International Marketing Final

What is marketing research?

The systematic gathering, recording, and analyzing of data to provide information useful to marketing decision making.

Why is problem definition important in international research?

It helps convert ambiguous business problems into clear and achievable research objectives.

What are the complications in international marketing research?

Information must be communicated across cultural boundaries, and research tools may not be applicable in foreign markets.

What are the three types of information needs in international marketing research?

General information about the country, forecasting future marketing requirements, and specific market information for decision-making.

What is the major difficulty in defining the research problem?

Converting ambiguous business problems into tightly drawn and achievable research objectives.

What issues do American marketing researchers face regarding secondary data?

They often sort through too much data, which may lack reliability and comparability.

What are the shortcomings faced by foreign markets in marketing research?

Issues of availability, authenticity, reliability, and comparability of data.

What questions should be asked to validate secondary data?

Who collected the data? Is there a reason for misrepresentation? What were the data's purposes? How were they collected? Are they consistent with known data sources?

What is primary data in marketing research?

Data collected specifically for the particular research project at hand.

When is primary data collected?

When secondary data sources do not adequately answer research questions.

What is quantitative research?

Research that involves a large number of respondents answering structured questions using specific response formats.

What is qualitative research?

Research that seeks unstructured responses, often open-ended, to understand thoughts and feelings on a subject.

How is qualitative research used in international marketing?

To formulate problems more clearly, stimulate ad message ideas, and understand socio-cultural impacts on behavior.

What is the role of top executives in marketing research?

To gain a sense of the market and customers through direct contact, beyond relying solely on detailed reports.

What is the significance of multicultural sampling in marketing research?

It addresses the challenges of gathering data in less-developed countries where cultural differences may affect research outcomes.

What are the key factors to consider when using secondary data?

The reliability, authenticity, and comparability of the data across different countries.

What is the importance of understanding socio-cultural factors in marketing research?

They influence behavior patterns and can impact the effectiveness of marketing strategies.

What is the purpose of forecasting in international marketing research?

To anticipate social, economic, consumer, and industry trends within specific markets or countries.

What is an example of a qualitative research method?

Open-ended interviews that allow respondents to express their thoughts and feelings.

What is the impact of cultural differences on marketing research?

They can complicate the communication and application of research tools in foreign markets.

What is the significance of direct market contact for executives?

It provides insights that are crucial for informed decision-making beyond what reports can offer.

How can qualitative research help in developing hypotheses?

It uncovers concepts and relationships that can be tested in subsequent quantitative studies.

What are some problems associated with gathering primary data?

Ability to communicate opinions, willingness to respond, sampling in field surveys, and language comprehension.

Why is language diversity a challenge for marketing researchers in India?

Researchers must consider the problems of language diversity due to the presence of multiple languages.

What are the three techniques used for translation in marketing research?

Back translation, parallel translation, and decentering.

What is a significant challenge in translating questionnaires for Japanese language?

The Japanese language uses 15,000 kanji characters, making translation a daunting task due to structural differences from English.

What factors must be considered in multicultural research?

Different languages, economies, social structures, behaviors, and attitude patterns to ensure comparability and equivalency of results.

What are some methods of research available online?

Online surveys, buyer panels, online focus groups, web visitor tracking, advertising measurement, customer identification systems, email marketing lists, embedded research, and observational research (netnography).

What is the expert opinion method in estimating market demand?

Experts are polled for their opinions about market size and growth rates, using triangulation to compare estimates from different sources.

What does the analogy method assume in market demand forecasting?

It assumes that demand for a product develops similarly across countries with comparable economic development.

What are the limitations of analyzing and interpreting research information?

Both secondary and primary data are subject to limitations, and accepting information at face value in foreign markets can be imprudent.

What is necessary for coping with disparities in market research?

A high degree of cultural understanding, knowledge of social customs, semantics, current attitudes, and a creative talent for adapting research methods.

What are the advantages and disadvantages of decentralization in marketing research?

