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<p>International Marketing Organization</p> <div><p>Assessing Global Market Opportunities</p><p>Presented By: Nikita, Gaurang, Mitesh, Bharat M</p></div> <p>Global Marketing</p> <div><p>Flow of Presentation</p><p>Marketing Information System</p><p>Global MIS</p><p>Sources of Market Information</p><p>Market Research</p><p>Global Marketing Strategy: Entry and Expansion Strategies</p><p>Market Expansion Strategies</p><p>Stages of Development </p><p>Major Concerns with International Alliances</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Global Marketing Information Systems and Research</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Information</p><p>Data: Un-analyzed, raw facts and figures</p><p>Information: Data put in a format where it can be analyzed and inferences can be made out of it, to aid managerial decision making</p><p>Scanning: Process of information acquisition</p><p>Major problems faced with information are abundance and scarcity.</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Marketing Information System</p><p>A continuous flow of information regarding the markets, customers, competitors, and company operations is called Marketing Information System.</p><p>Points of concern:</p><p>Appreciating IT and MIS as strategic assets</p><p>Need for a framework for information scanning and opportunity identification</p><p>General understanding of market research process</p><p>Management of MRIS</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Global - MIS</p><p>Types of Marketing Information to look for </p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <p>Markets</p> <p>Competition</p> <p>Foreign Exchange</p> <p>Prescriptive Information</p> <p>Resource Information</p> <p>General Conditions</p> <p>Demand estimates, consumer behaviour, products, channels, communication media availability &amp; cost, and market responsiveness</p> <p>Corporate, business, and functional strategies and plans</p> <p>Balance of payments, interest rates, attractiveness of country currency, expectations of analysts</p> <p>Laws, regulations, ruling concerning taxes, earnings, dividends in both host countries &amp; home country</p> <p>Availability of human, financial, information, &amp; physical resource</p> <p>Overall review of sociocultural, political, technological environment</p> <div><p>Scanning Modes</p><p>Surveillance </p><p>Informal information gathering</p><p>Viewing: General exposure to information</p><p>Monitoring: Particular news story, special reference to a company</p><p>Search</p><p>Formal activity</p><p>Deliberate seeking out of special information</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Sources of Market Information</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <p>Human Sources</p> <p>Documentary Sources</p> <p>Internet Sources</p> <p>Direct Perception</p> <p>Published public information</p> <p>Unpublished private information</p> <p>Combines other three information source types</p> <p>Personal Sources: Executives, distributors, customers, prospective new employees, professional colleagues, consultants</p> <p>Sensory experience</p> <div><p>Marketing Research</p><p>Definition</p><p>The systematic gathering, recording and analyzing of data to provide information useful in marketing decision making</p><p>Complications in marketing research</p><p>Information must be communicated across cultural boundaries</p><p>The environments within which the research tools are applied are often in foreign markets</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Steps in Formal Marketing Research</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <p>Identifying the Research Problem</p> <p>Developing a Research Plan</p> <p>Collecting Data</p> <p>Secondary Data</p> <p>Primary Data and Survey Research</p> <p>Analyzing Research Data</p> <p>Presenting the Findings</p> <div><p>Steps in Formal Marketing Research</p><p>Identifying the Research Problem</p><p>Developing a Research Plan</p><p>Collecting Data</p><p>Secondary Data </p><p>Problems in secondary data</p><p>Availability of data</p><p>Reliability of data</p><p>Comparability of data</p><p>Validating secondary data</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Steps in Formal Marketing Research</p><p>Primary Data and Survey Research</p><p>Sampling Methods</p><p>Probability sampling</p><p>Random</p><p>Stratified</p><p>Systematic</p><p>Cluster</p><p>multistage</p><p>Non probability sampling</p><p>Convenience</p><p>Judgmental</p><p>Quota</p><p>snowball</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Steps in Formal Marketing Research</p><p>Problems in Primary data</p><p>Ability to communicate opinions</p><p>Willingness to respond</p><p>Sampling in field surveys</p><p>Language and comprehension</p><p>Multicultural research</p><p>Research on the internet</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Steps in Formal Marketing Research</p><p>Analyzing Research Data</p><p>Problems in analyzing and interpreting research information</p><p>A high degree of cultural understanding</p><p>A creative talent for adapting research findings is necessary</p><p>A skeptical attitude in handling both primary and secondary data is helpful</p><p>Demand Pattern Analysis</p><p>Income Elasticity Measurements</p><p>Market