International marketing,Identification of Market2

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IDENTIFICATION OF MARKETS

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COVERAGE

• RESEARCH DEFINITION• INTERNATIONAL

MARKETING INTELLIGENCE

• INTERNATIONAL MARKETING RESEARCH POTENTIAL PROBLEMS

• COUNTRY SCREENING & MARKET IDENTIFICATION

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The Definition of Research

• Systematic gathering, recording, and analyzing of data to provide information useful in decision making– Information is the key component in

developing successful marketing strategies, and avoiding major blunders.

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Types of research information

• There are 3 types of research information– (1) General information about the country,

area, and/or market– (2) Information necessary to forecast future

marketing requirements----Anticipate social, economic, consumer, and industry trends within specific markets or countries

– (3) Specific market information used for the marketing mix and marketing plans

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Sources of International Marketing Intelligence

• Internal Data• External Information

•Specialized Studies•Service Companies•Government Agencies•International Organization•Trade Associations•Internet

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Breadth and scope of international marketing research

Designing research for international marketing is considerably more complex than for for the home country.

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International Marketing Research Potential Problems

• Data Availability• Timeliness• Data Accuracy• Comparability Problems• Translation/Language• Access to Respondents• Truthfulness of Responses• Infrastructure Constraints• Costs of Conducting Valid Research

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Identification and Screening

I. Preliminary ScreeningII. Estimating Market

Potentials by Product TypeIII. Estimating Sales Potential

for Company’s ProductIV. Identifying Segments &

Target Market

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Preliminary Country Screening

• OPPORTUNITY•Market Size•Compatibility•Cost & Resource Availability

• RISK•Political•Competitive•Monetary•Industrial

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The Four Risk Matrix

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Estimating Market Potential

•The international marketer needs to assess the size of existing markets and forecast the size of future markets.

•The marketer uses both quantitative and qualitative techniques for assessment.

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Estimating Sales Potential for Company’s Product

Collect product and market specific data

• Competition• Market• Consumers• Channel structure

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Identifying Segments & Target Market

• Individuals and organizations vary in their wants, resources, geographical locations, buying attitudes, and buying practices.

• Standardization– The extent to which elements of the

marketing mix should be standardized.• Adaptation

– Marketers may consider every situation independently, or rely on decision-support systems to aid in program adaptation.