SlideShare une entreprise Scribd logo
1  sur  57
Télécharger pour lire hors ligne
International Marketing
Management
By Nagendra R
CIT, Gubbi
Developing a Global Vision
through
Marketing Research
By Nagendra R
CIT, Gubbi
International marketing research
• Marketing research is traditionally defined as the systematic
gathering, recording, analyzing and reporting of data to provide
information useful in marketing decision making
How about in International Marketing?
International Marketing Research is the systematic design,
gathering, recording, analyzing and reporting of data to provide
information useful in international marketing decision making
• Info. Must be communicated across cultural boundaries
• The environments within which the research tools applied are
often different in foreign Markets.

3
Importance of Marketing Research
• Information is a necessary component to making good
marketing decisions.

• International Marketing Research is the systematic
collection, recording and analysis of data that can be used to

make marketing decisions in International scenario & to
Spot current and upcoming problems in the current market
• Reduce business risks
• Identify sales opportunities
• Develop plans of action

4
Importance of Marketing Research
• Keeping up with competitors' market strategies also is
important.
• Marketing research is not a perfect science. It deals with people
and their constantly changing feelings and behaviors, which are

influenced by countless subjective factors.
• To conduct marketing research, researcher must gather facts and
opinions in an orderly, objective way to find out what people

want to buy, not just what you want to sell them.
5
Importance of Marketing Research
• Market research will identify trends that affect sales and
profitability.
• Population shifts
• Legal developments

• The local economic situation should be monitored to quickly
identify problems and opportunities

6
Classification of research
• Basically 3 types –
– 1. Country Specific Research
( General information about the country)

– 2. Fortune Specific Research
(Information for future forecasting)

– 3.Strategy Specific Research
(Specific information for making 4p’s )

7
Classification of research
Based on questioning
•

Qualitative marketing research - generally used for exploratory
purposes — small number of respondents — not generalizable to the
whole population — statistical significance and confidence not
calculated — examples : focus groups, in-depth interviews,
and projective techniques

•

Quantitative marketing research - generally used to draw
conclusions — tests a specific hypothesis - uses
random sampling techniques so as to infer from the sample to the
population — involves a large number of respondents —

examples : surveys and questionnaires. Techniques include choice
modeling, maximum difference preference scaling, and covariance
analysis.

8
Classification of research
Based on observations
•

Ethnographic studies — by nature qualitative, the researcher observes
social phenomena in their natural setting — observations can occur crosssectionally (observations made at one time) or longitudinally
(observations occur over several time-periods) - examples include
product-use analysis and computer cookie traces.

•

Experimental techniques - by nature quantitative, the researcher creates
a quasi-artificial environment to try to control spurious factors, then
manipulates at least one of the variables — examples include purchase
laboratories and test markets
9
Complications In International
Marketing Research
• Information must be gathered and understood across cultural
boundaries.
• The research tools can be sensitive to the environment you are
collecting information in.

• Problems with
• fixing the source of data
• Reliability of data

Availability of data
Validating secondary data

• Methodology
10
The Research Process
• Define the research problem and define objectives
• Determine potential sources of information to fulfill
objectives
• Do a cost-benefit analysis on different research options
• Gather data from secondary and/or primary sources
• Analyze, interpret, and summarize the results
• Communicate results to decision makers
11
Step 1: Define Marketing Problems and
Opportunities
• You are trying to launch a new product or
service. (Opportunity)
• Awareness of your company and its products
or services is low.(Problem)
• The market is familiar with your company, but
still is not doing business with you. (Problem)
• Your company has a poor image and
reputation. (Problem)
• Your goods and services are not reaching the
buying public in a timely manner. (Problem)
Step 2: Set Objectives, Budget and
Timetables
Objectives
• Explore the nature of a problem so as to define it in detail.
• Determine how many people will buy your product packaged
in a certain way and offered at a certain price.
• Test possible cause- and effect- relationships.
– For example, if you lower your price by 10 percent, what
increased sales volume should you expect?

– What impact will this strategy have on your profit?
Budget
• Market research budget is a portion of your overall marketing
budget.

• Allocate a small percentage of gross sales for the most recent
year to use on market research.
– It’s usually about 2 percent for an existing business.
– You may want to increase your budget to as much as 10
percent of your expected gross sales.
• Other methods include analyzing and estimating the
competition's budget and calculating your cost of marketing per
sale.
Timetables
• Prepare a detailed timeline to complete all steps of the
market research process.
• Establish target dates that will allow the best accessibility to
your market.

– For example, a holiday greeting card business may want
to conduct research before or around the holiday season
buying period, when its customers are most likely to be
thinking about their purchases.
Step 3: Select Research
Types, Methods and Techniques
• Two types of research are available:
– Primary research is original information gathered
for a specific purpose.

– Secondary research is information that already
exists somewhere.
Secondary Research
• Secondary research is faster and less expensive

than primary research.
• Gathering secondary research may be as simple
as making a trip to your local library or business
information center or browsing the Internet.
• It utilizes information already published.
– Surveys, books, magazines, etc.
Example of Secondary Research
• An article may show how much working mothers
spent on convenience foods last year.
• If you were thinking about selling a convenience
food, this information would show you what kind
of market there is for convenience foods.
– It doesn’t show you how much they are willing to
spend on your particular product.
Primary Research
• Primary research can be as simple as asking customers or
suppliers how they feel about a business, or as complex as

surveys conducted by professional marketing research
firms.
• Examples of primary research are:
– Direct-mail questionnaires
– On-line or telephone surveys
– Experiments
– Panel studies
– Test marketing
– Behavior observation
Primary Research
• Primary research is divided into reactive and
nonreactive research.
• Nonreactive
– Observes how real people behave in real market
situations without influencing that behavior

• Reactive research
– Includes surveys, interviews and questionnaires
– This research is best left to marketing professionals,
as they usually can get more objective and
sophisticated results.
Step 4: Design Research Instruments
• The most common research instrument is the
questionnaire.

