Professional Documents
Culture Documents
Waterfall Approach
-- Initially Entering One or More Lead Markets and Timing Subsequent Entry in a Phased Manner
Market Targeting
Evaluating each market segments attractiveness and selecting one or more market segments to enter
Product Positioning
Planning for the product to occupy a clear, distinctive, and desirable place relative to competing products in the mind of target customers
Demographic
Age, sex, income, education, occupation, religion, race, nationality
Psychographic
Social class, lifestyles, personalities
Behavioral
Purchase occasion, benefits sought, user status, usage rate, loyalty
Target Marketing
Evaluating Market Segments
segments size and growth segment structural attractiveness (Competitive Intensity) company objectives and resources
Diverse Segments
Same product, different target segments Canon AE-1 Camera
Mixed Strategy
A Comparison of U.S. and Mexican Ads for Speed Stick Brand Deodorants
SPEED STICK
SPEED STICK
OLD SPICE
BRUT
GILLETTE
SURE
EFFECTIVENESS
SURE RIGHT GUARD
GILLETTE
RIGHT GUARD
DEGREE
DEGREE
- U.S. Consumers
- Mexican Consumers
MUM LADY SPEED STICK SECRET LADY SPEED STICK SURE MUM SECRET
EFFECTIVENESS
TEEN SPIRIT
TEEN SPIRIT
- U.S. Consumers
- Mexican Consumers
Conc Div
Conc 1 3
Div 2 4
Strategy 2:
When product line appeals to different segments & cost of penetration is relatively high (consumer electronic goods)
Strategy 4:
Products with mass appeal with relatively low cost of penetration (most consumer non-durable goods)
Contractual Agreements
Licensing, Franchising, etc.
Equity Based
Joint Ventures WOS
Strategic Alliance
Exporting
Indirect Exporting Cooperative Exporting Direct Exporting
Exploring Experimental
Experienced
Cooperative Arrangements
Piggyback Marketing
GE; Borg-Warner, etc.
Turnkey contracts
Licensing
Lack of control over technology Inability to realize location and experience curve economies Inability to engage in global strategic coordination
Joint ventures
Access to local partners Lack of control over technology knowledge Inability to engage in global strategic Sharing development costs and coordination risks Inability to realize location and Politically acceptable experience economies Protection of technology Ability to engage in global strategic coordination Ability to realize location and experience economies High costs and risks
Structuring Alliances
Choosing organizational forms that provide incentives for success Contracts vs. Equity Relationships
Alliance Dynamics
Managing with an eye to the forces for change in a relationship
INCOTERMS
Ex-works (EXW) Free Carrier (FCA)
inland vs destination point
INCOTERMS
Free on Board (FOB) Cost & Freight (CFR) Cost, Insurance & Freight (CIF)
port charges documentation charges other charges
Terms of Payment
Consignment Open Account Documents against Acceptance (Time Draft) Documents against Payment (Sight Draft) Letter of Credit Confirmed LC Cash in Advance
Letter of Credit
A Letter of Credit is an instrument issued by a bank, at the request of a buyer. The bank promises to pay a specified amount of money on presentation of documents stipulated in the L.C.
Letter of Credit
Irrevocable vs Revocable LC
An irrevocable L.C. cannot be modified or cancelled without the consent of the exporter
Confirmed vs Unconfirmed
A confirmed L.C. is one where a domestic bank certifies the credibility of the issuing bank
Revolving vs Non-revolving
Bill of Lading
The bill of lading is a document used in ocean transportation that serves 3 distinct functions:
it is the contract of carriage between the shipper and the transportation company it is a receipt of goods it is evidence of title to the merchandise
Market-Differentiated Pricing
Price Escalation
Export Related Costs
Cost of adapting products to foreign markets Operational costs
personnel market research shipping & insurance communication costs
Other factors that make it more efficient to exchange goods directly than to use money as an intermediary As a competitive strategy Excellent mechanism to get a foothold into foreign markets
Major Drawbacks
Instead of there being a double coincidence of wants, there is likely to be a want of coincidence; so that, unless a hungry tailor happens to find an undraped farmer, who has both food and a desire for a pair of pants, neither can make a trade. Paul Samuelson
Transactions purely bilateral in nature and thus are not competitive Trade is formulated on the basis of the willingness to countertrade and not on economic considerations Creates economic inefficiencies
Types of Countertrade
Counterpurchase or parallel barter (46%)
Involves both cash & kind transactions Parallel reciprocity (a special case)
Buyback (11%)
Technology in return for finished goods Levi Strauss in Hungary
Offset (27.5%)
Cost offsets through investments Can be in multiple forms Common in high cost deals (defense)
Swaps (11%)
Debt for debt swaps Debt for equity swaps Debt for product swaps Debt for education swaps
Clearing Arrangements
Extend over long period Involve basket of goods Held as deposits representing purchasing power (credit - debit account)
Tactical Decisions
Marketing mix strategies for individual country markets
Firms Needs
PROBLEM DEFINITION
CHOOSE UNIT OF ANALYSIS Advantages / Disadavantages of Secondary Research Sources of Secondary Data Types of Problems That CAn be Solved Using Secondary Data EXAMINE DATA AVAILABILTY Can Secondary Data be Used? No ASSESS VALUE OF RESEARCH RESEARCH DESIGN Construct Measurement Sampling Analysis Coding Wording Format Surveys Instrument Design Scale Development Sampling Equivalence Qualitative Methodsi Issues in Primary Data Collection Types Sources of Bias Frequency & Ease of Use Country/ Regional Specific Bias
Yes
Data Preparation Data Manipulation T-tests & Cross TAbs DATA ANALYSIS Experimental Design & ANOVA Multivariate Techniques
INTERPRETATION/ PRESENTATION
ETIC
Assessing universal attitudes and behavior Advocates culture-free approach
Qualitative Research
Individual interviews Focus groups Projective techniques Observational methods
Cultural Influences
Language Unavailability of certain segment of population
Interviewing women in Saudi Arabia
Interviewer bias
Disagreement may be seen as impolite or certain topics may be taboo differences in perceptions and attitudes
Survey Research
Mail Survey
Efficiency of postal system Absence of street and house numbers
Eg: In Venezuela houses have names (Casa Rosa) not numbers
Literacy rate Reluctance to respond in writing particularly sensitive issues (Eg: ownership of imported cars in Brazil)
Telephone Survey
Availability of telephones Efficiency of telephone system
Eg: Hung up - Russian telephone system
Mall Intercepts
Not common outside U.S
Questionnaire Design
Format
Structured vs Unstructured Direct vs Indirect
Content
Sensitivity of cultures
Wording
Translation-Re-translation
Measurement Equivalence
Are the phenomenon in countries X, Y, and Z measured the same way?
Eg: Questionnaire translation and interpretation issues
Sampling Equivalence
Are the samples used i countries X, Y, and Z equivalent?
Eg: Literacy rates