International Marketing Notes

INDIAN INSTI. OF PLANNING & MANAGEMENT AHMEDABAD. SATURDAY, 27 th SEPTEMBER,2 0 0 8 IM-4 * Global Mkt.Research/Emerging Markets/Multi-natinal Market Regions & groups

Dr. PRADIP DESAI B.E. ,M.B.A. (I.I.F.T.), LL.B., Ph.D.(Management-U.S.A.),CMC CERTIFIED MANAGEMENT CONSULTANT ( C.M.C.) CHAIRMAN & C.E.O.

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Global Market ResearchDEFINITION * American Marketing Association def.: Systematic gathering,recording & analyzing of DATA about problems relating to the marketing of goods & services. * Limitation : Fails to include Pre-research Analysis(Desk Research)which is an imp.aspect of Research Process * Before Data collection careful Planning required: 5. Kind of info. Needed & 2. Purpose of such info. without this critical Planning critical info. May not be obtained or info.& Resarch Turns out to be Irrelevant or unsuitable e.g. Amrutanjan balm in L.Americayellow perceived as garbage system colour.

Marketing Information Resources • Identify the marketing problem & do Pre-research. • Primary Data : Information that is collected 1 st hand generated by original research, tailor-made to answer specific questions & problems for current research questions. • Advantage: info. is specific,relevant & up-to-date • Dis-advantage:High cost & time involved • Secondary data: Information that has already been collected for other purposes & readily available. • Advantage : Secondary data should be used 1 st before starting Primary research.Cost is very less since ready • Dis-advantage:Info. May not be relevant & Multinationally not comparable.

Secondary Research • Private Sources : • 1. Public Library: Ind.-Commercial directories/Country Profiles • 2. Chamber of Commerce directories/export-trade promotion organisations of each countries • 3. Foreign Embassies in India/Indian Embassies abroad • 4.Worls Trade Centre’s Association(WTCA) Has more than 300 world trade centres in some 90 countries • 5. Dun & Bradstreet Directories • 6. Encyclopedia of Business Information Sources

Public Sources • OECD : Organisation for EconomiC Co-operation & Development ( members are Industrialized Market economy countries ) : • w.europe/n.america/australia-new-zealand/japan • International Monetary Fund ( IMF)/World Bank • International Trade div. Of U.S.Dept. of comm. • DGFT (Director General of ForeignTrade)N.Delhi • Export Promotion Councils (EPCs) • Economic co-operation Trade Block-E.U./ASEAN

Methods of data collection • 1.Observation : No questionnaire but observing consumer behaviour without influence of an Interviewer • E.g. Toyota research team in USA attnded a cocktail party where car owners prefered Distinctive Design of the Front Grille so that car looks exclusive from the front view 2. Questionnaire: Leading questions/Suggestive Q./ Countercheck Q./Tick-mark/Scale of 1-10 a) Personal interviews b)Tele-questionnaire c)Net-surveys d) Pier-group opinion polls

Foreign Entry Strategies • 1. Exporting : without any production base products are exported to target markets Dis-adv.:when home currency is strong product become expensive to buyersAbroad • Ocean freight increase with rise in Oil price • Higher labour costs in home country makes products more expensive abroad

Foreign Entry strategy …cont: • 2. Licencing : When market is large abroad but co. is not willing to Invest in F.country then Licencing of Production of goods abroad is used • It is an agreement to use industri.intellectual property e.g. patents,trademarks,copy rights,Blue Prints, technical knowhow & skills,engg.design etc • 3. Jt.Venture : is a partnership between 2 corporates in domestic or Intl.markets for production of goods or services. • 4. Management contract:Hotel or Airlines is owned by one & operations are carreid out by Other expert co. • 5. Turnkey Operations : Till start-up complete resposibility for installation of Mfg.Factory is of Sellers

Foreign Entry strategy ..cont. • 6. ACQUISITION: When a mfr.wants to enter a foreign market rapidly then acquisition of existing co. ABROAD. • E.g. TATA acquired JAGUAR-Land Rover-U.K. • VODAFON acquired Hutch-Essar in INDIA 7. Strategic Alliance (SA): Unlike in jt.venture here 2 partners are not needed but 2 get bebefit of expertise in different field SA is resorted to.e.g. BIG-BAZAR-ICICI credit card 8. FTZ/SEZ: Most preferred due to no taxes & duties & quicker clearances by Govt.abroad

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