Chapter 6

1. Identify the major trends that have influenced world trade and global
marketing.

They have four trends that have affected world trade and global marketing.
First one is decline of economic protectionism by individual countries.
Second one is rise of economic integration and free trade among nations.
Third one is global competition among global companies for global
consumers. Last one is emergence of network global marketspace.
First one is decline of economic protectionism. Protectionism is the
practice of shielding one or more industries within a country’s economy
from foreign competition through the use of tariffs or quotas.
Second one is rise of economic integration. Recently there have a number
of countries with similar economic goals have formed transnational trade
groups or signed trade agreements for the purpose of promoting free trade
among member nations and enhancing their individual economics likes EU
and NAFTA.
Third one is global competition among global companies for global
consumers. Global competition exists when firms originate produce, and
market their products and services worldwide. There have three types of
companies populate and compete in the global marketplace: international
firms, multinational firms, and transnational firms.
Last on is emergence of a networked global marketspace. In this
technological world, people start to use the internet as a tool for
exchanging goods, services, and information on a global scale.

2. Identify the environmental forces that shape global marketing efforts.

There have three kinds of environmental forces: cultural, economic, and

political- regulatory.
Cultural diversity: Markets must be sensitive to the cultural underpinning
of different societies if they are to initiate and consummate mutually
beneficial exchange relationships with global consumers. So there is a
necessary step need to do called cross- cultural analysis. Cross- cultural
analysis which involves the study of similarities and differences among
consumers in two or more nations or societies and understanding for the
 values, customs, symbols and language of other societies.
Economic considerations: global marketing also affected by economic
consideration. Therefore, a scan of the global marketplace should include
economic infrastructure which is a critical consideration in determining
whether to try to market to a country’s consumers and organizations;
consumer income and purchasing power that must consider what the
average per capita or household income is among a country’s consumers
and how the income is distributed to determine a nation’s purchase power;
political- regulatory climate that is not only identifying the current climate
but determining how long a favorable or unfavorable climate will last.

3. Name and describe the alternative approaches companies use to enter

global markets

There have four options for companies use to enter global markets:
exporting, licensing, joint venture, and direct investment.
First one is exporting that producing goods in one country and selling them
in another country. There have two kinds of way in exporting: indirect
exporting which is when a firm sells its domestically produced goods in a
foreign country through an intermediary; Direct exporting which is when a
firm sells its domestically produced goods in a foreign country without
intermediary. Second one is licensing. Under licensing, a company offers
the right to a trademark, patent, trade secret, or other similarly valued item
of intellectual property in return for a royalty or a fee that allows it to start
with a competitive advantage. The licensor forgoes control of its product
and reduces the potential profits gained from it. Third one is joint venture
which is when a foreign company and a local firm invest together to create
a local business and these two companies share the ownership, control, and
profits of the new company. But this option the disadvantages arise when
the two companies disagree about policies or courses of action for their
joint venture or governmental bureaucracy bogs down the effort. Last one
is direct investment which entails a domestic firm actually investing in and
owning a foreign subsidiary or division.

4. Explain the distinction between standardization and customization when

companies craft worldwide marketing programs.

A product may be sold globally in one of three ways involved in the same
 form as in its home country, with some adaptations, and as a totally new
product. Successful global marketers standardize global marketing
programs whenever possible and customize them wherever necessary.
Standardization means all elements like product and promotion are the
same even through in different country and culture. Customization means
that one or more elements are adapted to satisfy the customers’ needs in a
particular country or culture.

Chapter 7

1. Identify the reason for conducting marketing research.

Marketing research is the process of defining a marketing problem and

opportunity, systematically collecting and analyzing information, and
recommending action. Although, marketers conduct marketing research to
reduce the risk of and thereby improve marketing decision.

2. Describe the five-step marketing research approach that leads to marketing

actions.

Step one: define the problem. Every marketing problem faces its own
research challenges. There have two key elements of defining problems:
setting the research objectives which are specific, measurable goals the
decision maker seeks to achieve in conducting the marketing research;
identifying possible marketing actions that effective decision markers
develop specific measures of success, which are criteria or standards used
in evaluating proposed solutions to the problem.
Step two: develop the research plan. In the marketing research process
require that the researcher specify the constraints on the marketing
research activity, identify the data needed for marketing actions, and
determine how to collect the data.
Step three: collect relevant information. Collecting enough relevant
information to make a rational, information marketing decision sometimes
simply means using your knowledge to decide immediately.
Step four: develop findings. After collecting a lot of data, marketer should
analyze the data and present the finding.
Step five: take marketing actions. The process involves make action
 recommendations, implement the action recommendations, and evaluate
the results. Make action recommendations which convert the market
research finding into specific marketing recommendations. Evaluate the
result is a continuing way of life for effective marketing managers. There
have two aspects of this: evaluating the decision itself and evaluating the
decision process used.

3. Explain how marketing uses secondary and primary data.

Secondary data are facts and figures that have already been recorded prior
to the project at hand and divided into two parts: internal and external
secondary data. The internal records of a company generally offer the most
easily accessible marketing information. That may be divided into two
related parts: marketing inputs data which relate to the effort expended to
make sales and marketing outcomes data which relate to the results of the
marketing efforts. The external records which published data from outside
the organization. There have two advantage of secondary data are the huge
time saving because the data have already been collected and published or
exist internally and the low cost.
Primary data are facts and figures that are newly collected for the project
and can be divided into observation data which facts and figures obtained
by watching, either mechanically or in person, how people behave;
questionnaire data which facts and figures obtained by asking people about
their attitudes, awareness, intentions, and behaviors; other source of data,
such as social media, panels and experiments, information technology, and
data mining. Advantage for primary data is more flexible and more
specific to the problem being studied.

4. Discuss the uses of observation, questionnaires, panels, experiments, and

newer data collection methods.

Observation data can be collected by mechanical, personal, or

neuromarketing method. Personal methods is both useful and flexible, but
it can be costly and unreliable when different observers report different
conclusions when watching the same event. Questionnaires data can be
divided into idea generation methods and idea evaluation methods. Idea
generation methods, in the past the most common way of collecting
questionnaires data to generate ideas was through an individual interview.
 Idea evaluation methods, the marketing researcher tries to test ideas
discovered earlier to help the marketing manager recommend marketing
actions. Panels are a simple of consumers or stores from which researchers
take a series of measurements. Experiments involve obtaining data by
manipulating factors under tightly controlled conditions to test cause and
effect.

5. Explain how information technology and data mining lead to marketing

actions.

Information technology involves operating computer networks that can

store and process data. Information technology can be extract hidden
information from large databases. Data mining is the extraction of hidden
predictive information from large databases to find statistical links
between consumer purchasing patterns and marketing actions.

6. Describe three approaches to developing a company’s sales forecast.

Sales forecast is the total sales of a product that a firm expects to sell
during a specified time period under specified conditions. There have three
approaches to developing a company’s sales forecast: judgments of the
decision maker, surveys of knowledgeable groups, and statistical methods.
Judgments of the decision maker that all sales forecast are simply the
judgment of the person who must act on the results of the forecast the
individual maker. A direct forecast involves estimating the value to be
forecast without any intervening steps. A lost-horse forecast involves
starting with the last known value of the item being forecast, listing the
factors that could affect the forecast, assessing whether they have a
positive or negative impact, and making the final forecast. Surveys of
knowledgeable groups, there have two common groups that are surveyed
to develop sales forecast are prospective buyers and the firm’s salesforce.
Statistical methods which the best-known statistical methods of forecasting
is trend extrapolation, which involves extending a pattern observed in past
data into the future.