Chapter 9: Research and Marketing Flashcards
10 Research steps for market selection
Screen potential markets
1. Obtain statistics
2. Identify 5–10 large and fast-growing markets
3. Identify some small but emerging markets
Assess target market
4. Target three to five most promising
5. Examine trends
6. Ascertain sources of competition
7. Analyze marketing/distribution options
8. Identify foreign barriers
9. Identify government incentives
Draw conclusions
10. Select one or two markets
What are the three subsections of market selection
- Screen potential markets
- Assess target markets
- draw conclusions
Why is there a need to strategic?
- New global marketing challenges
- The lifeblood of global competitiveness
- High quality and value may come from anywhere
Why is there a need to strategic?: -New global marketing challenges
• growing confidence in emerging market supply
• global availability of skilled labour
-the Internet and worldwide competition
Why is there a need to strategic? : -The lifeblood of global competitiveness
• a need to address increasingly segmented markets
○ With internet, customer demand is changing
• knowledge and communication are the keys to profits and returns to investors
-Profits and returns are the ultimate goal of business.
Why is there a need to strategic?: -High quality and value may come from anywhere
• marketing strategy is the means of overcoming new sales challenges
○ People can buy there product for anywhere to get better price, we must market.
Trade Research
Essential to creating the messages that convince potential customers to buy, and crucial to packaging and delivery of the product or service and to even to the initial design and development stages
- Know the market:
- Central to the creation of the marketing plan
- What research is needed?
-Know the market:
• who they are
• what they need
• what they believe
-what they are prepared to buy
What research is needed?
- Confirm the existence of market opportunity and provides knowledge of the market’s attributes
- How a new market can be developed
- What is important to the customers
Skills and qualities of a market researcher
- A high degree of analytical skill and planning ability
- Strong creativity and imagination
- Good communication and people skills
- Strong self-motivation and initiative
- An ability to efficiently absorb and interpret information
- A degree of persuasiveness and sales skills
- The ability to utilize office and Internet technology effectively
Sources of market information
- Internet sources (news sites, competitor websites, social media sites, etc.)
- Online and offline commercial databases and subscription services
- Periodical and trade publications
- Market guides and briefs
- Market research firms
- Government representatives at home and abroad
- Market visits
- Commercial banks
- Business associations and chambers of commerce
- Bilateral business councils and industry associations
- Other companies within the domestic market
- Connecting with diasporas of the target market
Market Types
Fast-paced markets require: (ex. US and Canada)
Relationship-based markets require: (ex. Latin American and Asian Countries )
Developing markets require: ( most African countries)
Fast-paced markets require: (ex. US and Canada
- efficient delivery and communications
- excellent quality assurance
- good media profile
- good local partners
Relationship-based markets require: (ex. Latin American and Asian Countries )
- good communication skills
- cultural sensitivity and local language
- building trust at senior levels
Developing markets require: ( most African countries)
- understanding of developing economies
- patience: market penetration takes time
- flexibility to deal with different situations
- awareness of political situation
- experience working with aid or IFI funded projects
What is marketing?
• The process of planning and executing the conception,pricing, promotion, and distribution of ideas, goods,services, organizations, and events to create and
maintain relationships that will satisfy individual and
organizational objectives.”
• Seeks to build understanding and communication
• Ongoing collection and analysis of data
-The marketing plan is a “living” document
Elements of the marketing plan :
- descriptions of the business
- market profile
- customer profile
- cultural factors
- market objectives-pricing strategy
- details of the product
- market entry
- promotion
- logistics
- implementation
- monitoring results
Elements of the marketing plan :descriptions of the business
should describe company objectives and the characteristic that set it apart from its competitors
Elements of the marketing plan :market profile
describe segment being targets, whether it is based on regional area or definable portion of population
Elements of the marketing plan :customer profile
who is the end user? individual, government? How big is the market and what drives the buying decisions
Elements of the marketing plan :cultural factors
how do they affect the way in which we present ot market
Elements of the marketing plan : market objectives-
what position to we hope to hold in market?
Elements of the marketing plan : pricing strategy
what is the cost of entering and maintaining the market–>determine price
Elements of the marketing plan : -details of the product
provide analysis of the product or service with the context of the market characteristics
Elements of the marketing plan :-market entry
direct or indirect ? Can we do it alone, or do we need partners? How will sales be conduct?
Elements of the marketing plan : - promotion
promotional channel that will be used. Choice of channel is understanding what is important to the user
Elements of the marketing plan :-logistics
what is the optimal method of getting our product there
Elements of the marketing plan : -implementation
what service are required to initiate all the details of the plan , who will execute, what are the timelines and milestones, what skills are required, how will we make changes if necessary
Elements of the marketing plan : -monitoring results
-how will we measure it?
Elements of the marketing plan :Political characteristic
markets political stability, will if affect us?
Elements of the marketing plan :Competitor analysis
describe local and foreign competitors with similar product and list strengths and weakness
The 4 P’s of marketing
Product-
Price
Place
Promotion
Product-
selling the right product to the right market and the right time
Price
the act of selecting the pricing strategy that fits the market and is not costly to business
Place
a determination of the best way of getting product to the customer
Promotion
selection of the most effective means of making the customer ware of the value of the product.
P’s of international marketing
- planning
- personnel
- practices
- partnership
- positioning
- protection
-planning
business, market, account, sales and calls
-personnel
identifying the skills required to design, develop and deliver
-practices
business practices within the culture of the target market
-partnership
potential partners that may strengthen the opportunity
-positioning
how the company wants to be perceived by clients and customers
-protection
an assessment o the potential risks in all aspects of the transaction
Resources required and costs
Companies need to be aware of costs of doing business and factor them into the pricing strategy the following are costs associate with exporting due to the resources required or to the process itself that the company must consider:
Operational Resources
infrastructure resources
human resources
Operational resources
- cost of information gathering (admin, shipping, customs, financial
- increased paperwork
- new staff or staff retraining or outsourcing, etc.
Infrastructure resources
- up-to-date computer systems
- full-time Internet access
- software with foreign language capability, etc.
Human resources
• country specific knowledge
• local language
-local representation, etc.