Step 5: Collect Data
• To obtain clear, unbiased and reliable results,
collect the data under the direction of experienced
researchers.
Step 6: Organize & Analyze the Data
• Once data has been collected, it needs to be cleaned.
• Cleaning research data involves editing, coding and tabulating results. .
• Look for data focusing on immediate market needs.
• Rely on subjective information only as support for more general findings of
objective research.
• Analyze for consistency; compare the results of different methods of your
data collection.
• Look for common opinions that may be counted together.
• Read between the lines. For example, combine U.S. Census Bureau
statistics on median income levels for a given location and the number of
homeowners vs. renters in the area.
Step 7: Present and Use Market
Research Findings
• Once marketing information is collected and analyzed, present it in an
organized manner to the decision makers of the business.
– Report findings in the market analysis section of business plan.
– Familiarize sales and marketing departments with the data or
conduct a companywide informational training seminar using the
information.
Problems while research
• Problems while establishing objectives
• Problems with fixing the source of data

• Availability of data
• Reliability of data
• Comparability of data (out of date data)
• Validating secondary data
– Who collected?
– For what purpose?
– methodology?
– consistency?

24
Defining the Problem and Objectives
• It is essential to appropriately define the problem you

are researching and establishing clear cut goals that
will help shed light on the problem.
– This can be very difficult when the problem is
complex.
• Due to the complexity of the problem in IM, it may
be difficult to establish the research boundaries.
25
Problems with fixing the source of data
• Primary Data Collection
• Secondary Data Collection
• Data Collection in Multicultural Settings

Primary Data
• Primary data research is when you go out and collect
the data first hand.
• Usually primary data collection is needed when
adequate secondary data does not exist.
• Primary data research can be broken up into two
areas:
– Quantitative Research
– Qualitative Research
26
Gathering primary data
Quantitative Research
• This data is collected by asking verbally or in writing
structured questions that have specified or formatted
responses.
• This research tends to ask close-ended questions.
• Data is gathered usually using surveys or interviews.

Qualitative Research
• Qualitative research focuses more on open-ended
questions, which tend to be highly unstructured.
– It tends to solicit a person’s thoughts and feelings on a
subject.
• Qualitative research can come in the form of direct
observation.
27
Problems in primary research
• Ability to communicate opinions
• Willingness to respond
• Sampling in field surveys
– Sample
– Language
– Comprehension

• Translation problems after collecting data.

Nagendra R

28
Sampling in Field Surveys
• When dealing with different countries it can be difficult to
gather a sample base that is representative of the

population.
– This is primarily due to a lack of good demographic information.

• Methods for collecting information can be severely
limited.
• It can be difficult to verify if the sample is representative.

Nagendra R

29
Problems Encountered When
Drawing a Random Sample
• No officially recognized census of the
population.
• No listings that can serve as a sampling frame.
• Incomplete and/or out-of-date telephone
directories.
• No accurate maps of population centers.
Nagendra R

30
Language and Comprehension
• The language barrier and literacy pose a major
problem when doing a survey abroad.
– It may be that exact translations do not exist for

some survey questions.
– The population may not have a high enough

literacy rate to understand the survey.
Nagendra R

31
Secondary Data Collection
• Secondary data is data that has already been
collected by someone else that will answer the
research question you are trying to answer.

• The biggest issue to deal with secondary data is
that there can be a large quantity of it to wade

through and you are uncertain of its quality.
Nagendra R

32
Problems with Secondary Data
• Availability of the Data
• Reliability of the Data
•Who collected the data?
•Is there a reason someone would want to misrepresent the data?
•Why were the data collected?
•How were the data collected?
•Is the data internally consistent and logical to known facts?)

• Comparability of the Data
• Validating Secondary Data
• Multicultural research
Nagendra R

33
Using the Internet for Research
• The internet can be a useful tool for conducting marketing
research.
• It can reach a multitude a people in a short amount of time.
• While it can be an effective tool, it also has a few large drawbacks.
•
•
•
•
•
•
•

Online surveys and buyer panels
Online focus groups
Web visitor tracking
Advertising measurement
Customer identification system
E-mail marketing lists
Embedded research
Nagendra R

34
Drawbacks to Internet Research
• There can be a large bias as to who fills out the survey, i.e., it
may not be representative of the typical consumer.

• Currently, there is not a large population of foreigners on the
internet.
• It may generate too much costly data to analyze.

Other Issues with Research
• Problems with Analyzing and Interpreting Research
Information
• Responsibility for Conducting Marketing Research
• Estimating Market Demand
Nagendra R

35
Problems in analyzing & interpreting
research info
• Meaning of words, the consumer’s attitude

towards a product, the interviewer’s attitude,
interview situation
• Culture

• Traditional influence

Nagendra R

36
Estimating mkt demand
• Use Secondary data for assessing current mkt demand &
forecasting future demand
• Ability of researcher to estimate the demand, with min.
information
• Methods for estimating:

• Expert opinion-company own, outside experts, govt. officials
• Analogy. Assumes demand for a pdt develops in the same way
in all other countries having comparable economic
development

Nagendra R

37
Communicating with decision makers
• Info must be communicated to decision makers timely..

• Top executives-not only have to identify the
problem,generate objectives but also ‘hear the voice of
customers’ and see the market
• Problems
– customers can misunderstand the questions
– managers can misunderstand the answers.

Nagendra R

38
Identifying foreign markets
Segmenting & Targeting
Segmenting: Represents an
effort to identify and categorize
groups of customers and

Targeting: The process of

countries according to common

evaluating segments and

characteristics

focusing marketing efforts on
a country, region, or group of
people that has significant
potential to respond
Nagendra R

39
Global Market Segmentation
• Defined as the process of identifying specific
segments—whether they be country groups or
individual consumer groups—of potential
customers with homogeneous attributes who
are likely to exhibit similar responses to a
company’s marketing mix.

