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International Marketing, STUDY GOALS - Coggle Diagram

- - - - What content do people prefer?
      - What content is allowed? (e.g., censorship policies of Indonesia, Vietnam, Malaysia)
      - What competitors operate in a market? (e.g. local and international)
      - What is the regulatory environment like?
      - What are people willing to pay?
      - What is the technological infrastructure like? How do people access streaming?
      - What possible partners are there
    - - Localcompetition(e.g. in France and India)
      - Producinglocalcontent
      - Partnerships toproductlocalcontent($5 billionin 2016)
      - Amazon Prime (e.g. in Germany and India)
    - - Competitivelandscape
      - Content
      - Access (broadbandorcellular)
      - Algorithm
      - Payment plansand procedures
    - - Uncontrollablecostsituation
      - High costforglobal licensingdeals
      - Different marketingenvironmentsthanUS
      - Uncertaininfrastructure
    - - Consumer
        
        Case study: UMTS
        
        Information from consumers, e.g. preferences and buying behaviour
      - Supplier
        
        Case study: Beverage industry
        
        from producers, e.g. company goals, financial position
      - Competitor
        
        Case study: Deregulation and the aviation industry
        
        Information about competing companies, e.g. strategies and operations
  - - - Fast internet access
      - Streaming Devices
      - Payment options
      - Cellular networks
      - Transportation
    - - Case study: Click-IT AB
      - BERI and ICRG indexes
      - ASEAN,NAFTA,GAFTA,EU,MERCOSUR.
      - Regulatory restrictions regarding content
      - Restriction against US business (China)
      - Political Situation
      - Trade barriers
    - - Geert Hofstede’s cultural
        dimensions
        
        Power distance
        
        Individualism: In an
        
        Masculinity
        
        Uncertainty avoidance
        
        Long-term orientation
      - Language
      - Content preferences
      - Willingness to pay
      - Marketing purposes
  - - - Socio-economic structures
      - Values
    - - Centralized procurement
      - −Multiple actors
      - −Country-specific features
      - −Standardization
    - - similar sociodemographic developments in many industrial nations
      - improvements in transport
      - societies increasingly experiencing and integrating foreign cultures (e.g. in educational
- - - - Case study: Features of multinational market segmentation
      - Multi-stage process
      - −Select countries first, then conduct separate segmentations
      - −Highly differentiated products
      - Criteria
        
        Economic variables
        
        Sociodemographic variables
        
        Geographic variables
        
        Technological variables
        
        Cultural variables
        
        Political/legal variables
      - Evaluate countries based on attractiveness and accessibility
    - - CASE STUDY: BMW TARGET CONSUMER PROFILE
        
        “Upper conservative”
        
        “Post-moderns”
        
        “Modern mainstream”
        
        “Upper liberals”
      - World-wide, cross-national target groups
      - −Global brands and standardized marketing approach
      - −Fashion, technology etc.
      - One-step approach across countries
      - Criteria
        
        Sociodemographic variables
        
        Psychographic variables
        
        Behaviouralvariables
        
        Lifestyle and values
        
        Examples: GfK Euro Socio Styles, GfK Roper Consumer Styles, VALS, ESRI Tapestry Segmentation, PRIZM
    - - CASE STUDY: LONG-TERM CLIENT COOPERATION OF VOITH AG
    - - Started with multinational segmentation and selected markets that were close in geography and culture (e.g. Canada)
      - Learned from the process and gained capability to enter a variety of more diverse markets
      - Second phase: Chose attractive markets based on shared similarities, affluent consumers, broadband internet
      - Third phase: exponential globalization
  - - - Contract manufacturing
        
        A foreign partner is tasked with managing specific parts of the overall production process
        
        Advantages: low cost, technical expertise, scalability
        
        Disadvantages: partner reliability, intellectual property risks
      - Licensing
        
        International company grants a license to use patents, utility models, registered designs, trademarks, and expertise for a specific foreign market, in exchange for a fee
        
        Advantages: less expensive, no problems with cultural differences
        
        Disadvantages: risk of imitation
      - indirect export
        
        Export with the help of intermediary third parties who are legally and economically separate from the company, e.g., domestic export trading companies
        
        Advantages: initiating customer contact, order acquisition, and supply are outsourced, distinct knowledge of the market and the industry
        
        Disadvantages: lower quality of customer service, intermediary operates according to their own priorities
      - Direct export
        
        The exporting company sells its products on foreign markets without intermediaries OR engages a foreign importer
        
        Advantages: control of quality, protection of immaterial assets
        
        Disadvantages: more expensive
      - Joint venture
        
        A jointly controlled company to which the partners contribute funds, expertise, and often already existing company shares
        
        Advantages: country regulations, market know how
        
        Disadvantages: investments in physical, capital, and human resources, major coordination efforts, risk of imitation
      - Subsidiary
        
        Legally autonomous businesses in the foreign market, newly founded or acquired
        
        Forms
        
        Representative office: Individual company employees represent the company’s concerns abroad, monitor the market, initiate and maintain business contacts, and carry out acquisition activities
        
