroad (contd.)
* Something about questionnaires
• Keep questions clear, use simple words, omit leading questions, avoid generalisations and estimates • Translations adds a significant additional burden • Open-ended questions capture more in-depth info, but can include interviewer bias • Choice between direct and indirect questions is a cross-cultural issue • Adapt the complexity of the question to the level of understanding of the respondent (e.g. multipoint scaling method) • The question format should ensure data equivalence (e.g white colour worker is middle class or upper class) • Be sure respondents are willing to answer certain questions • Pretest questionnaire before actually administering it.

Primary Research Abroad (contd.)
* Issues in primary research
Pick appropri ate samples Monitor progres s
• A sample in industralised country may not be replicable abroad • Design of the sample frame could be a problem because of lack of demographic data • Check quality of data collection process • Compare collected data to secondary information and to analogous data from a similar market to get a preliminary feel for data quality.

* Phase-I: Preliminary Analysis and Screening:
* Should we go for Emerging Markets?

Planning for Global Markets

* Matching company and country needs (stand-alone attractiveness of the market; global strategic importance and possible synergies) * Company: philosophy & objectives, management styles & skills, resource constraints * Home country constraints: P, L, E, others (regional constraints) * Host-country constraints: PESTLIED, Competition, Structure of distribution

* Phase-II: Adapting the Marketing Mix to Target Markets
* Identifiable market segments that allow common marketing mix (Product, Price, Promotion, Distribution) tactics across countries * Product (brand name, features, packaging, service, warranty, style), Price (credit, discounts), Promotion (adv., personal selling, media, message), Distribution (logistics, channels) * Cultural/environmental adaptations necessary for adaption of the marketing mix * Will adaption costs allow profitable market entry?

Planning for Global Markets (contd.)
* Phase-III: Developing the Market Plan * Can the company marketing objectives/goals be met
Situational analysis Action program Objectives & goals Strategy & tactics Selecting entry mode


* What is to be done, by whom, how and when

* Phase-IV: Implementation and control
Objectives Standards Correction for errors

Assign responsibility Performance measures

Planning for Global Markets….
International Corporate Planning International Strategic Planning International Tactical (market) Planning
* Long term planning, incorporating generalised goals for the enterprise as a whole * Choice between immediate profit & poor longrun outlook and long-term profitability * At the top management levels & consists of long & short-term goals of the enterprise * Deals with products, capital, research * Made normally at the local level and address marketing & advertising/promotion questions * Pertains to specific actions & to allocation of resources to implement strategic planning goals in specific markets

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