Question No. 5 - IBO - 02 International Marketing Management Mcom 1st Year

Solutions to Assignments 

IBO-02 International Marketing Management

Question No. 5 Comment briefly on the following statement: 

(a) In addition to the general considerations in packaging, there are certain special factors to be considered in export packaging. 

There are certain special factors to be considered in export packaging design. These factors relate to

1. Language

A package does promotion functions too. The literature printed on the package material must be in local language. Then only a majority of the users can understand the product information the package label bears. Thus, language is one of the important considerations to be borne in mind while designing export packaging

2. Regulations in the foreign countries

Packaging is subject to government regulations in foreign countries. Packaging standards are specified for certain commodities. If packaging does not comply with foreign regulations, it may attract punitive action.

3. Buyer’s specifications

Sometimes, buyers specify their requirements with regard to packaging. They may like to purchase the product in a specific form which may be convenient to them. When the package is in the form of a tube rather than a jar, it would be easy for the buyers to handle the package of the product till it is used up.

4. Length of the distribution channel

Channel distribution is the pathway of reaching goods to the ultimate consumers. A lengthy distribution channel involves too many middlemen taking a longer time between production and final consumption. Then the package must endure the rigors of travel and handling in the long distribution channel. Stronger packaging is preferred in such cases.

Depending upon the time factor involved in the distribution channel, packaging must be designed. A package should be capable of withstanding the stresses of handling in transport and storage.

5. Environmental factors

Environmental factors like weather and climatic conditions greatly influence the package design. A tropical country requires different packaging than for a country with cold climate.

6. Disposability of packages

Generally, consumers in developed countries prefer disposable containers. If the package is disposable immediately after use, then due care must be given to the package material. The package material should not cause environmental hazards. It would be better if the material could be recycled.

7. Size of package

The size of the package is one of the important considerations in designing packages. It depends upon the buying characteristics of consumers. If buyers purchase regularly at short intervals, then the size of the package can be small. On the other hand, buyers with freezers at home may prefer big packages.

(b) International marketing displays an interesting paradox with respect to control situation. 

Marketers assume that the else choices they offer, the more likely guests will be fit to find just the right thing. They assume, for illustration, that offering 50 styles of jeans instead of two increases the chances that shoppers will find a twain they really like. International marketing displays an interesting paradox with respect to control situation. Notwithstanding, probe now shows that there can be too substantial choice; when there is, consumers are less likely to buy anything at all, and if they do buy, they're less satisfied with their selection.

 It all began with jam. In 2000, psychologists Sheena Iyengar and Mark Lepper published a remarkable study. On one day, shoppers at an upmarket food request saw a display table with 24 strains of gourmand jam. International marketing displays an interesting paradox with respect to control situation. Those who tried the spreads took a ticket for$ 1 off any jam. On another day, shoppers saw a resembling table, except that only six strains of the jam were on display. The large display attracted further interest than the small bone. But when the time came to take, people who saw the large display were one-tenth as likely to buy as people who saw the small display.

 Other studies have Vindicated this result that other choice isn't always better. As the variety of snacks, soft drinks, and beers offered at convenience stores increases, for specimen, transactions volume and punter satisfaction shrinkage. Either, as the number of withdrawal investment options available to workers increases, the chance that they will choose any shrinkages. International marketing displays an interesting paradox with respect to control situation. These studies and others have shown not only that undue choice can produce “ choice palsy,” but also that it can reduce people’s satisfaction with their verdicts, yea if they made good bones. My confreres and I've start that increased choice decreases satisfaction with matters as trivial as ice cream flavors and as significant as jobs.

These results challenge what we suppose we know about natural nature and the determinants of well- being. Both psychology and business have operated on the supposition that the relationship between choice and well- being is straightforward International marketing displays an interesting paradox with respect to control situation. The other choices people have, the better off they are. In psychology, the benefits of choice have been tied to autonomy and control. In business, the benefits of choice have been tied to the benefits of free requests more generally. Added options make no bone worse off, and they're bound to make someone better off.