        Branch offices: more extensive decision-making powers
        
        Sales offices: store goods sold and carry out maintenance and service features
        
        Advantages: control over foreign business activities, relationships
        
        Disadvantages: capital-intensive
    - - Define each mode of entry, provide advantages and disadvantages
      - List modes of entry with direct export but nodirect investment
      - Chose a suitable mode of entry based on a case scenario
      - List modes of entry with direct export anddirect investment
      - Describe the multi-stage model of market entry
        
        Stage 1: indirect export and weak relationships
        
        Stage 2: direct, active exports, by assigning intermediaries abroad as well as licensing agreements
        
        Stage 3: Joint ventures, establishing an international division
        
        Stage 4: Subsidiaries, reorganizing towards regional or individual product matters
    - - Cross-national
        
        Waterfall strategy
        
        Gradual market entry, one after another
        
        Advantages: less resources, lower risk, the possibility to stop entering new markets, and the creation of “strategic bridgeheads”
        
        Disadvantages: competitors introducing imitation products, premature decisions
        
        Sprinkler strategy
        
        Company enters all selected countries at once
        
        Advantages: enter markets before competitors, protection against the product becoming obsolete, establish barriers to entry, balance risks between different national markets,quickamortization
        
        Disadvantages: financial and personnel resources, higher level of coordination
      - Country-specific
        
        Pioneer strategy
        
        First in a market
        
        Advantages: establish barriers to entry, ensure a larger market share
        
        Disadvantages: higher costs for market development, competitors can enter at much lower (“free riders”), risk
        
        Follower strategy
        
        Follower in a market
        
        Advantages: lower market development costs, assessment of demand and consumers’ needs
        
        Disadvantages: barriers to entry, lost opportunity
- - - - Pre-determined and instrument-based questions
      - Statistical analysis & interpretation
      - Experimental designs, surveys
        
        Non-experimental Survey
        
        Non-experimental = no control group
        
        Also called cross-sectional survey
        
        Most widely used tool in marketing research
        
        Shed light on a broad range of issues affecting marketing
        
        Systematically gather information about relevant issues
        
        Typically focused, closed-ended questions (i.e.with boxes to check)
        
        No interviewer bias
        
        Can be standardized
        
        Very flexible administration (mail, online etc.)
        
        QUANTITATIVE PRIMARY RESEARCH
        
        Special Case: In-Person Survey
        
        Can still use the standardized questionnaire
        
        Used when more explanation is required
        
        But: interviewer bias and social desirability bias (respondents might give wrong answers to appear “better” than they are)
        
        More controlled situation, filter questions etc.
        
        Non-experimental Observation
        
        Watching and analyzing the actions of research subjects in natural or staged conditions
        
        −
        
        Directly observe the actions of people as they respond to specific stimuli in real time
        
        −
        
        Unconscious behavior can be recorded
        
        −
        
        Does not rely on willingness/ability to provide information
        
        −
        
        Cookie tracking, purchase tracking (loyalty programs) a more quantitative approach
      - Large samples
      - General insight
      - Numerical, representative results
      - Often used as descriptive research
      - Market data
      - Industry statistics
      - Annual reports
      - Sales data
    - - Open-ended questions
      - Emerging methods
      - Themes, patterns, interpretation
      - Case studies
      - Focus groups
        
        Discussion of a topic with a group of 8-12 people
        
        Extract wealth of information in short period of time
        
        Group dynamics: generating ideas together
        
        Trend: online focus groups, international focus groups
        
        Indirect questions to encourage arguments and counter-arguments
        
        Required skills for the moderator: time management, relationship, listening, and group management skills, objectivity and neutrality
        
        Free discussion lead by a moderator
      - Small samples
      - Deep insight
      - Results are not representative
      - Often used as exploratory research
      - Interviews
  - - - Customer complaints
      - Social media comments
      - Online reviews
      - Existing qualitative reports
    - - Disadvantages
        
        Fit
        
        Accuracy
      - Advantages
        
        Cost
        
        Time
  - - - be a stimulus for new marketing decisions
      - Should we enter market? Should we produce own content? Should we change the pricing?
    - - estimate changes in marketing- − relevant factors
      - How will viewing habits, the competition, regulatory landscape etc. develop?
    - - evaluate and choose alternate market approaches
      - Should we license content or produce our own? Which payment model is best?
    - - effectiveness of the marketing measures
      - What is our content engagement or customer retention? (KPIs)
    - - what has led to specific results
      - e.g., Is our content not attractive or is the weather too nice?
  - - - Language – use of parallel and back-translation of instruments necessary
      - Calibration (units of measurement)
      - Metric (scale design)
    - - Sampling frames, procedure, sample
- - - - tangible benifits
        
        Aesthetic and prestige benefits
        
        Brand, interface, multiple screens
      - Augmented benifits
        
        Customer service
        
        Personalization, watching experience
      - Core Benifits for customers
        
        Easy access to watchable content
  - - - Intensity dimension (How innovative is it?)
        
        Streaming since 1993, Youtube2005, Netflix 2007 not new technology, but business model
      - Time dimension (When and for how long is it considered innovative?)
        
        Fast-moving technology
      - Subject dimension (To whom is this new?)
        
