Ibo 2

Masters Of Commerce
(M.Com) 1st Year
Assignments
S C H O O L O F M A N A G E M E N T S T U D I E S
I N D R A G A N D H I N A T I O N A L O P E N U N I V E R S I T Y
M A I D A N G A R H I , N E W D E L H I - 1 1 0 0 6 8
2 0 1 6 - 2 0 1 7
Course Code: IBO-02
Course Title: International Marketing Management
Assignment Code: IBO-02-TMA/2016-17
Coverage: All Blocks
AUTHOR:- M.R UMAIR WANI

1 IBO-O2 (INTERNATIONAL MARKETING MANAGEMENT) SOLOVED TUTOR MARKED ASSIGNMENT)
 An Indian Company Desires To Enter Into International Markets To Export Garments And Fruit Juices And
Spices. What Orientation Among The Eprg Framework Should The Company Follow To Achieve Best
Results? Discuss
The Foreign Marketing Involvement Of A Manufacturing Company May Widely Vary From A State Of No
Direct Involvement To A State Of Total Involvement. Several Types Of Involvement Are Generally Observed,
Even Though They Are Not Mutually Exclusive Nor Sequentially Progressive. Depending On The Kind And
Degree Of Its Involvement In Foreign Marketing, A Firm Has To Re-Orient And Re-Organize Its Activities To
Cope With Different Levels Of Operational Responsibilities Inherent In Such Involvement. To Throw Some
Light On The Issue, Some Guidelines Are Available From What Is Called EPRG Orientation. The EPRG
Framework Attempts, Four Broad Types Of Orientation Of A Firm Towards Foreign Marketing. They Are:
 ETHNOCENTRIC ORIENTATION: The Ethnocentric Orientation Of A Firm Considers That The Products,
Marketing Strategies And Techniques Applicable In The Home Market Are Equally So In The Overseas Market
As Well. In Such A Firm, All Foreign Marketing Operations Are Planned And Carried Out From Home Base,
With Little Or No Difference In Product Formulation And Specifications, Pricing Strategy, Distribution And
Promotion Measures Between Home And Overseas Markets. The Firm Generally Depends On Its Foreign
Agents And Export-Import Merchants For Its Export Sales.
 REGIOCENTRIC ORIENTATION :In Regeocentric Approach, The Firm Accepts A Regional Marketing Policy
Covering A Group Of Countries Which Have Comparable Market Characteristics. The Operational Strategies
Are Formulated On The Basis Of The Entire Region Rather Than Individual Countries. The Production And
Distribution Facilities Are Created To Serve The Whole Region With Effective Economy On Operation, Close
Control And Co-Ordination.
 GEOCENTRIC ORIENTATION :In Geocentric Orientation, The Firms Accept A World Wide Approach To
Marketing And Its Operations Become Global. In Global Enterprise, The Management Establishes
Manufacturing And Processing Facilities Around The World In Order To Serve The Various Regional And
National Markets Through A Complicated But Well Co-Ordinated System Of Distribution Network. There Are
Similarities Between Geocentric And Regeocentric Approaches In The International Market Except That The
Geocentric Approach Calls For A Much Greater Scale Of Operation.
 POLYCENTRIC OPERATION :When A Firm Adopts Polycentric Approach To Overseas Markets, It Attempts To
Organize Its International Marketing Activities On A Country To Country Basis. Each Country Is Treated As A
Separate Entity And Individual Strategies Are Worked Out Accordingly. Local Assembly Or Production
Facilities And Marketing Organizations Are Created For Serving Market Needs In Each Country. Polycentric
Orientation Could Be Most Suitable For Firms Seriously Committed To International Marketing And Have Its
Resources For Investing Abroad For Fuller And Long-Term Penetration Into Chosen Markets. Polycentric
Approach Works Better Among Countries Which Have Significant Economic, Political And Cultural Differences
And Performance Of These Tasks Are Free From The Problems Created Primarily By The Environmental
Factors.
 CONCLUSION :
The Involvement Decision Is Conditioned By A Variety Of Internal And External Factors Such As Firms' Export
Policy, Resources And Product Range, Volume Of Export Business, Regulatory And Procedural Conditions To
Be Fulfilled Both From Exporting And Importing Angle.
From The Foregoing, It Will Be Evident That The Scope Of International Marketing For A Firm Will Be
Determined By Its Decisions Regarding The Means Of Entry Into Foreign Markets As Well As By The Kind Of
Involvement The Firm Wishes To Have In Its International Marketing Operations. For And Indian Company To
Internationalize It Cannot Be Said That One Kind Of Operation/Orientation Is Better Than The Other, As Each
Has Its Own Advantage And Disadvantage Depending On The Operating Environmental Factors.

