Going International Trade Research, Market Analysis and Marketing (Custom Edition for Seneca College)
, by Skliarenko, Elena; Galloway, Walter; Tobar, Byron
- ISBN: 9780558811129 | 0558811124
- Cover: Paperback
- Copyright: 7/7/2011
Introduction xvii
Metrics in Trade Research, Market Analysis and Global Marketing xix
Project Stages xxi
International Trade Research and Market Analysis
SIB 460 Project Guidelines xxiii
Export Marketing SIB 650 Project Guidelines xxix
Focusing Research xxxv
Action Words xxxvii
Useful World Bank Sites xxxix
Graphics xli
Marking Criteria for Oral and Written Presentations. Term Project SIB 460 xIiii
Marking Criteria for Oral and Written Presentations. Term Project SIB 650 xlv
Analysing Business Cases: The Seven Steps to Success xlix
Chapter 1 Introduction to Metrics and the Importance of
International Trade Research 2
What Is a Metric? 2
Why Do You Need Metrics? 2
Marketing Metrics: Opportunities, Performance, and Accountability 3
Choosing the Right Numbers 3
Data Availability and Globalization of Metrics 4
Mastering Metrics 4
Overview 5
The Need for International Trade Research 5
Strategic Planning 6
Strategic-Planning Methods 6
Using International Trade Research to Help Strategic Planning 7
Determining Market Potential 7
Decision Making 8
Identifying New Opportunities 8
Enabling Cost-Benefit Analysis 9
Guiding the Marketing Process 9
Situation Analysis 9
Marketing Strategy 9
Marketing Mix 10
Implementation and Control 10
Minimizing Risks 10
Identifying Potential Problems and Challenges 10
Monitoring Performance 11
Important Considerations for International Trade 11
Legal Issues 12
Intellectual Property Issues 12
Political and Economic Stability 12
Pricing 12
Business Culture and Etiquette 12
Exercise 13
Exercise 1 (Class Discussion) 13
References/Resources 13
Chapter 2 Social, Cultural, Political, Legal and Regulatory Environments 14
Case 2-1 Disney Learns to “Act Local” on the Global Stage 14
Society, Culture, and Global Consumer Culture 15
Attitudes, Beliefs, and Values 16
Religion 17
Aesthetics 18
Dietary Preferences 21
Language and Communication 22
Marketing’s Impact on Culture 27
High- and Low-Context Cultures 28
Hofstede’s Cultural Typology 29
The Self-Reference Criterion and Perception 33
Diffusion Theory 34
The Adoption Process 34
Characteristics of Innovations 35
Adopter Categories 36
Diffusion of Innovations in Pacific Rim Countries 37
Marketing Implications of Social and Cultural Environments 37
Case 2-1 Disney Adapts to Cultural Differences: The Assignment 41
Case 2-2 Fair Trade Coffee: Ethics, Religion, and Sustainable Production 42
Case 2-3 America’s Cuban Conundrum 44
The Political Environment 45
Nation-States and Sovereignty 45
Political Risk 47
Taxes 48
Seizure of Assets 50
International Law 52
Common Law Versus Civil Law 53
Islamic Law 55
Sidestepping Legal Problems: Important Business Issues 55
Jurisdiction 55
Intellectual Property: Patents, Trademarks, and Copyrights 56
Antitrust 61
Licensing and Trade Secrets 64
Bribery and Corruption: Legal and Ethical Issues 65
Conflict Resolution, Dispute Settlement, and Litigation 68
Alternatives to Litigation for Dispute Settlement 69
The Regulatory Environment 70
Regional Economic Organizations: The EU Example 71
Case 2-3 America’s Cuban Conundrum: The Assignment 74
Case 2-4 Gambling Goes Global on the Internet 77
Overview 78
Research Design Considerations 78
What Information Needs to be Known? 79
How Accurate Must the Information Be? 80
What is the Available Timetable? 80
What is the Available Budget? 80
Secondary Data and Desk Research 80
Information from Secondary Research 81
Desk Research Using the Internet 82
Techniques for Finding Data Online 82
Website Publishers 83
Selected Websites 85
Desk Research Using Offline Data 87
Print Sources for Business and Market Conditions 87
