Description
Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives".
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International Marketing Research SCOPE 1. POTENTAIL DEVELOPMENT-or market measurement studies 2. COMPETITION ANALYSIS 3. ENVIRONMENT STUDIES 4. MARKETING EFFICIENCY STUDY Analytical components Components Comparative analytical approach inference Statistical data analysis Techniques Managerial &planning Mgmt.Information system sources of data collection of data
International Marketing Research Decisions International Marketing research & analysis Traditionally M.R. has been charged with 4 broad areas of responsibilities: MARKET MEASUREMENT STUDIES COMPETITIVE STUDIES ENVIRONMENT STUDIES MARKETING EFFICIENCY STUDIES International Competencies Competence Levels International Environment
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International Competence Analytical Competence Strategic Competence Functional Competence Managerial Competence
SLEPT factors Opportunity Analysis Intl. Mktg. Strategies International Mktg. program Managing the Intl. Mktg.Effort
Stages of economic development of countries Stage I The Traditional society One with limited functions-primarily agricultural-the level of productivity in mfr. & agriculture is limited by the inaccessibility of modern science, its applications 7 frame of mind. Stage II The preconditions for take-off Societies in transition towards modernization-some investment in infrastructure occurs & there is a widening scope of internal & external commerce-some modern mfr. occurs but the society is still characterized the old social structure & values. Stage III the take off Resistance to change lessens & forces for economic growth come to dominate the society-industries expand rapidly, requiring new investments-new techniques spread in agriculture & industry. Stage IV the drive to maturity Continuing growth extends towards modern technology over the whole economy-its makeup changing unceasingly as techniques improve, new industries grow, older ones level off-extends into more complex technology. Stage V the age of high mass consumption Leading sectors shift towards durable consumer goods & services-structure of workforce changes with more employed in skilled office jobs factory get scarce the extension of modern technology as an objective is joined with a desire to improve social welfare & security.
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A MODEL FOR SELCTING FOREIGN MARKETS FILTER 1 MACRO-LEVEL RESEARCH [General Market Potential] Economic Statistics The Political environment Social Structure Geographic Factors REJECTED COUNTRIES PRELIMINARY OPPORTUNITIES FILTER 2 GENERAL MARKET RELATING TO PRODUCT Growth trends for similar products Cultural acceptance of such products Availability of Market data Market size-stages of development, Taxes & duties. REJECTED COUNTRIES POSSIBLE OPPORTUNITIES
FILTER 3 MICRO LEVEL RESEARCH [Specific factors affecting product]
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Existing & Potential competition Ease of entry Reliability of information Sales projections Cost of entry Probable product acceptance Profit potential Feel REJECTED COUNTRIES PROBABLE OPPORTUNITIES FILTER 4 TARGET MARKETS Corporate factors influencing Implementation COUNTRY PRIORITY LISTINGS Why Linda buys a laptop? ? To work more efficiently ? While traveling ? Freud says-at the deepest level to impress others, helps her feel smart& sophisticated-she reacts to visual-auditory-tactile elements that trigger or inhibit purchase. ? Demolish the myth that intellect is a male preserve-today it gender equalization, all pervasive, in every professional field. ? Value for money ? Convenient ? Feel empowered-since no longer office dependent-feeling free from tied situations ? Efficient decision making ? Creative times are unpredictable-anytime is think time-more output, anytime any place. ? Security-privacy-storage & quick reference ? Tech savvy, educated-Knows what’s best ? Has disposable income-marriage is a later option-raising family is even later. What ads girls like? Cuddly infants-young children-household toiletteries-food & beverages-next episodeenvironmentally conscious-specially looks for green-labeling-conscious-selfabsorbed-rejects blatant materialism as an equivalent of self fulfillment-values quality
