Chapter 4 marketing management📚

Multi domestic strategy

The MNC a attempts to offer products or services that attract customers by closely satisfying their cultural needs and expectations

Transitional strategy

Seeking location advantages

Gaining economic efficiencies from operating worldwide

Seeking location advantages

Disperse value chain activities, where the MNC can do it best or cheapest as required

Dan economic efficiencies from operating worldwide

Global platform: a country where a firm can vest perform some of its value chain activities, the gaining a comparative advantage

Absolute advantage

The advantage arising from cost quality or resource advantages associated with a particular nation

international strategy

The MNC sells products and uses similar marketing techniques world ride

This is a compromise approach to global local dilemma

regional strategy

The MNC managers, raw material, sourcing production, marketing, and support activities within a particular region

passive exporter

is a company that treats and fills overseas orders like domestic orders

interact exporting

intermediaries or go between firms, provide knowledge and contacts overseas

direct exporting

the MNC takes on duties of intermediaries and make direct contact with customer customers in the foreign market

licensing

a contractual agreement between a domestic licensor and a foreign license

international franchising

the franchiser grants the use of a whole business operation to the franchise

contract manufacturing

this represents production by firm following the foreign companies specifications

turn key operation

a multinational company makes a project fully operational before turning it over to the foreign owner

international strategic alliances

our cooperative agreements between firms from different countries to participate in business activities

• activities may include any value chain activity from R&D to sales and service

• One of the dominant entry mode strategies for in the MNC

For indirect investment

An MNC owns part of all foreign operation

• International joint ventures are a form of FDI

Greenfield investments

Using foreign direct investments to start a foreign subsidiary from scratch

Acquisition investments

Starting foreign operations by purchasing a local company

Political risk

Refers to the impact of political decisions or events on the business climate in a country such that a multinationals profitability and feasibility of its global operations are negatively affected

Why should multinational companies be concerned about political risk?

• they can have a serious impact on its profitability

• The world is dependent on energy coming from locations with ____

• The world is interconnected ______ in one country can have worldwide impact

Market research

Is methodology identification, collection, analysis, and distribution of data related to discovering in solving problems or opportunities

It enhances good decision-making

Two fundamental types of market information needed today:

• Data related to broad areas of interest

• Data that addresses a specific question

Market information system

Is not a software package but a continuing process of identifying collecting analyzing accumulating and dispensing critical information to marketing decision makers

What information should the market information system collect?

Consider what information is important in the source of the data

microeconomics

The study of individual economic activity

macroeconomics

study of economic activity in terms of broad measures of output

management research deliverable

defines what managers want to do with research?

• Key is to have information to make better more informed decisions

exploratory research

is about discovery

descriptive research

seek to describe or explain some phenomenon

• Identify as associations between variables

casual research?

tries to discover the cause-and-effect between variables

Primary data

Data collected specifically for the research question at hand

• Qualitative research

• Quantitative research

Secondary data

Data collected for some other purpose than the problem currently being considered

Focus group

• moderated by a professional

• 6 to 10 people

• Structured open format

• Not a representative sample, but leads to development surveys

In-depth interview

Structure, loosely, structured with an individual based on some characteristic of interest often demographic

Surveys

Structure questionnaires via male telephone or Internet

Behavioral data

Is based on what customers do, not what they say

Observational data

Is collected by watching what people do in various situations

Mechanical observation

Uses machine like turn styles, traffic counters, eye cameras, Amazon, Alexa

Marketing research process

• collect the data

• Analyze the data

• Report the findings