Print Sources for Market Research Information 87
Print Sources for Country Reports 88
Print Sources for Cultural Analysis 88
Print Sources for Company Information 88
Collecting Secondary Data 88
Advantages of Secondary Data 89
Disadvantages of Secondary Data 89
Primary Data Sources 90
Observation 90
Surveys and Questionnaires 91
Interviews 91
Focus Groups and Panels 92
When to Use Primary Data Sources 92
Advantages of Primary Data 92
Disadvantages of Primary Data 92
Putting It All Together 93
Exercises 93
Exercise 1 (Questions to Answer) 93
Exercise 2 (Research Exercise) 93
References/Resources 93
Chapter 3 The Research Process: Global Information Systems,
Market Research and Creating an Effective
Research Plan 94
Case 3-1 Market Research Keeps Coach at the Cutting Edge of Fashion 94
Information Technology And Business Intelligence For Global Marketing 95
Sources Of Market Information 99
Formal Market Research 100
Step 1: Information Requirement 102
Step 2: Problem Definition 102
Step 3: Choose Unit of Analysis 104
Step 4: Examine Data Availability 105
Step 5: Assess Value of Research 108
Step 6: Research Design 108
Step 7: Data Analysis 115
Step 8: Interpretation and Presentation 120
Headquarters Control Of Market Research 120
The Marketing Information SystemAs A Strategic Asset 121
Case 3-1 Market Research Transforms Coach: The Assignment 123
Case 3-2 Research Helps Whirlpool Act Local in Emerging Markets 124
Overview 126
Research Plans 126
The Research Process 127
Stage 1: Define the Research Objectives 127
Stage 2: Create a Research Brief 129
Stage 3: Select the Research Design and Data Sources 129
Stage 4: Design the Data Collection Tools and Collect the Data 132
Stage 5: Organize and Analyze Data 133
Stage 6: Present Conclusions and Apply the Research 133
Finalizing the Plan 134
Matching Resources to Required Skills 134
Additional Considerations 135
Putting It All Together 136
Step 1: Prepare a Research Brief and an Initial Research Plan 136
Exercises 137
Exercise 1 (Questions to Answer) 137
Exercise 2 (Matching Exercise) 137
Exercise 3 (Activity) 137
References/Resources 137
Chapter 4 Research Objectives: Importing, Exporting and
Sourcing 138
Chapter Objectives 138
Overview 138
Defining Research Objectives 138
Starting with a Problem or Opportunity 138
Breaking the Problem Down 139
Wording Research Objectives 140
Key Research Issues for Exporters 140
Macroeconomic Data 141
Cultural and Lifestyle Information 142
Political and Legal Information 143
Product or Service Potential 144
Key Research Issues for Importers 146
Macro-Level Source Country Attractiveness 147
Market Potential and Supplier Attractiveness 149
Internal Suitability 149
Research Issues for Foreign Direct Investment 149
Forms of Foreign Direct Investment 150
Types of Research Requirements 151
Case 4-1 Chinese and Vietnamese Exports to Europe 154
Export Selling And Export Marketing: A Comparison 155
Organizational Export Activities 156
National Policies Governing Exports And Imports 156
Government Programs That Support Exports 157
Governmental Actions to Discourage Imports and Block Market Access 159
Tariff Systems 162
Customs Duties 164
Other Duties and Import Charges 165
Key Export Participants 165
Organizing For Exporting In The Manufacturer’s Country 167
Organizing for Exporting in the Market Country 167
Trade Financing and Methods of Payment 169
Documentary Credit 169
Documentary Collections (Sight or Time Drafts) 170
Cash in Advance 171
Sales on Open Account 172
Additional Export and Import Issues 172
Sourcing 172
Management Vision 174
Factor Costs and Conditions 174
Customer Needs 175
Logistics 175
Country Infrastructure 175
Political Factors 177
Foreign Exchange Rates 177
Case 4-1 Asian Shoe Exports to Europe: The Assignment 179
Case 4-2 A Day in the Life of an Export Coordinator 180
