1. Assessing Global Market Opportunities Presented By: Nikita, Gaurang, Mitesh, Bharat M

2. Flow of Presentation Marketing Information System Global – MIS Sources of Market Information Market Research Global Marketing Strategy: Entry and Expansion Strategies Market Expansion Strategies Stages of Development Major Concerns with International Alliances 17 March 2011 Stevens B School Batch 2009-2011

3. Global Marketing Information Systems and Research 17 March 2011 Stevens B School Batch 2009-2011

4. Information Data: Un-analyzed, raw facts and figures Information: Data put in a format where it can be analyzed and inferences can be made out of it, to aid managerial decision making Scanning: Process of information acquisition Major problems faced with information are abundance and scarcity. 17 March 2011 Stevens B School Batch 2009-2011

5. Marketing Information System A continuous flow of information regarding the markets, customers, competitors, and company operations is called Marketing Information System. Points of concern: Appreciating IT and MIS as strategic assets Need for a framework for information scanning and opportunity identification General understanding of market research process Management of MRIS 17 March 2011 Stevens B School Batch 2009-2011

6. Global - MIS Types of Marketing Information to look for – 17 March 2011 Stevens B School Batch 2009-2011

7. Scanning Modes Surveillance Informal information gathering Viewing: General exposure to information Monitoring: Particular news story, special reference to a company Search Formal activity Deliberate seeking out of special information 17 March 2011 Stevens B School Batch 2009-2011

8. Sources of Market Information 17 March 2011 Stevens B School Batch 2009-2011

9. Marketing Research Definition The systematic gathering, recording and analyzing of data to provide information useful in marketing decision making Complications in marketing research Information must be communicated across cultural boundaries The environments within which the research tools are applied are often in foreign markets 17 March 2011 Stevens B School Batch 2009-2011

10. Steps in Formal Marketing Research 17 March 2011 Stevens B School Batch 2009-2011

11. Steps in Formal Marketing Research Identifying the Research Problem Developing a Research Plan Collecting Data Secondary Data Problems in secondary data Availability of data Reliability of data Comparability of data Validating secondary data 17 March 2011 Stevens B School Batch 2009-2011

12. Steps in Formal Marketing Research Primary Data and Survey Research Sampling Methods Probability sampling Random Stratified Systematic Cluster multistage Non probability sampling Convenience Judgmental Quota snowball 17 March 2011 Stevens B School Batch 2009-2011

13. Steps in Formal Marketing Research Problems in Primary data Ability to communicate opinions Willingness to respond Sampling in field surveys Language and comprehension Multicultural research Research on the internet 17 March 2011 Stevens B School Batch 2009-2011

14. Steps in Formal Marketing Research Analyzing Research Data Problems in analyzing and interpreting research information A high degree of cultural understanding A creative talent for adapting research findings is necessary A skeptical attitude in handling both primary and secondary data is helpful Demand Pattern Analysis Income Elasticity Measurements Market Estimation Analogy Cluster Analysis Analyzing Results Presenting the Findings 17 March 2011 Stevens B School Batch 2009-2011

15. Current Issues in Global Marketing Research Headquarters control of Global Marketing Research Multinational Company Global Company The Marketing Information System as a Strategic Asset 17 March 2011 Stevens B School Batch 2009-2011

16. Global Marketing Strategy: Entry and Expansion Strategies 17 March 2011 Stevens B School Batch 2009-2011

17. Decision Criteria For International Business Political Risk Market Access Factor Costs and Conditioning Shipping Considerations Country Infrastructure Foreign Exchange Creating a Product-Market Profile Market Selection Criteria Market Potential Market Access Shipping Costs Potential Competition Service Requirements Product Fit Visits to the Potential Market 17 March 2011 Stevens B School Batch 2009-2011

18. International Market Entry and Expansion Decision Model 17 March 2011 Stevens B School Batch 2009-2011

19. International Market Entry Exporting Licensing Franchising Joint Venture FDI – Fully Owned Manufacturing Facilities M&A Contract Manufacturing Management Contract Turnkey Contract Assembly Operations Counter Trade Barter Buy Back Compensation Deal Counter Purchase Strategic Alliance Third Country Location 17 March 2011 Stevens B School Batch 2009-2011

20. Exporting When a firm produces its products in the domestic market and/or a third country and then transfers either directly or indirectly to the host market, it is called an Export transaction. Indirect Export Direct Export Cooperative Export 17 March 2011 Stevens B School Batch 2009-2011

21. Indirect Export Modes Using an independent export organization from the domestic country and not having their own export department is called in-direct export. Export Buying Agent: Buy and Sell a product Broker: Buyer-Seller meeting Export Management Company: Export dept. for several unrelated companies Performs market research, channel selection, financing & shipping arrangements, and documentation Trading Company – Performs marketing operations Piggyback – Arrangement whereby one manufacturer obtains distribution of products through another’s distribution channels 17 March 2011 Stevens B School Batch 2009-2011