Nagendra R

40
Contrasting views of global
segmentation
• Conventional Wisdom

• Unconventional Wisdom

– Assumes heterogeneity
between countries
– Assumes homogeneity within
a country
– Focuses on macro level
cultural differences
– Relies on clustering of
national markets
– Less emphasis on withincountry segments

Nagendra R

– Assumes emergence of
segments that transcend
national boundaries
– Recognizes existence of
within-country differences
– Emphasizes micro-level
differences
– Segments micro markets
within and between countries

41
Global Market Segmentation
•
•
•
•
•
•

Stage of Development
Demand Characteristics
Demographics
Psychographics
Behavioral Characteristics
Benefits sought

Nagendra R

42
Stages of Economic Development
1. The Traditional Society
2. The Pre Conditions for Take-off
3. The Take-Off
4. The Drive to Maturity
5. The Age of High Mass Consumption
United Nations Economic Development System

1. More-Developed Countries (MDC)
2. Less-Developed Countries (LDC)
3. Least-Developed Countries (LLDC)

Nagendra R

43
Assessing Market Demand
• Be mindful of the pitfalls
– Tendency to overstate the size and short-term attractiveness of
individual country markets
– The company doesn’t want to ‘miss-out’ on a strategic
opportunity
– Management’s network of contacts will emerge as a primary
criterion for targeting

Three basic criteria
• Current size of the segment and anticipated growth potential
• Competition
• Compatibility with the company’s overall objectives/feasibility
of reaching a designated target

Nagendra R

44
Demographic
Segmentation
•
•
•
•
•
•

Income
Populations
Age distribution
Gender
Education
Occupation

Nagendra R

45
Psychographic Segmentation
• Grouping people according to attitudes, value, and
lifestyles
– SRI International and VALS 2

Nagendra R

46
Behavior Segmentation
•
•
•
•

How much they use it
How often they use it
User status
Law of disproportionality/Pareto’s Law – 80%
of a company’s revenues are accounted for by
20% of the customers

Nagendra R

47
Benefit Segmentation
• Benefit segmentation focuses on the value
equation
Value = Benefits / Price

• Based on understanding the problem a product
solves, the benefit it offers, or the issue it
addresses

Nagendra R

48
Social and Cultural
Environment

Nagendra R

49
Culture Defined
• A continuously changing totality of learned and shared
meanings, rituals, norms, and traditions among the
members of an organization or society.
– Ecology
– Social Structure

– Ideology

Nagendra R

50
Elements of Culture
 Material Culture
 Technology

 Economics

 Social Institutions
 Family

 Political Structure

 Education

 The Media

 Humans and The Universe
 Belief Systems
 Aesthetics
 Graphics and Plastic Arts

 Music, Drama, and Dance

 Folklore

 Language

Nagendra R

51
Cultural Factors
 Never touch the head of a Thai or pass an object over it
The head is considered sacred in Thailand.
 Avoid using triangular shapes in Hong Kong,
Korea and Taiwan. It is considered a negative shape.
 The number 7 is considered bad luck in Kenya, good luck in the Czech Republic
and has a magical connotation in Benin.
 The number 10 is bad luck in Korea.
 The number 4 means death in Japan.
 Red represents witchcraft and death in many African countries.
 Red is a positive color in Denmark.
Nagendra R

52
Understanding Culture
•

•
•
•
•

Culture is learned. Passed on from
generation to generation. Relatively
enduring.
Members of a culture share a system of
meaning.
All facets of culture are interrelated
Macroculture
Microculture
Nagendra R

53
The Importance of Understanding
• Many companies find that their new foreign firm is
about to collapse because they have failed to learn
that country’s customs, cultures, and laws
• Two out of every three U.S. executives sent to Saudi
Arabia are promptly repatriated due to difficulties in
adapting to the local culture
• The costs associated with premature returns
(repatriation) negatively affects the bottom-line of
international companies

Nagendra R

54
Elements of Culture
• Protestant Religion – stresses hard work and
frugality
• Judaism – stresses education and development
• Islam – focus on rules for social interaction
• Hinduism – encourages family orientation and
dictates strict dietary constraints
• Buddhism – stresses sufferance and avoidance
of worldly desires

Nagendra R

55
Cultural Norms
• Norms are derived from values and defined as
rules that dictate what is right or wrong,
acceptable or unacceptable
– Imperative
• What an outsider must or must not do

– Exclusive
• What locals may do but an outsider cannot

– Adiaphora
• What an outsider may or may not do

Nagendra R

56
Nagendra R

57

Contenu connexe

Tendances

Market research-sampling method
Market research-sampling methodMarket research-sampling method
Market research-sampling methodHo Cao Viet
 
NATURE & SCOPE OF MARKETING RESEARCH
NATURE & SCOPE OF MARKETING RESEARCHNATURE & SCOPE OF MARKETING RESEARCH
NATURE & SCOPE OF MARKETING RESEARCHSagar Anand
 
Marketing Research- Myth
Marketing Research- MythMarketing Research- Myth
Marketing Research- MythArrjit Parashar
 
Applied Marketing Research: An Introduction
Applied Marketing Research: An IntroductionApplied Marketing Research: An Introduction
Applied Marketing Research: An IntroductionKelly Page
 
Qualitative versus Quantitative Market Research
Qualitative versus Quantitative Market ResearchQualitative versus Quantitative Market Research
Qualitative versus Quantitative Market ResearchSiddhang Tendulkar
 
AS business studies market research
AS business studies market researchAS business studies market research
AS business studies market researchOliver Pratten
 
Market research
Market researchMarket research
Market researchInova LLC
 
Marketing research
Marketing researchMarketing research
Marketing researchRahul Jha
 
Resumen entrepreneurial marketing - MIT
Resumen entrepreneurial marketing - MITResumen entrepreneurial marketing - MIT
Resumen entrepreneurial marketing - MITEdorta Agirre
 