Advantage: Local analysts provide information more rapidly and accurately. Disadvantage: Possible ineffective communication with home-office executives.

What role do Ford and Philips play in global market research?

They track European technology and consumers to develop products for global markets at their research centers.

How should decision makers be involved in marketing research?

They must be provided with timely analyses and interpretations of information and should participate in fieldwork to understand the market directly.

What are the four kinds of company-agency-customer relationships in managing cultural barriers?

Options B and C are better suited for managing cultural barriers, where a common corporate culture exists among people.

What is the basic objective of market research?

To provide management with information for more accurate decision making.

What are the three keys to successful international marketing research?

Inclusion of natives of the foreign culture on research teams, use of multiple methods and triangulation, and involvement of decision makers in direct customer interactions.

What is the primary difference between global marketing management and international marketing management?

Global marketing management focuses on a unified approach to marketing across all countries, while international marketing management tailors strategies to individual countries.

Why is planning essential in global marketing?

Planning is necessary to achieve company goals and manage external factors affecting the firm's strengths and weaknesses.

What are the key factors to consider in market-entry strategies?

Factors include market size, competition, cultural differences, and potential return on investment.

What is the significance of international strategic alliances?

They enhance market access, share resources, and reduce risks associated with entering new markets.

What was the market segmentation focus in the 1970s?

The focus was on standardization versus adaptation.

What was the market segmentation focus in the 1980s?

The focus shifted to globalization versus localization.

What was the market segmentation focus in the 1990s?

The focus was on global integration versus local responsiveness.

How did the Internet revolution impact global marketing?

It expanded global reach and contributed to the debate on whether to standardize marketing strategies.

What is the ideal market segment size for customer satisfaction?

The ideal market segment size is one, allowing for highly tailored marketing efforts.

What are some important segmentation variables beyond country?

Climate, language group, media habits, age, and income are often more important.

What is the Nestlé Way in global marketing?

It emphasizes long-term planning, decentralization, sticking to core competencies, and adapting to local tastes.

What are the benefits of global marketing?

Benefits include economies of scale, access to diverse marketing talent, and financial advantages from serving multiple markets.

What does planning for global markets involve?

It involves managing external factors, committing resources, and achieving specific goals in target markets.

What are the three structures of planning in organizations?

Corporate planning, strategic planning, and tactical planning.

What is the focus of corporate planning?

Corporate planning involves setting generalized long-term goals for the entire enterprise.

What does strategic planning address?

It addresses products, capital, research, and long- and short-term goals at the highest management levels.

What is the purpose of tactical planning?

Tactical planning addresses specific marketing and advertising actions at the local level.

How do company objectives relate to international resources?

Defining objectives helps align domestic and international divisions, but foreign market opportunities may not always match corporate objectives.

What is required for successful international operations?

Management must be prepared to invest financially, allocate personnel, and remain committed long enough to achieve a return on investment.

What is the first step in the international marketing planning process?

Preliminary Analysis and Screening—Matching Company and Country Needs

What does Phase 1 of the international planning process involve?

Evaluating market potential and analyzing countries to eliminate those that do not offer sufficient potential.

What is the focus of Phase 2 in the international marketing planning process?

Defining target markets and adapting the marketing mix accordingly.

What are the three major questions addressed in Phase 2?

1. Are there identifiable market segments for common marketing mix tactics? 2. Which cultural adaptations are necessary? 3. Will adaptation costs allow profitable market entry?

What is the main goal of Phase 3: Developing the Marketing Plan?

To establish a specific action program for the market, including budgets and sales expectations.

What does Phase 4: Implementation and Control entail?

Coordinating and controlling marketing plans during implementation and evaluating performance objectives.

What are some alternative market-entry strategies mentioned?

Exporting, contractual agreements, strategic alliances, and direct foreign investment.

What is direct exporting?

When a company sells directly to a customer in another country.

What is indirect exporting?

When a company sells to a buyer in the home country, who then exports the product.

What is a key advantage of licensing as a market-entry strategy?

