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RESEARCHING INTERNATIONAL MARKETS

RESEARCHING INTERNATIONAL MARKETS. Terpstra Ch 7. BASIC DECISIONS REQUIRING DATA. Which market to enter? screening general business environment evaluating specific product market supply side : competition, distribution demand side: usage, attitudes (culture etc) How to enter the market.

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RESEARCHING INTERNATIONAL MARKETS

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  1. RESEARCHING INTERNATIONAL MARKETS Terpstra Ch 7

  2. BASIC DECISIONS REQUIRING DATA • Which market to enter? • screening general business environment • evaluating specific product market • supply side : • competition, distribution • demand side: • usage, attitudes (culture etc) • How to enter the market

  3. Business environment (PEST, SLEPT) • potential demand • potential risks • Your assignment task: • Decide the key factors (Terpstra Ch 2-5) in assessing the business environment • Research your chosen country eg using Euromonitor database • Identify the gaps in the available data

  4. Demand: macro factorsDoole and Lowe 1999 • Accessibilty • –tariffs, quota, regulations • Profitablity • Exchange rates, currency issues • Subsidies and price controls • Market size • Per capita GDP, growth, • inflation, cost of living, unemployment • Consumer spending, leisure time

  5. Risks Kotler (p415) suggests two types • to investment and assets • from government actions • from terrorism and civil war • to operational profitablity • from strikes and unrest • from economic downturns, inflation, exchange rate changes

  6. Risk assessment • Control Risk Group website • www.crg-online.com • www.beri.com • Rates countries' risk levels by • Political • Security • Travel • Leisure and tourism depend on customer confidence which is very vulnerable to any hint of danger. • Corruption - see http://www.globalcorruptionreport.org/

  7. Does this mean only investing in developed countries ? NAFTA Japan ASEAN EU Ohmae K. Triad Power: the shape of global competition

  8. Errors in researching international marketsCraig and Douglas (1995) Global Marketing Strategy Ch 3 • Ignoring the need for research - ethnocentricity • Too narrow research • ignoring indirect competition • ignoring regional or urban/rural differences • ignoring differences in industry structure

  9. Inadequate research • differences in consumer behaviour • differences in consumer attitudes • Lack of published data (government/commercial) • Problems of equivalence • categories • measurement • sampling • translation

  10. Problems of data collection • different DMUs (eg role of woman in family) • availability and attitudes to methods (eg telephone) • politeness v honesty in replies • Cultural bias in interpretation How to avoid error • Back-translation • Use local expertise • Qualitative approach Usunier Chapter 5

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