Ch 14 (International Marketing Research).pptx

Copyright © 2010, P K Vasudeva
International Marketing Research
Excel Books
14– 1 International Marketing (4th Edition) P K Vasudeva
CH: 14
Chapter
14
International
Marketing Research

Excel Books
CH: 14
Cont….
Meaning & Scope
❖ International Marketing Research is a complete analysis of the market,
information regarding the nature, size, organisation, profitability of
different markets, changes in the market and various factors – economic, social
and political – affecting those changes.
❖ The main purpose of international market research is to know about
consumers and the markets of its products and services.
❖ The researcher is mainly concerned with the details regarding
consumers.

Excel Books
CH: 14
The following activities are included in the international market research:
❖ Analysis of the market size according to age, sex, income, profession
and standard of living of customers.
❖ Estimating the regional or territorial demand of different markets.
❖ Collecting information about the existing and prospective customers of
the company’s products and their attributes and various competitors’ share
in the market.
❖ Studying the market changes and conditions affecting market changes
such as customers’ preferences shift in brand loyalty and so on.
❖ Analysing the working of various channels of distribution and their role
in creating market demand of the product.
❖ Forecasting the profitability of different markets and marketing
segments.

Excel Books
CH: 14
Cont….
Need for Market Research – Overseas Markets Research
Need for Market Research
❖ When a new product is to be introduced in the market.
❖ When the sale of the product is showing a downward trend and the
reason(s) for the fall could not be established.
❖ When facts and figures about the demand potential are not available.
❖ In designing an advertising programme when consumers habits and
preferences and of the markets are not known.
❖ When product development is needed to adapt a product according to
the needs of the customers.
❖ When the income, fashion, habits, and preferences are changing fast.
The market research is, therefore, needed in taking decisions regarding new
product launching, product adaptation, entry to new market and alternative
pricing strategies.

Excel Books
CH: 14
Overseas Marketing Research
❖ A business organisation has limited resources at its command. Its aim
is to deploy these resources in an effective manner to earn the maximum
profits. Export marketing is sometimes a committed management philosophy
with a business organisation.
❖ Once these objectives are set, plans can be formulated and targets
fixed for a particular market questions need to asked first, including the
following:-
• Which of its products can be easily sold in the foreign market?
• Which are the markets it should concentrate on, for a given product, in
order to, achieve maximum results?
• What kind of strategies are to be followed in order to achieve the best
results in the market?
❖ Scanning overseas markets is, therefore, nothing more than an attempt
to get information relating to marketing conditions and consumers’
characteristics and behaviours in a foreign market.

Excel Books
CH: 14
Sources of Market Research
❖ The primary goal of the marketing research is to provide a basic
understanding of the research process and the utilisation of information.
❖ Special attention should be given to the information collection process
and the use of marketing information.
❖ Regardless of where the intended market is, a company must
understand the market and its consumers.
❖ Japan and the European countries are successful abroad because of
their adoption of the marketing concept, a concept popularized and
originated in USA.
❖ Basically, the marketing concept requires companies to understand
consumer needs and marketing research is a necessary undertaking, in
making that determination.

Excel Books
CH: 14
Approach to Market Research
There are three main heading which have been identified to carry out step
by step market research. These are covered under:
❖ Screen potential of markets
❖ Assess targeted markets
❖ Draw conclusions

Excel Books
CH: 14
Market Research Process
There are seven principal steps that are to be taken in this process.
1. Process Formulation
2. Decision of Fact-gathering Procedure
3. Data Collection
4. The Marketing Sample
5. Data Evaluation
6. Interpreting The Data
7. Report Preparation

Excel Books
CH: 14
Cont….
Role of International Trade Agencies
United Nations Conference on Trade And Development (UNCTAD)
❖ The UNCTAD was established in 1964 on the demand of the
developing or less developed countries relating to their economic
development.
❖ Although most of the developing nations had joined General Agreement
on Tariff and Trade (GATT).
Generalised System of Preferences (GSP)
❖ The conception and the implementation of GSP is one of the principal
achievements of UNCTAD in 1964 Geneva Conference.
❖ It is a system of allowing preferential tariff rates that is less or very
much reduced tariff rates in favour of certain products of developing countries,
to be exported to developed nations.
❖ The main advantage of this system to the developing countries is that
they get competitive strength in the foreign markets.

Excel Books
CH: 14
Role of Regional Institutions and Sectoral Organisations for Export
Marketing
Role of Director General of Foreign Trade
Director General of Foreign Trade (DGFT), various delegations and the Export
Promotion Councils also conduct research in overseas markets.
Their main roles are as under:
❖ Director General of Foreign Trade: The Government of India’s Trade
Representatives (DGFT, Commercial Counsellors and Commercial
Secretaries) function in almost all the important trading centres of the
world as the government’s eyes and ears.
❖ Delegations: The Federation of Indian Export Organisations (FIEO),
which is an Apex body and coordinating platform from various export
organisations, arranges to send trade delegations abroad to study
market conditions and arrange talks between exporters and importers.
❖ Export Promotion Councils: The EPCs conduct market surveys and
market research in their respective field. They also send trade
delegations abroad.

