Conclusion of international marketing strategy

Marketing is dynamic because customers are dynamic. Few markets stand still, and companies which stand still tend to find their position over time being eroded by new ideas, fresh ways of doing things or simply fashion cycles. By truly trying to understand the customer, the better companies can keep in touch with their markets. However, although technology alters the way in which market research is conducted, the vital role performed by people in assessing the nuances and cultural influences will still be vital, even if the skills have changed. Market research can be costly and expensive, but it does not have to be that for the smaller company. Informal methods of data collection, simply by keeping close to the key players in any channel, can pay dividends for the smaller company. The best market research is ongoing, continuous and open ended.

Selecting international markets in which to operate is a crucial element of international activity. In this chapter a number of systematic approaches have been outlined. These, however, have been offered for consideration with the warning that a pragmatic and more intuitive approach to market selection may take place. This will be especially true in the micro or smaller firm, where the personal networks and cultural background of the entrepreneur or owner manager will be highly influential. Micro-segmentation, as we have seen, can play an important role in narrowing the range of customers a company can chose to serve, and as a result make it more efficient.

The activities associated with understanding the customer's values interact and feed through into the next stage of the marketing cycle, particularly in relation to the development of the brand. Market research helps to identify and show ways in which the best use of brand equity can be made within different cultural contexts, whilst informing management of buyers' current and future needs. As the marketing cycle in Figure 6.1 implied, these activities are linked, and marketers must ensure in any organization that a dialogue takes place between those responsible for understanding and creating customer related values. The next chapter will continue the discussion of the marketing cycle, by considering the marketing activities associated with creating and communicating customer related values.

Questions for discussion

1. Apply the conceptualization of the marketing cycle discussed in this chapter to the work undertaken by your educational institution with undergraduate or postgraduate students. What happens at each stage of the cycle? How could it be improved?

2. You are to develop a new consumer product for the food sector. Decide the new product's characteristics and then outline what market research you would undertake and why?

3. Why should companies undertake to screen international markets? Why, in some cases, will systematic screening not take place?

4. Compile a list of the key secondary sources of business information available in your country.

5. For the sources identified in question 4, define a number of criteria to judge their usefulness to the smaller business, for example, cost, how recent is the information, breakdowns available, etc. Use a five-point scale (1 very poor; 2 poor, 3 average, 4 good and 5 very good) to produce a ranking of these sources.

6. Select a country and product or service. Using only the Internet, see what information you can find out to assist with a proposed market entry to that market.

7. Discuss the potential problems of using international statistics in a market screening process.

8. Research and discuss how technology is changing the conduct of market research.

9. Quantitative market research and qualitative market research are distinct approaches and should never be mixed. Discuss and justify your views.

10. Understanding what customers are looking for in products and services is a one-off activity. Discuss.

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