However, A Firm Can Adopt A Policy Of Common Or Differential Approaches In Respect Of Different
Marketing Decision Areas.
For And Indian Company To Enter In The International Market To Export Garments And Fruit Juices And
Spices The Eprg Framework Provides Guidelines For The Type Of Orientation A Firm May Have Towards
External Marketing. Small Sized Companies Which Have Just Entered Or Planning To Enter Export Markets
Basically With A View To Dispose Of Their Surplus Production May Follow Ethnocentric Approach. Companies
With Experience Trying To Sell Custom Made Products Or Products Associated With Cultural Practices
Climatic And Geographical Conditions Of A Country May Follow The Polycentric Approach As Companies
Move More And Move Towards Internationalization They May Follow The Regeocentric Or The Geocentric
Approach
In Practice, Planning The Ethnocentric Approach Is Found To Be Most Common When Overseas Volume Is
Insignificant, Compared To The Total Sales Turnover, Or If The Firm Does Not Want To Go For Higher Volume
Of Overseas Sales For Some Reason. Since Little Or No Investment Is Needed, Ethnocentric Oriented Firms
Have The Least Risk.
 How Is International Market Segmentation Different From International Market Targeting? Explain The
Different Bases On Which An International Market Can Be Segmented.
 Differences Between International Market Segmentation And Targeting Are As Follows:-
a. Market Segmentation Is The Process Of Identifying Groups Or Set Of Potential Customers At National Or
International Level Who Exhibit Similar Buying Behavior Whereas, Targeting Is The Process Of Studying Each
Of The Segments Carefully And Identify One Or More Segments Where Company Can Focus Its Marketing
Efforts.
b. Market Segmentation Allows A Marketer To Take A Heterogeneous Market Consisting Of Consumer With
Diverse (Characteristics, Needs, Wants And Behavior,) And Curve It Up Into One Or More Homogenous
Markets (Markets Made Up Of Individuals Or Organizations With Similar Wants And Behavioral Tendencies)
Whereas, Targeting Is The Act Of Evaluating And Comparing The Identified Groups Or Homogenous Markets
(Markets Made Up Of Individuals Or Organizations With Similar Wants And Behavioral Tendencies And Then
Selecting One Or More Of Them With Highest Potential.
c. Segmenting Helps In Designing The Marketing Mix As Per Requirements Of The Customers Which Is Beneficial
Not Only To The Marketers But Also To The Customers Whereas, Targeting Devised A Marketing Mix To
Provide The Organization With The Best Return On Sales While Simultaneously Creating The Maximum Value
Of Consumers.
d. Markets May Be Segmented According To Several Criteria Such As, Geographic, Demographic Including
(National Incomes, Size Of Population) Psychographic (Values Attitude, And Lifestyle, Behavior Segmentation
And Benefit Segmentation. Whereas, In Targeting There Are Three Basic Criteria For Assessing Opportunities
In The International Target Markets These Criteria Are (A) Current Size Of The Market Segment And
Anticipating Growth Potential.(B) Competition And (C) Compatibility Of The Target With The Company’s
Overall Objectives And The Feasibility Of Successfully Reaching It.
 Explain The Different Bases On Which An International Market Can Be Segmented:-
Markets May Be Segmented According To Several Criteria Such As, Geographic, Demographic Including
(National Incomes, Size Of Population) Psychographic (Values Attitude, And Lifestyle, Behavior Segmentation
And Benefit Segmentation It Ia Also Possible To Cluster Different National Markets Using Dimensions Of
Business And Market Environment Such As, Government Regulations And Regional Groupings: The Following
Are The Bases On Which The Segmentation Of A Defined Market They Are:-
 Geographic Segmentation:-In This Type Of Segmentation The Market Is Divided Into Different Geographic
Units Such As Nations States Regions Provinces And Cities. The Company Can Operate In One Or Few
Geographic Area Or Operate In All But Pay Attention To Local Variations In Geographic Needs And