Excel Books
CH: 14
Planning and Conduct of Market Survey
A market survey is a fact-finding mission, conducted for the purpose of obtaining
all relevant information about the market. The survey may be:
i. Product oriented or
ii. Market oriented.
The following steps are involved in carrying out a market survey:
❖ Setting objectives
❖ Adopting methodology
❖ Survey conducting
❖ Survey Techniques
❖ Survey reporting

Excel Books
CH: 14
Cont….
Market Information System
The word ‘organisation’ is derived from the word ‘organism’, which refers to a live
thing or a living thing. Some of the distinguishing characteristics of a living thing
are its ability to grow and develop, ability to repair itself if it sustains any damage
or injury, ability to multiply and act in a rational manner.
❖ What is MIS?
The best way of understanding this is to examine each of the three
words in its title separately and in the typically systems approach, put
them together to yield a definition of MIS.
❖ Management
Management has been defined variously, in various contexts, to serve
various purposes of discussion and understanding. It has been defined
as getting things done with and through other people. This has in built in it,
the concept of a supervisory function facilitating the final result in being
greater than the algebraic sum of the individual efforts of the individuals. This is
known as ‘synergy’. Planning, Organizing, Staffing, Directing,
Coordinating and Controlling are the basic managerial functions.

Excel Books
CH: 14
Cont….
Information
A person who has not been formally exposed to management when asked to
describe information tries to explain the term using such words as facts, data,
figures etc.
System
One has to put together personnel, sensors, storage documents, processing
devices etc. into a sub system.
Management Information System
“It is an organized method of providing past, present and future oriented
information relating to internal operations and external intelligence. It supports
the planning, control and operational functions of an organisation by furnishing
uniform information, in the proper time frame to assist the decision making
process.”

Excel Books
CH: 14
Cont….
Purpose of MIS: The purpose of MIS is to, raise the process of management:
FROM
TO
a) The level of piecemeal spotty information. The level of Systems
insights
b) Intuitive guesswork
Systems information
c) Isolated problem solving
Sophisticated data processing and
systems problem solving
d) Sources of information
Systems of information
Diagrammatic Representation: It is conventional to represent systems in a
typical “systems diagram”. Represented in this manner, MIS would appear as
follows: -
Input Process
Outpu
t
Date Process Information

Excel Books
CH: 14
Cont….
Data vs Information.
More difficult to produce
(f) Available in plenty
Meaningful collection of
numbers/letters. Ship sighted 7 NM in
direction 73o (Starboard)
(e) Collection of
numbers/letters/symbols.
e.g. Ship Sighted 15 N 89 N
Triggers immediate action e.g. Fuel
state Red-Rush fuel, curtail flying etc.
(d) May not trigger any action e.g. Stock
of ATF 1500 KL
Indicative of trends e.g. Fuel
consumption increasing fast.
(c) Not indicative of any trend e.g.
Today’s ATF consumption 800 KL
Indication of the state of an entity
related to some standard norms. E.g.
ATF state “RED”.
(b) Description of an entity e.g. Stock of
ATF 1500 KL
Processed or analysed data
50% of officers on leave
12% of aircraft lost in a mission
(a) Raw facts, observations, unevaluated messages
e.g. 12 officers on leave.
2 aircraft lost in a mission
INFORMATION
DATA

Excel Books
CH: 14
Cont….
Information Process
1. Capturing Data
2. Verifying
3. Classifying
4. Arranging/sorting
5. Summarising
6. Calculating
7. Storing
8. Retrieving
9. Reproducing
10. Disseminating/Communicating
11. Destruction

Excel Books
CH: 14
Cont….
Functions of Information
1. It reduces uncertainty of the user.
2. It increases decision effectiveness by identifying situations, which will
result in right decisions and development of more alternatives with more
information resulting in better decisions.
Information vs Cost
Information, like any other resource does not come free. In the first place, there
is the cost of collecting data. Next there is the cost of processing data. Then
there may be cost of storage, retrieval and reproduction, if the information is
needed for further use. As against this, it is very difficult to establish the value of
information.
Information vs. Time
The usefulness of information changes with time. Therefore, the degree of
usefulness is a prime determinant in choosing methods and frequency of
collection, transmission and storage of information.