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of life-more emphasis on moral & religious values-spends money on travel, art, music, clothes [plenty]. Products bought will be for women [not Gillette but Lady Gillette or Daisy]-Reebokslaughs at skin show avoids products with blatant sexual innuendoes-abhors pornography-dainty wrapping-thoughtful for near & dear ones-remembers anniversaries & events-impulse buying frequent What ads boys like? Budweiser beer-Bacardi Blast-cans featuring an attractive female-athletic shoesaftershave-automotives-cross-over ads of traditionally female products targeted to male -lifestyle more personalized-marriage according to logical progression in lifelargely parent guided-a mystery to the average fraternity-cares more for personal interest-leisure-family-lifestyle, rather than corporate-spends on sleek cars, expensive electronic toys-needs a better shoe & apparel rather than a holiday in Goa! Gets bored easily in family outings- a loner up to 20. Suddenly feels a desperate need to take things seriously as academics near conclusion. After flush of 1st income, begins to count his chickens! Impulse buying-only when sees prospective attachment- can forget anniversaries, occasions [?] Unpredictable buying behavior-after lot of deliberations, cross checks often, for highticket items. Profile of a cell phone buyer [According to NTT-DO-CO-MO, JAPAN, while researching EU market for telecom] More adventurous people-girls & boys- go out often-quite bold & try out new things-visit new countries-take chance on the unfamiliar-have enthusiasm for active fun-lifestyles extend to their profession-they say they work for money-not for security of job-but to obtain goods & services-characterize themselves as impulse buyers-not so good at saving money-enjoy spending it-even higher than average income-spend more than they have-optimistic about future-greatest achievements still lie ahead BASIC RESEARCH TERMS Motivation-an activated state that causes a person to initiate goal-directed behavior Need-gap between actual & desired state. Basics-marketers look at people as consumers who buy products and services. Lifestyle-a pattern of living that reflects how people allocate their time, energy, and money and kind of activities they value. Consumer behavior Occupants-constitute the market Objects-market buys Organizations-participate in buying Operations-how does it buy?
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Occasions-when does it buy? Outlets-where does it buy? To be a bullfighter, you must learn first to be a bull. DATA INTERPRETATION THE DATA Coca Cola, in 1985-it completed 99 successful years-from 1980s it was suddenly loosing market share, even though the leading soft drink company. Pepsi had mounted the Pepsi Challenge-a series of TV taste tests, showing consumer proffered sweeter taste of Pepsiit led a super market share by 2%-that doesn’t sound much, but when you see the US soft drink market size of $240bn. it works out to a whopping $1,2 bn in retail sales! THE ACTION Coke had to do something to stem the loss of its M.S. it launched a research project, lasting 2 years & conducted some 200,000 tests-30, 000 on final formula. Spent $4 m before settling on the new formula. In blind tests, 60% of consumers chose new Coke over old, & 52 % chose it over Pepsi RESULT ? Coke dropped its original-formula, in its place NEW COKE with sweeter, smoother taste-lots of introductory flurry of advertising & publicity. New Coke sold well. It started receiving sacks of mail & over 1,500 phone calls a day from angry customers. A large group called THE OLD COKE DRINKERS staged protests, handed out T-shirts & threatened a class suit action, unless Coke brought the old formula back. ? After only 3 months, the company brought old Coke back, now called-Coke Classic-it sold side-by-side with the New Coke on super market shelves. They announced New Coke would be its flagship brand, but consumers had a different idea-Classic was selling 2 X the New one. ? Quick reaction saved the company from disaster-it stepped up efforts for Coke Classic & slotted New Coke in a supporting role- a Pepsi stopper & ads boldly compared New Coke’s taste with Pepsi’s. It could manage only a 2% M.S. ? 1990-repackaged New Coke & re-launched it as brand extension with new name COKE II. Today Coke Classic has captured 17% of market while COKE II quietly disappeared. INTERPRETATION ? Should never break a century old rule-don’t mess with Mother Coke.