Marketing research
Marketing research Marketing research
Marketing research SumitKangra
 
Ss sales forcasting
Ss sales forcastingSs sales forcasting
Ss sales forcastingCMPCERT
 
The problem definition process for marketing research problem
The problem definition process for marketing research problemThe problem definition process for marketing research problem
The problem definition process for marketing research problemshafinislam
 
Marketing research - An overview
Marketing research - An overviewMarketing research - An overview
Marketing research - An overviewMoses Gomes
 
Marketing research and demand forecasting
Marketing research and demand forecastingMarketing research and demand forecasting
Marketing research and demand forecastingSamarth Gupta
 
Marketing Research 101
Marketing Research 101Marketing Research 101
Marketing Research 101lizbreed
 
Marketing Research
Marketing ResearchMarketing Research
Marketing ResearchGheethu Joy
 

Tendances (19)

Market research presentation
Market research presentationMarket research presentation
Market research presentation
 
Market research-sampling method
Market research-sampling methodMarket research-sampling method
Market research-sampling method
 
NATURE & SCOPE OF MARKETING RESEARCH
NATURE & SCOPE OF MARKETING RESEARCHNATURE & SCOPE OF MARKETING RESEARCH
NATURE & SCOPE OF MARKETING RESEARCH
 
Marketing research
Marketing researchMarketing research
Marketing research
 
Marketing Research- Myth
Marketing Research- MythMarketing Research- Myth
Marketing Research- Myth
 
Applied Marketing Research: An Introduction
Applied Marketing Research: An IntroductionApplied Marketing Research: An Introduction
Applied Marketing Research: An Introduction
 
Qualitative versus Quantitative Market Research
Qualitative versus Quantitative Market ResearchQualitative versus Quantitative Market Research
Qualitative versus Quantitative Market Research
 
Marketing research
Marketing researchMarketing research
Marketing research
 
AS business studies market research
AS business studies market researchAS business studies market research
AS business studies market research
 
Market research
Market researchMarket research
Market research
 
Marketing research
Marketing researchMarketing research
Marketing research
 
Resumen entrepreneurial marketing - MIT
Resumen entrepreneurial marketing - MITResumen entrepreneurial marketing - MIT
Resumen entrepreneurial marketing - MIT
 
Marketing research
Marketing research Marketing research
Marketing research
 
Ss sales forcasting
Ss sales forcastingSs sales forcasting
Ss sales forcasting
 
The problem definition process for marketing research problem
The problem definition process for marketing research problemThe problem definition process for marketing research problem
The problem definition process for marketing research problem
 
Marketing research - An overview
Marketing research - An overviewMarketing research - An overview
Marketing research - An overview
 
Marketing research and demand forecasting
Marketing research and demand forecastingMarketing research and demand forecasting
Marketing research and demand forecasting
 
Marketing Research 101
Marketing Research 101Marketing Research 101
Marketing Research 101
 
Marketing Research
Marketing ResearchMarketing Research
Marketing Research
 

En vedette

course module of IHRM
course module of IHRMcourse module of IHRM
course module of IHRMpcte
 
Unit 2
Unit 2Unit 2
Unit 2siddr
 
Unit 1
Unit 1Unit 1
Unit 1siddr
 
VTU MBA-TQM 12MBA42 Module 2
VTU MBA-TQM 12MBA42 Module 2VTU MBA-TQM 12MBA42 Module 2
VTU MBA-TQM 12MBA42 Module 2Adani University
 
Groups and Social Movements
Groups and Social MovementsGroups and Social Movements
Groups and Social Movementsflemingsuzanne
 
Global Business and International Human Resource Management
Global Business and International Human Resource ManagementGlobal Business and International Human Resource Management
Global Business and International Human Resource ManagementLITTLE FISH
 
Course Module - IHRM
Course Module - IHRMCourse Module - IHRM
Course Module - IHRM07Deeps
 
Research Process- Objective, Hypothesis (Lec2)
Research Process- Objective, Hypothesis (Lec2)Research Process- Objective, Hypothesis (Lec2)
Research Process- Objective, Hypothesis (Lec2)Jasper Obico
 
Chapter 1 introduction to ihrm
Chapter   1 introduction to ihrmChapter   1 introduction to ihrm
Chapter 1 introduction to ihrmPreeti Bhaskar
 
Developing research plan
Developing research planDeveloping research plan
Developing research planAnvita Bharati
 
Selection of a Research Problem
Selection of a Research ProblemSelection of a Research Problem
Selection of a Research ProblemDr.Shazia Zamir
 
Presentation on the characteristic of scientific research 1
Presentation on the characteristic of scientific research 1Presentation on the characteristic of scientific research 1
Presentation on the characteristic of scientific research 1Junesh Acharya
 
International Human Resource Managment
International Human Resource ManagmentInternational Human Resource Managment
International Human Resource Managmentbinotrisha
 
Research objectives
Research objectivesResearch objectives
Research objectivesBruno Mmassy
 
Socio cultural change
Socio cultural changeSocio cultural change
Socio cultural changeCher Rish
 
Characteristics and criteria of good research
Characteristics and criteria of good researchCharacteristics and criteria of good research
Characteristics and criteria of good researchA B
 

En vedette (20)

Culture
CultureCulture
Culture
 
course module of IHRM
course module of IHRMcourse module of IHRM
course module of IHRM
 
Unit 2
Unit 2Unit 2
Unit 2
 
Unit 1
Unit 1Unit 1
Unit 1
 
VTU MBA-TQM 12MBA42 Module 2
VTU MBA-TQM 12MBA42 Module 2VTU MBA-TQM 12MBA42 Module 2
VTU MBA-TQM 12MBA42 Module 2
 
Groups and Social Movements
Groups and Social MovementsGroups and Social Movements
Groups and Social Movements
 