Chapter 5 Global Marketing and the Digital Revolution 182
Case 5-1 Global Marketers Discover Social Media 182
The Digital Revolution: A Brief History 183
Convergence 187
Value Networks and Disruptive Technologies 188
Global E-Commerce 190
Web Site Design and Implementation 193
New Products and Services 197
Broadband 197
Mobile Commerce 198
Smart Phones 199
Mobile Music: Ringtones, Truetones, and Full-Track Music Downloads 201
Mobile Gaming 202
Internet Phone Service 202
Digital Books and Electronic Reading Devices 202
Case 5-1 Global Marketers Use Social Media: The Assignment 205
Case 5-2 eBay in Asia 206
Case 5-3 Barry Diller and IAC/InterActiveCorp 207
Overview 208
Trade Visits 208
Before the Trip 208
During the Visit 209
Choosing a Data Collector 209
Internal Researchers 210
External Researchers 210
Collecting Primary Data 211
Focus Groups 211
Questionnaires and Surveys 213
Interviews 216
Observation 217
Sampling Plans for Primary Research 218
Who will be Researched? 218
What Sampling Methods will be Used? 218
Collecting Market and Competitive Intelligence 220
In-house Audit 220
Setting up the Study 220
Investigation 220
Putting It All Together 221
Exercises 221
Exercise 1 (Questions to Answer) 221
Exercise 2 (Matching Exercise) 221
References/Resources 221
Variable Costs and Fixed Costs 222
Purpose: To Understand How Costs Change with Volume 222
Marketing Spending–Total, Fixed, and Variable 222
Purpose: To Forecast Marketing Spending and Assess Budgeting Risk 222
Construction 223
Chapter 6 Market and Competitive Intelligence:
Studying Markets and Competitors 224
Chapter Objectives 224
Overview 224
What Is Market Intelligence? 225
Types of Market Intelligence 225
Information About the Political, Legal and Business Environment 225
Information About the Market Infrastructure 228
Information About the Forces that Have an Effect on the Market 230
Product- or Service-Specific Data 234
How to Use Market Intelligence 235
Using Information About Geographic Characteristics 235
Using Information About Demographic Characteristics 236
Using Information About Economic Characteristics 236
Using Information About Technological Characteristics 236
Using Information About Sociocultural Characteristics 236
Determining Market Potential 236
What Is Competitive Intelligence? 237
The Need for Competitive Intelligence 237
Legal and Ethical Practices in Competitive Intelligence 238
Signs of Espionage 238
The Competitive Intelligence Model 239
Data Collection 239
Key Questions About Competitors 240
How to Use Competitive Intelligence 241
Exercises 242
Exercise 1 (Questions to Answer) 242
Exercise 2 (Personal Activity) 242
Exercise 3 (Group Discussion) 242
References/Resources 242
Market Share 242
Purpose: Key Indicator of Market Competitiveness 243
Construction 243
Data Sources, Complications, and Cautions 243
Relative Market Share and Market Concentration 243
Purpose: To Assess a Firm’s or a Brand’s Success and Its Position in the Market 244
Construction 244
Related Metrics and Concepts 245
Chapter 7 Data Analysis and Presentation: Making the Business Case 246
Chapter Objectives 246
Overview 246
Data Analysis 247
Assess the Quality and Reliability of the Data 247
Sort and Classify the Data 249
Perform Statistical Tests and Analyze the Results 249
Interpreting Analyzed Data 254
Preparing the Research Report 254
Presenting Numerical Data 255
Presenting Qualitative Data 257
Making the Report Visually Attractive 257
Making the Presentation 257
Putting It All Together 258
Exercises 258
Exercise 1 (Questions to Answer) 258
Exercise 2 (Matching Exercise) 259
Exercise 3 (Statistical Exercise) 259
References/Resources 259
Segmentation by Geography, or Geo-clustering 259
Penetration 259
Margins 260
Purpose: To Determine the Value of Incremental Sales, and to Guide Pricing and
Promotion Decisions 260