22. Direct Export Modes Manufacturer sells directly to an importer, agent or distributor located in the foreign target market. Distributors Agents 17 March 2011 Stevens B School Batch 2009-2011

23. Licensing A contractual arrangement whereby one company (the licensor) makes an asset (patents, inventions, formulas, process, designs, copyrights & trade marks) available to another company (the licensee) in exchange for royalties or license fees 17 March 2011 Stevens B School Batch 2009-2011

24. Franchising The franchisor gives a right to the franchisee against payment, e.g. a right to use a total business concept/system, including use of trade marks (brands), against some agreed royalty. 17 March 2011 Stevens B School Batch 2009-2011

25. Joint Venture and Strategic Alliance 17 March 2011 Stevens B School Batch 2009-2011 Joint Venture: Allows company to own a stake & play a role in operations Eg.: ICICI bank and Prudential Insurance Strategic Alliance: Understanding or arrangement among the players in a market to expand to new market, gain quick access to new technology or avoid competion

26. Joint Ventures and Strategic Alliances Y-coalitions 17 March 2011 Stevens B School Batch 2009-2011 Supplier Manufacture Marketer Retailer Supplier Manufacture Marketer Retailer Upstream-based collaboration Downstream-based collaboration

27. Joint Ventures and Strategic Alliances X-coalitions 17 March 2011 Stevens B School Batch 2009-2011 Supplier Manufacture Marketer Retailer Supplier Manufacture Marketer Retailer Upstream/downstream-based collaboration

28. Other Market Entry Strategies 17 March 2011 Stevens B School Batch 2009-2011

29. Other Market Entry Strategies 17 March 2011 Stevens B School Batch 2009-2011

30. Market Expansion Strategies MARKET SEGMENT Concentration Diversification 2. Country Focus 1. Narrow Focus Concentration COUNTRY 3. Country Diversification 4. Global Diversification Diversification 17 March 2011 Stevens B School Batch 2009-2011

31. Stages of Development Model 17 March 2011 Stevens B School Batch 2009-2011

32. Stages of Development: Strengths 17 March 2011 Stevens B School Batch 2009-2011

33. Major Concerns with International Alliances Objectives Partner Mindshare Resources Pooled Culture Success Rate Regulations Negotiations – Contract renewals Credibility – Gain or Loss 17 March 2011 Stevens B School Batch 2009-2011

34. The Nature of the Global Strategic Partnerships 17 March 2011 Stevens B School Batch 2009-2011 Global strategic alliances growing at a rate of 20 to 30 % since the mid 1980s. The upward trend for GSP ( global Strategic Partnership) comes in part at the expense of traditional cross-border mergers and acquitions. Why a firm would enter into GSP? Roland Smith , Chairman of British aerospace, said “ A partnership is one of the quickest and cheapest ways to develop a global strategy. Like traditional joint ventures.

35. Advantages and disadvantages of GSP 17 March 2011 Stevens B School Batch 2009-2011 Disadvantages: Each partner must be willing to sacrifice some control, There are potential risk associated with strengthening a competitors from another country. Advantages: High product development costs may force a company to seeks partners. The technology requirements of many contemporary products mean that an individual company may lack the skills , capital, know- how to go it alone. Partnership may be the best means of securing access to national and regional markets. It also provides learning opportunities and experts regards GSPs as a “ race to learn”. Prof. Gary Hamel(London Business school) has observed that the partner that proves to e the fastest learner can ultimately dominate the relationship.

36. Traditional Joint venture and GSP are totally different. 17 March 2011 Stevens B School Batch 2009-2011 Traditional joint venture are basically alliance or focusing on a single national market or a specific problem . Where, GSP is distinguished by six attributes. Two or more company develop joint long term strategy aimed at achieving world leadership by pursuing cost leadership, differentiation, or combination of the two. The relationship is reciprocal. Each partner possesses specific strengths that it shares with the others: learning must take place on all sides. The partners vision and efforts are truly global, extending beyond home countries and home regions to the rest of the world. If the relationship is organized along horizontal lines, transfer of laterally between partners and technology sharing and resource pooling representing norms required. If relationships is along vertical lines both partner must understand their core strength and be able to defend their competitive position against the possibility of either a forward or backward integration. When competition in market excluded from the partnership, the participant retain their national and ideological identities.

37. Success factor 17 March 2011 Stevens B School Batch 2009-2011 Mission Strategy Governance Culture Organization Management Successful collaborators will be guided by the following four principle: Partners are pursuing mutual goal in some areas, they are competitors in others. Harmony is not the most important measure of success, some conflict is to be expected. All employees understand where cooperation ends and competitive compromise begins. Learning from partner is critically important.

38. Alliances and Partnerships 17 March 2011 Stevens B School Batch 2009-2011 Alliance between manufacturers and marketers International partnership in developing countries Cooperative strategies in Japan Beyond strategic alliances

39. Thank You 17 March 2011 Stevens B School Batch 2009-2011