MKT 330- Exam 1 (extra: ch. 4-6) Flashcards
- Selecting a research problem
- Developing the approach to be taken
- Selecting research strategy and designing the research
- Identifying the participants and planning the ethical process
- Completing a pilot study
- Carrying out the fieldwork
- Analyzing the data
- Preparing the report and presentation
the role of marketing research and opportunity analysis: the process
Around 3⁄4 of marketing research agencies’ revenue is derived from online research. Research has three major roles:
- cross-cultural research
- foreign research
- multi-country research
what big data is telling us
across a nation or culture groups
cross-cultural research
in another country than the one of the commissioning company
foreign research
conducted in all represented countries
multi-country research
problems in using secondary data:
- availability
- accessibility
- accuracy
- scarcity
- timeliness of collection
the market profile analysis
– attractive profit/growth opportunities
– ability to easily modify products for export markets
– public policy programmes for export promotion
– foreign country regulations
– possession of unique products
– economies from additional orders
Proactive stimuli
– presence of export minded manager
– opportunity to better utilize management talent and skills
– management beliefs in value of exporting
Managerial elements
– adverse domestic market conditions
– opportunity to reduce inventories
– availability of production capacity
– favorable currency movements
– opportunity to increase the number of country markets and reduce market-related risk
– unsolicited orders from overseas customers
Reactive stimuli
- exporting
- international niche marketing
- domestically delivered or developed niche services
- direct marketing including e-commerce
- participation in the international supply chain
SME international marketing strategies
is concerned with selling abroad domestically developed and produced goods and services.
Exporting
is concerned with marketing a differentiated product or service overseas, usually to a single segment, using the full range of market entry and marketing mix options.
International niche marketing
can be marketed or delivered internationally to potential visitors.
Domestically delivered or developed niche services
including e-commerce allows firms to market products and services globally from a domestic location.
Direct marketing
of an MNE can lead to SMEs piggybacking on the MNE’s international development.
Participation in the international supply chain
- it avoids the costs of establishing local manufacturing operations
- it helps the firm achieve experience curve and scale economies
- low risk
exporting is attractive
- there may be lower-cost manufacturing locations
- high transport costs and tariffs can make it uneconomical
- agents in a foreign country may not act in exporter’s best interest
exporting is unattractive
targets a large share of a smaller market.
- Limited company resources
- Knowledge of the market
- More effective and efficient
Niche marketing
For the international niche player to be successful, the product or service must…
- be distinctive (highly differentiated)
- be recognized by consumers and other
participants in the international supply chain - have clear positioning
- opportunities for learning from MNE (multinational enterprise)
- security through reliable and predictable
ordering - able to focus on production and technical issues
supply chain internationalization: Advantages for SMEs
- need for dependence on one/two major customers
- internationalization driven by demands of MNE
- continual pressure to improve product and operations
- weakening of external marketing
supply chain internationalization: Disadvantages for SMEs
the nature of SME international marketing strategies
- relationships
- born global/INVs
- concentration vs. expansion
the internationalization process involves developing business relationships in other countries through:
- establishing relationships
- developing relationships
- connecting networks
Establishing relationships in country networks that are new to the firm: ____
extension
Developing relationships in those networks: ____
penetration
Connecting networks in different countries:_____
integration
have a managerial vision from the start of their business, have a clear niche focus, are highly innovative and active in their strategic international development from inception.
Born globals/INVs (international new ventures)
______ managers view the world as their marketplace from the outset
- management sees foreign markets as adjuncts to the domestic market and hence focuses on regional markets
born global; INVs’
a ___ ___will own or control subsidiaries and engage in value-added business alliances and networks in each continent and each major country … it will sell its goods and services in each of the main markets of the world
global firm
- cheaper labour
- better quality
- better technology
- local access
- economies of scale
- lower taxes
- lower logistics costs
- consistent supply
benefits of global sourcing
- ethnocentric
- polycentric
- regiocentric
- geocentric
alternative strategic responses
competitive pressures in the global marketplace (2)
- pressures for cost reductions (force the firm to lower unit costs)
- pressures to be locally responsive (require the firm to adapt its product to meet local demands)
- With homogenised demand in global market segments for commodity type products that fill universal needs
- When major competitors are globally active or based in low-cost locations
- Where consumers are powerful and face low switching costs
- Where there is persistent excess capacity
Pressures for cost reductions are greatest
- Differences in consumer tastes and preferences
- Differences in traditional practices and infrastructure
- Value of personalized customer service
- Differences in distribution channels
- Host government demands
Pressures for local responsiveness arise from
increase profitability and profit growth by reaping the cost reductions from economies of scale, learning effects, and location economies
- goal is to pursue a low-cost strategy on a global scale Global
global strategy
- There are strong pressures for cost reductions and demands for local responsiveness are low
- Company has the management capacity/capability to manage a global organization
when to use a global approach
increase profitability by customizing goods or services so that they match tastes and preferences in different national markets
Multi-domestic strategy
- Customers continue to demand locally differentiated products
- cost pressures are not too intense
- industry standards remain diverse
- being an insider remains critically important
- global organizations are difficult to manage
- management myopia (self reference)
when to use a multi-domestic approach
different strategies are formulated for each region.
This strategy makes sense when:
- Pressures for low costs and local responsiveness are relatively low
- As a response to regional trading blocs
- Regions are effectively different
Regional strategy
- More manageable compromise between the extremes of global standardization and multi-domestic strategies.
- convenience of creating manageable teams
- regional trading blocs tend to favor own MNEs
when to use a regional approach
– How marketing strategy for one region is differentiated from others
– Quick response to threats or opportunities that emerge in the region
Key to effective regional strategies is
tries to simultaneously achieve low costs through location economies, economies of scale, and learning effects
- firms differentiate products across geographic markets to account for local differences and foster a multidirectional flow of skills between different subsidiaries in the firm’s global network of operations
Transnational strategy
this strategy makes sense when both cost pressures and pressures for local responsiveness are intense
these companies aim to build 3 strategic capabilities:
1. global scale efficiency and competitiveness
2. national level responsiveness and flexibility
3. cross-market capacity to leverage learning on a world wide basis
transnational strategies
