Download Chapter 17 Marketing research and the international marketing mix

Chapter 17
Marketing Research and the
International Marketing Mix
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–1
International marketing research
• Marketing research assists international marketers
to make better decisions and choose wisely among
alternative international marketing strategies.
• The decisions need to be based on relevant, timely
and accurate information that is gathered using
marketing research.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–2
Research: the two broad dimensions
1 Market research
–
Conducted prior to foreign market entry to ascertain
viability.
2 Marketing research
–
Conducted to provide information regarding firm’s
marketing functions and activities.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–3
Research design issues
• Three important factors:
1 Construct equivalence
 How the researcher, subjects and others involved see,
understand and code a particular phenomenon.
2 Measurement equivalence
 Asks the question, ‘Are the phenomena in countries X
and Y measured the same way?’.
3 Sampling equivalence
 Attempts to ensure that the sample size is appropriate
(relative to the population).
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–4
Data collection issues
• Lack of familiarity with foreign markets.
• Differences in administrative processes.
• Cultural differences between researcher and
subjects.
• Refusal to cooperate on the part of subjects.
• Problems obtaining subjects’ consent.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–5
Data collection issues
• Methodological and practical problems:
–
–
–
–
Cultural bias, language.
Access.
Confidentiality and trust.
Analysis and communication of results.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–6
International product decisions
•
Which products should be marketed?
•
Which countries should the products be marketed to?
•
What is the best timing of the launch of the product into
international markets?
•
How much adaptation of the product is required to make it
suitable for the conditions in international markets?
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–7
Standardisation versus adaptation
• KFC adapt their product offering for many countries
in the world, for example offering customers
wonton soup with their burgers and fries in China.
• Adaptation means to change a product to suit the
environment.
• Standardisation means to make the product the
same for different environments.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–8
The international product life cycle
• Insert Fig 17.1 page 37 Grigoriou, N
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–9
International packaging and labelling
• Packaging and labelling play vital roles in
communicating the product’s benefits:
–
–
Packaging
 Climate, promotion, environment, distribution.
Labelling
 Colour, language, literacy rates.
• Warranty (manufacturer’s warranty):
–
–
–
Duration of the warranty.
Responsibility for repairs and maintenance.
Conditions of the warranty.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–10
A multistage approach to pricing
• Insert Fig 17.2 page 39 Grigoriou, N
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–11
International pricing strategy
• Standard worldwide pricing
• Setting the same prices regardless of the buyer for
each of the firm’s international markets.
• Dual pricing
• This strategy involves having a domestic price and
an international price for the product.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–12
International distribution
considerations
•
Industrial goods versus consumer goods
–
•
Selecting international channel members
–
•
Products undergo different distribution channels.
A number of crucial considerations for selecting channel
members need to be weighed up.
Channel design
–
Two key issues: channel length and width.
– Alongside the channel length and width decision is a framework
aimed at assisting marketers to determine the proper approach
to reach their intended customers. This is referred to as the
11C’s framework of channel design.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–13
Grey markets
• A grey market is defined as ‘genuinely branded
merchandise distinguished only by its sale through
channels unauthorised by the trademark owner’.
• Grey market products are those that enter
international markets in ways not approved by the
manufacturer.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–14
International promotional decisions
• International sales promotion
• Personal selling
–
–
–
Motivation and compensation.
Language.
Training.
• Advertising
–
Appointing an advertising agency.
• International public relations
–
–
Internal public relations.
External public relations.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Nicholas Grigoriou
Slides prepared by: Joe Rosagrata
17–15