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? Coke defined the research problem too narrowly the research looked only at taste in haste, it didn’t explore the feelings about dropping the Old Coke & replacing with a new version. ? It took no account of the intangibles-Coke’s name, history, packaging, cultural heritage, & image. To many people, coke stands along side Baseball, hot dogs, and apple pie as an American institution-it represents the very fabric of America. Coke’s symbolic meaning turned out to be more important than its taste-research should have detected these strong emotions. ? Coke’s managers used poor judgment in wrong interpretation and planning strategies around it. They took the finding that 60% of consumers proffered New Coke to mean that new product would win-it also means that 40% still liked the original formula-by dropping the Old Coke, it trampled the taste buds of a large core of loyal Coke drinkers, who didn’t want a change. ? It should have left alone the old one, and launched anything new as a brand extension-as it has later learnt to do-THE CHERRY COKE. ? Coke has the most advanced market research operations in America. Its good work has kept it atop the market for over 100 years-but MR is an inexact science, & consumers are full of surprises, figuring out is tough. DEMAND 1. EXISTING DEMAND 2. LATENT DEMAND 3. INCIPIENT DEMAND Existing market demand is what customers in a given country are prepared to pay for. It is the immediately available market for the product. It can be higher than the level of current purchases, since it includes that proportion of demand not as yet satisfied by currently available products due to imperfections in the marketing system. For example, some companies located within the existing industry served by the vendor may change their product lines and therefore become new potential customers of the vendor. There may also be new entrants into the industry who are likely to use inputs that can be supplied by the vendor. Their demand increases the size of existing demand for the vendors’ products and services. • Vendors must assess all three categories of demand in their analysis of market potential. • Depending on the vendor’s marketing objectives, strategies can be formulated for one or more of the demand categories.
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• Existing demand is by existing buyer measured by rate of purchase or consumption.it is measure of overall market size. Also competition conditions which reveal sales opportunities & profit potential. Metrics : • Product appeal-price-distribution-advertisements-promotional coverageeffectiveness of competition with respect to own. Example Cameras 1960s-Market dominated by German companies [Agfa, Gavert] in form of 35mm Range Finders-market size was $ 42m, & Japan had only $16m.of the mkt. 1970s-Japanese introduced SLR lenses & outsold on the basis of high quality-low pricesintensive distribution-good communication. German camera cos. extinct. Result-mkt share + 230% LATENT DEMAND The new-to-the-world products-customer isn’t aware of their existence-offered at an acceptable price-offers a real unmet need-niche Identify & explore the latent mkt.-competition study isn’t enough-its a mktg. opportunityinitial success is to identify the latent demand-competition timing is important. Example –refrigerators in USA GE & Whirlpool dominated the mkt. with large 4-door & 3-door units storing huge farm produce & seasonal food-Japanese with their tiny ones were outright rejected-initial success came from perseverance & finally cracking open the mkt. with entry via camper route, into the teenaged girls’ bedroom, to finally a 2nd one for each house Sub-compact cars-GM &Ford were not listening, Japanese-Toyota & Honda responded fast & convinced female members to go in for cute sedans Mkt. share by 1986 was 35%-today #1 & #2 in cars. Example motorcycles in UK 1969- market size was 30,000 units [Enfield, Triumph] In range 450cc +, Japanese were selling 27,000 units. 1973-Japanese [Kawasaki, Honda] were 218,000 units [+430%]-cheaper reliable, plus an aggressive SP campaign. Today motorcycle industry in UK is DEFUNCT! 1975-UK government commissioned Boston Consulting Group [BCG] to investigate why? & what hit them? Honda was offering 1500cc’s in a 2-wheeler ? INCIPIENT DEMAND
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his demand is derived from a known or basic data-emerges as consequence & is important planning & forecasting tool when it is difficult to conduct M.R. or get any worth while inference [demand for chocolates, present pop. Vs. present Mkt. of a/cs for upper class]. Income growth is projected with respect to demographics over time, the current demand swells in relation the future projection No market response if introduction is early & before its time.If present trend continues, the demand will emerge. Incipient market demand is demand that is expected to exist in the future. For example if the companies in a specific country are aware of a particular need or want, but lack the resources to acquire the relevant inputs; their needs then constitute incipient market demand. • Thus, incipient demand forms part of the potential market for a vendor’s product at any given point in time. This holds true for certain categories of equipment and inputs that can enhance the operational capacities of firms in developing and transitional economies.
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doc_690008308.doc
Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives".