Global Business and International Human Resource Management
Global Business and International Human Resource ManagementGlobal Business and International Human Resource Management
Global Business and International Human Resource Management
 
Course Module - IHRM
Course Module - IHRMCourse Module - IHRM
Course Module - IHRM
 
Research Process- Objective, Hypothesis (Lec2)
Research Process- Objective, Hypothesis (Lec2)Research Process- Objective, Hypothesis (Lec2)
Research Process- Objective, Hypothesis (Lec2)
 
Chapter 1 introduction to ihrm
Chapter   1 introduction to ihrmChapter   1 introduction to ihrm
Chapter 1 introduction to ihrm
 
Developing research plan
Developing research planDeveloping research plan
Developing research plan
 
Selection of a Research Problem
Selection of a Research ProblemSelection of a Research Problem
Selection of a Research Problem
 
Presentation on the characteristic of scientific research 1
Presentation on the characteristic of scientific research 1Presentation on the characteristic of scientific research 1
Presentation on the characteristic of scientific research 1
 
International hrm
International hrmInternational hrm
International hrm
 
International Human Resource Managment
International Human Resource ManagmentInternational Human Resource Managment
International Human Resource Managment
 
Ihrm
IhrmIhrm
Ihrm
 
Research objectives
Research objectivesResearch objectives
Research objectives
 
Socio cultural change
Socio cultural changeSocio cultural change
Socio cultural change
 
Module 1
Module 1Module 1
Module 1
 
Characteristics and criteria of good research
Characteristics and criteria of good researchCharacteristics and criteria of good research
Characteristics and criteria of good research
 

Similaire à IMM Module 2 - VTU MBA

Similaire à IMM Module 2 - VTU MBA (20)

Marketing research ppt
Marketing research pptMarketing research ppt
Marketing research ppt
 
Marketing research
Marketing researchMarketing research
Marketing research
 
009428504.pdf
009428504.pdf009428504.pdf
009428504.pdf
 
Research Marketing Ch3 Edited.powerpoint
Research Marketing Ch3 Edited.powerpointResearch Marketing Ch3 Edited.powerpoint
Research Marketing Ch3 Edited.powerpoint
 
Marketing research
Marketing researchMarketing research
Marketing research
 
Mm unit 1point1
Mm unit 1point1Mm unit 1point1
Mm unit 1point1
 
Mm unit 1point1
Mm unit 1point1Mm unit 1point1
Mm unit 1point1
 
Mm unit 1point1
Mm unit 1point1Mm unit 1point1
Mm unit 1point1
 
Understanding Market Research
Understanding Market ResearchUnderstanding Market Research
Understanding Market Research
 
Session 8.ppt
Session 8.pptSession 8.ppt
Session 8.ppt
 
Steps in marketing research process
Steps in marketing research processSteps in marketing research process
Steps in marketing research process
 
Lesson 4-7.pptx
Lesson 4-7.pptxLesson 4-7.pptx
Lesson 4-7.pptx
 
Unit-4_of_Marketing_Management_BBA_3rd_Semester[1].pptx
Unit-4_of_Marketing_Management_BBA_3rd_Semester[1].pptxUnit-4_of_Marketing_Management_BBA_3rd_Semester[1].pptx
Unit-4_of_Marketing_Management_BBA_3rd_Semester[1].pptx
 
Cmarketing 5
Cmarketing 5Cmarketing 5
Cmarketing 5
 
LESSON 5
LESSON 5LESSON 5
LESSON 5
 
Marketing research
Marketing researchMarketing research
Marketing research
 
Analyzing marketing opportunities
Analyzing marketing opportunitiesAnalyzing marketing opportunities
Analyzing marketing opportunities
 
Market research
Market researchMarket research
Market research
 
Mba ii rm unit-2.1 research process a
Mba ii rm unit-2.1 research process aMba ii rm unit-2.1 research process a
Mba ii rm unit-2.1 research process a
 
PRINCIPLES OF MARKETING MODULE 3.2.pptx
PRINCIPLES OF MARKETING MODULE 3.2.pptxPRINCIPLES OF MARKETING MODULE 3.2.pptx
PRINCIPLES OF MARKETING MODULE 3.2.pptx
 

Dernier

Dhanuka Agritech Limited - Sales and Marketing Intern
Dhanuka Agritech Limited - Sales and Marketing InternDhanuka Agritech Limited - Sales and Marketing Intern
Dhanuka Agritech Limited - Sales and Marketing Internrisabhpandeyconnect
 
Voltas turnaround strategy management case
Voltas turnaround strategy management caseVoltas turnaround strategy management case
Voltas turnaround strategy management caseAnkit Sarkar
 
The best Crypto Marketing Strategies pdf
The best Crypto Marketing Strategies pdfThe best Crypto Marketing Strategies pdf
The best Crypto Marketing Strategies pdfShifali roy
 
A_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdfA_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdfVWO
 
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxivanrazine1
 
Product Demo: HubSpot's Coolest AI Tools for B2B Tech Companies
Product Demo: HubSpot's Coolest AI Tools for B2B Tech CompaniesProduct Demo: HubSpot's Coolest AI Tools for B2B Tech Companies
Product Demo: HubSpot's Coolest AI Tools for B2B Tech CompaniesKiwi Creative
 
Amazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxAmazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxWill Haire
 
Imposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneImposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneHerd
 
Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Nedko Nedkov
 
Unifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfUnifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfVWO
 
Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!Joseph Skibbie
 
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design CourseElevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Courseamirshaikhv21realtyp
 
Ice Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling ResearchIce Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling ResearchTINT Marketing
 
2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain Visibility2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain VisibilitySearch Engine Journal
 
Ppt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing coursPpt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing courstegveersingh09
 
Digital Marketing Analytics: Driving Hotel Success (2016 May report)
Digital Marketing Analytics: Driving Hotel Success (2016 May report)Digital Marketing Analytics: Driving Hotel Success (2016 May report)
Digital Marketing Analytics: Driving Hotel Success (2016 May report)yaeyukimoto
 
SEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedSEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedMumbai Pixels
 
SVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfSVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfvikrs213
 
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfTAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfSocial Samosa
 
A navigation of two creative processes Study
A navigation of two creative processes StudyA navigation of two creative processes Study
A navigation of two creative processes Studystuwilson.co.uk
 

Dernier (20)

Dhanuka Agritech Limited - Sales and Marketing Intern
Dhanuka Agritech Limited - Sales and Marketing InternDhanuka Agritech Limited - Sales and Marketing Intern
Dhanuka Agritech Limited - Sales and Marketing Intern
 
Voltas turnaround strategy management case
Voltas turnaround strategy management caseVoltas turnaround strategy management case
Voltas turnaround strategy management case
 
The best Crypto Marketing Strategies pdf
The best Crypto Marketing Strategies pdfThe best Crypto Marketing Strategies pdf
The best Crypto Marketing Strategies pdf
 
A_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdfA_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdf
 
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
 
Product Demo: HubSpot's Coolest AI Tools for B2B Tech Companies
Product Demo: HubSpot's Coolest AI Tools for B2B Tech CompaniesProduct Demo: HubSpot's Coolest AI Tools for B2B Tech Companies
Product Demo: HubSpot's Coolest AI Tools for B2B Tech Companies
 
Amazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxAmazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptx
 
Imposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneImposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not Alone
 
Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024
 
Unifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfUnifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdf
 
Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!Marketing Team of 1, A Framework To Win!
Marketing Team of 1, A Framework To Win!
 
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design CourseElevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
 
Ice Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling ResearchIce Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling Research
 
2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain Visibility2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain Visibility
 
Ppt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing coursPpt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing cours
 
Digital Marketing Analytics: Driving Hotel Success (2016 May report)
Digital Marketing Analytics: Driving Hotel Success (2016 May report)Digital Marketing Analytics: Driving Hotel Success (2016 May report)
Digital Marketing Analytics: Driving Hotel Success (2016 May report)
 
SEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedSEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to Succeed
 
SVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfSVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdf
 
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfTAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
 
A navigation of two creative processes Study
A navigation of two creative processes StudyA navigation of two creative processes Study
A navigation of two creative processes Study
 