Preferences. For Example Japan Nissans’ Instant Noodles Is Sold In Most Parts Of Asian But Customized
Regionally. In India Unlike In Japanese, Where People Do Not Use Chopsticks The Noodles Come In Shorter
Version. They Are Also Given Spicer Flavor And Is Vegetarian Based Instead Of Meat Based Because Of Large
Population Of Vegetarians.
 Demographic Segmentation:-Demographic Segmentation Is Based On Measurable Characteristics Of
Population Such As, Gender, Income Education And Occupation, These Variables Are The Most Popular Bases
For Distinguishing Customers Groups For Segmentation One Of The Reason For Such Type Of Segmentation Is
That The Customers Wants, Preferences And Usage Rates Are Often Associated With Demographic Variables.
Further These Variables Are Easier To Measure
For Most Consumers And Industrial Products, National Income Per Capita Income Consists The Single Most
Important Segmentation Variable And Indicator Of Market Potential. This Enables The Companies To Cluster
Countries Into Segments Of High ,Middle And Low Income Then Target The Company Which Had The
Desired Income Level Further Many Global Companies Manufacturing Products Of Mass Consumption With
Low Prices(Such As, Cigarettes, Soft Drinks, Ball Point Pens And Transistor Radios)Segment Their Market On
The Basis Of Population.
There Are Other Several Contemporary Approaches To Demographic Segmentation Involves Age Variable
(Global Teenagers Young People Between The Ages Of 12-19) Has Been A Major Variable To Segment The
International Market, Other Demographic Variables On The Basis Of Which International Market Could Be
Segmented Is Social Class It Represents Older More Effluent Consumers Who Are Widely Traveled And Have
Money To Spend On Prestigious With An Image Of Exclusivity.
 Psychographic Segmentation:-In Psychographic Segmentation, Buyers Are Divided Into Different Groups Of
Attitudes, Values ,Lifestyles Or Personality. People Within The Same Demographic Group Can Inhabit Vary
Different Psychographic Profiles. Companies Making Cosmetics, Alcoholic Beverages, Furniture E Tc Are
Always Seeking Opportunities In Lifestyle Segmentation But, Lifestyle Segmentation Does Not Alwas Work.
Likewise Marketers Have Used Personalities Variables To Segment Markets They Endow Their Products With
Brand Personalities That Correspond To Consumers Personalities. Some Marketers Segment By Core Values
The Belief Systems That Underlie Consumer Attitude And Behavior. Core Values Goes Much Deeper Then
Behavior Or Attitude And Determine, At A Basic Level, Peoples Choice And Desires Over The Long Term.
Marketers Who Segment By Values Believe That By Appealing To Peoples Inner Selves It Is Possible To
Influence Their Outer Life.
 Behavior Segmentation:-Behavior Segmentation Focuses On Whether Or Not People Buy And Use A Product
As Well As How Often, And How Much They Use It .Behavioral Variables Such As Occasions, User Status,
Usage Rate, Loyalty Status, And Buyers Readiness Stage Enables The Companies To Segment The Market
Accordingly.
Buyers Can Be Distinguished According To The Occasions For Which They Need To Purchase A Product Or Use
A Product. Occasion Segmentation Can Help A Firm Expand Product Usage .Markets Can Also Be Segmented
Into Light, Medium And Heavy Product Users, Heavy Users Are Often Very Small Percentage Of The Market
But Account For The High Consumption
Markets Can Also Be Segmented Into Non-Users ,Ex-Users-Potential Users, First Time Users,And Regular
Users Of A Product ,This Segmentation Enables The Marketers To Keep Their Stock Up To Date And Helps In
Satisfying The Wants Of The Consumers More Effectively
 Benefit Segmentation:-Markets Could Also Be Classified According To The Benefits The Consumers Seek
From A Particular Product, Four Bases Were Reported Economy, Medicinal Cosmetic And Taste Each Benefit
Seeking Groups Had Particular Demographic Behavioral And Psychographic Characteristics
 What Are The Key Issues In International Marketing Communication?
There Are Several Issues Regarding International Marketing Communication They Are As Under:-