Data Sources, Complications, and Cautions 260
Break-Even Analysis and Contribution Analysis 261
Purpose: To Provide a Rough Indicator of the Earnings Impact of a Marketing Activity 261
Chapter 8 Global Marketing Communications Decisions: Applications of Trade Research 262
Case 8-1 Lenovo 262
Sales Promotion 263
Sampling 266
Couponing 267
Sales Promotion: Issues and Problems 268
Personal Selling 269
The Strategic/Consultative Selling Model 271
Sales Force Nationality 276
Special Forms of Marketing Communications: Direct Marketing,
Support Media, Event Sponsorship, and Product Placement 279
Direct Mail 280
Catalogs 280
Infomercials, Teleshopping, and Interactive Television 282
Support Media 284
Sponsorship 286
Product Placement: Motion Pictures, Television Shows, and Public Figures 287
Case 8-1 Lenovo: The Assignment 291
Case 8-2 Marketing an Industrial Product in Latin America 292
Chapter Objectives 294
Overview 294
Applying Intelligence to Products and Processes 294
The Application Process 295
Adapting Promotional Strategies 299
Media Planning 302
Testing Advertising and Promotion 302
Critical Success Factors 303
Putting It All Together 304
Exercise 304
Exercise 1 (Group Activity) 304
References/Resources 304
Trial, Repeat, Penetration, and Volume Projections 305
Net Profit and Return on Sales 305
Purpose: To Measure Levels and Rates of Profitability 305
Return on Investment 305
Purpose: To Measure er Period Rates of Return on Dollars
invested in an Economic Entity 306
Construction 306
Data Sources, Complications, and Cautions 306
Related Metrics and Concepts 306
Chapter 9 Supporting Technologies: Implementing an Information Management System 308
Chapter Objectives 308
Overview 308
Information Management Solutions 309
Benefits of an Information Management System 309
Characteristics of an Effective Information Management System 310
A Collaborative Environment 310
Essential Features of an IMS 310
Setting Up an IMS 311
Devise the Most Appropriate File-Management and Indexing System 312
Implement Data Mining 312
Set up a Request-Management System 312
IMS Data 313
Information to Monitor 313
Linking the IMS to Business Strategies 314
Putting It All Together 315
Exercise 315
Exercise 1 (Questions to Answer) 315
References/Resources 315
Advertising Media and Web Metrics 316
Chapter 10 Introduction to Global Marketing 318
Case 10-1 The Global Marketplace Is Also Local 318
Introduction and Overview 319
Principles of Marketing: A Review 321
Competitive Advantage, Globalization, and Global Industries 322
Global Marketing:What It Is and What It Isn’t 325
The Importance of Global Marketing 331
Management Orientations 333
Ethnocentric Orientation 334
Polycentric Orientation 335
Regiocentric Orientation 335
Geocentric Orientation 335
Forces Affecting Global Integration and Global Marketing 338
Multilateral Trade Agreements 338
Converging Market Needs and Wants and the Information Revolution 338
Transportation and Communication Improvements 339
Product Development Costs 340
Quality 341
World Economic Trends 341
Leverage 342
Case 10-1 The Global Marketplace: The Assignment 348
Case 10-2 McDonald’s Expands Globally While Adjusting Its
Local Recipe 349
Case 10-3 Acer Inc. 352
Chapter 11 The Global Economic Environment 354
Case 11-1 The Global Economic Crisis 354
The World Economy–An Overview 355
Economic Systems 358
Market Capitalism 359
x CONTENTS
Centrally Planned Socialism 360
Centrally Planned Capitalism and Market Socialism 360
Stages of Market Development 362
Low-Income Countries 364
Lower-Middle-Income Countries 365
Upper-Middle-Income Countries 366
Marketing Opportunities in LDCs and Developing Countries 367
High-Income Countries 369
The Triad 373
Marketing Implications of the Stages of Development 374
Balance of Payments 375
Trade in Merchandise and Services 376
