chapter four country attractiveness mkt568 global marketing management dr. fred miller 3-1
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Chapter Four Country Attractiveness
Chapter Four Country Attractiveness
MKT568
Global Marketing Management
Dr. Fred Miller
3-1
Environmental Dimensions for Research
Political Risk Forms and levels of risk
Physical Climate, topography, space, pop
density, etc
Sociocultural Social interaction, hierarchies, interdependence, etc
Economic Income, employment, prices, development, etc
Regulatory Government agencies and systems, laws,ordinances, etc.
Porter’s DiamondCompetitive Advantage for Countries
Porter’s DiamondCompetitive Advantage for Countries
Firm strategy, structure and rivalry
Related and supporting industries
Demandconditions
Factorconditions
Source: Adapted and reprinted with the permission of the Free Press, a division of Simon and Schuster, from The Competitive Advantage of Nations, by Michael E. Porter. Copyright © 1990 by Michael E. Porter
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Political Risk FactorsPolitical Risk Factors
Exhibit 4.2 Source: Steven J. Kobrin, “Political Risk: A Review and Reconsideration,” Journal of International Business Studies 10, no.1 (1979), p. 67-80. Reprinted by permission.
Factors Level 1: General Instability
Examples Revolution, External aggression
Level 2: Expropriation
Nationalism, Contract revocation
Level 3: Operations
Import restrictions, Local content rules, Taxes, Export requirements
Level 4: Finance
Repatriation restrictions, Exchange rates
Sample Political Risk Report
Basic Evaluation Procedure
Four stage process & data sources Project Componentcountry identification: Introduction
grouping,
preliminary screening: Part 1 Business Int’l indices
in depth screening: Part 2DoC ID: msumgtmkt, PW racersCommercial data: Euromonitor, DIALOG
final selection: prior data, judgment Analysis of reportsSpecial criteria
Competitive attack, leading markets, Direct experience
Country Teams
Latin America
Argentina
Brazil
Chile
Mexico
Asia
China
India
Indonesia
Japan
South Korea
Thailand
Europe
France
Germany
Italy
Spain
UK
World Bank Comparative Data
Population Pyramids
Basic Evaluation Procedure
Four stage process & data sources Project Componentcountry identification: Introduction
grouping,
preliminary screening: Part 1 Business Int’l indices
in depth screening: Part 2DoC ID: msumgtmkt, PW racersCommercial data: Euromonitor, DIALOG
final selection: prior data, judgment Analysis of reportsSpecial criteria
Competitive attack, leading markets, Direct experience
Euromonitor Data for In Depth Screening
Data Sources in International Market Assessment
At what stage of the international market assessment process would you typically use each of the following sources of data?
Personal interviews with potential intermediaries in the country
Statistical information from various sources
Market studies purchased from Euromonitor or other sources
Lists of the world’s countries
Trade reports purchased from industry associations
Descriptive information on cultural/religious/ethnic factors
US DoC’s consular lists of potential agents
Forecasting Methods (Pro Forma)
Early Product Life Cycle (PLC) stagesbuild-up, analogy, judgemental-jury,expert,Delphi
Later PLC stagesextrapolation, regression
Forecasting market sharecompetitors, domestic and import competition
Yearly Increase in Household Ownership of TV Sets, 1946-70
Yearly Increase in Household Ownership of TV Sets, 1946-70
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Exhibit 4.8
Source: Lindberg, 1982. Adapted with permission. ©1982 by the American Marketing Association.
1970196519601955195019460
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10
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United States United Kingdom Germany,West
Forecasting Methods (Pro Forma)
Early Product Life Cycle (PLC) stagesbuild-up, analogy, judgemental-jury,expert,Delphi
Later PLC stagesextrapolation, regression
Forecasting market sharecompetitors, domestic and import competition
Sample Essay Questions
HouseHelp Inc. produces a line of moderately priced, handheld electronic kitchen appliances which it markets on the benefits of convenience, ease of use and time savings. For its international market assessment analysis, the firm wishes to use one statistical measure related to each of the following: target market, product strategy, distribution strategy, promotion strategy and pricing strategy. Identify one measure for each factor and explain its relevance.
Statistics and Marketing Strategy
Total GNI ($US bil)GDP growth rate GNI per capita ($US)GNI per capita PPP($US)Gini = Income to top 10%Inflation RatePopulationAge DistributionUrbanizationLiteracyLife Expectancy
Child MalnutritionEnergy use per capitaKM of paved roadsInternet users per 1000Percent HHs with TVMainline phones per 1000 peopleMobile subscribers per 1000International voice/bandwidth Consumer Expend Beer $US MilBeer as % of Alcohol SpendingPer Capita Consump (L’s per head)VAT on beer (% of price)
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Match Statistics with Strategy ElementsMatch Statistics with Strategy Elements
Target Market: definition, size, purchasing power, etc
Product: brands, lines, characteristics, packaging, etc
IMC: message, media, promo, sponsorship, etc.
Distribution; breadth, intensity, stores, HORECA, etc
Price: levels, lines, discounts, channel, etc
Sample Essay Questions
HouseHelp Inc. produces a line of moderately priced, handheld electronic kitchen appliances which it markets on the benefits of convenience, ease of use and time savings. For its international market assessment analysis, the firm wishes to use one statistical measure related to each of the following: target market, product strategy, distribution strategy, promotion strategy and pricing strategy. Identify one measure for each factor and explain its relevance.
How would these measures change for; 1) a consumer electronics company, 2) a producer of branded food products, 3) a cosmetics firm, 4) a specialty retailer, or 5) a mass merchandise retailer.
Sample Essay Questions
HouseHelp Inc. produces a line of moderately priced, handheld electronic kitchen appliances which the firm markets on the benefits of convenience, ease of use and time savings.
Identify and explain one method for forecasting sales in countries where this type of product is new. For countries where this type of product has been sold for many years. Identify and explain two factors you would use to estimate the firm’s market share in the first year after entry.
Chapter Four Country Attractiveness
Chapter Four Country Attractiveness
MKT568
Global Marketing Management
Dr. Fred Miller
3-1