 Straight Extension-In Straight Extension The Same Product Is Marketed To All Countries (A "World" Product),
Except For Labeling And Language Used In The Product Manuals. The Assumption Behind This Strategy Is That
Consumer Needs Are Essentially The Same Across National Boundaries. Straight Extension Can Be Successful
When Products Are Not Culture Sensitive And Economies Of Scale Are Present. The Philip Morris Usa Tobacco
Company Used This Strategy Successfully With Its Marlboro Brand Cigarette. The Strategy Has Also Been
Successful With Cameras, Consumer Electronics, And Many Machine Tools.
 Product Modification-A Product Modification Strategy Keeps The Physical Product Essentially The Same;
Modifications, However, Are Made To Meet Local Conditions Or Preference In Package Sizes Or Colors.
Manufacturers Of Computers, Copiers, Cars, And Calculators Have Been Successful In Using This Strategy.
Companies May Develop A Country-Specific Product. If This Strategy Is Employed, The Product Is Substantially
Altered Or New Products Are Produced Across Countries. For Example, Hand-Powered Washing Machines
Have Been Successfully Marketed In Latin America.
 Communication Adaptation-It Is Extremely Difficult To Standardize Advertising Across Countries Because Of
Variations In Economic, Social, And Political Environments. Companies, However, Can Use One Message
Everywhere, Varying Only The Language Or Color. Marlboro And Camel Cigarettes, For Example, Essentially
Use The Same Message In Their International Promotion Programs. Transferability Of An Advertising Message
Is Still A Difficult Problem Even When The Primary Benefits Of The Product Remain Intact Across National
Boundaries. Some Promotional Blunders Are Well Known To Marketing Students. Coors's Slogan "Turn It
Loose" In Spanish Was Read By Some As "Suffer From Diarrhea"; In Spain, Chevrolet's Nova Translated As "It
Doesn't Go"; And A Laundry Soap Ad Claiming To Wash "Really Dirty Parts" Was Translated In French-
Speaking Quebec To Read "A Soap For Washing Private Parts."
 Product Invention-When Products Cannot Be Sold As They Are, Product Invention Strategy May Be Used.
Ford And Other Automakers Have Sold Completely Different Makes Of Cars In Europe Than The Ones They
Sell In The United States. Brewing Companies Have Sold Alcohol-Free Beer In Countries Where Sales Of
Alcoholic Beverages Are Prohibited.
 Price-Multinational Companies Find It Difficult To Adopt A Standardized Pricing Strategy Across Countries
Because They Have To Deal With Fluctuating Exchange Rates, Differences Among Countries In Transportation
Costs, Governmental Tax Policies, And Controls (Such As Dumping And Price Callings). Keegan Proposed Three
Global Pricing Alternatives. The First Policy Is Called Extension/Ethnocentric. Under This Policy, The Firm Sets
The Same Price Throughout The World And The Customers Absorb All Freight And Import Duties. The Main
4advantage Of This Policy Is Its Simplicity, But Its Weakness Is Its Failure To Take Into Account Local Markets'
Demand And Competitive Conditions.
The Second Alternative Is Called Adaptive/Polycentric. Under This Policy, Local Management Establishes
Whatever Price It Deems Appropriate At Any Particular Time. This Policy Is Sensitive To Local Conditions;
Nevertheless, It May Favor Product Arbitrage Where Differences In Price Between Markets Exceed The
Freight And Duty Cost Separating The Markets.
The Last Alternative Is Called Invention/Geocentric Pricing. This Policy Is An Intermediary Position. It Neither
Sets A Single Worldwide Price Nor Relinquishes Total Control Over Prices To Local Management. This Policy
Recognizes Both The Importance Of Local Factors (Including Costs) And The Firm's Market Objectives.
 Channels Of Distribution-Two Major Types Of International Alternatives Are Available To A Domestic
Producer. The First Is The Use Of Domestic Middlemen Who Provide Marketing Services From Their Domestic
Base. If This Arrangement Is Chosen, There Are Several Domestic Middlemen Available From Which The
Companies May Choose. Export Management Companies, Manufacturers' Export Agents, Trading Companies,
And Complementary Marketers Are Possible Alternatives.
If A Company Is Unwilling To Deal With Domestic Middlemen, It May Decide To Deal Directly With
Middlemen In Foreign Countries. This Alternative Shortens The Channel Of Distribution, Thereby Bringing The
Manufacturer Closer To The Market. The Main Drawback Of This Alternative Is That Foreign Middlemen Are
Some Distance Away And, Therefore, More Difficult To Control Than Domestic Ones