1
International Marketing Research SCOPE 1. POTENTAIL DEVELOPMENT-or market measurement studies 2. COMPETITION ANALYSIS 3. ENVIRONMENT STUDIES 4. MARKETING EFFICIENCY STUDY Analytical components Components Comparative analytical approach inference Statistical data analysis Techniques Managerial &planning Mgmt.Information system sources of data collection of data
International Marketing Research Decisions International Marketing research & analysis Traditionally M.R. has been charged with 4 broad areas of responsibilities: MARKET MEASUREMENT STUDIES COMPETITIVE STUDIES ENVIRONMENT STUDIES MARKETING EFFICIENCY STUDIES International Competencies Competence Levels International Environment
1
2
International Competence Analytical Competence Strategic Competence Functional Competence Managerial Competence
SLEPT factors Opportunity Analysis Intl. Mktg. Strategies International Mktg. program Managing the Intl. Mktg.Effort
Stages of economic development of countries Stage I The Traditional society One with limited functions-primarily agricultural-the level of productivity in mfr. & agriculture is limited by the inaccessibility of modern science, its applications 7 frame of mind. Stage II The preconditions for take-off Societies in transition towards modernization-some investment in infrastructure occurs & there is a widening scope of internal & external commerce-some modern mfr. occurs but the society is still characterized the old social structure & values. Stage III the take off Resistance to change lessens & forces for economic growth come to dominate the society-industries expand rapidly, requiring new investments-new techniques spread in agriculture & industry. Stage IV the drive to maturity Continuing growth extends towards modern technology over the whole economy-its makeup changing unceasingly as techniques improve, new industries grow, older ones level off-extends into more complex technology. Stage V the age of high mass consumption Leading sectors shift towards durable consumer goods & services-structure of workforce changes with more employed in skilled office jobs factory get scarce the extension of modern technology as an objective is joined with a desire to improve social welfare & security.
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3
A MODEL FOR SELCTING FOREIGN MARKETS FILTER 1 MACRO-LEVEL RESEARCH [General Market Potential] Economic Statistics The Political environment Social Structure Geographic Factors REJECTED COUNTRIES PRELIMINARY OPPORTUNITIES FILTER 2 GENERAL MARKET RELATING TO PRODUCT Growth trends for similar products Cultural acceptance of such products Availability of Market data Market size-stages of development, Taxes & duties. REJECTED COUNTRIES POSSIBLE OPPORTUNITIES
FILTER 3 MICRO LEVEL RESEARCH [Specific factors affecting product]
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Existing & Potential competition Ease of entry Reliability of information Sales projections Cost of entry Probable product acceptance Profit potential Feel REJECTED COUNTRIES PROBABLE OPPORTUNITIES FILTER 4 TARGET MARKETS Corporate factors influencing Implementation COUNTRY PRIORITY LISTINGS Why Linda buys a laptop? ? To work more efficiently ? While traveling ? Freud says-at the deepest level to impress others, helps her feel smart& sophisticated-she reacts to visual-auditory-tactile elements that trigger or inhibit purchase. ? Demolish the myth that intellect is a male preserve-today it gender equalization, all pervasive, in every professional field. ? Value for money ? Convenient ? Feel empowered-since no longer office dependent-feeling free from tied situations ? Efficient decision making ? Creative times are unpredictable-anytime is think time-more output, anytime any place. ? Security-privacy-storage & quick reference ? Tech savvy, educated-Knows what’s best ? Has disposable income-marriage is a later option-raising family is even later. What ads girls like? Cuddly infants-young children-household toiletteries-food & beverages-next episodeenvironmentally conscious-specially looks for green-labeling-conscious-selfabsorbed-rejects blatant materialism as an equivalent of self fulfillment-values quality
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5