 Choice is good for us, but its relationship to satisfaction appears to be more complicated than we had assumed. There's lowering frontier usefulness in having volitions; each new option subtracts a little from the feeling of well- being, until the frontier benefits of added choice standing out. What’s more, psychologists and business academics similarly have largely ignored another product of choice Fresh of it requires increased time and trouble and can lead to anxiety, rue, monstrously high expectancies, and nature- blame if the choices do n’t work out. When the number of available options is small, these costs are negligible, but the costs grow with the number of options. Ultimately, each new option makes us feel worse off than we did anteriorly.

(c) The revolutionary changes in the information technology is sweeping across global business. 

The effects of technological change on the global economic structure are creating immense transformations in the way companies and nations organize production, trade goods, invest capital, and develop new products and processes. Sophisticated information technologies permit instantaneous communication among the far-flung operations of global enterprises. New materials are revolutionizing sectors as diverse as construction and communications. Advanced manufacturing technologies have altered long-standing patterns of productivity and employment. Improved air and sea transportation has greatly accelerated the worldwide flow of people and goods.

All this has both created and mandated greater interdependence among firms and nations. The rapid rate of innovation and the dynamics of technology flows mean that comparative advantage is short-lived. To maximize returns, arrangements such as transnational mergers and shared production agreements are sought to bring together partners with complementary interests and strengths. This permits both developed and developing countries to harness technology more efficiently, with the expectation of creating higher standards of living for all involved.

Rapid technological innovation and the proliferation of transnational organizations are driving the formation of a global economy that sometimes conflicts with nationalistic concerns about maintaining comparative advantage and competitiveness. It is indeed a time of transition for firms and governments alike. This book provides a broad overview of these issues and seeks to shed light on such areas as the changing nature of international competition, influences of new technologies on international trade, and economic and social concerns arising from differences in national cultures and standards of living associated with adoption and use of new technologies.

At the institutional level, private enterprises are the principal instruments in many countries for developing and using technology, although governments play an important enabling role. The task of private enterprises is to be knowledgeable about the current state of science and technology, to understand the needs of the marketplace, and then to create technologies, products, and services that best meet those market needs. Morris Tanenbaum pointed out that this endeavor embraces many disciplines (basic science, engineering, production, distribution, marketing, and finance) and individual motivations. Many participants and observers of the contemporary technological scene propose that we are going through a period of discontinuous change as the breadth of technological applications expands and the time scale of change becomes shorter. For example, markets are becoming more global as transportation and communication speed the flow of knowledge of new products, and greater investment is being made in research and development (R&D) as technological capability has expanded. This process has placed new demands on organizations as they strive to obtain quick and effective market information and access, recoup their R&D investment more quickly, and recognize the importance of sharing technological capabilities. This is particularly true with regard to the information technologies—the one technology most rapidly changing other technologies. It achieves its greatest power when it is most global; where it provides the means to obtain access to the information systems of other countries and establish arrangements that promote the transfer of technology.

Government plays a central role in technology issues at the national level. Technology has now become a part of almost every political discussion as politicians have realized the impact of technology on world events. Governments vary in the way they influence and exploit technological changes, for example, through regulation, procurement, protectionist policies, and support of R&D. Public attitudes among various countries also differ, and these differences can affect governmental technology policy. “Given the fact that there is no ‘correct’ way of dealing with technologies which is applicable to all countries,” Sir Robin Nicholson commented, “each country must find its optimum way depending on its history, institutions, and public attitudes.” This implies that countries will move forward at different speeds, creating imbalances among nations. In this respect, multinational corporations, responsibly managed and sensibly treated by the countries in which they invest, and transnational joint ventures serve an important function by promoting global equilibrium.

From an international perspective, the main issue is to sustain and improve world growth and improve growth per capita. This breaks down into the problems of Western Europe, Japan, the United States, Eastern Europe and the Soviet Union, and the problems of the more and less advanced developing countries. Robert Malpas noted that it becomes essential for all these players to harness technology for growth; however, this effort is frequently constrained by protectionism, concerns about intellectual property, the demands of international marketing and finance, and, of course, national security. The net result appears to be that emerging nations, with a few exceptions, have even more difficulty achieving the growth necessary to close the gap with leading nations. Among the trends at the international level that can help sustain and improve world growth: the rebirth of interest in manufacturing, the spread of expert systems which multiply skills and help in the industrialization process, the acceptance of multinational corporations, the privatization of various industries, and the increased interest of governments in technology.

(d) A market research report must use the format that best fits the needs and desires of its readers. 