IMM Module 2 - VTU MBA

  • 2. Developing a Global Vision through Marketing Research By Nagendra R CIT, Gubbi
  • 3. International marketing research • Marketing research is traditionally defined as the systematic gathering, recording, analyzing and reporting of data to provide information useful in marketing decision making How about in International Marketing? International Marketing Research is the systematic design, gathering, recording, analyzing and reporting of data to provide information useful in international marketing decision making • Info. Must be communicated across cultural boundaries • The environments within which the research tools applied are often different in foreign Markets. 3
  • 4. Importance of Marketing Research • Information is a necessary component to making good marketing decisions. • International Marketing Research is the systematic collection, recording and analysis of data that can be used to make marketing decisions in International scenario & to Spot current and upcoming problems in the current market • Reduce business risks • Identify sales opportunities • Develop plans of action 4
  • 5. Importance of Marketing Research • Keeping up with competitors' market strategies also is important. • Marketing research is not a perfect science. It deals with people and their constantly changing feelings and behaviors, which are influenced by countless subjective factors. • To conduct marketing research, researcher must gather facts and opinions in an orderly, objective way to find out what people want to buy, not just what you want to sell them. 5
  • 6. Importance of Marketing Research • Market research will identify trends that affect sales and profitability. • Population shifts • Legal developments • The local economic situation should be monitored to quickly identify problems and opportunities 6
  • 7. Classification of research • Basically 3 types – – 1. Country Specific Research ( General information about the country) – 2. Fortune Specific Research (Information for future forecasting) – 3.Strategy Specific Research (Specific information for making 4p’s ) 7
  • 8. Classification of research Based on questioning • Qualitative marketing research - generally used for exploratory purposes — small number of respondents — not generalizable to the whole population — statistical significance and confidence not calculated — examples : focus groups, in-depth interviews, and projective techniques • Quantitative marketing research - generally used to draw conclusions — tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population — involves a large number of respondents — examples : surveys and questionnaires. Techniques include choice modeling, maximum difference preference scaling, and covariance analysis. 8
  • 9. Classification of research Based on observations • Ethnographic studies — by nature qualitative, the researcher observes social phenomena in their natural setting — observations can occur crosssectionally (observations made at one time) or longitudinally (observations occur over several time-periods) - examples include product-use analysis and computer cookie traces. • Experimental techniques - by nature quantitative, the researcher creates a quasi-artificial environment to try to control spurious factors, then manipulates at least one of the variables — examples include purchase laboratories and test markets 9
  • 10. Complications In International Marketing Research • Information must be gathered and understood across cultural boundaries. • The research tools can be sensitive to the environment you are collecting information in. • Problems with • fixing the source of data • Reliability of data Availability of data Validating secondary data • Methodology 10
  • 11. The Research Process • Define the research problem and define objectives • Determine potential sources of information to fulfill objectives • Do a cost-benefit analysis on different research options • Gather data from secondary and/or primary sources • Analyze, interpret, and summarize the results • Communicate results to decision makers 11
  • 12. Step 1: Define Marketing Problems and Opportunities • You are trying to launch a new product or service. (Opportunity) • Awareness of your company and its products or services is low.(Problem) • The market is familiar with your company, but still is not doing business with you. (Problem) • Your company has a poor image and reputation. (Problem) • Your goods and services are not reaching the buying public in a timely manner. (Problem)
  • 13. Step 2: Set Objectives, Budget and Timetables Objectives • Explore the nature of a problem so as to define it in detail. • Determine how many people will buy your product packaged in a certain way and offered at a certain price. • Test possible cause- and effect- relationships. – For example, if you lower your price by 10 percent, what increased sales volume should you expect? – What impact will this strategy have on your profit?
  • 14. Budget • Market research budget is a portion of your overall marketing budget. • Allocate a small percentage of gross sales for the most recent year to use on market research. – It’s usually about 2 percent for an existing business. – You may want to increase your budget to as much as 10 percent of your expected gross sales. • Other methods include analyzing and estimating the competition's budget and calculating your cost of marketing per sale.
  • 15. Timetables • Prepare a detailed timeline to complete all steps of the market research process. • Establish target dates that will allow the best accessibility to your market. – For example, a holiday greeting card business may want to conduct research before or around the holiday season buying period, when its customers are most likely to be thinking about their purchases.
  • 16. Step 3: Select Research Types, Methods and Techniques • Two types of research are available: – Primary research is original information gathered for a specific purpose. – Secondary research is information that already exists somewhere.
  • 17. Secondary Research • Secondary research is faster and less expensive than primary research. • Gathering secondary research may be as simple as making a trip to your local library or business information center or browsing the Internet. • It utilizes information already published. – Surveys, books, magazines, etc.
  • 18. Example of Secondary Research • An article may show how much working mothers spent on convenience foods last year. • If you were thinking about selling a convenience food, this information would show you what kind of market there is for convenience foods. – It doesn’t show you how much they are willing to spend on your particular product.
  • 19. Primary Research • Primary research can be as simple as asking customers or suppliers how they feel about a business, or as complex as surveys conducted by professional marketing research firms. • Examples of primary research are: – Direct-mail questionnaires – On-line or telephone surveys – Experiments – Panel studies – Test marketing – Behavior observation
  • 20. Primary Research • Primary research is divided into reactive and nonreactive research. • Nonreactive – Observes how real people behave in real market situations without influencing that behavior • Reactive research – Includes surveys, interviews and questionnaires – This research is best left to marketing professionals, as they usually can get more objective and sophisticated results.
  • 21. Step 4: Design Research Instruments • The most common research instrument is the questionnaire. Step 5: Collect Data • To obtain clear, unbiased and reliable results, collect the data under the direction of experienced researchers.
  • 22. Step 6: Organize & Analyze the Data • Once data has been collected, it needs to be cleaned. • Cleaning research data involves editing, coding and tabulating results. . • Look for data focusing on immediate market needs. • Rely on subjective information only as support for more general findings of objective research. • Analyze for consistency; compare the results of different methods of your data collection. • Look for common opinions that may be counted together. • Read between the lines. For example, combine U.S. Census Bureau statistics on median income levels for a given location and the number of homeowners vs. renters in the area.
  • 23. Step 7: Present and Use Market Research Findings • Once marketing information is collected and analyzed, present it in an organized manner to the decision makers of the business. – Report findings in the market analysis section of business plan. – Familiarize sales and marketing departments with the data or conduct a companywide informational training seminar using the information.
  • 24. Problems while research • Problems while establishing objectives • Problems with fixing the source of data • Availability of data • Reliability of data • Comparability of data (out of date data) • Validating secondary data – Who collected? – For what purpose? – methodology? – consistency? 24
  • 25. Defining the Problem and Objectives • It is essential to appropriately define the problem you are researching and establishing clear cut goals that will help shed light on the problem. – This can be very difficult when the problem is complex. • Due to the complexity of the problem in IM, it may be difficult to establish the research boundaries. 25
  • 26. Problems with fixing the source of data • Primary Data Collection • Secondary Data Collection • Data Collection in Multicultural Settings Primary Data • Primary data research is when you go out and collect the data first hand. • Usually primary data collection is needed when adequate secondary data does not exist. • Primary data research can be broken up into two areas: – Quantitative Research – Qualitative Research 26