of life-more emphasis on moral & religious values-spends money on travel, art, music, clothes [plenty]. Products bought will be for women [not Gillette but Lady Gillette or Daisy]-Reebokslaughs at skin show avoids products with blatant sexual innuendoes-abhors pornography-dainty wrapping-thoughtful for near & dear ones-remembers anniversaries & events-impulse buying frequent What ads boys like? Budweiser beer-Bacardi Blast-cans featuring an attractive female-athletic shoesaftershave-automotives-cross-over ads of traditionally female products targeted to male -lifestyle more personalized-marriage according to logical progression in lifelargely parent guided-a mystery to the average fraternity-cares more for personal interest-leisure-family-lifestyle, rather than corporate-spends on sleek cars, expensive electronic toys-needs a better shoe & apparel rather than a holiday in Goa! Gets bored easily in family outings- a loner up to 20. Suddenly feels a desperate need to take things seriously as academics near conclusion. After flush of 1st income, begins to count his chickens! Impulse buying-only when sees prospective attachment- can forget anniversaries, occasions [?] Unpredictable buying behavior-after lot of deliberations, cross checks often, for highticket items. Profile of a cell phone buyer [According to NTT-DO-CO-MO, JAPAN, while researching EU market for telecom] More adventurous people-girls & boys- go out often-quite bold & try out new things-visit new countries-take chance on the unfamiliar-have enthusiasm for active fun-lifestyles extend to their profession-they say they work for money-not for security of job-but to obtain goods & services-characterize themselves as impulse buyers-not so good at saving money-enjoy spending it-even higher than average income-spend more than they have-optimistic about future-greatest achievements still lie ahead BASIC RESEARCH TERMS Motivation-an activated state that causes a person to initiate goal-directed behavior Need-gap between actual & desired state. Basics-marketers look at people as consumers who buy products and services. Lifestyle-a pattern of living that reflects how people allocate their time, energy, and money and kind of activities they value. Consumer behavior Occupants-constitute the market Objects-market buys Organizations-participate in buying Operations-how does it buy?
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Occasions-when does it buy? Outlets-where does it buy? To be a bullfighter, you must learn first to be a bull. DATA INTERPRETATION THE DATA Coca Cola, in 1985-it completed 99 successful years-from 1980s it was suddenly loosing market share, even though the leading soft drink company. Pepsi had mounted the Pepsi Challenge-a series of TV taste tests, showing consumer proffered sweeter taste of Pepsiit led a super market share by 2%-that doesn’t sound much, but when you see the US soft drink market size of $240bn. it works out to a whopping $1,2 bn in retail sales! THE ACTION Coke had to do something to stem the loss of its M.S. it launched a research project, lasting 2 years & conducted some 200,000 tests-30, 000 on final formula. Spent $4 m before settling on the new formula. In blind tests, 60% of consumers chose new Coke over old, & 52 % chose it over Pepsi RESULT ? Coke dropped its original-formula, in its place NEW COKE with sweeter, smoother taste-lots of introductory flurry of advertising & publicity. New Coke sold well. It started receiving sacks of mail & over 1,500 phone calls a day from angry customers. A large group called THE OLD COKE DRINKERS staged protests, handed out T-shirts & threatened a class suit action, unless Coke brought the old formula back. ? After only 3 months, the company brought old Coke back, now called-Coke Classic-it sold side-by-side with the New Coke on super market shelves. They announced New Coke would be its flagship brand, but consumers had a different idea-Classic was selling 2 X the New one. ? Quick reaction saved the company from disaster-it stepped up efforts for Coke Classic & slotted New Coke in a supporting role- a Pepsi stopper & ads boldly compared New Coke’s taste with Pepsi’s. It could manage only a 2% M.S. ? 1990-repackaged New Coke & re-launched it as brand extension with new name COKE II. Today Coke Classic has captured 17% of market while COKE II quietly disappeared. INTERPRETATION ? Should never break a century old rule-don’t mess with Mother Coke.