 How Are The Services Differentiated From Products: - The Fore Basic Characteristics Of Services That
Differentiate Them From Products? They Are,
 Intangibility: The Most Basic Difference Between Goods And Services Is Intangibility. Services Are
Performances Or Actions Rather Than Objects. Therefore, They Cannot Be Seen, Felt, Tasted, Or Touched In
The Same Manner That We Can Sense Tangible Goods. The Absence Of Tangible Features Means That It Is
Difficult For The Seller To Demonstrate Or Display Services And For Buyers To Sample, Test Or Make A
Thorough Evaluation Before Buying Them.
 Heterogeneity: - It Is Often Impossible To Assure Homogeneity And Consistency In The Service Provided By A
Seller, Because Services Are Performances Rendered By Human Beings. Hence No Two Services Will Be
Precisely Alike. The Service Is Performed And Delivered By Employees, And Employees May Differ In Their
Performance From Day To Day Or Even Hour To Hour. Heterogeneity Also Results Because, No Two
Customers Are Precisely Alike, And Each Will Have Unique Demands Or Experience And Requires The Service
In A Unique Way. For Instance, Take A Case Of A Restaurant Which Is A Hospitality Service.One Customer
May Prefer A Crisp Masala Dosa With Sambar, While Another Customer May Prefer Soft Masala Dosa With
Coconut Chutney. The Cook Has To Prepare And Serve According To Their Tastes.
 Simultaneous Production And Consumption: Most Goods Are Produced First, Then Sold And Consumed
While Most Services Are Sold First And Then Produced And Consumed Simultaneously. For Example, An
Automobile May Be Manufactured In Mumbai, Shipped To Delhi, Sold Two Months Later, And Used Over A
Period Of Years. Bust Restaurant Services Cannot Be Provided Until They Have Been Sold And The Dining
Experience Is Essentially Produced And Consumed At The Same Time Similarly, In Travel Services, The Ticket
Has To Be Bought First And Then The Travel Service Has To Be Availed Of. Vary Often, The Customer Is
Present While A Service Is Being Produced And Thus The Views Of The Customer Are Taken Into Account
Another Outcome Of Simultaneous Production And Consumption Is That Service Producers Find Themselves
Playing A Role As Part Of The Product Itself And As An Essential Ingredient In The Service Experience For The
Consumer.
 Perishability: - Perish-Ability Refers To The Fact That Services Cannot Be Saved Or Stored Or Resold Or
Returned. A Seat On An Airplane Or In A Restaurant, An Hour Of A Lawyer’s Time R Telephone Line Capacity
Not Used Cannot Be Reclaimed And Used Or Resold At A Later Time. This Is In Contrast To Goods That Can Be
Stored Or Resold Another Day, Or Even Returned If The Customer Is Unhappy. It Is Not Easy To Reset A Bad
Haircut Nor Is It Possible To Transfer It To Another Consumer.
 Challenges In Marketing Of Services: The Traditional Marketing Mix Is Composed Of The 4 Ps Viz, Product,
Price, Promotion And Place (Distribution). These Elements Appear As Core Decision Variables In Any
Marketing Plan. All Those Four Variables Are Interred Related, And There Is An Optimal Mix Of The Four
Factors For A Given Market Segment At A Given Point Of Time. Though, Conceptually Marketing Of Services Is
No Different From Marketing Of Products, The Strategies Of The 4 Ps However Require Some Modifications
When Applied To Services. Because Of The Significant Differences Between Goods And Services, Marketers Of
Services Face Some Distinctive Challenges. Such Challenges Revolve Around Understanding Customer Needs
And Expectations, And The Efforts To Keep Promises Made To Customers, There Are Many Marketing
Implications That An Marketer Face In The Market For Instance Due To The Intangibility Services Cannot Be
Inventoried, Services Cannot Be Readily Displayed Or Communicated Pricing Is Difficult, Due To The
Heterogeneous Service Delivery And Customer Satisfaction Depend On Employee Action. There Is No Sure
Knowledge That The Service Delivered Matches What Was Planned Or Promoted, Due To Simultaneous