In essence, a market research report is a document that reveals the characteristics of your ideal customers, their buying habits, the value your product or service can bring to them, and the list of your top competitors.

The marketing research report paints a picture of what kinds of new products or services may be the most profitable in today’s highly competitive landscape. For products or services already available, a marketing research report can provide detailed insights as to whether they are meeting their consumers’ needs and expectations. It helps understand the reasons why consumers buy a particular product by studying consumer behavior, including how economic, cultural, societal, and personal factors influence that behavior.

Furthermore, the purpose of writing a marketing research report is to make calculated decisions about business ideas – whether they’re worth pursuing or not. This requires one primary skill which is observing the pattern which is hidden in the User Generated Content (UGC) written in different tones and perspectives on the social web.

Simply put, writing a market research report is a vital part of planning business activities and serves as a neat way to assimilate all the information about your target market and prospective customers.

Now, there are two key varieties of marketing research report formats – primary and secondary.

Primary vs. Secondary Market Research

Let’s take a look at the main recipes of how to make a market research report in detail:

Primary Research

This method of marketing research involves gathering firsthand information about your market and prospective clients. You study your customers directly by conducting:

• Interviews (either by telephone or face-to-face)
• Surveys and polls (online or by email)
• Questionnaires (online or by email)
• Focus groups discussions with a sample of potential customers and getting their direct feedback
• Some crucial questions that you need to ask your prospective customers in your primary research are:

What are the factors that motivate you to purchase this product or service?

What do you like or dislike about this type of product or service already available on the market?

Are there any areas you’d like to suggest for improvement?

What according to you is the appropriate price for this product or service?

Primary research also involves analyzing competitors’ strategies, so you can find gaps and weaknesses that you can turn into your strengths.

Secondary Research

The second method of writing a marketing research report is all about analyzing the data that has already been published and using the available information on the web. That is, secondary research is done from reliable reports and statistics found on the websites of other organizations or authority blogs in your industry.

Sources can be:

Public: This includes all the free sources like social media and forums, Google Trends, YouGov, and government sources such as the United States Census Bureau.

Commercial: This includes industry insights compiled by research agencies like Pew, Gartner, Forrester, and so on. Typically, these are paid.

Internal: This is the historical market data your organization already has in-house, such as the Net Promoter Score, customer churn rate, and so on.

Secondary data can help you identify competitors, establish benchmarks, and determine target customer segments or demographics – people who live a certain lifestyle, their income and buying patterns, age group, location, etc.

How to Prepare Market Research Report

Now, here are some concrete steps and guidelines for writing a marketing research report.

Step 1: Cluster the Data

First off, compile all the relevant data you’ve accumulated from your primary and/or secondary research efforts. Survey results, interview answers, statistics from third-party sources – bring it all together and then analyze the information to sketch out the profile of your target market.

Step 2: Prepare an Outline

Next, create a skeleton of the report so that you understand what information will go where. An outline with sections and subsections will help you structure your marketing research report properly. A typical report includes an introduction, background and methodology, executive summary, results, and a conclusion with links to all references.

With an outline in front of you, start by writing the front matter of your report – an introduction that provides a brief overview of your business and the reason you conducted the market research. Include a summary of the market research process and the results you have analyzed. For instance, you might have been gauging the feasibility of a new product, so summarize that your market research report is for a new product launch.

Step 3: Mention the Research Methods

An important next step is to clearly mention the methods used to conduct the research. That is, if you conducted polls, specify the number of polls, the percentage of responses, the types of people or businesses targeted, and the questions included in the poll. Tag all the resources for demographic information, such as census data.

Step 4: Include Visuals With Narrative Explanation

Visuals such as charts and graphs are an important part of any research paper. They make sure that the findings are easy to comprehend.

So, create tables, graphs, and/or charts illustrating the results of the research. Accompany it with a narrative explanation of the visual data. Highlight the inferences you made based on this data.

Step 5: Conclude the Report With Recommendations

Finally, conclude your report with a section that lists actionable recommendations based on the research results to facilitate decision making. For example, all the numbers may point to the conclusion that your customers desire a particular feature that no other product on the market is currently offering. In this case, it is clear that it’s a good idea to invest your resources in providing that feature and gain a competitive edge.

At the very end of the report, include reference links to all the sources and an appendix for supplementary materials and further reading.