Excel Books
CH: 14
Cont….
Attributes of information
1. Accuracy
2. Relevance
3. Timeliness
4. Frequency
5. Response Time
6. Power accruing to the possessor
Attributes of Information in the information system sense
1. True or False
2. New
3. Incremental
4. Corrective

Excel Books
CH: 14
Cont….
Basic Concepts of MIS
The development of a Management Information System is based on three basic
concepts independently developed by three different management scientists.
These are the concept of programmed and non-programmed decisions
developed by Herbert A. Simon, the concept of different levels of planning and
control developed by R.N. Anthony and the concept of an industrial Dynamics
Approach developed by Jay W. Forrester.
Programmes and Non-Programmed Decisions
Decisions can be classified as programmed or non-programmed on the basis of
the ability of the organisation or individual to pre-plan the process of making the
decision.

Excel Books
CH: 14
Cont….
MIS for an organisation is traditionally represented as a pyramidal model as
depicted in Figure. Management Information System
Mis for
Strategic
and Policy
Planning and
Decision-making
Management Information for
Tactical Planning and Design-making
Management Information for Operational
Planning, Decision-making and Control
Transaction Processing Inquiry Response

Excel Books
CH: 14
Cont….
Information Network
The concept of the information system as a network is based on industrial
dynamics. In the industrial dynamics approach an organisation is described as a
set of networks, each network consisting of: -
1. A level (inventory such as material, money, etc.) or the state of a
variable.
2. An activity which utilizes the inventory or changes a state
3. Decision functions, which determine how information is transformed into
decisions to cause activity to take place.

Excel Books
CH: 14
Cont….
Desirable Characteristics of MIS
1. It should be able to generate information for identifying alternatives and
then selecting an alternative based on laid down criteria. It must help in
planning of end results and must throw up as to what specific activities
are required to achieve these.
2. It should be comprehensive and cover all aspects of organizational
activities. It should help in achievement of objectives of organisation.
3. It should concentrate on developing information rather than facts. Only
relate information should be provided while irrelevant information is
omitted.
4. The information flow should follow organisation structure and should
keep in view the delegation of various authorities.
5. It must be an integrated system from which qualitative information for
higher level of management can be easily extracted.

Excel Books
CH: 14
Cont….
Output Formats
1. The significant elements of this report should be future oriented.
2. It should help in analyzing performances measurements by
comparison.
3. Only essential facts should be included.
4. It should be easy to understand and read.
5. The distribution of the report should be on need to know basis.
6. It is preferable to issue these reports on fixed schedules.
7. It should cover proper periods of time.
8. The economic effect of the report must be kept in view while preparing
it.
9. For analysis of information, best-known techniques must be used, but it
should be acceptable to the Management.
10. It should be self-contained and self-explanatory.

Excel Books
CH: 14
Cont….
Specifications of MIS
(i) Readily Available
(ii) Precise
(iii) Tailor-made for
the Problems
(i) Historical
(ii) More Accurate
(iii) Integrated
(i) Predictive
(ii) Less Accurate
(iii) Collected for the
Problems
Nature of
Information
Single Task or
Operation
Whole Organisation
Whole Organisation
Consideration
Limited to Work
Centres (Local)
Internal to the system
External to the system
Interaction
Real Time
(Day-to-day)
Short Term (Year, Qrtr,
Month)
Long Term (Future)
Time Perspective
(i) Execute the
Decisions
(ii) Use resources to
conform with Rules
(iii) Perform
(i) Make Decisions set
Rules,
(ii) Allocate the resources
(iii) Measure performance
(1) Set Objectives
(2) Determine
Resources for
the system
Activities
Supervisors, Foreman,
Clerk
Divisional Departments Profit
Centres
Corporation/Division
Top Management
Organizational
Identity
Operational Control
Managerial Control
Strategic Planning
Characteristics

Excel Books
CH: 14
1 Lathe Operator
decides to accept
or to reject a
turned out part
2 Bank Teller
Decides to honor
the cheque
3 Inventory Clerk
places An order
where Reorder
Level & Reorder
Quantity are given
to him
1. Layout of Plant
2. Product Mix
3. Hiring a Worker
4. Designing an
Advertising Campaign
1. Location of a new
plant
2 Introducing a New
product
3. Collaboration
Agreement
4. Labour Contract
Examples of
Decisions
Action
Control
Prediction
Use of
Information
Programmed, Highly
Repetitive
Non programmed Repetitive
Non Programmed, one
time
Type of Decision
Certainty
Risk
Uncertainty
Decision
Environment
Follow directions
Administrative Persuasive
Creative Analytical
Mental Activity

Ch 14 (International Marketing Research).pptx

Recommended

Recommended

More Related Content

Similar to Ch 14 (International Marketing Research).pptx

Similar to Ch 14 (International Marketing Research).pptx (20)

More from neeru.s

More from neeru.s (19)

Recently uploaded

Recently uploaded (20)

Ch 14 (International Marketing Research).pptx