Production And Consumption. Customer Participate In And Affect The Transaction, Mass Production Is
Difficult, Due To Perishability, It Is Difficult To Synchronize Supply And Demand With Services, Services
Cannot Be Returned Or Resold
 Write Short Notes On The Following:-
 Local Brands Vs. Global Brands:-Another Major Decision Is Whether To Use A Single Worldwide Brand,
Known As Global, International, Or Universal Brand Or Local Brand Some Brands Like Coca Cola, Pepsi Mc
Donald’s Etc Have Become So Popular All Over The World That They Are Regarded As Global Brands, Such
Globalization Certainly Gives Definite Advantage In Gaining Significant Share Of The Global Market There Are
Many Global Brands For A Brand To Be Global It Must Have A Commonly Understood Set Of Characteristics
Benefits And Appeal In All The Markets Where It Is Intended To Be Marketed The Advantages Of Such Global
Brands Are As Follows:-
 It Provides Economics Of Scale In Advertising As Well As Access To Distribution Channels.
 It Makes Market Entry Easy
 It Reduces The Promotional Expenditure As The Brand Is Well Known.
 It Helps To Generate Good Sales Since The Very Beginning.
 It Provides A Comparative Edge Over Other Firms
 One Important Thing However About Some Of These Global Brands Is That Although The Product Is Sold
Throughout The World Under The Same Brand, The Product Does Not Remain The Same Every Time It May
Not Be Possible To Use The Same Branding Strategy In All The Markets Because Of Cultural And Other Factors
Like Colors Numbers Symbols E Tc Have Different Connotations In Different Cultures. Similarly, Some Times
The Same Word Has Different Meanings In Different Languages For Example The Brand Name Nova In
Spanish Means It Does Not Move Therefore The Firm May Lend To Choose Local Brand To Suit Local Tastes
And Preferences The Major Advantages Of Local Brands Are:-
 Local Brand Is Easily Understood B The Consumers
 It Helps In Quick Market Penetration.
 The Problem Of Negative Connotation May Be Avoided By Using The Local Brands.
 The Local Brands May Be Less Expensive For The Firm From The Developing Countries.
 Local Tastes And Preferences Are Taken Care Of
 Pricing Methods And Practices In International Marketing:
Price Is An Important Element Of Marketing Mix.
It Affects The Firm’s Ability To Stay In The Market. Therefore, The Price Of The Product Must Reflect The
Value Which The Consumer Perceives In The Product. In Fact, Setting The Price For The Product May Be The
Key To Success Or Failure In The Market, Main Methods Of Pricing In International Marketing Are As Under:-

Cost Plus Method: This Technique Implies Charging The Total Costs Plus Profit. Costs Include All The Special
Costs Incurred In International Trade Such As, Special Packing, Marking, Labeling According To Foreign
Market Requirements, Transportation, Insurance, Handling Duties, Taxes And Levels At Different Stages From
The Place Of Origin In The Exporting Country To The Destination In Foreign Market, Depending On Terms Of
Sale. In This Pricing Method The Exporters Try To Recover All Costs Along With The Profit From Overseas
Customers, So It May Lead To High Prices For The End Users. It Must Be Realized That The Market Situation
And The Nature Of Competition Vary From Country To Country; Hence It May Not Always Be Possible To
Apply This Method.

Marginal Cost Pricing: Charging Full Costs Plus Profit May Not Be Possible In All International Transactions
.Hence, Depending On The Nature And Extent Of Competition, Less Than Full Cost, Some Times Only The
Variable Costs Are Even Less Then That May Have To Be Charged. In A Difficult, Exporters May Charge Price
To Cover Only Prime Costs Or Just Material Cost-Plus Packing And Other Direct Export Marketing Cost. This Is
Known As Marginal Cost Pricing Method. This Pricing Strategy Is Followed To Penetrate The Foreign Markets
And Maintain The Market Share Of The Firm.

