International Marketing (Class-13


Arun Bhattacharyya
Faculty Member JIM, Noida

A model for selecting foreign markets….
Macro level Research (Gen. Mkt. Potential) Macro level Research (Gen. Mkt. Potential) Growth trends of similar pdts Cultural acceptance of such pdts Availability of market data Market Size Stage of development Taxes and duties Possible opportunities Rejected Mkts Macro level Research (Specific factors affecting pdt.) Existing & potential competition Ease & cost of Entry Reliability of info Sales projections & Profit Potential Probable product acceptance “Feel” Probable opportunities

Source: Global Trade Magazine, May 1980

Filter 1

Economic Statistics Political Environment Social Structure Geographic Features

Preliminary opportunities

Filter 2

Target Markets

Filter 3

Filter 4

Corporate factors influencing implementation Market priority listing

International Research- Some insights..
* Understanding and Interpreting Data…
- Whirlpool’s market research in European microwave market, 1993 rd
• 1/3 of European house hold owned microwave oven • Consumers wanted to buy a micro oven that worked like a conventional oven • Whirlpool introduced the Crisp, that incorporated a broiler coil for top browning & a unique dish that sizzled the underside of food • Crisp became Europe’s best-selling micro oven.

PepsiCo's market research a Europe, 1996 • -The youth market was ready forin new cola which didn’t contain sugar
• Also, the youth market, especially males, was adverse to diet soda • Launched Pepsi Max not as a diet soda but as a trendy, cool, sugarfree cola • TV campaign showed Pepsi Max drinkers, “Living life to the Max,” performing death-defying stunts.

International Research- Some insights (contd.)..
* Understanding and Interpreting Data…
- An US firm producing cake mixes on trying to enter England, 1999
• Based on research conducted in US, introduced a new cake mix in England • Designed a mix that required homemakers to add an egg, which was a hit in the US market. • Failed, because Britishers did not like fancy American cakes • They preferred tough & spongy cakes that could accompany afternoon tea. • The ploy of adding an egg to the mix did not eliminate basic differences in tastes or style

International Research- Some insights (contd.)..
* Collecting Primary Data…
- Siar Research International on a survey of shaving habits in Central
Asia, 1993 • Found that 50% of Kazakhstan men shave everyday • Most Azerbaijan men shave once a week. - Translation of questionnaires • English (an alphabet-based language) into Japanese (characterbased language) made the questionnaire longer & respondents prefer short ones • In Nigeria “fast food” means “microwave food”. • “ji xuan ji” is “computers” to Chinese speakers in China and Taiwan and “calculators” to Chinese speakers in Singapore • For a camera manufacturer “I get a good shot every time I use it” in English became “I get a good gunshot every time” in Spanish • Even within a city, difference in social class can result in different idioms.

International Research- Some insights (contd.)..
* Collecting Primary Data…
- Participation and response in primary research
• Respondents in Netherlands or Germany are reluctant to divulge information about personal financial habits • In Japan, consumers mostly will not respond to telephonic interviews (5% by telephone, 30% in business offices, 20% by mail, 19% in surveyor’s office, 14% in focus groups & rest in other ways.) • In Mexico people prefer interview on the street rather than home, especially about personal income, because respondents believe that researchers are tax authorities in disguise. • In many cultures a man considers it inappropriate to discuss his shaving habits with anyone, especially with a female interviewer. • Even within a city, difference in social class can result in different idioms. • Innovative approach to do survey: A Denver, Colorado firm ran a questionnaire in Moscow’s Pravda newspaper asking for replies to be sent to the company. Got 350,000 replies!

International Research- Some insights (contd.)..
* Collecting Primary Data…
- Focus Groups
• In certain Central Asian countries, men & women should not be present in the same focus group • In Japan it may be difficult to get participants to criticize a potential product due to courtesy bias • Participants in Thailand, Malaysia and Indonesia show up late or not at all- for the focus group. You have to plan for extras. • A focus group in Brazil consisting of 8 women can take an hour longer than that in US due to time taken by the participants to know one another • In most developing countries, young participants may not contardict older ones.

International Research- Some insights (contd.)..
* Collecting Primary Data…
- Observation
• Videotaping by P & G of one household in Thailand revealed a mother engaged in multiple tasks, from watching television to cooking a meal, while feeding her baby. • P & G used that data to inspire product and package design to get competitive edge over rivals • Toyota sent a group of its engineers and designers to southern California to observe how women get into and operate their cars. • Found women with long fingernails having trouble opening the door and operate various knobs on the dashboard. Some redesigning was done to take care of this problem • One researcher spent two months observing birthing practices in American and Japanese hospitals to gain insights into export of health care services • Nissan Motors sent a researcher to live with an American family by renting a room in their house for 6 weeks, to observe how they used their cars

International Research- Some insights (contd.)..
* Collecting Primary Data…
- Studying the competition
• Kodak learned through competitive intelligence that Fuji was planning a new camera for the US market in 1999. Kodak launched a competing model one day before the Fuji launch • Chaparral Steel, a US steel maker, sends its managers and engineers to visit competitors, customers and supplier’s factories to study trends and skills. Also visits university research departments to spot new competencies • Visit to trade fairs where competitors exhibit their product. At one such fair in Texas, Caterpillar engineers were seen measuring Koamatsu equipment. Some firms have stopped joining trade fairs.

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

So how to Plan for Global Markets

* Matching company and country/market 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

International Corporate Planning International Strategic 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

Planning for Global Markets (contd.)
* 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 (advertisement, personal selling, media, message), Distribution (logistics, channels)

* Cultural/environmental adaptations necessary for adaptation of the marketing mix * Will adaptation 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

International Tactical (market) Planning

* 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

Planning for Global Markets (contd.)
* Phase-IV: Implementation and control
Objectives Standards Correction for errors

Assign responsibility Performance measures

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