Overview of International Finance 378
Purchasing Power Parity 379
Economic Exposure 379
Managing Exchange Rate Exposure 380
Case 11-1 The Global Economic Crisis: The Assignment 385
Case 11-2 One Laptop Per Child 386
Case 11-3 From Communism to Capitalism: Vietnam’s
Economic Transformation 387
Chapter 12 Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances 390
Case 12-1 Starbucks Expands Abroad 390
Licensing 391
Special Licensing Arrangements 393
Investment 395
Joint Ventures 396
Investment via Equity Stake or Full Ownership 400
Global Strategic Partnerships 404
The Nature of Global Strategic Partnerships 405
Success Factors 407
Alliances with Asian Competitors 408
CFM International, GE, and Snecma: A Success Story 409
Boeing and Japan: A Controversy 409
International Partnerships in Developing Countries 410
Cooperative Strategies in Japan: Keiretsu 412
How Keiretsu Affect American Business: Two Examples 414
Cooperative Strategies in South Korea: Chaebol 415
Twenty-First Century Cooperative Strategies: Targeting the Digital
Future 415
Beyond Strategic Alliances 416
Market Expansion Strategies 416
Case 12-1 Starbucks’ Global Expansion: The Assignment 419
Case 12-2 Jaguar’s Passage to India 420
Chapter 13 Segmentation, Targeting, and Positioning 422
Case 13-1 Global Cosmetics Companies Segment the Market 422
Global Market Segmentation 423
Demographic Segmentation 425
Psychographic Segmentation 430
Behavior Segmentation 433
Benefit Segmentation 434
Ethnic Segmentation 435
Assessing Market Potential and Choosing Target Markets
or Segments 436
Current Segment Size and Growth Potential 437
Potential Competition 438
Feasibility and Compatibility 439
A Framework for Selecting Target Markets 439
Product-Market Decisions 441
Target Market Strategy Options 443
Standardized Global Marketing 443
Concentrated Global Marketing 443
Differentiated Global Marketing 444
Positioning 444
Attribute or Benefit 444
Quality and Price 445
Use or User 445
Competition 445
Global, Foreign, and Local Consumer Culture Positioning 446
Case 13-1 Cosmetics Giants Segment the Global Cosmetics Market:
The Assignment 452
Case 13-2 Carmakers Target Gen Y 453
Case 13-3 The Youth of the World Proclaim, “We Want
Our MTV!” 454
Chapter 14 Strategic Elements of Competitive Advantage 456
Case 14-1 IKEA 456
Industry Analysis: Forces Influencing Competition 457
Threat of New Entrants 457
Threat of Substitute Products 459
Bargaining Power of Buyers 459
Bargaining Power of Suppliers 459
Rivalry Among Competitors 460
Competitive Advantage 461
Generic Strategies for Creating Competitive Advantage 462
The Flagship Firm: The Business Network with Five Partners 465
Creating Competitive Advantage via Strategic Intent 467
Global Competition and National Competitive Advantage 471
Factor Conditions 472
Demand Conditions 473
Related and Supporting Industries 474
Firm Strategy, Structure, and Rivalry 474
Chance 475
Government 476
Current Issues In Competitive Advantage 477
Hypercompetitive Industries 477
Additional Research on Comparative Advantage 481
Case 14-1 IKEA: The Assignment 484
Case 14-2 Kodak in the Twenty-First Century: The Search for
New Sources of Competitive Advantage 485
Case 14-3 LEGO 486
Chapter 15 Pricing Decisions 488
Case 15-1 Low-Cost Logan: The Race to Build the World’s
Cheapest Car 488
Basic Pricing Concepts 489
Global Pricing Objectives and Strategies 490
Market Skimming and Financial Objectives 490
Penetration Pricing and Nonfinancial Objectives 491
Companion Products: “Razors and Blades” Pricing 491
Target Costing 492
Calculating Prices: Cost-Plus Pricing and Export Price Escalation 493
Terms of the Sale 495
Environmental Influences on Pricing Decisions 498
Currency Fluctuations 498
Inflationary Environment 502
Government Controls, Subsidies, and Regulations 503
Competitive Behavior 505