Differential Pricing: This Is The Most Common Pricing Practice In International Marketing. As Nature And
Extent Of Competition And Business Environment Vary From Country To Country And Also From Segment To

Segment, Differential Pricing May Be Followed For The Same Product In Different Markets According To The
Principle, “What The Traffic Can Hear” In Fact Depending On The Market Situation, Price Along With Other
Elements Of Marketing Mix, Is To Be Adopted For Effective And Gainful International Marketing.

Probe Pricing: A New Player To A Foreign Market, Who May Not Have Full Knowledge Of Market And The
Nature And Strength Of Competition Tries To Probe The Prospective Market By Quoting Price Approximation
Relating To Sales Volume And Value. Concessions On Invoice Price May Be Offered To Attract The Customer.
Cost Plus Profit And Competitor’s Prices Usually Constitute The Parameters Of Probe Pricing.

Penetration Pricing: In Order To Penetrate Into A New Market Lower Then The Ruling Market Price May Be
Charged. This Penetration Price May Yield Marginal Surplus Over The Total Cost, Or Just Cover The Full Cost
Or In Some Cases Even The Total Cost May Not Be Realized. This Method Is Considered Feasible Only When
More Gainful Prices May Be Possible To Be Realized In Future.

Skimming Pricing: This Type Of Pricing Is Resorted To By An Exporter Who Has Gained A Strong Foothold In
The Foreign Market And Has Acquired A Highly Competitive Position With An Image Of A Dependable
Supplier Of Quality Product. With The Help Of Well Thought-Out Promotion Programmed, Emphasizing The
Value Derivable From The Product, Higher Price May Be Charged To Maximize Gain. High Research
Development Expenditure For Manufacturing And Items That Are Unique To A Particular Company Or
Country Are Amenable To Skimming Pricing.

Competitive Pricing: In International Marketing, A Watchful And Seasoned Marketer Always Keeps Track Of
The Price Quota By Compotators. He Tries To Adjust And Adopt His Prices To Remain In The Market. This Type
Of Pricing Is Known As Competitive Pricing. Alternate Pricing An Motivating Pricing Are Other Methods Of
Pricing In International Marketing: Usually The Beginners Apply Cost-Plus Method Or Probe Pricing And
Follow The Techniques ,Employed By The Leading Firms In The Market Where As The Other Methods Are
Applied By The Established Marketers Who Have A Clear Understanding Of The Market Behavior And The
Customers Response To Price Variations.
 Questionnaire: - Questionnaire Is The Basic Tool Of Field Research. It Is A Kind Of Net Which Collects The
Required Information And Allows Unwanted Data To Be Screened Out. If A Questionnaire Is Well Designed, It
Is The Key To A Successful Market Research Project. If The Questionnaire Is Faulty, The Information Gained
May Be Incomplete, Irrelevant Or Biased, And No Amount Of Post-Interview Analysis Of Interpretation Will Be
Able To Set Things Right. Thus The Success Of The Questionnaire Method Of Collecting Data Depends Largely
On The Proper Drafting Of The Questionnaire. Questionnaire Is A Popular Means Of Data Collection. A
Questionnaire Used A Structured, Standardized Format Of Data Collection To Record Verbal Responses To
Questions. Particularly When The Population To Be Covered Is Very Large And The Study Wishes To Collect
Data About Specific Aspects Of Consumer’s Awareness, Attitude, And Opinions, Prior And Present Behavior,
Etc. The Questionnaire Method Is Recommended. No Hard And Fast Rule Can Be Laid Down For Designing Or
Framing A Good Questionnaire. However, Experience Suggests Many Thumb Rules As To How To Construct A
Questionnaire And Thus Obtain The Desired Data In The Most Cost Effective Manner. The Extract Format And
Sequence Of The Questionnaire Will Greatly Depend On The Study Objective And The Method Of
Administration (I.E. Weather The Data Is Collected Through Personal Interviews , Mail Or Panel Diary)
 Qualities Of A Good Questionnaire He Various Qualities Of A Good Questionnaire Are As Under:-
 Be A Short And Simple As Possible While Still Covering All Relevant Information, Keeping In View Of The
Nature, Objectives And Purpose Of Research.
 Questions Should Be Specific And Not Vague
 Ensure Maximum Response
 Avoid Irrelevant Information And Side Issues
 Avoid Leading Questions
 Make It Easy For Respondents To Give The Information They Have.

