Global Marketing Key Concepts
Metrics to Evaluate Economic Strength
* Gross Domestic Product: market value of the goods and services produced by a country in a year * Gross National Income: GDP plus net income earned from investments abroad * Human Development Index: a composite measure of quality of life based on life expectancy, education levels, and average incomes * Purchasing Power and Consumer Price Indexes: theory --- if the exchange rates of 2 countries are in equilibrium, a product should cost the same in both, if expressed in the same currency. CPI example: the Big Mac index
Standardization vs. Customization
* Benefit: lower cost structure due to economies of scale * Drawback: may not fit foreign market’s real needs and desires * Customization
* Benefit: product is custom tailored to the foreign market’s preferences * Drawback: higher costs due to product modifications
Assessing Global Markets
Choosing a Global Entry Strategy
Market Research Key Concepts
Reasons For and Uses of Market Research
* Goal: to understand…
* Customer characteristics and needs
* Why, where, and when they buy
* What media they pay attention to
* The DMP and DMU
* Emerging market trends
Three Roles of Market Research (and types of questions answered by each type) * Descriptive: describing facts about the present state or history of the market * Historic sales trends?
* Consumer attitudes toward brand X?
* Diagnostic: gathering facts to explain why something happened in the market * What was the impact of our changed packaging on sales? * Why did sales plummet when we started our new ad campaign? * Predictive: using facts to predict what might happen in the future in the market * How well will our planned new product do in the market? * What new features are customers looking for?
Primary Research and Primary Data vs. Secondary Research and Secondary Data * Primary Research: data gathered specifically to answer the question at hand, by fielding a market study (internally of through a market research vendor) * Lab/market experiments, observational research, surveys, focus groups
* Secondary Research: data gathered previously for another market study or for other reasons (invoices, sales figures, etc.) * Data designed for sale by a 3rd party
* Purchased data, newsgroups, web-based or library searches, blogs
Qualitative Research vs. Quantitative Research
* Qualitative Research: involves face-to-face interviews with respondents to understand their thoughts, feelings, and attitudes regarding a product, price, or advertisement * Smaller in scale, easier to plan/complete, fast results, may not be completely representative * Quantitative Research: involves systematic procedures designed to obtain and analyze data from large scale market samples; usually involves econometric/mathematical modeling * Large scale, more complex, more expensive, better statistical reliability
Steps in the Market Research Process (see last page)
* Research Design
* Sampling Method
* Data Collection
* Data Analysis
* Role of Market Research Vendors in this Process
* Universe or Total Population: the group of persons from which study participants will be chosen * Subject, Sample, and Sample Size
* Subject: a person selected to participate in the market research study * Sample: the group of subjects selected to participate in the study * Probability Sample (examples): every person in the population has a known statistical likelihood of being selected * Random sample, stratified sample, cluster sample
* Non-Probability Sample (examples): no attempt made to select representative cross-section of the population *...