Estimation Analogy</p><p>Cluster Analysis</p><p>Analyzing Results</p><p>Presenting the Findings</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Current Issues in Global Marketing Research</p><p>Headquarters control of Global Marketing Research</p><p>Multinational Company</p><p>Global Company</p><p>The Marketing Information System as a Strategic Asset</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Global Marketing Strategy: Entry and Expansion Strategies</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Decision Criteria For International Business</p><p>Political Risk</p><p>Market Access</p><p>Factor Costs and Conditioning</p><p>Shipping Considerations</p><p>Country Infrastructure</p><p>Foreign Exchange</p><p>Creating a Product-Market Profile</p><p>Market Selection Criteria</p><p>Market Potential</p><p>Market Access</p><p>Shipping Costs</p><p>Potential Competition</p><p>Service Requirements</p><p>Product Fit</p><p>Visits to the Potential Market</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>PR inversely proportional to countrys stage of economic development</p><p>MA local content law.non tariff barrier</p><p>FC &amp; C - land, labour, capital, material</p><p>SC time delay &amp; higher cost</p><p>CI power, transportation &amp; roads. Communications, Service &amp; component supplier</p><p>FE volatile exchange rate, also do sourcing to reduce risk</p><p>PM P 4 ps provide greater value than competitors, who buys, who do not, where , when, why</p><p>MSC: MA export license. Import duties import restrictions </p><p>17</p></div> <div><p>International Market Entry and Expansion Decision Model</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>18</p></div> <p>Sourcing: Home, third, or host country?</p> <p>Selection, training, and motivation of local distributors and agents</p> <p>Marketing Mix Strategy</p> <p>In-country or in-region marketing organizations?</p> <p>Strategy Implementation</p> <p>Cost, market access, country of origin factors</p> <p>Cost, market impact assessment</p> <p>Goals of objectives in sales, earnings and share of market; positioning</p> <div><p>International Market Entry</p><p>Exporting</p><p>Licensing</p><p>Franchising</p><p>Joint Venture</p><p>FDI Fully Owned Manufacturing Facilities</p><p>M&amp;A</p><p>Contract Manufacturing</p><p>Management Contract</p><p>Turnkey Contract</p><p>Assembly Operations</p><p>Counter Trade</p><p>Barter</p><p>Buy Back</p><p>Compensation Deal</p><p>Counter Purchase</p><p>Strategic Alliance</p><p>Third Country Location</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>19</p></div> <div><p>Exporting</p><p>When a firm produces its products in the domestic market and/or a third country and then transfers either directly or indirectly to the host market, it is called an Export transaction.</p><p>Indirect Export</p><p>Direct Export</p><p>Cooperative Export</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>20</p></div> <div><p>Indirect Export Modes</p><p>Using an independent export organization from the domestic country and not having their own export department is called in-direct export.</p><p>Export Buying Agent: Buy and Sell a product</p><p>Broker: Buyer-Seller meeting</p><p>Export Management Company: </p><p>Export dept. for several unrelated companies </p><p>Performs market research, channel selection, financing &amp; shipping arrangements, and documentation</p><p>Trading Company Performs marketing operations </p><p>Piggyback Arrangement whereby one manufacturer obtains distribution of products through anothers distribution channels</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>21</p></div> <div><p>Direct Export Modes</p><p>Manufacturer sells directly to an importer, agent or distributor located in the foreign target market.</p><p>Distributors</p><p>Agents</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>22</p></div> <div><p>Licensing</p><p>A contractual arrangement whereby one company (the licensor) makes an asset (patents, inventions, formulas, process, designs, copyrights &amp; trade marks) available to another company (the licensee) in exchange for royalties or license fees</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>23</p></div> <div><p>Franchising</p><p>The franchisor gives a right to the franchisee against payment, e.g. a right to use a total business concept/system, including use of trade marks (brands), against some agreed royalty.</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>24</p></div> <div><p>Joint Venture and Strategic Alliance</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p><p>Joint Venture: Allows company to own a stake &amp; play a role in operations</p><p>Eg.: ICICI bank and Prudential Insurance</p><p>Strategic Alliance: Understanding or arrangement among the players in a market to expand to new market, gain quick access to new technology or avoid competion</p></div> <p>Global Marketing</p> <div><p>Joint Ventures and Strategic Alliances</p><p>Y-coalitions</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p><p>Supplier</p><p>Manufacture</p><p>Marketer</p><p>Retailer</p><p>Supplier</p><p>Manufacture</p><p>Marketer</p><p>Retailer</p><p>Upstream-based collaboration</p><p>Downstream-based collaboration</p></div> <p>Global Marketing</p> <div><p>26</p></div> <div><p>Joint Ventures and Strategic