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international marketing decisions

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Presentation on theme: "international marketing decisions"— Presentation transcript:

1 international marketing decisions
Information for international marketing decisions Types of market information Issues in international market research Role of networks International market intelligence © 2018 Taylor & Francis BI/C.A.Solberg 2012

2 International marketing decisions
Entry mode Where to? Profile Product adaptation Primary & secondary markets Positioning Budget Service level Target customers Distribution channel Credit policy Advertising adaptation Ethical issues Partner selection Partner governance Advertising media Logistics Trade fair participation Roll out sequencing Pricing policy BI/C.A.Solberg 2012 © 2018 Taylor & Francis

3 What information do we need to make these decisions?
How should we go about getting this information? What resources should we spend to get hold of it? And how much time? BI/C.A.Solberg 2012 © 2018 Taylor & Francis

4 information gathering
Ad hoc As input to business decisions Continuous market intelligence Informal information gathering Formal Market research investigation intelligence experience Different types of market information BI/C.A.Solberg 2012 © 2018 Taylor & Francis

5 Customer visits, some research
Information from market Information about market Customer visits, some research Mostly personal information and informal exchange Customer visits and networks Information from partner Information about partner Sales reports, meetings Market information flows in exports (arrows designate the importance of info flow) BI/C.A.Solberg 2012; based on Gripsrud et al. 1999 © 2018 Taylor & Francis

6 Information behaviour in international markets
Results from a survey among 112 Norwegian exporters 2012 Mean Std. Information orientation Impacting factors Info from - networks - internet - consultants - representatives Info processing Dissemination 5.4 4.1 2.8 4.0 3.6 5.0 1.3 1.4 1.5 # of years + sales in market info orientation Competition +market volatility info orientation Information outcome/usage Sales in market some more planning and responsiveness Market insight Responsiveness Marketing plan 5.4 5.3 4.3 1.0 0.9 1.7 Competition + volatility some more planning and responsiveness Performance 4.3 1.3 Info problems Emerging strategies 3.2 3.3 1.3 1.4 © 2018 Taylor & Francis

7 How critical really is market research in international markets?
Results from a survey in the Norwegian fishing sector (N=114) .35*** .02 .32*** .19* -.32*** Adj. R2: .392*** Short relations Information from representative about market .25** .23** .19* -.06 .08 Adj R2: .280*** Long relations .28** .17 .24* .13 -.31*** Adj. R2: .273*** Information from others about market Export performance Information from representative about rep. Information from others about representative Market research * P-value .10 ** P-value .05 *** P-value .01 BI/C.A.Solberg 2012 Source: Solberg, Informasjonsadferd og internasjonalisering, BI 2003. © 2018 Taylor & Francis

8 Things aren’t straightforward I
Data equivalence Construct equivalence Do products, concepts, constructs etc have the same meaning across cultures? Measure equivalence Different nations have different systems: what is 34 kg/cm2 in lbs/inch2? Scales have different meanings in different cultures Translation Data collection equivalence Different compositions, distribution and sample frames yield incomparable samples across countries. Different response rates in different countries BI/C.A.Solberg 2012; based on Craig and Douglas 2000 © 2018 Taylor & Francis

9 Things aren’t straightforward II
Interpretation of answers in two different cultures Italy UK “Religion plays an important role in my life” “I go to church regularly” 55% 30% 75% 10% Source: Williams 1991 BI/C.A.Solberg 2012 © 2018 Taylor & Francis

10 Things aren’t straightforward III
Poor translation or cultural differences? % Partly or entirely agree Great Britain France “There are times when it is right to disobey the law” “Il y a des fois où désobéir aux lois est une bonne chose” 6 40 Source: Williams 1991 © 2018 Taylor & Francis BI/C.A.Solberg 2012

11 Things aren’t straightforward IV
Translation and backtranslation From Norwegian to English to Norwegian Følelse Sensibility: Følsomhet Sentiment: Følelse Mening Oppfattelse Tanke Sentens Skjønn Instinct: Instinkt Drift Naturdrift Emotion: Sinnsbevegelse Rørelse Feeling: Følelse Kjensle Hunch: Pukkel Kul Krøke BI/C.A.Solberg 2012 © 2018 Taylor & Francis

12 Personal interviews – focus groups
Costs Quality SA Ar Ch Br Mx It Ge Th Ma In SK Cn Tw Ja UK Fr High Low Telephone interviews Costs Quality SA Ar Ch Br Mx It Ge Th Ma In SK Cn Tw Ja UK Fr High Low Ru Personal interviews – focus groups Ar=Argentina Br=Brasil Ch=Chile Cn=China Fr=France In=Indonsia It=Italy Ja=Japan Ma=Malaysia Mx=Mexico Ru=Russia SA=Saudi Arabia SK=South Korea Th=Thailand Tw=Taiwan Ge=Germany UK=United Kingdom Costs and quality of market research in different countries Source: Zimmerman and Szenberg 1996 BI/C.A.Solberg 2012 © 2018 Taylor & Francis

13 Different types of firms adopt different information behaviours
“Objective” market research Extensive use Limited Nationally oriented, often larger firms that need information for their export ventures. They risk doing “good” research” on irrelevant issues. The analytical firm Large internationally oriented firms with well-developed market intelligence systems. Active use of both market research and network partners The international firm No experience and no network. Risk making bad decisions based on intuition and hearsay. The most competent ones take advantage of structural coincidences. The intuitive firm Ethnic trade and special industries (fx. shipping, fish). Firms make their decisions from information from network partners based on trust The network-oriented firm Information through network partners Undeveloped Well developed Different types of firms adopt different information behaviours BI/C.A.Solberg 2012 © 2018 Taylor & Francis

14 And, indeed, they are different
The analytical firm Number of firms 63 Sales 653 mill Export share 54% Performance 3.7 The international firm Number of firms 94 Sales 226 mill Export share 59% Performance 4.1 Extensive use “Objective” market research The intuitive firm Number of firms 34 Sales 271 mill Export share 34% Performance 3.4 The network oriented firm Number of firms 46 Sales 130 mill Export share 62% Performance 4.0 Limited use Undeveloped Well developed Information through network partners And, indeed, they are different Results from a survey of Norwegian firms in the fishing sector (performance figures 1–5, where 5 is best) BI/C.A.Solberg 2012 © 2018 Taylor & Francis

15 There is a lot of information out there!
Contact with trade councils and embassies Sales reports Discussions with customers Trade journals Sales statistics Do we have mechanisms to receive and process all the information that we have access to? Newspapers Economic/ financial reports Discussions with competitors Discussions with representatives Internet Trade fair visits Service reports Reports from trade councils Dedicated market research Import statistics There is a lot of information out there! BI/C.A.Solberg 2012 © 2018 Taylor & Francis

16 Evaluation of the system
Statistics (int/ext) Report from reps Journals/newspapers Trade fairs/seminars Newsletters Dedicated surveys Databases/internet, etc. Do we get reasonable information from the right sources is it being embedded in the organisation so that we can make the right decisions? Selection of information sources Evaluation of the system Establishment of routines for data retrieval Yearly/monthly/weekly? Role of representative? Comparability? Dedicated forms? Organisational “home”? How much analysis is needed? Information processing Market selection Modes of operation Partner selection Products and product development Marketing effort Decisions Setting up and evaluating the international marketing intelligence system BI/C.A.Solberg 2012 © 2018 Taylor & Francis


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