Using Sourcing as a Strategic Pricing Tool 506
Global Pricing: Three Policy Alternatives 506
Extension or Ethnocentric 506
Adaptation or Polycentric 506
Geocentric 507
Gray Market Goods 508
Dumping 510
Price Fixing 512
Transfer Pricing 512
Tax Regulations and Transfer Prices 513
Sales of Tangible and Intangible Property 514
Countertrade 514
Barter 515
Counterpurchase 515
Offset 515
Compensation Trading 516
Switch Trading 516
Case 15-1 Dacia Logan: The Assignment 518
Case 15-2 LVMH and Luxury Goods Marketing 519
Chapter 16 Brand and Product Decisions in Global Marketing 522
Case 16-1 Suzlon Energy 522
Basic Product Concepts 523
Product Types 523
Brands 524
Local Products and Brands 525
International Products and Brands 526
Global Products and Brands 526
Global Brand Development 529
Local Versus Global Products and Brands: A Needs-Based Approach 5 3
“Country of Origin” as Brand Element 536
Packaging 537
Labeling 539
Aesthetics 539
Product Warranties 540
Extend, Adapt, Create: Strategic Alternatives in Global Marketing 540
Strategy 1: Product-Communication Extension (Dual Extension) 542
Strategy 2: Product Extension-Communication Adaptation 542
Strategy 3: Product Adaptation-Communication Extension 544
Strategy 4: Product-Communication Adaptation (Dual Adaptation) 544
Strategy 5: Innovation 545
How to Choose a Strategy 546
New Products in Global Marketing 547
Identifying New-Product Ideas 547
New-Product Development 549
The International New-Product Department 549
Testing New Products 550
Case 16-1 Suzlon Energy: The Assignment 553
Case 16-2 The Smart Car 554
Chapter 17 Global Marketing Communications Decisions I:
Advertising and Public Relations 556
Case 17-1 2008 Beijing Olympics: An Advertising and PR Bonanza 556
Global Advertising 557
Global Advertising Content: The “Standardization” Versus “Adaptation” Debate 559
Advertising Agencies: Organizations and Brands 562
Selecting an Advertising Agency 563
Creating Global Advertising 566
Art Direction and Art Directors 567
Copy and Copywriters 569
Cultural Considerations 570
Global Media Decisions 573
Global Advertising Expenditures and Media Vehicles 573
Media Decisions 575
Public Relations and Publicity 576
The Growing Role of PR in Global Marketing Communications 580
How PR Practices Differ Around the World 580
Case 17-1 Advertising, Public Relations, and the 2008 Beijing Olympics:
The Assignment 583
Case 17-2 Scotch Whisky in China: A Taste of the Good Life 584
Chapter 18 Global Marketing Channels and Physical Distribution 586
Case 18-1 Tesco Expands in the United States 586
Channel Objectives 587
Distribution Channels: Terminology and Structure 588
Consumer Products and Services 588
Industrial Products 592
Establishing Channels and Working with Channel Intermediaries 593
Global Retailing 596
Types of Retail Operations 597
Trends in Global Retailing 600
Global Retailing Market Expansion Strategies 603
Physical Distribution, Supply Chains, and Logistics Management 606
Order Processing 606
Warehousing 607
Inventory Management 608
Transportation 608
Logistics Management: A Brief Case Study 613
Case 18-1 Tesco Expands in the United States: The Assignment 615
Case 18-2 Carrefour Expands Abroad 616
Chapter 19 Leadership, Organization, and Corporate Social Responsibility 618
Case 19-1 Unilever 618
Leadership 619
Top Management Nationality 620
Leadership and Core Competence 622
Organizing for Global Marketing 623
Patterns of International Organizational Development 625
Lean Production: Organizing the Japanese Way 633
Assembler Value Chains 633
Downstream Value Chains 635
Ethics, Corporate Social Responsibility, and Social Responsiveness in the
Globalization Era 637
Case 19-1 Unilever: The Assignment 644
Case 19-2 Boeing Versus Airbus: A Battle for the Skies 645
Glossary A 649
Glossary B 661
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