        Netflix is considered a disruptive business model
      - Spatial dimension (Where is it considered innovative?)
        
        Differences between markets, pioneer vs. follower strategy
    - - International companies are better at innovating due to more diverse employee pool
      - Examples: Water filters, solar panel devices etc.
      - Developing a product tailored to the needs of a developing or emerging country and then offering it in industrialized countries
  - - - consumers examine, compare, and evaluate
        the product
    - - consumers are interested in the product and look for more
        information
    - - consumers test the product
    - - consumers buy the product
    - - consumers notice the product but
        do not have any information about it
  - - - Only offer “stars” (highest potential for standardization)
      - Cultural specificity
      - When the full portfolio is not in demand in certain markets
    - - e.g., Netfix, Amazon
      - When more variety is needed due to market requirements
    - - When only active in a few, comparatively homogeneous national markets
      - Offer products that are not strongly connected to cultural features, and
      - Product mix is relatively limited
  - - - Legal Restrictions
      - Cultural and sociodemographic factors
      - Technological restrictions
    - - Completely standardized (identical products offered all over the world)
      - Modular design approach (product components are altered for each country, separate assembling)
      - Completely differentiated (high degree of country-specific adaptation)
      - In-built flexibility (highly standardized product can be used in different technological environments, adjustment is transferred to the consumer)
  - - - relationship between a company’s products
    - - linguistic marker of a brand
    - - Point of difference positioning (differentiation strategy)
      - Point of parity positioning (similarity strategy)
    - - typographic design (logo) and/or visual design of the brand name
    - - geographic region of a brand − Regional, national or international brand
    - - Pro: low risk, shared costs, acceptance in trade sector
      - Con: negative spillover, ambiguous brand image, coordination needs
    - - Pro: shelf space, keep consumers who like to switch brands, no negative spill-over
      - Con: over-segmentation, cannibalization, low economies of scale effects
    - - Con: cost, coordination between countries, amortization for short lifecycles
      - Pro: potential to build a global brand and economies of scale, specific positioning, no spill-over, no coordination needs between brands)
    - - Pro: low risk, acceptance in trade sector, shared costs
      - Con: negative spillover, ambiguous brand image, coordination needs
- - - - Product
        
        Pre-fabricated
        
        Low product specificity
        
        Anonymous market
        
        Exporting strategies
        
        Examples:Ball-bearings, thread
      - Investment
        
        Tailor-made
        
        Sold prior to manufacturs
        
        Follow the customer
        
        Example: Waste incineration plant
      - Systems
        
        Interlinked
        
        Follow the customer, segmentation
        
        Example: Operating system
      - Supply
        
        Long-term
        
        Follow the customer
        
        Active selection of markets
        
        Example: Car parts
  - - - User
      - Buyer
      - Influencer
      - Gatekeeper
      - Decider
  - - - How do we maintain an influence on the market appearance and presence of our products?
      - How do we control distribution channels?
    - - members of a distribution channel work together to meet consumer needs
      - Forms
        
        One member owns the others
        
        Independent, but joined by contract (e.g.franchising
      - Advantages
        
        Secure sales channels through controlled distribution
        
        Brand & trust
        
        Time to market & efficient flow of goods
        
        Target group congruence and quality at POS
        
        Independence of distribution partners
    - - What characterizes consumer goods marketing?
      - What are the advantages of verticalization?
  - - - Product range structure Vs Product business type/ Type of business concept.
    - - Wal-Mart, Aldi
    - - Rewe/Billa, Aldi/Hofer, Tesco/Kipa(until2017)
    - - IKEA, Zara, The Body Shop, Benetton
  - - - (Traditional 4 P’s: Product, price, place, promotion)
      - Additional P’s
        
        People (staff)
        
        Process (capacity management)
        
        Physical evidence (environment of service)
    - - Adapt to local conditions
      - Grant adequate decision-making (empowerment)
      - Motivation: incentive and target systems
      - Management can set an example of service-orientation
      - Desirable corporate culture
      - Clear quality and behavior standards
    - - What characterizes service marketing?
      - What are the 7Ps of service marketing?
      - How can capacity management be improved?
      - Apply 7Ps in a scenario.
- - - - Observing customers
        What are they willing to pay?
        
        Price threshold approach
        
        Price corridor approach
        
        Microeconomic approach
    - - Aggressive or defensive
    - - Cost-accounting information Cost + Profit
      - Lower price limits
      - Easy, for export business
  - - - Consumer
        Related
        
        Image
        
        Buying power
        
        Preferences
        
        Arbitrage tendency
      - Supplier
        Related
        
        Company cost
      - Competition Related
        
        Competitive situation
        Re-imports
      - Environmental
        
        Inflation/currency
        
        Taxes
        
        Sales channel differences
  - - - Discounts allowed?
      - Specific rates?
- - - - No option to review historical data to compare effect of standardized/differentiated promotional approaches in new markets
      - Only a hypothetical ‘optimal level of standardization’, which leads to a plausible differentiation/standardization level
      - Suitable tools for measuring the contribution of promotional activities to long-term revenue creation are still lacking