Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Nicholas Grigoriou Slides prepared by: Joe Rosagrata 17–1 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 17–2 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 17–3 Research: the two broad dimensions 1Market research – Conducted prior to foreign market entry to ascertain viability. 2Marketing 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 17–4 Research design issues Three important factors: 1Construct equivalence  How the researcher, subjects and others involved see, understand and code a particular phenomenon. 2Measurement equivalence  Asks the question, ‘Are the phenomena in countries X and Y measured the same way?’. 3Sampling 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 17–5 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 17–6 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 17–7 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 17–8 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 17–9 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 17–10 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 17–11 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 17–12 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 17–13 International distribution considerations Industrial goods versus consumer goods – Products undergo different distribution channels. Selecting international channel members – 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 17–14 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 17–15 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.