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? Coke defined the research problem too narrowly the research looked only at taste in haste, it didn’t explore the feelings about dropping the Old Coke & replacing with a new version. ? It took no account of the intangibles-Coke’s name, history, packaging, cultural heritage, & image. To many people, coke stands along side Baseball, hot dogs, and apple pie as an American institution-it represents the very fabric of America. Coke’s symbolic meaning turned out to be more important than its taste-research should have detected these strong emotions. ? Coke’s managers used poor judgment in wrong interpretation and planning strategies around it. They took the finding that 60% of consumers proffered New Coke to mean that new product would win-it also means that 40% still liked the original formula-by dropping the Old Coke, it trampled the taste buds of a large core of loyal Coke drinkers, who didn’t want a change. ? It should have left alone the old one, and launched anything new as a brand extension-as it has later learnt to do-THE CHERRY COKE. ? Coke has the most advanced market research operations in America. Its good work has kept it atop the market for over 100 years-but MR is an inexact science, & consumers are full of surprises, figuring out is tough. DEMAND 1. EXISTING DEMAND 2. LATENT DEMAND 3. INCIPIENT DEMAND Existing market demand is what customers in a given country are prepared to pay for. It is the immediately available market for the product. It can be higher than the level of current purchases, since it includes that proportion of demand not as yet satisfied by currently available products due to imperfections in the marketing system. For example, some companies located within the existing industry served by the vendor may change their product lines and therefore become new potential customers of the vendor. There may also be new entrants into the industry who are likely to use inputs that can be supplied by the vendor. Their demand increases the size of existing demand for the vendors’ products and services. • Vendors must assess all three categories of demand in their analysis of market potential. • Depending on the vendor’s marketing objectives, strategies can be formulated for one or more of the demand categories.
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• Existing demand is by existing buyer measured by rate of purchase or consumption.it is measure of overall market size. Also competition conditions which reveal sales opportunities & profit potential. Metrics : • Product appeal-price-distribution-advertisements-promotional coverageeffectiveness of competition with respect to own. Example Cameras 1960s-Market dominated by German companies [Agfa, Gavert] in form of 35mm Range Finders-market size was $ 42m, & Japan had only $16m.of the mkt. 1970s-Japanese introduced SLR lenses & outsold on the basis of high quality-low pricesintensive distribution-good communication. German camera cos. extinct. Result-mkt share + 230% LATENT DEMAND The new-to-the-world products-customer isn’t aware of their existence-offered at an acceptable price-offers a real unmet need-niche Identify & explore the latent mkt.-competition study isn’t enough-its a mktg. opportunityinitial success is to identify the latent demand-competition timing is important. Example –refrigerators in USA GE & Whirlpool dominated the mkt. with large 4-door & 3-door units storing huge farm produce & seasonal food-Japanese with their tiny ones were outright rejected-initial success came from perseverance & finally cracking open the mkt. with entry via camper route, into the teenaged girls’ bedroom, to finally a 2nd one for each house Sub-compact cars-GM &Ford were not listening, Japanese-Toyota & Honda responded fast & convinced female members to go in for cute sedans Mkt. share by 1986 was 35%-today #1 & #2 in cars. Example motorcycles in UK 1969- market size was 30,000 units [Enfield, Triumph] In range 450cc +, Japanese were selling 27,000 units. 1973-Japanese [Kawasaki, Honda] were 218,000 units [+430%]-cheaper reliable, plus an aggressive SP campaign. Today motorcycle industry in UK is DEFUNCT! 1975-UK government commissioned Boston Consulting Group [BCG] to investigate why? & what hit them? Honda was offering 1500cc’s in a 2-wheeler ? INCIPIENT DEMAND
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his demand is derived from a known or basic data-emerges as consequence & is important planning & forecasting tool when it is difficult to conduct M.R. or get any worth while inference [demand for chocolates, present pop. Vs. present Mkt. of a/cs for upper class]. Income growth is projected with respect to demographics over time, the current demand swells in relation the future projection No market response if introduction is early & before its time.If present trend continues, the demand will emerge. Incipient market demand is demand that is expected to exist in the future. For example if the companies in a specific country are aware of a particular need or want, but lack the resources to acquire the relevant inputs; their needs then constitute incipient market demand. • Thus, incipient demand forms part of the potential market for a vendor’s product at any given point in time. This holds true for certain categories of equipment and inputs that can enhance the operational capacities of firms in developing and transitional economies.
9
doc_690008308.doc