 Contain A Filter, Question To Determine If The Respondent Qualifies And Control Questions To Validate His
Replies
 Questions Should Be Logically Arranged.
 Facilitate Evaluation, Analysis And Interpretation.
 Qualities Of A Good Report:- Report Provides Factual Information Depending On Which Decisions Are Made.
So Everyone Should Be Taken To Ensure That A Report Has All The Essential Qualities Which Turn It Into A
Good Report. A Good Report Must Have The Following Qualities:
 Precision:-In A Good Report, The Report Writer Is Very Clear About The Exact And Definite Purpose Of
Writing The Report. His Investigation, Analysis, Recommendations And Others Are Directed By This Central
Purpose. Precision Of A Report Provides The Unity To The Report And Makes It A Valuable Document For Best
Usage.
 Accuracy Of Facts:-Information Contained In A Report Must Be Based On Accurate Fact. Since Decisions Are
Taken On The Basis Of Report Information, Any Inaccurate Information Or Statistics Will Lead To Wrong
Decision. It Will Hamper To Achieve The Organizational Goal.
 Relevancy:-The Facts Presented In A Report Should Not Be Only Accurate But Also Be Relevant. Irrelevant
Facts Make A Report Confusing And Likely To Be Misleading To Make Proper Decision.
 Reader-Orientation:-While Drafting Any Report, It Is Necessary To Keep In Mind About The Person Who Is
Going To Read It. That's Why A Good Report Is Always Reader Oriented. Readers Knowledge And Level Of
Understanding Should Be Considered By The Writer Of Report. Well Reader-Oriented Information Qualify A
Report To Be A Good One.
 Simple Language:-This Is Just Another Essential Features Of A Good Report. A Good Report Is Written In A
Simple Language Avoiding Vague And Unclear Words. The Language Of The Report Should Not Be Influenced
By The Writer's Emotion Or Goal. The Message Of A Good Report Should Be Self-Explanatory.
 Conciseness:-A Good Report Should Be Concise But It Does Not Mean That A Report Can Never Be Long.
Rather It Means That A Good Report Or A Business Report Is One That Transmits Maximum Information With
Minimum Words. It Avoids Unnecessary Detail And Includes Everything Which Are Significant And Necessary
To Present Proper Information.
 Grammatical Accuracy:-A Good Report Is Free From Errors. Any Faulty Construction Of A Sentence May
Make Its Meaning Different To The Reader's Mind. And Sometimes It May Become Confusing Or Ambiguous.
 Unbiased Recommendation:-Recommendation On Report Usually Make Effect On The Reader Mind. So If
Recommendations Are Made At The End Of A Report, They Must Be Impartial And Objective. They Should
Come As Logical Conclusion For Investigation And Analysis.
 Clarity:-Clarity Depends On Proper Arrangement Of Facts. A Good Report Is Absolutely Clear. Reporter
Should Make His Purpose Clear, Define His Sources, State His Findings And Finally Make Necessary
Recommendation. To Be An Effective Communication Through Report, A Report Must Be Clear To
Understand For Making Communication Success.
 Attractive Presentation;-Presentation Of A Report Is Also A Factor Which Should Be Consider For A Good
Report. A Good Report Provides A Catchy And Smart Look And Creates Attention Of The Reader. Structure,
Content, Language, Typing And Presentation Style Of A Good Report Should Be Attractive To Make A Clear
Impression In The Mind Of Its Reader.
The Inclusion Of Above Factors, Features Or Characteristics, Make A Good Report To Be
Effective And Fruitful. It Also Helps To Achieve The Report Goal. A Reporter Who Is Making The Report,
Always Should Be Careful About Those Factors To Make His Report A Good One.

4

Ibo 2

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Ibo 2

Similar to Ibo 2 (20)

Recently uploaded

Recently uploaded (20)

Ibo 2