C. Understanding the Marketing EnvironmentChapter 6Global Marketing Information Systems & ResearchI. The Scope of International Marketing ResearchA. International research coversB. Three broad areas of responsibility:1. Market measurement studies. 2. Competitive studies3. Environmental studies. C. International mkg. res. is used to make both strategic & tactical decisions.1. Strategic - 2. Tactical - II. The Importance of International Marketing ResearchA. The complexity of the int. marketplace, extreme country differences, frequent lack of familiarity with foreign markets make research so important.B. Mkg. res. can guide product development for a foreign market.III. The Comparative Analytic ApproachA. Marketing as a Function of the Environment - the study of the mkg. process inits relationship to the environment. B. [McDonald’s Example: In the U.S. tremendous success through an aggressive, well-structured mkg. mix.- Product/service design: standardized product of high & consistent quality emphasizing speed of service & long opening hours.- Price: low price policy- Distribution: Placing restaurants primarily in areas where customers live - suburbs and urban areas- Promotion: A strong ad campaign that focuses on the cr., particularly young people, via heavy use of TV promotion.C. Understanding the Marketing Environment1. Physical Variables - physical constraints with respect to the conditions of the product’s use or the physical properties of the particular market. [McDonald’s: 2. Social Variables - all relevant factors from the social & cultural background of any given mkg. environment, including cultural background (race, religion, customs, habits, & languages), educational system, & social structure (roles, social classes, & reference groups). [McDonald’s:3. Economic Variables - Economic considerations affect most consumption or buying decisions. The international marketer must isolate the specific income & price variables to arrive at a given combination, economic event, that affects the success of a given product or service. [Consuming a meal at a place such as McDonald’s 4. Regulatory Variables - all actions of governments or agencies influencing business transactions such as commercial law or codes, cr. protection laws, product liability laws, regulatory agencies (e.g., FDA), local regulations, and zoning laws. Regulations do not tend to stimulate needs or demands for products. Instead, they act in an enabling manner (or disabling manner, depending on the point of view) by restricting choices for the int. corporation or prescribing the nature of its mkg. effort. [TV advertising to reach children was one of the reasons for McDonald’s success in the U.S. C. Analyzing Environmental Variables1. The CA approach is different in that 2. Provides a methodology for marketers IV. The Research ProcessA. The basic approach is the same as for domestic research, but just more complex. 4 step process:1. Problem definition 2. Determine sources of info.3. Collect Data 4. Analysis & presentation of resultsB. Problem Definition 1. {e.g., C. Determination of Data Sources1. Usually exhaust secondary data (already collected and available data) first. (e.g., trade journals, Gov. documents (http://www.census.gov/) International Statistic Agencies, newspaper write-ups, home pages2. Secondary D. Data Collection1. For secondary sources ask yourself, 2. Other useful sources:a. International Directory of Published Research, vol. 14 (London: Arlington Management Publications, 1994)b. Directory of U.S. and Canadian Marketing Surveys and Services (Kline Publishing, 1994)c. Findex: Directory of Market Research Reports, Studies and Surveys, 1995)3. Particular problems with secondary data:a. b. c. d. e. f. g. h. 4. Collecting Primary Dataa. The steps in collecting primary data are the same in domestic and multinational environments. b. The challenges include: c. Surveys must be translated from one language to another, creating the opportunity for miscommunication. - In German, a “Body by Fisher” - Braniff translated to be seated in leather d. Back translation - e. Parallel Translation - f. Privacy concerns being raised in EU - g. Focus groups - V. Research TechniquesA. Demand Analysis - demand for products can be measured at two levels: aggregate demand, for an entire market or country (market potential), and company demand, as represented by actual sales (sales potential). Concept byRichard Robinson views both market & sales potential demand as a filtering process. Market Potential and Sales Potential Filter1. Potential Need - 2. Felt Need - 3. Potential Demand - 4. Effective Demand - 5. Market Demand - 6. Sales Potential
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