Alliances</p><p>X-coalitions</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p><p>Supplier</p><p>Manufacture</p><p>Marketer</p><p>Retailer</p><p>Supplier</p><p>Manufacture</p><p>Marketer</p><p>Retailer</p><p>Upstream/downstream-based collaboration</p></div> <p>Global Marketing</p> <div><p>Supplier, Manufacturing, Marketing, Retailer</p><p>27</p></div> <div><p>Other Market Entry Strategies</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Page 245. PU book</p><p>28</p></div> <p>FDI Fully Owned Manufacturing Facilities</p> <p>M&amp;A</p> <p>Contract Manufacturing</p> <p>Management Contract</p> <p>Assembly Operations</p> <p>Corporate owns 100% equity in the local subsidiary</p> <p>Merger: Mutual Consent, Synergies</p> <p>Acquisition: Can be friendly or hostile</p> <p>A firm contacts with foreign countrys firms to manufacture the parts while retaining the responsibility of marketing</p> <p>Supplier brings together a package of skills that will provide an integrated service to the client without incurring risk </p> <p>Cross between exporting and overseas manufacturing</p> <div><p>Other Market Entry Strategies</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <p>Turnkey Contract</p> <p>Barter: Direct exchange of goods of equal amount, with no money</p> <p>Buy Back: supplier of equipment purchase goods manufactured with that equipment</p> <p>Compensation Deal: Seller receives a part of the payment in cash &amp; the rest in products</p> <p>Counter Purchas: Seller receives full payment in cash but spends that money in that country itself within a specified time period</p> <p>Third Country Location</p> <p>Counter Trade</p> <p>Agreement by seller to supply with a facility fully equipped &amp; ready to be operated by the buyers personnel, who will be trained by the seller</p> <p>One Country has to operate from third country base to enter another countrys market </p> <div><p>Market Expansion Strategies</p><p>MARKET SEGMENT</p><p>COUNTRY</p><p>Concentration</p><p>Concentration</p><p>Diversification</p><p>Diversification</p><p>1. Narrow Focus</p><p>2. Country Focus</p><p>4. Global Diversification</p><p>3. Country Diversification</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>Gaurangs Part start from this slide.Page no. 280; Book 1</p></div> <div><p>Stages of Development Model </p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <p>Domestic</p> <p>International Ethnocentric</p> <p>Multinational Polycentric</p> <p>Global Mixed</p> <p>Transnational - Geocentric</p> <div><p>Stages of Development: Strengths</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <p>International Ethnocentric</p> <p>Multinational Polycentric</p> <p>Global Mixed</p> <p>Transnational Geocentric</p> <p>Ability to exploit the parent companys knowledge &amp; capabilities through worldwide diffusion of products</p> <p>Flexible ability to respond to national differences</p> <p>Global Market or supplier reach, which leverages the home-country organisation, skills, &amp; resources</p> <p>Combines the strengths of each of the preceding stages in an integrated network, which leverages worldwide learning &amp; experience</p> <div><p>Major Concerns with International Alliances</p><p>Objectives</p><p>Partner Mindshare</p><p>Resources Pooled</p><p>Culture</p><p>Success Rate</p><p>Regulations</p><p>Negotiations Contract renewals</p><p>Credibility Gain or Loss</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p></div> <p>Global Marketing</p> <div><p>The Nature of the Global Strategic Partnerships</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p><p>Global strategic alliances growing at a rate of 20 to 30 % since the mid 1980s. </p><p>The upward trend for GSP ( global Strategic Partnership) comes in part at the expense of traditional cross-border mergers and acquitions.</p><p>Why a firm would enter into GSP?</p><p>Roland Smith , Chairman of British aerospace, said A partnership is one of the quickest and cheapest ways to develop a global strategy. Like traditional joint ventures.</p></div> <p>Global Marketing</p> <div><p>Advantages and disadvantages of GSP</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p><p>Disadvantages:</p><p>Each partner must be willing to sacrifice some control,</p><p>There are potential risk associated with strengthening a competitors from another country.</p><p>Advantages:</p><p>High product development costs may force a company to seeks partners.</p><p>The technology requirements of many contemporary products mean that an individual company may lack the skills , capital, know- how to go it alone.</p><p>Partnership may be the best means of securing access to national and regional markets.</p><p>It also provides learning opportunities and experts regards GSPs as a race to learn.</p><p>Prof. Gary Hamel(London Business school) has observed that the partner that proves to e the fastest learner can ultimately dominate the relationship.</p></div> <p>Global Marketing</p> <div><p>Traditional Joint venture and GSP are totally different.</p><p>17 March 2011</p><p>Stevens B School Batch 2009-2011</p><p>Traditional joint venture are basically alliance or focusing on a single national market or a specific problem .</p><p>Where, GSP is distinguished by six attributes.</p><p>Two or more company develop joint long term strategy...</p></div>