It allows a company to establish a foothold in foreign markets without large capital outlays.

What are some disadvantages of licensing?

Choosing the wrong partner, quality issues, payment problems, and loss of marketing control.

What does franchising provide to franchisees?

Market knowledge, capital, and personal involvement in management.

What are the key factors influencing the success of franchising?

Monitoring costs, the principal's international experience, and brand equity in the new market.

What is the purpose of a situation analysis in Phase 3?

To assess the current market conditions and inform the marketing plan.

What is the significance of adapting the marketing mix in international markets?

To meet cultural constraints and ensure successful acceptance of products.

What role does the Internet play in exporting?

It facilitates international internet marketing and direct sales for high-tech products.

What are contractual agreements in the context of international marketing?

Agreements that allow companies to enter foreign markets through licensing or franchising.

What should companies consider when allocating resources in international marketing?

The level of resource commitment and the need to decide on new market segments.

What is the outcome of a successful implementation and control phase?

An integrated view of all country markets and their interrelationships.

What is the primary focus of the international planning process?

To systematically guide multinational firms in planning for operations across several countries.

What is a Strategic International Alliance (SIA)?

A business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective.

List three reasons firms enter into Strategic International Alliances.

1. Opportunities for rapid expansion into new markets 2. Access to new technology 3. More efficient production and innovation.

What is an International Joint Venture (JV)?

A partnership of two or more companies that create a separate legal entity, sharing in the management and equity positions.

What are some complexities involved in Joint Ventures?

1. Choice of partners 2. Qualities of relationships 3. Sharing of control 4. Institutional environments 5. Marketing capabilities 6. Experience 7. Knowledge sharing.

What is the purpose of a consortium?

To pool financial and managerial resources and to lessen risks, typically involving many participants in a new market.

What is Direct Foreign Investment?

Investment within a foreign country to capitalize on low-cost labor, avoid high import taxes, reduce transportation costs, and gain access to raw materials and technology.

What factors influence Direct Investments?

1. Timing 2. Complexity of contracts 3. Transaction cost structures 4. Technology transfer 5. Product differentiation 6. Experience and cultural diversity.

What are the three organizational structures for companies competing globally?

1. Global product divisions 2. Geographical divisions 3. Matrix organization.

What is the significance of the locus of decision in organizational strategy?

It determines where decisions will be made (e.g., corporate, international, regional, national, local) and who will make them.

What are the characteristics of centralized organizations?

Experts are available at one location, allowing for high control over planning and implementation, with centralized records and information.

What are the advantages of decentralized organizations?

They have direct day-to-day contact with the market but may lack a broad company view.

What is the impact of global competition on international marketing?

It requires quality products designed to meet changing customer needs and rapidly advancing technology.

What is the role of collaborative relationships in global marketing?

They are essential for strategic planning and alternative market-entry strategies.

What is the main goal of strategic planning in global marketing?

To implement collaborative relationships and strategies for effective market entry.

How do firms benefit from reduced marketing costs in SIAs?

By leveraging shared resources and market knowledge to enhance efficiency.

What is a major benefit of accessing additional sources of products and capital in SIAs?

It allows firms to enhance their competitive advantage and operational capabilities.

What is a key characteristic of the Star Alliance?

It involves cooperation between airlines, sharing operations like ticketing and reservations.

What is the significance of equity positions in Joint Ventures?

They indicate the ownership stake each partner holds in the venture.

What does the term 'first movers' refer to in Direct Investments?

Companies that enter a market before their competitors, gaining advantages but facing higher risks.

What is the importance of advertising and reputation barriers in Direct Investments?

They can affect market entry and the overall success of investment strategies.

What is the purpose of a matrix organization in global competition?

To combine product management with geographical operations for efficient decision-making.

How do institutional legal environments affect Joint Ventures?

They dictate the legal framework within which the JV operates, influencing control and management.

What is the role of experience in forming successful Joint Ventures?

Experience helps partners navigate complexities and enhances the likelihood of successful collaboration.