  • 27. Gathering primary data Quantitative Research • This data is collected by asking verbally or in writing structured questions that have specified or formatted responses. • This research tends to ask close-ended questions. • Data is gathered usually using surveys or interviews. Qualitative Research • Qualitative research focuses more on open-ended questions, which tend to be highly unstructured. – It tends to solicit a person’s thoughts and feelings on a subject. • Qualitative research can come in the form of direct observation. 27
  • 28. Problems in primary research • Ability to communicate opinions • Willingness to respond • Sampling in field surveys – Sample – Language – Comprehension • Translation problems after collecting data. Nagendra R 28
  • 29. Sampling in Field Surveys • When dealing with different countries it can be difficult to gather a sample base that is representative of the population. – This is primarily due to a lack of good demographic information. • Methods for collecting information can be severely limited. • It can be difficult to verify if the sample is representative. Nagendra R 29
  • 30. Problems Encountered When Drawing a Random Sample • No officially recognized census of the population. • No listings that can serve as a sampling frame. • Incomplete and/or out-of-date telephone directories. • No accurate maps of population centers. Nagendra R 30
  • 31. Language and Comprehension • The language barrier and literacy pose a major problem when doing a survey abroad. – It may be that exact translations do not exist for some survey questions. – The population may not have a high enough literacy rate to understand the survey. Nagendra R 31
  • 32. Secondary Data Collection • Secondary data is data that has already been collected by someone else that will answer the research question you are trying to answer. • The biggest issue to deal with secondary data is that there can be a large quantity of it to wade through and you are uncertain of its quality. Nagendra R 32
  • 33. Problems with Secondary Data • Availability of the Data • Reliability of the Data •Who collected the data? •Is there a reason someone would want to misrepresent the data? •Why were the data collected? •How were the data collected? •Is the data internally consistent and logical to known facts?) • Comparability of the Data • Validating Secondary Data • Multicultural research Nagendra R 33
  • 34. Using the Internet for Research • The internet can be a useful tool for conducting marketing research. • It can reach a multitude a people in a short amount of time. • While it can be an effective tool, it also has a few large drawbacks. • • • • • • • Online surveys and buyer panels Online focus groups Web visitor tracking Advertising measurement Customer identification system E-mail marketing lists Embedded research Nagendra R 34
  • 35. Drawbacks to Internet Research • There can be a large bias as to who fills out the survey, i.e., it may not be representative of the typical consumer. • Currently, there is not a large population of foreigners on the internet. • It may generate too much costly data to analyze. Other Issues with Research • Problems with Analyzing and Interpreting Research Information • Responsibility for Conducting Marketing Research • Estimating Market Demand Nagendra R 35
  • 36. Problems in analyzing & interpreting research info • Meaning of words, the consumer’s attitude towards a product, the interviewer’s attitude, interview situation • Culture • Traditional influence Nagendra R 36
  • 37. Estimating mkt demand • Use Secondary data for assessing current mkt demand & forecasting future demand • Ability of researcher to estimate the demand, with min. information • Methods for estimating: • Expert opinion-company own, outside experts, govt. officials • Analogy. Assumes demand for a pdt develops in the same way in all other countries having comparable economic development Nagendra R 37
  • 38. Communicating with decision makers • Info must be communicated to decision makers timely.. • Top executives-not only have to identify the problem,generate objectives but also ‘hear the voice of customers’ and see the market • Problems – customers can misunderstand the questions – managers can misunderstand the answers. Nagendra R 38
  • 39. Identifying foreign markets Segmenting & Targeting Segmenting: Represents an effort to identify and categorize groups of customers and Targeting: The process of countries according to common evaluating segments and characteristics focusing marketing efforts on a country, region, or group of people that has significant potential to respond Nagendra R 39
  • 40. Global Market Segmentation • Defined as the process of identifying specific segments—whether they be country groups or individual consumer groups—of potential customers with homogeneous attributes who are likely to exhibit similar responses to a company’s marketing mix. Nagendra R 40
  • 41. Contrasting views of global segmentation • Conventional Wisdom • Unconventional Wisdom – Assumes heterogeneity between countries – Assumes homogeneity within a country – Focuses on macro level cultural differences – Relies on clustering of national markets – Less emphasis on withincountry segments Nagendra R – Assumes emergence of segments that transcend national boundaries – Recognizes existence of within-country differences – Emphasizes micro-level differences – Segments micro markets within and between countries 41
  • 42. Global Market Segmentation • • • • • • Stage of Development Demand Characteristics Demographics Psychographics Behavioral Characteristics Benefits sought Nagendra R 42
  • 43. Stages of Economic Development 1. The Traditional Society 2. The Pre Conditions for Take-off 3. The Take-Off 4. The Drive to Maturity 5. The Age of High Mass Consumption United Nations Economic Development System 1. More-Developed Countries (MDC) 2. Less-Developed Countries (LDC) 3. Least-Developed Countries (LLDC) Nagendra R 43
  • 44. Assessing Market Demand • Be mindful of the pitfalls – Tendency to overstate the size and short-term attractiveness of individual country markets – The company doesn’t want to ‘miss-out’ on a strategic opportunity – Management’s network of contacts will emerge as a primary criterion for targeting Three basic criteria • Current size of the segment and anticipated growth potential • Competition • Compatibility with the company’s overall objectives/feasibility of reaching a designated target Nagendra R 44
  • 46. Psychographic Segmentation • Grouping people according to attitudes, value, and lifestyles – SRI International and VALS 2 Nagendra R 46
  • 47. Behavior Segmentation • • • • How much they use it How often they use it User status Law of disproportionality/Pareto’s Law – 80% of a company’s revenues are accounted for by 20% of the customers Nagendra R 47
  • 48. Benefit Segmentation • Benefit segmentation focuses on the value equation Value = Benefits / Price • Based on understanding the problem a product solves, the benefit it offers, or the issue it addresses Nagendra R 48
  • 50. Culture Defined • A continuously changing totality of learned and shared meanings, rituals, norms, and traditions among the members of an organization or society. – Ecology – Social Structure – Ideology Nagendra R 50
  • 51. Elements of Culture  Material Culture  Technology  Economics  Social Institutions  Family  Political Structure  Education  The Media  Humans and The Universe  Belief Systems  Aesthetics  Graphics and Plastic Arts  Music, Drama, and Dance  Folklore  Language Nagendra R 51
  • 52. Cultural Factors  Never touch the head of a Thai or pass an object over it The head is considered sacred in Thailand.  Avoid using triangular shapes in Hong Kong, Korea and Taiwan. It is considered a negative shape.  The number 7 is considered bad luck in Kenya, good luck in the Czech Republic and has a magical connotation in Benin.  The number 10 is bad luck in Korea.  The number 4 means death in Japan.  Red represents witchcraft and death in many African countries.  Red is a positive color in Denmark. Nagendra R 52
  • 53. Understanding Culture • • • • • Culture is learned. Passed on from generation to generation. Relatively enduring. Members of a culture share a system of meaning. All facets of culture are interrelated Macroculture Microculture Nagendra R 53
  • 54. The Importance of Understanding • Many companies find that their new foreign firm is about to collapse because they have failed to learn that country’s customs, cultures, and laws • Two out of every three U.S. executives sent to Saudi Arabia are promptly repatriated due to difficulties in adapting to the local culture • The costs associated with premature returns (repatriation) negatively affects the bottom-line of international companies Nagendra R 54
  • 55. Elements of Culture • Protestant Religion – stresses hard work and frugality • Judaism – stresses education and development • Islam – focus on rules for social interaction • Hinduism – encourages family orientation and dictates strict dietary constraints • Buddhism – stresses sufferance and avoidance of worldly desires Nagendra R 55
  • 56. Cultural Norms • Norms are derived from values and defined as rules that dictate what is right or wrong, acceptable or unacceptable – Imperative • What an outsider must or must not do – Exclusive • What locals may do but an outsider cannot – Adiaphora • What an outsider may or may not do Nagendra R 56